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CUC Emergency Financing Bill

At a glance

  • What: H.B. 24-107 lets the Commonwealth Utilities Corporation (CUC) obtain emergency financing for utility restoration, stabilization and fuel after Super Typhoons Sinlaku and Bavi. Existing law capped CUC borrowing at $500,000.
  • Where it stands: On July 30, 2026 the Senate amended the House draft (HD1) into Senate Draft 1 by a 7-0 vote and then passed it 7-0, sending it back to the House. Later records show it was signed as P.L. 24-42 on 10/30/2026 (see CUC Fuel Borrowing Bill).
  • Next: Watch whether CUC secures a loan or line of credit; related talks on CEDA dividend funds as collateral are in CEDA Dividend Funds Bill.

What the Senate changed

  • Rules were suspended to put the bill on the July 30 calendar (Floor Leader D. Manglona's motion, seconded by Senator Hofschneider; voice vote).
  • Senator Castro, chair of the Public Utilities, Transportation and Communications committee, offered a floor amendment (Senate Draft 1). It removes residential customer security deposits from what may be pledged, allowing only commercial and government deposits as security, and adds the dividends payable from CUC to CEDA as a pledgeable asset (as Senator Hofschneider described it).
  • Amendment adopted 7-0; bill passed 7-0 (Calvo, Castro, Cruz, Hofschneider, D. Manglona, P. Manglona, King-Nabors voting yes; Babauta and Magofna absent and excused).

What CUC told the Senate (public comment)

  • CUC's counsel said the Corporation is not asking for a gift or the roughly $40 million it needs, only authority to borrow; the $500,000 cap is too low, and restoration costs for Sinlaku alone were put at more than $75 million. A prospective lender wanted a waiver of sovereign immunity and specific collateral such as dedicated income streams; CUC's hard assets (some generators 47 years old) do not interest lenders. He asked the Senate to add those features before the public bidding process.
  • CUC's chief financial officer thanked both chambers and said about 4,000 customers across Saipan, Tinian and Rota were still without power. CUC's executive director said efforts had been scaled back for lack of funding.

Senators' remarks

  • Floor Leader D. Manglona asked why updates from CUC said so little: 27 days without power, 4,000 people on Saipan still waiting and Rota now also affected, no restoration timetable, the suspension of overtime and whether recovery pay could replace it, and generators for businesses.
  • Senator Castro said the Senate had already sent a package in an emergency session about a month earlier, that delay and "misinformation" had cost FEMA reimbursements, and that the Legislature should not micromanage lenders.
  • Senator P. Manglona (speaking mostly in Chamorro) supported the bill but pressed on safeguards, reporting oversight and the pay problem: CUC employees on Rota were not being paid overtime although manpower was needed, which slowed repairs.
  • Senator Calvo (on Rota) supported the bill and urged attention to line crews' pay and morale.
  • Senator Hofschneider thanked CUC staff and said he hoped the bill would close the financing gap.

Sources

Log

2026-07-30 - CNMI Senate

Floor amendment (Senate Draft 1) adopted 7-0; H.B. 24-107 HD1 SD1 passed the Senate 7-0. CUC officials spoke in support during public comment; senators pressed CUC on restoration progress and overtime. See State of Significant Emergency - Super Typhoons Sinlaku and Bavi.