1. History of MPLT:
A. The original Constitutional Convention Analysis, dated December 6, 1976, discusses the formation of the Marianas Public Land Trust and the intent and purpose for its formation.
i. Article XI deals with issues relating to public lands.
ii. Marianas Public Land Corporation was established to receive and manage the public lands.
iii. The funds received from public lands, including the anticipated lease by the United States per the Covenant, shall be placed in a trust fund.
iv. It is the intent of the Constitution to separate the land management function performed by MPLC and the money management function performed by the trust fund.
v. MPLC was permitted to retain funds for their reasonable expenses of administration.
vi. Marianas Public Land Trust was created to hold and invest the proceeds from public land leases.
vii. The Constitution is the implementing authority that establishes the relationship between MPLC and MPLT.
B. MPLT Duties and Responsibilities:
i. Hold and invest prudently the principal funds received from MPLC or its successor entities.
ii. For the first ten years from the effective date of the constitution, the MPLT investments shall be limited to United States obligations.
iii. MPLT is required to distribute to the Commonwealth General Fund the interest earned from its investments less reasonable expenses of administration.
iv. There are no earmarks on the distribution to the General Fund as the Legislature has the authority to allocate these funds among the competing needs of the Commonwealth.
v. Of the funds received from the U. S. lease per the Covenant, $2 million from the lease of Tanapag Harbor shall be set- aside and the income derived from this amount can only be used for the maintenance and development of the American Memorial Park.
vi. Trustees are required to submit an annual report to the people of the Commonwealth accounting for all revenues and expenses and a description of all investments and other transactions authorized by the Trustees.
vii. The Trustees are held to strict standards of fiduciary care.
C. The effective date of the Constitution is January 9, 1978.
2. Covenant related matters:
A. The Covenant to Establish a Commonwealth of the Northern Mariana Islands in Political Union with the United States of America (U. S. PL 94-241) is the implementing authority that created the CNMI.
B. It was signed by the President and the Political Status members on February 15, 1975.
C. The Technical Agreement portion of the Covenant establishes the terms for the lease of Commonwealth public lands by the United States.
• U.S. has a five-year option to lease identified lands.
• Lands consisted of 17,799 acres on Tinian, 177 acres at Tanapag Harbor, and 206 acres of Farallon de Medinilla Islands. The lease term is for 50 years at a cost as follows:
o Tinian land - $17.5 million
o Tanapag Harbor - $2 million
o Farallonde Medinilla - $20,600
The amount paid will be adjusted at the time of payment by a percentage change in the U.S. Department of Commerce composite price index. The actual amount finally paid was $33 million of which $6.5 million was withheld due to clearing of private land holdings in the military retention area.
The land was leased on January 6, 1983, just prior to the expiration of the option.
3. Significant dates for the creation of MPLT:
A. Due to the payment received by MPLC for the lease of the lands by the U.S., the first trustees were appointed by Governor Tenorio in 1983.
B. Trustees requested funds to be transferred to the Trust, but MPLC refused by indicating that all of the money was needed for the CNMI homestead program.
C. MPLT Trustees sued for the transfer of the funds as required by the Constitution in 1983.
D. Superior Court ordered MPLC to pay the lease funds to MPLT of which $25,942,602 was received in 1983 and 1984.
E. In 2001, the Trustees created the Diversified Local Investment (DLI), formerly, ETI; an investment class that may be unique or specially targeted toward the CNMI economy or market. They are investments originating from within the CNMI and only apply to the General Fund corpus.
Footnote: Please refer to the Annual Report for updated investment and financial reports.