THE Commonwealth Casino Commission opposes Senate Bill 23-28 which would abolish the $65,000 annual salary of the commissioners and turn CCC into a part-time entity.
Authored by Sen. Paul A. Manglona, the bill proposes to apply Section 8247 of the Commonwealth Code to the casino commissioners. The provision caps the salaries of members of government boards and commissions to “not more than $60 for a full-day meeting and no more than $30 for a half day or less meeting; provided that the compensation shall not exceed a maximum of $6,000 per year.”
In February, Sen. Celina R. Babauta introduced a similar bill, S.B. 23-26, to reduce the casino commissioners’ salary and prohibit commissioners who are government retirees from “double-dipping.”
In his letter to Senate Committee on Resources, Economic Development, Programs and Gaming Chairwoman Corina L. Magofna, Casino Commission Chairman Edward C. Deleon Guerrero said that they do not support H.B. 23-28.
First, he said, the findings of the bill erroneously stated that the current commissioners’ compensation is an “immense financial burden” to the Commonwealth government.
Deleon Guerrero said this statement is factually incorrect as the CNMI government appropriates one dollar a year only for the commission’s personnel and operation costs.
He said making the commission a part-time entity would neither fulfill nor accomplish the intent of the bill.
“As you know, the commission is currently in the midst of resolving its ongoing litigations and other disputes (arbitration) with the exclusive casino licensee (Imperial Pacific International). The arbitration ordered by the federal district court has been scheduled for May 23 to 25, 2023. Furthermore, our appeal to the 9th Circuit Court of Appeals on this matter has also been scheduled for June 8, 2023,” Deleon Guerrero said.
He said it is his understanding that the commission is the only CNMI entity trying to hold the casino licensee to honor its obligations as required by the Commonwealth gaming laws and by the casino license agreement.
He said the commission is entering into the final stages of the litigations and other disputes.
“This is not the time to dismantle the commission’s structure. To the contrary, this is the time for our government to come to the aid of the commission in this difficult and desperate time in its efforts to implement and enforce our gaming laws and regulations,” Deleon Guerrero said.
He added that there are ongoing discussions about re-examining the benefits and disadvantages of having an exclusive casino license and considering additional casino licenses.
The casino industry, he said, is a 24/7 operation, year round. Rather than making the regulatory body a part-time entity, the CNMI government should try to strengthen the commission and let the world know that the Commonwealth is serious about enforcing its gaming laws, he added.
Deleon Guerrero also urged the executive and legislative branches to demonstrate their strong support for an effective and efficient gaming regulatory regime.
The casino commission is supposed to be funded by an annual regulatory fee of $3.15 million that IPI, the sole exclusive casino licensee, has not paid since 2019.
