The 40-page House Bill 17-55 or the Saipan Casino Control Act empowers the governor to name five commissioners to the Saipan Casino Commission — the body designed to control the operations of the proposed casino industry on the island.
The 68-page House Bill 17-56, or the Saipan Casino Control Act of 2010, gives the mayor of Saipan the authority to choose five people who will serve on the casino commission. The Saipan delegation, too, has more say in this bill.
Both bills were offered by Speaker Froilan C. Tenorio, Covenant-Saipan, who believes that the economic survival of the CNMI lies in the establishment of a casino industry on Saipan.
In his bills, Tenorio said a well-regulated casino industry that provides honest entertainment free from the influence of undesirable elements will increase tourism to the commonwealth and provide needed government revenues.
“The economic situation in the commonwealth, particularly on Saipan, has for the longest time suffered and stayed at its worst with no sign of recovery; and, that many business establishments have declared bankruptcy, and many more are in the verge of closing down; and, that the departure of Japan Air Lines, and the reduced services by Delta Airlines and Continental Airlines,” said Tenorio in the findings of his bills.
“The departure of the garment industry and the sellout of well-established hotels on Saipan have contributed to the tremendous loss of business profits and government revenues, forcing both the private business establishments and the government to implement austerity measures in order to stay afloat and survive,” he added.
Both bills have been referred to the House Committees on Ways and Means, and the Committee on Commerce.
H.B. 17-55
Under this bill, each commissioner is entitled to an annual pay of $75,000 and reimbursements for additional costs they may incur in the conduct of their duties which include investigating applicants for a casino license.
Three commissioners will be from Saipan and one each from Rota and Tinian. One will serve for a term of four years, two for three years and one for two years.
The commission is allowed to issue at least five casino licenses on Saipan. It is also mandated to monitor and regulate casino establishments.
But there is no restriction on how many casino licenses any one group or individual investors can get.
A $100,000 nonrefundable casino application fee is required for each interested investors. Their license fee could reach $200,000 once the license is finally issued.
This bill sets at 10 percent the gross gaming revenue that the CNMI government should be paid.
Five percent should go to Saipan and 2.5 percent will each go to Rota and Tinian.
The measure also prohibits any casino investor from getting tax incentives under the qualifying certificate program.
A casino investor can operate in any existing hotel with at least 250 rooms.
“The commission may license casinos for operation within the municipality of Saipan on land or afloat upon the adjacent waters of the commonwealth, including the area of any lagoon, bay, harbor, pier, or other marine location under the jurisdiction, dominion, or control of the commonwealth alone or of the commonwealth jointly or concurrently with the United States or other jurisdiction, to the maximum extent permitted under applicable United States law,” the bill reads.
H.B. 17-56
This bill names the Saipan mayor as the appointing authority for the members of the Saipan Casino Commission.
The panel should have five members — one Carolinian-descent; three Chamorro-descent, and one U.S. local resident. One of the five should also be a woman.
Each commissioner must be a resident of the CNMI for at least six years and is entitled to an annual pay of $75,000.
According to Tenorio, the proposed casino industry will generate more jobs, particularly among locals who are now leaving their homeland in favor of greener pastures elsewhere in the United States.
“The economic situation in the commonwealth which continues to worsen is forcing these people to leave the islands for jobs and opportunities on Guam, Hawaii and in the U.S. mainland. For the same reason, many students who graduated in recognized U.S. colleges and universities are not returning home, instead, they find jobs and stay there, a ‘brain drain’ we cannot afford,” he said.
Under this bill, Internet gambling will be permitted on Saipan.
Further, the former La Fiesta Mall, which the government originally acquired in 2005 to be an extended campus of Northern Marianas College under the defunct Pacific Gateway Project, will be turned into a mini-casino.
A foreign casino investor license for an annual fee of $250,000 will also be offered on Saipan.
For this particular license, the investor must submit a hotel and casino development plan to the commission, complete with architectural design and construction specifications.
“The hotel and casino development plan shall mirror image the Las Vegas five star hotels and casinos or other casinos with the same class that beside having games of chances or gambling, it shall have a convention center to accommodate conventioneers, sport events and others,” the bill reads.
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