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Bill granting temporary licenses to small businesses advances
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Posted on Mar 05 2020
Small businesses wanting to participate in community events could get temporary business licenses in the future.
Authored by Rep. Sheila J. Babauta (Ind-Saipan), House Bill 21-87, HS1, which would allow the Department of Finance to set fees and allow for temporary business licenses, passed the House Ways and Means Committee last Tuesday.
The temporary business licenses are valid for 30 days, without the option of renewal or transfer.
“H.B. 21-87 HS1 will allow for the Department of Finance to issue temporary licenses to small businesses who want to participate in community events, such as the Flame Tree Festival and Sabalu Market,” Babauta said. “I support businesses in our CNMI and believe this will encourage those with an entrepreneurial spirit to take a chance and participate in our local events to share their products and/or service.”
The bill comes following the Legislature’s finding that business license fees are outdated, which negatively affects the Department of Finance’s ability to administer licensing laws.
Further, the current fees should be based on the North American Industry Classification System, which would identify business activity more precisely, and which will strengthen licensing requirements and tax compliance enforcement.
Aside from the temporary licenses, the bill also allows the Department of Finance to establish annual, temporary, and late fees.
“Empowering the department to make these changes will allow for better response during good or bad economic times. The department should have the ability to increase or decrease fees as a response to our Commonwealth’s economic situation,” the legislator added.
Babauta expressed appreciation to Ways and Means Committee chair Rep. Ivan Blanco (R-Saipan) and the members, for their support, as well as Tax & Revenue director Tracy Norita, who reassured the committee that procedures are in place to ensure the public is involved and notified of any changes.
“I’m grateful she made time to answer questions from the members and reiterated her support, and [Finance] Secretary [David] Atalig’s support, for the bill,” said Babauta.
The Saipan Chamber of Commerce also submitted a letter of support.
