Fitial said House Local Bill 16-28, also known as the Saipan Adult Gambling Machine Business Zone Act of 2009, has noble intentions but its legal provisions will be adverse to the business sector.
Saipan Republican Rep. Rosemond Santos sponsored the bill.
Fitial said there is no doubt that adult gambling machines present risks to neighborhoods and families, as well as to the islands’ aesthetic appeal, but he cannot approve the bill as it is.
“Implementation of this measure will be problematic, which brings me to make this difficult decision to disapprove this measure. First, licenses for poker machines are issued on an annual basis, thus, fees for individual poker machines are also assessed based on a full year; they are not prorated,” the governor said in his veto message to the Legislature.
He said the legislation does not provide a mechanism for operators to recover a portion of their license fee in case they close operation in less than a year.
“Even if there were a reimbursement mechanism, any local appropriations by the Saipan delegation of poker license fees which are approved into law prior to Jan. 1, 2011, will be jeopardized if portions of the fees must be returned,” he added.
The bill proposes to relocate adult gambling machines to a location away from residences, schools, churches or public recreational areas.
But Fitial said many adult gambling machines are secondary businesses to laundromats or grocery stores that cannot be practically relocated due to the bill’s vague definition of “undue financial hardship.”
“Therefore, on the effective date of this measure, a business would have to show financial details that the business cannot be practically relocated as it would cause undue financial hardship…. The exemptions are not based on one or two of the criteria but all of them combined,” the governor said.
“For the reasons stated above, I am returning this bill disapproved. I urge the Saipan delegation to collaborate with the CNMI Zoning Office so that a workable legislation may be introduced and passed for approval,” he added.
