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Fono News

FONO GOES INTO MID SESSION RECESS

 

Both the Senate and House have approved each other’s concurrent resolutions calling for a mid session recess — for four weeks — to begin at the close of business this Friday, and reconvene on Mar. 16.

 

According to the identical resolutions, the Legislature has conducted work on pending matters and in order to preserve legislative sessions days for most efficient use, it is appropriate to temporarily recess Fono business to fully prepare for disposition of additional and incoming agenda items.

 

Among the pressing administration bills that the governor hopes the Fono will address before the recess, is the Charter Bank legislation, along with its companion bill, which establishes the Office of Financial Institutions within the Treasury Department to regulate banking and money transfer services in the territory.

 

During the recess, several lawmakers are heading to Hawai’i for the ASG Retirement Fund meeting, which is held in February every two years. Members of Retirement committees from each chamber, along with the Fono leaders usually travel for the meeting, with all expenses paid by the Retirement Fund. Special details of the meeting and the total number of lawmakers and staffers traveling to Hawai’i is not immediately known.

 

SENATE APPROVES AMENDMENT TO BOND BILL, DESPITE CONCERNS

 

In a 11-2 vote, the Senate yesterday approved its version of an administration bill seeking to add a new provision to the American Samoa Economic Development Authority law to better facilitate the sale of bonds, which are to be issued under ASEDA.

 

Sens. Magalei Logovi’i and Gaea Perefoti Failautusi, both of Tualauta, and both have held the government position of ‘Treasurer’, voted against the measure, which now goes to the House where faipule have their version pending in committee. The governor has asked the Fono to approve this amendment as ASEDA desires to issue bonds in April to refinance outstanding ASG debts and fund needed infrastructure.

 

During a Senate committee hearing Monday, Attorney General Talauega Eleasalo Ale testified that the total amount of the bonds to be issued comes to around $62 million and the new provision provides investors with further assurances that the government will not interrupt any pledged revenue streams supporting bond payments.

 

One major concern to a handful of senators regarding the bonds is that all ASG revenues — including the government’s biggest revenue source, which are taxes — are all pledged to repay these bonds.

 

This concern was voiced by Sen. Magalei Logovi’i, a former ASG Treasurer, who pointed out that if payments default on these bonds, the government will be faced with some serous financial woes, as all revenues are pledge for the bonds.

 

However, Talauega said only 25% of ASG revenues pledged is allowed under the law for ASEDA to use for repayment. He also noted that the bonds will pay off outstanding debts such as the old Laufou Shopping Center court judgement and the government’s $20 million loan from the ASG Employees Retirement Fund.

 

Talauega pointed out that paying off these old debts — which have high interest rates — will save the government additional revenue, which could be used for other purposes.

 

Asked about the rating for the ASG bonds, Talauega told the committee that the ASEDA board will be meeting in Honolulu the first week of next month with officials from companies that do ratings to discuss such matters.

 

According to the amendment, ASG pledges to and agrees with the holders of any bonds, including refunding bonds issued in accordance with current ASEDA law, that ASG will not alter, impair, or limit the revenues pledged toward the repayment of bonds until the bonds, together with applicable interest, are fully paid and discharged.

 

HOUSE VERSION OF CORPORATE SPONSORSHIP BILL APPROVED BY SENATE

 

The Legislature has given their full support to an administration bill which regulates the ability of corporations to sponsor foreigners to work in American Samoa.

 

The final approval came Monday from the Senate after endorsing the House version of the measure. The Senate version was approved last week and is now pending in the House.

 

Governor Lolo Matalasi Moliga says current immigration laws are vague and provide minimal direction on the sponsorship of foreigners by corporations. He says this has led to the sponsorship by corporations in a manner that is inconsistent with the revised constitution of American Samoa.

 

Under the proposed changes, any corporation authorized to do business in American Samoa must be certified by the Attorney General to sponsor foreigners after meeting certain requirements, which include an established record of financial responsibility; proof of timely payment of local taxes, fees and other government assessments; and good corporate citizenship.

 

Additionally, no corporation may sponsor a foreigner who has any control or interest in the sponsoring corporation. Such persons includes investors, shareholders, directors and officers of any corporation.

 

Under the approved amendments, individual partnership businesses are no longer allowed to sponsor foreigners. Additionally, sponsorship cannot no longer be transferred from one employer to the next.

 

Once signed into law by the governor, the bill becomes effective 60 days after the end of the current regular session.