SAIPAN – Commonwealth Utilities Corporation Executive Director Kevin Watson and Commonwealth Healthcare Corporation Chief Executive Officer Esther L. Muna have been invited to testify next Thursday as a Senate committee takes up House Bill 24-59, a measure that would cap back-billing windows and bar service shutoffs during billing disputes.
The Senate Standing Committee on Resources, Economic Development and Workforce will convene at 9 a.m. May 21 in the Senate Chamber of the Vice Speaker Jesus P. Mafnas Memorial Building on Capitol Hill, according to a meeting notice issued Thursday by committee chairwoman Sen. Corina L. Magofna.
House Bill 24-59, prefiled in September 2025 by Rep. Vincent R. Aldan, is titled the CNMI Fair Billing Practices Act. The bill would establish clear and fair standards for back-billing practices in the Commonwealth, defined as the retroactive charging of customers for services previously provided but not billed at the time of delivery. The bill applies to utility, telecommunication, healthcare and other consumer service providers, except where preempted by federal law.
Among the bill’s central consumer protections, a service provider could issue a back bill only for a period not exceeding four months from the date the underbilling or non-billing occurred, with exceptions for documented fraud, tampering or unauthorized use. Providers would also be required to deliver written notice explaining the reason for the back bill, the period covered and a detailed breakdown of charges at least 30 days before payment is due.
The bill prohibits providers from estimating or averaging charges for unbilled periods, requiring all amounts to be based on actual documented usage. No back billing would be allowed if the delay resulted from a provider’s negligence, failure to maintain accurate records or operational errors.
Customers would have 60 days to dispute a back bill in writing, and providers would have 15 days to respond. Unresolved disputes could be referred to the CNMI Consumer Protection Office for mediation or arbitration. Critically for consumers, the bill bars providers from discontinuing service while a back-billing dispute is pending.
Repayment plans must be allowed over a period equal to or greater than the duration of the billing period covered, unless the customer agrees to shorter terms. Providers could not charge interest, penalties or late fees on back-billed amounts unless expressly authorized by law or the original service agreement.
The CNMI Office of Consumer Counsel would enforce the act, with violations subject to fines of up to $5,000 per incident, license suspension or revocation for repeated violations, and civil liability under existing law.
Representative Aldan is also among the entities invited to testify.
The committee meeting follows a Senate Fiscal Affairs hearing earlier this week on Governor David M. Apatang’s proposed Fiscal Year 2027 budget and comes as residents continue to navigate utility billing issues during the Super Typhoon Sinlaku recovery.
Members of the public can submit written testimony to staff.sen.magofna@gmail.com before the meeting. Oral testimony can also be presented during the hearing.
