House Bill 17-141, which establishes the Japan Air Service Stabilization program, is now Public Law 17-29.
The law creates an incentive program to boost visitor arrivals to the CNMI by stabilizing and encouraging year-round service from Tokyo, Osaka and Nagoya to the islands.
Fitial said the success of this program will be significant because it links the CNMI to three cities in Japan.
“I am hopeful the people of the CNMI understand the importance of tourism in our islands and continue to extend the Hafa Adai spirit to all our tourists,” Fitial said.
Also signed into law was Senate Bill 17-45 which requires gross revenue taxes to be paid on a monthly basis instead of quarterly.
S.B 17-45, now Public Law 17-30, aims to “accelerate” the collection of the Business Gross Revenue Tax and help improve the government’s cash flow situation.
Fitial said the Division of Revenue and Taxation of the Department of Finance will face challenges as a result of the new law, such as added costs as new forms will be designed and printed, and additional staff required to process the increased number of tax filings.
“This translates to an increased workload to accommodate the payment frequency from four times a year to 12 times a year. For each quarter, there are approximately 4,000 tax filings and this number will increase to 12,000 tax filings quarterly or 48,000 tax filings annually,” Fitial said.
He noted that Revenue and Taxation is “currently facing challenges in its staffing capacity” and will need more personnel to implement the new law.
“I urge the Legislature to revisit this measure and consider all challenges to assist the Division of Revenue and Taxation to implement the change,” Fitial said.
He also signed Senate Bill 17-34 which is now Public Law 17-32.
The law allows the Retirement Fund board to provide a non-compounding annual retirement bonus in lieu of an increase in the cost of living allowance.
The new law aims to improve the fiscal solvency of the Retirement Fund.
This measure will result in a reduction of approximately $84 million of the accrued liabilities of the retirement system. The cost of living allowance allotments to the Fund will also cease, totaling $33,745.05 in monthly payments for the remainder of the fiscal year.
The fourth bill signed into law was S.B. 17-37, now P.L. 17-31. It amends the Smoke Free Air Act of 2008 to increase to 30 percent the number of hotel rooms to be allocated as smoking areas.
Fitial signed the bill in consideration of the CNMI’s “travel partners” and to support the visitor industry.
“While I am cognizant of the concerns raised by health advocates, this measure still provides adequate protection to the public from exposure to second hand smoke in enclosed facilities,” the governor said.
