Bill to establish GRT account

Rep. Blas Jonathan T. Attao introduced last week a bill that would authorize, establish, and fund a casino gross revenue tax account and a CNMI retiree future generation pension plan. House Bill 20-28 would amend Public Law 18-56, which deals with fees and initial investment, and disposition of revenues and gross revenue tax from the fees generated on the exclusive gaming license in operating a casino.

A lot of CNMI residents rely on their retirement pension for their everyday expenses as stated on HB 20-28. It is due to the settlement fund agreement that the retirees lost 25 percent of their pensions that gravely affected their livelihood.

Attao said PL 18-56 established an exclusive gaming license for casino operations on Saipan, with the funds collected from gaming license fees intended to address the retirement pension’s reduction.

“Despite the enactment of PL 18-56, only a portion of the license fee was allocated for the payment of the 25 percent reduction in pension,” wrote Attao on the bill.

“In addition, the Legislature is cognizant of the fact that the $15,000,000 that is collected from the annual license fee collections falls short of what is actually needed to address the pension reduction—an estimated $17,000,000 annually.”

Only a portion or $10,000,000 of the annual license fee is dedicated to address the pension issue. The Legislature also found out in February last year that the retirees’ pension again suffered a 25-percent cut because of shortage to fund the 25 percent payment.

“The government’s remittance of its obligations (annual payment as per court order, which the government tries to pay on a monthly or quarterly basis) to the Settlement Fund are not consistent,” said Attao. “This inconsistency causes the [settlement fund] to tap into the funds available for retirees. The Legislature [also] finds the annual exclusive casino fee of $15,000,000 is a lump sum payment that is readily available for investment into the Settlement Fund for the 25 percent pension payment.”

The casino GRT account, established by the CNMI Finance Secretary, is separate from the general funds. The fund in the account is not subject to fiscal year limitation. The Finance secretary will keep the accounting system’s record of the GRT funds.

The $15,000,000 each fiscal year will be appropriated to the three senatorial districts—$2,000,000 each for the First (Rota) and Second (Tinian and Aguiguan), and $11,000,000 for the Third (Saipan and the Northern Islands).