Executive Order 24-2, which disbanded the Commonwealth Casino Commission earlier this year, will have to be rescinded if the Legislature passes the administration-sponsored bill proposing to amend the casino law to allow multiple licenses, Office of the Governor senior policy advisor Claudio Norita told the Senate Committee on Gaming on Thursday.
Norita participated on behalf of the administration in an open discussion on Gov. David M. Apatang’s recommendation to remove the exclusivity of the existing annual casino license by amending Public Law 18-56—the law that legalized casino gaming in Saipan.
Present at the meeting, presided over by committee chair Senate Vice President Corina Magofna, were Sen. Paul A. Manglona, Sen. Frank Q. Cruz, Department of Public Safety Commissioner Anthony Macaranas, Acting Commerce Secretary John David A. Reyes, Lottery Commission enforcement officer Patrick Sablan, and the governor’s legal counsel Brendan Layde. Sen. Ronnie Calvo attended online.
Norita told the senators he doesn’t believe the CNMI Lottery Commission has the capacity to run the casino industry, which is why the administration is asking the Legislature to work together to pass the proposed amendment—and possibly add further provisions to ensure the CCC is restored and empowered to operate effectively. “And—not to insult the Lottery Commission members—they have full-time jobs as department heads and can’t dedicate themselves 100% to the casino industry,” Norita said. The DPS commissioner, as well as the Commerce and Finance secretaries, have primary duties elsewhere and cannot focus solely on gaming oversight.
Norita emphasized that for the casino industry to thrive, the revised amendment must include provisions to re-establish the Casino Commission: “We need to stand up the Casino Commission in the proposed amendment and tweak it where you all think is best for the people of the CNMI and let’s go down the road together.”
Asked by Magofna whether the administration plans to rescind the executive order to restore the CCC if the Senate advances the amendment, Norita responded, “It goes hand in hand with the legislation.” He said the administration has concerns about the casino law and the CCC’s previous structure. If the proposed amendments pass, “before [the governor] signs it into law, the executive order has to be rescinded.”
Norita said, “We can’t have multiple commissions fighting over who has jurisdiction.” Restoration of CCC “is what you have to embed in the bill to make it very clear. If it’s to the satisfaction of everybody—the Legislature and administration—then the administration will rescind the executive order.”
Magofna summed up the discussion, saying, “So the understanding is, if we move forward with the proposed bill, the CCC will be restored.” Norita agreed. He stressed that the administration submitted the amendment for the Legislature’s consideration with lessons learned from past mistakes.
He added that the casino law was not repealed; rather, CCC’s authority was transferred to the CNMI Lottery Commission through EO 24-2. “The casino industry is still here—available to us,” he said. Meanwhile, “the Commonwealth is limited in funding and revenue for the government to provide necessary services.” The governor’s recommendation to amend the law, Norita said, aims to jumpstart revival of gaming on Saipan. “We all have learned what can go wrong with this industry if it’s not closely monitored. All of us—the Senate, House, and administration—see this as revenue-generating, but we are more vigilant now as we work to amend the law.”
People’s sentiments
In his remarks, Manglona said revisiting the casino law is an opportunity to “assess the sentiments of the people.” He recalled that when the Legislature was asked to pass a casino measure in 2012, there was concern about railroading legalization rather than allowing voters to decide, as was done in Rota and Tinian. When the measure came to the Legislature, retirees’ groups supported it because casino revenue was intended to fund pensions. After all that has happened, Manglona questioned whether the community still supports reviving the industry. “We also want to hear the sentiment of the people as we move forward,” he said.
