Lawmakers, mayor and DPW debate redirecting CUC fee to streetlights, BMV

House Bill 24-3, which would remove a 10% set-aside currently directed to the Commonwealth Utilities Corporation (CUC) and redistribute that money to the Bureau of Motor Vehicles (BMV) and the Department of Public Works (DPW), drew detailed testimony and requests for more data during a joint House–Senate committee meeting.

At a public comment slot and later in committee discussion, Mayor Arby Komatsu of Saipan urged members to consider allocating part of the funds to municipalities, saying the work his office has done “is about the safety of the community.” Secretary Ray Yomo of DPW testified about how DPW would use the funds if the change becomes law. “In 2024, DPW paid out, over a million dollars for, the year in, street light, billing from CUC,” Yomo said, and described plans to prioritize installation of solar-powered fixtures where practical.

The bill would end CUC’s current 10% distribution and divide that share for BMV and DPW. DPW told the committee the account currently funds roadside maintenance and street-light expenses and that shifting the allocation would allow the department to install additional lights, “preferably to install solar powered street lights,” Yomo said. He explained the bill’s intent was to use the money for additional lighting and to reduce recurring monthly charges by moving toward solar fixtures that have no monthly utility fee.

Several lawmakers asked for financial attachments before they would support moving the bill out of committee. Representative Marissa Flores said she would “wholeheartedly support this bill, with the inclusion of the, cost analysis provided by DPW to be attached to this.” Senator Jude Hofschneider and other members also requested an accounting of how the current 10% factors into CUC’s revenue and street-light portfolio before any final action.

Members pressed for clarity about maintenance responsibilities. Committee members noted that the statutory language references DPW duties (9 CMC 2202b) but that CUC historically performed or contracted some maintenance tasks. Representative Robert Joseph urged the panel to identify who owns poles and who pays for installation and repair costs, noting installation and repair can require separate contractor arrangements and additional charges.

Lawmakers discussed alternative distribution models. Representative BJ Yato proposed adjusting the percentage split so a portion could be distributed to each senatorial district’s municipality if members want mayors to receive funds for local roadside work. Senator Karina Magofna and others signaled support for making funds available to municipalities, but said the committee should adopt a clear formula and attach DPW’s cost analyses to the bill record.

No committee vote on House Bill 24-3 was recorded at the meeting. Lawmakers asked staff to collect DPW accounting and to invite a CUC representative to a future meeting so members can assess operational and fiscal impacts before advancing the bill.

Ending

Committee chairs set follow-up steps: attach DPW cost analysis to the bill, invite CUC for clarifying testimony about pole ownership and fixture charges, and consider whether a portion of any redistributed funds should be allocated to municipal governments. No formal vote on HB 24-3 took place during the session recorded in the transcript.