Transfer of tobacco, alcohol control to DPS anti-business

The CNMI Department of Commerce has expressed opposition to plans by the Legislature to transfer the regulation of alcohol and tobacco licensing to the public safety department, amid possible negative impression it may create on the island’s business atmosphere.

Acting Commerce Secretary David S. Palacios said the current regulatory and licensing system in place is working well within the commerce department, which also administers Civil Enforcement Mechanism in accordance to the Licensing Suspension and Revocation Functions of the Administrative Procedure Act.

Mr. Palacios made the statement on the heels of legislative proposals to establish a Bureau of Alcohol, Tobacco and Firearms under the Department of Public Safety, which virtually abolishes the same body at the commerce department.

In a written testimony submitted before the Legislature, DOC’s Alcohol Beverage and Tobacco Control Division Director Andrew Salas said allowing members of the police force to do the inspection of licensed establishments would cause public confusion since business owners might think they are under suspicion of criminal activity.

Mr. Salas pointed out the difference between the commerce alcohol and tobacco control division’s civil enforcement authority and the police’s enforcement of criminal law in partnership with the Attorney General’s Office.

“This distinction between Civil Enforcement (sanctioning licensees) and Criminal Enforcement (jailing criminals) is critical to not only the evidentiary burden of proof but also to the right counsel,” he explained.

He stressed the proposed legislation muddles enforcement functions which, if passed in its current form, would cause future members of the DPS to perform periodic inspections of businesses as mandated by the Administrative Procedure Act.

“The business person being regulated would probably…consider themselves under suspicion of criminal activity and either demand production of a search warrant or consider the whole CNMI government as heavy-handed and anti-business by sending out Public Safety officers to regulate alcohol and tobacco sales,” Mr. Salas said.

Mr. Palacios suggested the proposed legislation should instead focus on the enforcement of weapons control laws of the Commonwealth through the creation of the Bureau of Firearms under the public safety department.

“This will maintain the currently working system and still allow for the division-level director of the [proposed] bureau of firearms to assume the current statutory duties of the public safety commissioner. Essentially, this change embodies the good government doctrine of ‘if it works, don’t fix it’,” he added.

Effective system

Both Mr. Palacios and Mr. Salas emphasized the current regulatory and licensing system is working well under the commerce department and does not need any legislative or administrative fix, more so, be transferred to the police.

The commerce department’s Alcohol Beverage and Tobacco Control Division currently regulates 873 alcoholic beverage and 484 tobacco licenses throughout the Northern Marianas.

The CNMI government is not letting up on its campaign against the sale of tobacco and alcoholic beverages to minors through the deployment of teams from the Department of Commerce to conduct random inspections of establishments in the islands.

Part of the random inspection is the education of establishment owners on the ills of selling the regulated items to minors , which include confiscation and permanent suspension of business permits.

ABTC fields teams to do random inspection of establishments at an average of 5-6 times a week usually at night to ensure alcoholic beverages are not sold to already drunk customers and pass the hour of selling.

Businesses are allowed to sell alcoholic beverages only until 2:00am although the government urges them to have the last order call by 1:45am since the law requires that people have to stop drinking by 2:00am.

ABTC is also on the lookout for business establishments that are operating without the necessary permit from the CNMI government. At present, the division has issued license to 484 tobacco and 873 alcohol sellers in the Northern Marianas.

Teams from the division confiscate the regulated items from unlicensed business establishments which are asked to secure a permit within 24 hours to allow them to recover the seized alcohol and tobacco products.

For regular violation, ABTC issues citation although it recommends permanent suspension of the permit of those who refuse or are not able to address the cited concerns on three occasions.