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Bill hopes to curb illegal business
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Posted on Sep 24 1999
To discourage proliferation of illegal business establishments on the island, a legislator has proposed a drastic measure that will seek penalty of $50,000 and imprisonment of up to five years for business owners found guilty of the felony offense.
Rep. David M. Apatang said his proposal would enforce regulations requiring government license on any business venture in the CNMI, noting that such requirement has oftentimes been violated due to absence of penalty provisions.
“We feel that those who break our laws should be punished accordingly,” he said in offering House Bill 11-478 to amend existing laws.
Apatang added the penalties are designed to both encourage compliance among potential investors and punish violators, especially those who have suddenly decided to establish business without the necessary permit.
The Department of Commerce is the sole authority in issuing license, but it does not have any enforcement powers to apprehend business owners violating Commonwealth laws.
“We have to stop these businesses,” the representative said in an interview, adding the proposed law will cover all commercial establishments operating on the island.
He disclosed, however, the move stemmed largely from the proliferation of prepaid telephone cards sold in stores which are not licensed under CNMI regulations.
Although the Senate has taken the initial step to clamp down on illegal prepaid phone cards, Apatang as chair of the House Committee on Public Utilities, Transportation and Communications has been pursuing a four-month probe into possible violation of tax laws.
The Department of Finance which he instructed to conduct the investigation has yet to break any ground on this type of service which has mushroomed in recent months as it became popular among alien workers on the island.
Records of existing companies providing this service are currently being checked whether they comply with tax laws and other government regulations.
Apatang said the House would study the bill passed by the Senate, which will task the Commonwealth Utilities Corporation to implement rules and regulations governing the operations of prepaid phone services on the island.
