House passes local bill to appropriate $2 million from CEDA dividends for Third District development, retiree and vendor payments

The House passed House Local Bill 24-21 on Thursday, Aug. 7, 2025, to appropriate $2,000,000 of dividends collected by the Commonwealth Economic Development Authority (CEDA) from the Commonwealth Utilities Corporation (CUC) to assist the Department of Finance and CEDA with funding related to the Third Senatorial District. The bill passed under a substitute version by a recorded vote of 15 yes, 1 no, 1 abstain and 4 absent.

Supporters said the measure addresses immediate funding shortfalls including payments to retirees and vendors and establishes a dedicated appropriation for CEDA operations. Derek Sasamoto, executive director of the Commonwealth Economic Development Authority, used the public-comment period to back the bill, saying, "the Marianas is in dire need of revenue" and thanking legislators for the balance in the substitute that "appropriates the additional $1,000,000 to CEDA to allow us to use that only for economic development."

The legislation as substituted specifies that the funds originated from covenant section 702 funds and "shall be appropriated from the revolving fund established pursuant to Public Law 5-37 and codified at 4 CMC 10508," language read into the record by Representative BJ Atoll when offering the substitute. The substitute also removed the phrase "relating to local projects" and clarified that $1,000,000 is for the Commonwealth Economic Development Authority "for economic development within the Third Senatorial District." It further designates the CEDA executive director (or his or her designee) as the expenditure authority for the CEDA portion of the funds.

Representatives expressed both support and concern during floor debate. Representative Marissa Flores said she would support the bill but warned that CEDA functions "is CNMI wide" and urged clearer oversight and transparency, pressing for financial data from retirement administrators such as Joyce Tang. Flores raised unpaid vendor obligations and said, "we can't keep saying there's no money when there's money," calling for priorities and long-term fixes to reduce liabilities.

Representative Daniel Aquino said the bill aims to address shortfalls including payments to vendors and retirees and called for caution and transparency. Representative Roman Beneventi said the appropriation could help attract and support incoming investors and pay pending community obligations. Representative TJ Manglona urged a broader review of systems that create recurring liabilities and said leaders across branches must collaborate on long-term reforms.

Procedurally, Representative Vijayato formally introduced House Local Bill 24-21 and asked that it be placed on the day's calendar. The floor leader moved to place the bill on the calendar and later moved for passage. Representative BJ Atoll offered the substitute language; the substitute was seconded and adopted before the final passage vote. The clerk announced the final tally as 15 yes, 1 no, 1 abstain, and 4 absent, after which the chair declared the bill passed under Substitute 1.

The measure directs $1,000,000 to CEDA for economic development activities to be used within the Third Senatorial District and $1,000,000 to the Department of Finance for various obligations, including retiree and vendor payments as described on the floor. The substitute ties the appropriation to the revolving fund established under Public Law 5-37 (codified at 4 CMC 10508) and identifies the CEDA executive director or designee as the expenditure authority for CEDA's portion.

The House record shows proponents arguing the appropriation will provide a source of funding CEDA has lacked since its creation; critics and some supporters urged parallel reforms to reduce long-term liabilities and improve transparency, with repeated calls for retirement-system accounting and vendor-payment oversight. The bill's passage establishes spending authority but does not itself implement structural retirement reforms or vendor payment plans beyond the directed appropriations.

Votes at a glance: House Local Bill 24-21 (Substitute 1) — Passed; recorded vote: 15 yes, 1 no, 1 abstain, 4 absent.

Next steps: With the House passage recorded in the chamber, the bill will proceed according to local legislative procedures (not further specified on the record).