The Senate NORTIIERN MARIANAS COMtvl0 NWEALTH LEGISLATURE

P.O. BOX 500129 SAIPAN, MP 96950

STANDING COMMITTEE REPORT NO. 8-tile. Date: September 30, 2016 RE: Senate Bill 19-43

Honorable Francisco M. Borja President of the Senate Nineteenth Northern Marianas Commonwealth Legislature Saipan, MP 96950

Dear Mr. President:

Your Committee on Resources, Economic Development and Programs, to which was referred Senate Bill 19-43, entitled:

"To establish an Irrigation District in each Senatorial District for the use of water strictly for irrigation and agricultural purposes and not for residential uses; and for other purposes."

begs leave to report as follows:

I. PURPOSE

The purpose of Senate Bill 19-43 is to allow a non-governmental organization such as an Irrigation District to tap into the ground or surface water supply strictly for irrigation purposes and not for human consumption.

II. COMMITTEE FINDINGS

Your Committee finds that there is an essential need to establish Irrigation Districts throughout the CNMI, especially for locations such as the islands of Rota and Tinian as their lands contain large farming areas . Your Committee also finds that the farmers in the Commonwealth require sufficient water supply for irrigation purposes.

Your Committee is cognizant of the importance of complying with Safe Drinking Water Act and the CNMI Department of Environmental Drinking Water regulations pertaining to the water supply provided by the Commonwealth Utilities Corporation. However, your Committee does recognize that the CNMI's water source, both ground and surface water, is treated prior to the CUC delivering the water supply to the public for human consumption such as drinking, bathing, and cooking. Accordingly, your Committee finds that the water supply to be used strictly for irrigation does not require chlorine treatment. In fact, the water supply without the chlorine is much better for plant growth and production.

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STANDING COMMITIEE REPORT NO. 19-j2.~ RE: SENATE BILL 19-43

Your Committee further finds that the establishment of Irrigation Districts will help to allow a non-governmental organization to tap into the ground or surface water supply strictly for irrigation purposes and not for human consumption. Therefore, your Committee is in accord with the intent of this legislation and recommends its passage.

III. COMMITTEE AMENDMENTS

Your Committee did not recommend any changes to the legislation and comments were received by the Mayor of Rota and the Department of Commerce, Rota supporting the measure (see attached comments).

IV. LEGISLATIVE HISTORY

Senate Bill 19-43 was introduced by Senator Steve K. Mesngon on May 4, 2015 and was subsequently referred to the Senate Standing Committee on Resources, Economic Development and Programs for disposition.

V. RECOMMENDATION:

After considerable discussion and deliberation on the bill, your Committee recommends that the full body ofthe Senate pass Senate Bill No. 19-43.

Respectfully submitted,

Senator Arnold I. Palacios Chairperson

Senator Francisco Q. Cruz Member

Senator Steve K. Mesngon Member

R6[lJ21J~ Senate Legal Counsel

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NINTEENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE

'3Y~ SPECIAL SESSION, 2015 S.B. NO. 19-Q.a

A BILL FOR AN ACT

To establish an Irrigation District in each Senatorial District for the use of water strictly for irrigation and agricultural purposes and not for residential uses; and for other purposes.

BE IT ENACTED BY THE NINETEENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE:

Section 1. Findings and Purpose. The Legislature acknowledges the importance

2 of complying with Safe Drinking Water Act and the CNMI Department of Environmental

3 Drinking Water regulations pertaining to the water supply provided by the

4 Commonwealth Utilities Corporation. The Legislature also acknowledges that the CNMI

5 water source, both ground and surface water, is treated prior to the CUC delivering the

6 water supply to the public for human consumption such as drinking, bathing, and

7 cooking.

8 The Legislature finds that the farmers in the Commonwealth require sufficient

9 water supply for irrigation purposes. The water supply to be used · strictly for irrigation

.10 does not require chlorine treatment. In fact, the water supply without the chlorine is

J J much better for plant growth and production. The purpose of this Act is allow a non­

12 governmental organization such as an Irrigation District to tap into the ground or surface

13 water supply strictly for irrigation purposes and not for human consumption.

J4 Section 2. Irrigation District. The establishment of an Irrigation District in each

15 senatorial district is hereby authorized.

16 An Irrigation District is a cooperative, self-governing organization, composed of

17 farm owners in the respective senatorial districts with the unison goal of obtaining water

18 supply from a natural source, ground or surface water, strictly for the purposes of

19 irrigation and not for human consumption.

20 Section 3. cue Authority; Meter; and Charge.

SENATE BILL NO. 19- tla

(a) The Commonwealth Utilities Corporation is hereby authorized to allow

2 the Irrigation District to install connections to the CUC water supply line strictly for

3 irrigation purpose and not for human consumption. The connection installation shall be

4 located between the water source and the CUC treatment station.

S (b) The CUC shall install a water meter to record the water quantity used by

6 the Irrigation District.

7 (c) Notwithstanding any law or regulation to the contrary, the CUC shall not

8 charge the Irrigation District more than the actual cost of providing water to the point of

9 connection or forty (40) percent of the residential consumer rate, whichever is lower. In

10 addition, the CUC shaH not impose a Water Electric Charge for the water used by the

I I Irrigation District.

12 Section 4. Backflow Prevention.

13 (a) The Irrigation DistTict shall install an appropriate back-flow prevention

14 device to prevent any backflow back into the CUC water supply. The device shall be

15 installed in close proximity to the water meter installed by the CUe.

16 (b) The device required under subsection (a) of this section shall be inspected

J7 and approved by the CUC prior to installation.

J8 (c) The Irrigation District shall maintain the device and shall ensure that it is

19 functional at all times. Any maintenance or replacement cost of the device shall be at the

20 expense of the Irrigation District.

21 Section 5. Severability. If any provision of this Act or the application of any

22 such provision to any person or circumstance should be held invalid by a court of

23 competent jurisdiction, the remainder of this Act or the application of its provisions to

24 persons or circumstances other than those to which it is held invalid shall not be affected

2S thereby.

26 Section 6. Savings Clause. ·fhis Act and any repealer contained herein shall not

27 be construed as affecting any existing right acquired under contract or acquired under

28 statutes repealed or under any rule, regulation or order adopted under the statutes.

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SENATE BILL NO. 19- tI~

Repealers contained in this Act shall not affect any proceeding instituted under or

2 pursuant to prior law. The enactment of this Act shall not have the effect of tenninating,

3 or in any way modifying, any liability, civil or criminal, which shall already be in

4 existence at the date this Act becomes effective.

5 Section 7. Effective Date. cOlis Act shall take effect upon its approval by the

6 Governor or upon its becoming law without such approval.

Prefiled

Date: t;/q/ I~ Introd uced By: -+--;L-------'\----+-~+,LI I

Reviewed for legal sufficiency by:

~uJZ\uM Senate Legal Counsel

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DEPARTMENT OF COMMERCE COMMONWEAL1H OF THE NORTHHRNMARIANA lSLANDS

MUNICIPAlITY OF ROTA, P.O. BOX 5D676. RCYI'A. MP 96951

TELEPHONE (610l 532-9478 FAX (670) 532-9510

July 6, 2016

Honorable Senator Arnold I. Palacios 19th Northern Marianas Commonwealth Legislature P.O. Box 500129 Saipan, MP 96950

RE: Support for S.B. 19-24 and S.B. 19-43

Greetings Honorable Senator Palacios,

It is an honor to write to you in support of Senate Bills 19-24 and 19-43, both bills designed to move

economic policy forward in the CNMI. I thank the members of the 19th Legislature involved in the crafting

of these Senate bills for their vision and their presence of mind in initiating the conversations and debates

that have brought about these bills.

I support the extension of lease terms of public land to a maximum of 99 years as it allows for flexibility

and ample time for investors and developers to earn a return on their investment. It also allows eXisting

businesses to continue to contribute to the CNMI economy. Though the 99-year term may seem like an

extraordinary amount of time, it is not obligatory and the legislature will need to decide whether to extend

a lease term to the maximum allowable time with the consensus of the general public. Though I think that

the proposed lease term extension is beneficial to the economy and does much to protect existing

businesses and provide incentives for new investment and development, I think that additional safeguards

should be put in place to protect against all possible future eventualities. For instance, having mandatory

reassessment periods during the term of the lease at every 10 to 25 years. So, at each assessment period

during the term of the lease both the lessor and the government can come to the table and assess whether

the lease holder's operations continue to benefit the community and pose no environmental hazard to

the property in question. Also, there should be a petitions process through which the people may seek

redress for any negative impacts a development may have on the community.

I am most especially pleased to support the establishment of the Irrigation District having played a role in

the reorganization of the Luta Soil and Water Conservation District. Establishing irrigation districts

throughout the CNMI will pave the way for grant opportunities and much needed support for our local

farmers. According to DLNR statistics, Rota exports more than 30,000 pounds of agricultural goods

regionally each month. This level of production is achieved in large part due to the fortitude of our local

farmers, who find a way against all odds to brave the challenges of farming on our island with limited

financial support or resources. Senate bill 19-43 will make it possible to qualify for grant funded resources

that will directly benefit our local farmers. If we as policy makers and government agencies work together

to relieve our farmers of some of the challenges they face to make it easier to produce their goods. If we

work together to shelter farmers from risk of loss and work diligently to find ways to help farmers

mechanize their operations or improve yields, we have the potential to far exceed regional agricultural

production within Micronesia.

Senate Bill 19-24 and 19-43 is undeniable proof that our representatives in the Senate are listening. So, I

thank each Senator, staff member, director, farmer, or concerned citizen that have voiced their concerns

in order to generate the impetus to create this legislation.

Si Yu'us Ma'ase,

Valerie M. Atalig

Resident Director Department of Commerce, Rota

COMMONWEALTH OFTHE NORTHERN MARIANA ISLANDS

OFFICE OF THE MAYOR THE HONORABLE EFRAIM M. ATALIG

Mayor of the Municipality of Rota Mailing Address: Post Office Box 537 Rota, MP 96951

Phone: 670.532.9451/9452 * Fax No.: 670.532.9454 * Email: mayorefraimatalig@grnail.com

July 01,2016

Senator Arnold I Palacios Chainnan, Committee on Natural Resources Economic Development & Programs P.O. Box 500125 Saipan, MP 96950

Dear Chainnan,

I am in support of the enactment of S.B. No. 19-43 as it will enhance our fanners' ability to make available locally produced food commodities. The water rate imposed by CUC is quite prohibitive for the famers to be fully engaged in crop irrigation as the existing rate is based on residential and business establishment usage. The water demand of an irrigation is much higher than many other types of business in the CNMI.

Section 2 of the bill defines an irrigation district as a cooperative, self-govegt_i~g ~~ation composed of farmers. The unintended public policy that the bill seems to~-rs that a Senatorial District needs to establish a cooperative before it can avail itself ofthis benefit. Perhaps this section would force the farm cooperative already established to make themselves more effective as organizations to serve their members.

One issue that I would like to point out that is not addressed in the bill. As it is written, the bill seems to imply that in each Senatorial District, there should be only one Irrigation District. What happens if more than one cooperative exists in a Senatorial District? Can that newly established cooperative apply for an Irrigation District status? Perhaps the bill can be recrafted to address this possible eventuality.

Mr. Chairman, thank you for the opportunity to comment on this bill.

Sincerely,

00·~George 0 Hocog Acting Mayor of Rota

"Nature's Treasure Island"