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Senate committee approves bill to waive CUC penalties for CHCC, inserts interest and 30‑day settlement window
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Summary
The Senate Public Utilities, Transportation and Communications Committee approved House Bill 24‑29 (SD1) in committee to reconcile utility accounts between the Commonwealth Health Care Corporation and the Commonwealth Utilities Corporation, adding language to discharge interest and shorten a reconciliation window to 30 days.
The Senate Public Utilities, Transportation and Communications Committee voted on July 9, 2025 in Saipan to adopt House Bill 24‑29 in committee as Senate Draft 1, a measure to reconcile public utility accounts between the Commonwealth Health Care Corporation (CHCC) and the Commonwealth Utilities Corporation (CUC) by waiving certain intergovernmental penalties while preserving enforceable debt obligations.
The amendment adopted in committee inserted the word “interest” into the list of charge types to be discharged and shortened a reconciliation window from 90 days to 30 days. Senator Donald Manglona moved to adopt the bill in committee; the motion carried and the bill was placed as adopted in committee in SD1.
Committee members said the change to add interest reflects long‑standing CUC billing practices, and several members argued that 90 days was too long to reconcile outstanding accounts. Senator Corina Magovnia (member, Third Senatorial District) and others asked staff to prepare consistent drafting across the bill and to remove ambiguity around how disputed balances would be resolved.
Committee discussion noted a provision that, if no agreement is reached within the statutory window, the disputed amount would be settled by averaging CHCC’s and CUC’s reported totals as of April 25, 2025. One member urged reconsideration of that averaging clause and asked staff for clearer language and for additional financial information from both CUC and CHCC before final plenary action.
The committee instructed the legislative staff to prepare the amendment language and to proceed with placement of the bill on the chamber’s bill calendar. No plenary vote on final passage was recorded during the committee meeting.
Members also discussed the need for a tighter timetable for reconciliation and the committee asked for follow‑up documentation from the utilities to support the enacted timeline and the bill’s technical provisions.
A short recess and additional drafting time were requested during debate so members could review the full text of the bill and the legislative analysis before any subsequent action in session.
The committee adjourned later the same day after adopting the bill in committee and handling additional committee business.
