Senate revamps Casino License Fee appropriation

The Senate during their session last week passed unanimously a total revamp of a House legislation appropriating the annual Casino License Renewal Fee of $15.5 million for fiscal year 2019.

While only $11.5 million of the $15.5 million Casino License Renewal Fee remained after the Tinian and Aguiguan Legislative Delegation and the Saipan and Northern Islands Legislative Delegation already appropriating $1 million and $3 million of their shares from the renewal fees on separate local bills, respectively, the Senate during its session last Sept. 26 ultimately passed Rep. Ivan Blanco’s (R-Saipan) House Bill 21-78 in the form of a Senate substitute and one amendment.

Senate changes to the legislation included taking into account the amounts already appropriated by the Tinian and Saipan delegations respectively.

This means that the Rota Delegation has $2 million from the annual Casino License Renewal fee remaining; $1 million for the Tinian delegation; $8 million for the Saipan delegation; and the $502,570 in adjustments based on the consumer price index every five years.

The Senate, through Sen. Jude Hofschneider’s (R-Tinian) substitute bill and with amendments from Sen. Teresita Santos (Ind-Rota) and Sen. Paul Manglona (Ind-Rota), broke up half of the $2 million appropriation from the fee reserved for the Rota Legislative Delegation.

Under the bill, $290,000 goes to the partial payment of any Rota delegation obligations to the general fund; $220,000 for the 126 Rota dialysis and terminally ill patients monthly subsistence allowance for May through October 2019; $65,000 for the Rota interisland medical referral patients and escort stipends; $50,000 for the partial payment to Sun Palace Rota patient’s lodging costs; $15,000 for vehicle maintenance for the Rota Liaison Office on Saipan; $25,000 for the Rota Health Center; $40,000 for a new van for the Rota Medical Referral patients on Saipan; and $85,000 for Rota Mayor’s Office operations.

The remaining total of $10.5 million, after recognizing Gov. Ralph DLG Torres’ Sept. 5, 2019 letter requesting to the Legislature to incorporate the $15.5 million annual casino renewal fee into the general fund, will be allocated to government agencies.

Another $1 million is transferred to the NMI Settlement Fund for partial payment of the fiscal year 2017 payments under the Settlement Agreement; $3 million transferred to the Public School System; $1 million to the Northern Marianas College; $500,000 to the Commonwealth Health Care Corp.; $1 million to the Marianas Visitors Authority; and the remaining over $4.5 million to vendors for payments incurred as a result of Super Typhoon Yutu.

Reporting and certification requirements

Senate changes to the legislation also included mandating the secretary of Finance to submit to the House speaker, Senate president, House Committee on Ways and Means chairman, and Senate Committee on Fiscal Affairs chairman a detailed expenditure report on the distribution of the appropriated funds within 30 days of any distribution of funds within the legislation.

Also, in order to satisfy Public Law 20-10, or the local mandate that splits up the $15 million among the delegations—$2 million to the Rota and Tinian delegations, respectively, and $11 million to the Saipan delegation with $1.5 million going to the Saipan Higher Education Financial Assistance program—the Finance secretary, according to the legislation, is required to certify to the Legislature the availability of any additional collections above the projected resources for fiscal year 2020 for designation to the delegations, until the $10 million owed to the delegations is full satisfied.