Title 4, Economic Resources

Bank Deposit and Safety Requirements. The credit union may, as it deems appropriate, make deposits of cash or other monetary instruments in banks which meet the requirements of 1 CMC § 7723, and in banks which meet the requirements of 1 CMC §§ 7723, 7727 and 7728. Source: PL 9-52…

Definitions. As used in this Chapter, unless the context requires otherwise: (a) “Captive insurance company” means: (1) a limited-purpose insurance subsidiary of a company with the specific objective of financing risks of its parent and affiliated companies; and (2) is a pure cap…

Licensing Authority. (a) Any captive insurance company, when permitted by its articles of association, or charter, may apply to the Commissioner for a license to do any and all insurance comprised in Title 4, Division 7, of the Commonwealth Code; provide, however, that: (1) no pu…

Names of Companies. No captive insurance company shall adopt a name that is the same, deceptively similar, or likely to be confused with or mistaken for any other existing business name registered on CNMI. Source: PL 24-03, § 2 (June 12, 2025).

Minimum Capital. No pure captive insurance company, group captive insurance company incorporated as a stock insurer or industrial insured captive insurance company incorporated as a stock insurer, a rent-a-captive or a protected cell captive insurance company shall be issued a li…

Minimum Surplus; Letter of Credit. No captive insurance shall be issued a license unless it shall possess and thereafter maintain a free surplus of: (a) in the case of a pure captive insurance company, not less than One Hundred Thousand Dollars ($100,000.00); (b) in the case of a…

Formation of Captive Insurance Companies in the CNMI. (a) A pure captive insurance company shall be incorporated as a stock insurer with its capital divided into shares and held by the stockholders. (b) A group captive insurance company or an industrial insured captive insurance …

Rules for Controlled Unaffiliated Businesses. The Commissioner may adopt rules establishing standards to ensure that a parent or its affiliated company, or an industrial insured or its affiliated company is able to exercise control of the risk management function of any controlle…

Financial Statements and Reports. (a) Each pure captive insurance company shall submit to the Commissioner a statement of financial condition written according to generally accepted accounting principles and audited by an independent certified public accountant, on or before the …

Dividends. No captive insurance company may pay a dividend out of, or other distribution with respect to, capital or surplus without the prior approval of the Commissioner. Approval of an ongoing plan for the payment of dividends or other distributions shall be conditioned upon t…

Examinations and Investigations. At least once in three (3) years, and whenever the Commissioner determines it to be prudent, he shall personally, or by some competent person appointed by him, visit each captive insurance company and thoroughly inspect and examine its affairs to …

cense. Grounds and Procedures for Suspension or Revocation of Li- (a) The license of a captive insurance company to do an insurance business on CNMI may be suspended or revoked by the Commissioner for any of the following reasons: (1) Insolvency or impairment of capital or surplu…

Legal Investments. (a) No pure captive insurance company, group captive insurance company, or industrial insured captive insurance company shall be subject to any restrictions on allowable investments whatever, including those limitations contained in Section 7816 of this Title; …

Reinsurance. (a) Any captive insurance company may provide reinsurance, as defined and authorized in 4 CMC § 7507, on risks ceded by any other insurer. (b) Any captive insurance company may take credit for reserves on risks ceded to a reinsurer; provided, however, that no captive…

zations. Exemption from Compulsory Associations; Ratings Organi- No captive insurance company shall be required to join a rating organization or to join or contribute financially to any plan, pool, association, or guaranty or insolvency fund in the CNMI, nor shall any captive ins…

Tax on Premiums Collected. Each captive insurance established in the CNMI shall pay 2% taxes to the government of the CNMI on its premium or other insurance income. Source: PL 24-03, § 2 (June 12, 2025).

Rules and Regulations. The Commissioner may establish and from time to time amend such rules relating to captive insurance companies as are necessary to enable him to carry out the provisions of this Chapter. The regulations authorized by this Section shall be promulgated within …

Laws Applicable. Other than provisions contained in this Chapter or contained in specific references contained in this Chapter shall apply to captive insurance companies. Source: PL 24-03, § 2 (June 12, 2025).

Establishment of the CNMI Captive Insurance Advisory Committee; Members: (a) The CNMI Captive Insurance Advisory Committee, the “Committee,” shall consist of such persons, not fewer than three (3) in number, to be appointed by the Commissioner. The membership shall, to the extent…

Duties of the Committee. The Committee’s duties are prescribed by the Commission, and shall include: (a) The review of each application for a captive insurance company license, and a recommendation to the Commissioner as to whether or not the applicant should be granted a license…

Insolvency Proceedings. In the event a captive insurance company is declared insolvent by its board of directors or by the Commissioner or is placed in receivership for rehabilitation or liquidation, any reinsurance due or becoming due and payable by the reinsurer shall be paid w…

Confidential Treatment of Captive Information. All information pertaining to the CNMI Captive Insurance Companies shall be deemed proprietary and confidential unless: (a) The Commissioner deems it in the public interest to make such information available for public inspection; or…

Definitions. (a) “Advisory Council” means the Advisory Council Under the CNMI State Workforce Development Board (SWDB). (b) “Apprentice” means means a worker at least 16 years of age, except where a higher minimum age standard is otherwise fixed by law, who is employed to learn a…

CNMI Registered Apprenticeship Program. The Secretary of Labor shall: (a) Administer the Commonwealth Registered Apprenticeship Program and coordinate with the Advisory Council; (b) Ensure proper educational accreditation standards are met and maintained by program providers, usi…

Apprenticeship Program Occupations Approved for the Commonwealth Registered Apprenticeship Program. Annually, the Secretary shall: (a) Establish a list of skilled occupations and trades approved for the program based on JVA data collected from the Division of Employment services.…

Authorization to Enter into Apprenticeship Agreements. The SWDB Advisory Council, with the approval of the Secretary, may contract with program providers to prescribe the manner, terms, and conditions of DOL cooperation with the provider in meeting the Program’s objectives. The c…

Eligibility. An apprentice must: (a) Be a paid employee of RAP Sponsor. To qualify as an apprentice, an individual must have an established and documented employment history with the employer for three months or more; (b) Be a citizen or non-citizen authorized to work in the Unit…

Participation Requirements for Apprentices. An apprentice shall sign an agreement with the respective employer and DOL that stipulates that, in exchange for the training, the apprentice will remain and work in the CNMI for a period of one year for each year of participation in th…

Administration of the Commonwealth Registered Apprenticeship Program. (a) The CNMI State Workforce Development Board shall: (1) Establish an Advisory Council to provide leadership and guidance to promote and expand apprenticeship in new high-growth industries; build and maintain …

Tax Deduction for Apprenticeship Program Participants. (a) Any business that employs apprentices duly enrolled and registered under the terms of the program is entitled to a tax deduction on their BGR equal to one hundred percent (100%) of remaining eligible costs paid or incurre…

Implementation of Tax Deduction by the Director of Revenue and Taxation. The Director of Revenue and Taxation shall, no later than one hundred and twenty days after the enactment hereof, in cooperation with the Secretary, develop procedures to implement the tax deduction authoriz…

Reporting Requirements. (a) The Secretary shall include a summary report of this program in the Citizen Centric Report due at the close of each fiscal year. The report shall include: (1) List the number of Registered Apprentices for every corresponding occupation; (2) List the nu…

Short Title. This chapter may be cited as the Developer Infrastructure Tax Act of 1993. Source: PL 8-23, § 1. Commission Comment: PL 8-23 took effect July 19, 1993. According to PL 8-23, § 2: Section 2. Findings and Purpose. The legislature finds that: (a) Existing public infrast…

Definitions. (a) “Building safety official” means the Chief of the Building Safety Division of the Department of Public Works or his or her designee. (b) “Director” means the Director of the Department of Finance. (c) “Developer” means any person engaging in the creation of a new…

Applicability. (a) The provisions of this chapter shall apply to all new development, as defined in 4 CMC § 1932, which has not received a building permit on July 19, 1993; provided, however, the provisions of this chapter shall not apply to: (1) Any new residential construction …

Developer Tax. There is hereby imposed upon a developer, as defined by this chapter, a tax in the amount of two percent of the total project cost of new development, as defined in this chapter. Source: PL 8-23, § 6, modified.

Statement of Total Construction Costs; Administrative Fee. (a) Statement. Upon application for a building permit, a developer shall submit a statement of estimated total project cost and evidence of tax credits, pursuant to 4 CMC § 1943, to the building safety official, who shall…

Payment of Developer Tax. (a) Estimated Payment. Any person to whom the developer tax under this chapter applies shall pay an estimated payment of the tax based upon the statement of total project cost as verified by the building safety official. Such estimated payment must be pa…

Enforcement. (a) Administrative Review. Any appeal of the Director of Finance’s decision pursuant to this chapter shall be had in accordance with 1 CMC § 9101 et seq. (b) Judicial Review. Within 20 days after the final decision of the director is issued, a person aggrieved may ap…

Segregation of Funds. (a) The Director of Finance shall establish and maintain an interest-bearing trust account for each senatorial district into which developer tax payments collected pursuant to this chapter shall be deposited. Developer taxes shall be deposited into the trust…

Use of Funds. (a) All developer taxes collected pursuant to this chapter shall be used for infrastructure improvements for the benefit of the senatorial district in which the development shall be located. For the purposes of this chapter “infrastructure improvement” shall refer t…

Physical Development Plans. The Commonwealth Utilities Corporation shall prepare and present to the respective legislative delegations for adoption detailed physical development plans for the electrical, water, and sewerage systems for each senatorial district. Likewise, the Depa…

Appropriation Authority. The funds in the accounts established by the Secretary of the Department of Finance pursuant to this Chapter shall be appropriated by the respective legislative delegation in accordance with the procedures set forth in 1 CMC §§ 1403 and 1405. Source: PL 8…

Repayment of Infrastructure Loans. Dedicated funds may be appropriated and used as a pledge or collateral to repay or to secure external financing arrangements for infrastructure loans from private or public lending institutions or development authorities incurred after July 19, …

Tax Credits; Connection Fees; Voluntary Contributions. (a) Connection Fees. Connection fees, in excess of actual costs of connection to Commonwealth Utilities Corporation utilities charged to a developer prior to July 19, 1993, by the Commonwealth Utilities Corporation and paid p…

Connection Fees. Nothing in this chapter shall be construed to limit the authority of the Commonwealth Utilities Corporation to impose connection fees for power, water, or sewer services, nor to limit the amount of those connection fees; except that no connection fee may be charg…