New bill against businesses without permits underway

Rep. David M. Apatang said he would press legislation imposing heavier penalties against business operating without a government license despite the governor’s twice rejection of his proposal.

He said he hopes to introduce a new draft of the bill by this week that would incorporate administration’s concerns and address constitutional questions.

Gov. Pedro P. Tenorio last week vetoed for the second time the measure amending existing laws on requirement for businesses in the CNMI to obtain license from the Department of Finance.

Mr. Apatang, who also pushed the issue during the 11th Legislature, had proposed making the crime a felony punishable with up to $50,000 fine and imprisonment of up to five years.

But the governor said such punishment is disproportionate to the offense and appears to be unconstitutional.

The Saipan representative disagreed, noting that the government must increase the penalties to discourage businessmen from skirting the law.

“That’s a policy decision,” he told in an interview. “If you are going to put in place a penalty of $10,000 or $5,000, it’s useless. The reason for the $50,000 is to deter illegal business operations here in the CNMI. That’s why we are losing revenues.”

The House legal counsel is expected to work closely with the governor’s legal counsel Maya B. Kara in drawing up the new legislation to ensure of its passage, said Mr. Apatang.

“I believe that we have followed their previous veto message. They are saying again that it’s unconstitutional. We are going to re-do the bill and send it over to the governor’s legal counsel for review,” he added.

The legislation was filed amid concerns over proliferation of pre-paid phone cards sold in local stores and foreign remittance service centers on the island, which may not be permitted to do business here.

The House Committee on Judicial and Government Operations endorsed the bill in March, saying that the present law is inadequate in encouraging businessmen, especially those small-time investors, to obtain the proper license issued by the commerce and finance departments.

With severe penalties, lawmakers were hoping to step up consumer protection against unscrupulous businesses that have mushroomed over the years without first seeking permit from the CNMI government.

At present, no government agency has any enforcement powers to apprehend business owners violating Commonwealth laws.