THE Senate Committee on Gaming unanimously voted on Monday to reject Gov. Arnold I. Palacios’ Executive Order 2025-2, which seeks to abolish the Commonwealth Casino Commission.
The committee’s chair, Sen. Corina Magofna; vice chair, Senate Floor Leader Donald Manglona; and members, Senate Vice President Karl King-Nabors and Sen. Ronnie Calvo, all voted to recommend the rejection of the governor’s executive order to the full Senate, which has nine members.
The Legislature has 60 days from the date of the executive order’s issuance — May 30, 2025 — to approve, disapprove, or modify it.
Before the vote, Magofna said the committee’s overall task was to determine whether the governor had usurped the Legislature’s authority.
“We want to make sure there is separation of powers within the branches [of government] so that what we focus on is to ensure that the governor did not overreach [his power],” she said.
She then allowed Senate legal counsel Antonette Villagomez to provide legal advice and background on the matter.
Villagomez cited the 2009 CNMI Supreme Court decision in Torres v. Commonwealth, in which then-Gov. Benigno R. Fitial was sued for attempting to transfer the duties and authority of the Commonwealth Utilities Corp. to the Department of Public Works.
She explained that while the governor does have authority to reallocate offices under Article III, Section 15 of the CNMI Constitution, that authority is limited.
“The governor cannot legislate by executive order,” Villagomez said.
The Supreme Court decision in Torres v. Commonwealth provides guidance on the limits of a governor’s power to reorganize executive branch departments or agencies. When Fitial attempted to transfer CUC to DPW, he effectively abolished the CUC board.
The court ruled that although the governor has broad powers to reorganize the executive branch, the CNMI Constitution does not permit the governor to create a new entity, agency, or department — powers reserved exclusively for the Legislature.
Moreover, the court found that by attempting to reestablish CUC as a separate entity after consolidating it under DPW, Fitial created a new branch entity and, in doing so, usurped legislative authority.
The court also held that by abolishing the CUC board, the governor fundamentally altered the nature of the agency’s administration and nullified existing statutory structures. By doing so, he effectively engaged in the legislative process, a function reserved for lawmakers.
According to Villagomez, Gov. Palacios’ Executive Order 2025-2 presents similar constitutional concerns. The order not only transfers the duties of the CCC to the Lottery Commission but also terminates the casino commissioners “with cause” and attempts to expand the role of the Lottery Commission through executive action.
She said the order alters the administrative framework established by Public Law 18-56, which created the CCC as an autonomous public agency with its own fiscal and administrative authority. Under the executive order, CCC would lose its autonomy.
Sen. King-Nabors said if the governor intended to address concerns regarding the CCC, the proper approach would have been to send a formal letter to the speaker of the House, the Senate president, and the respective chairs of the committees in both chambers.
“It would have allowed the Legislature to offer our time to talk about what changes need to be made,” King-Nabors said.
