Dangers in both quick, slow passage of casino amendment bill

Senate Fiscal Affairs Committee chair Jovita Taimanao (Ind-Rota) set yesterday a March 31 to April 6 public hearing on Saipan, Tinian, and Rota on a yet-to-be prefiled bill amending a controversial new law allowing casino gaming on Saipan to ensure “transparency.” But House floor leader Ralph Demapan (Cov-Saipan) said yesterday that failure to amend Public Law 18-38 immediately could set in motion the original timelines and problematic provisions that the public is worried about, including tax rebate and pension cut restoration.
For example, restoring retirees’ 25 percent pension cut “within 90 days” hinges on the immediate amendment to the law’s dedication of funds, among other things.

Moreover, even with a House technical correction on the casino bill prior to transmittal to Gov. Eloy S. Inos, the Inos administration wants the rebate program to be explicitly restored by way of amendment and for the exclusive license to be shortened from 80 years to only 40 years.

Under the new law, investors need to pay the nonrefundable $1 million application fee within 15 days of the law’s signing on March 21.

But the governor and lawmakers want to change the 15-day timeline for the application fee to 30 days, and another 45 days to pay the partial $30 million exclusive license fee. They only have until around April 5 to ensure the amendment bill becomes law.

Demapan said yesterday he could prefile the amendment bill as early as today. The governor and lawmakers have been going back and forth on proposed amendments to the casino measure, and the amendment bill is believed to be on its third draft as of this weekend.

“The bill has not been prefiled yet and for the Senate to even hold public hearing on the bill, the bill has to pass the House first. But I do respect their prerogative,” Demapan said.

Taimanao, in her notice of public hearing yesterday, said, “It is imperative that the Legislature work with the business community, the local municipalities, various government agencies and the general public to properly discuss and address the proposed amendments that must be passed by the Legislature.”

“These series of public hearings are, therefore, being called to allow the public to join in the discussion of this bill legalizing casino operation on Saipan,” Taimanao said.

Lawmakers, business groups, and other community members have expressed concern over what they describe as a “rushed” passage of a “flawed” Saipan casino bill.

The governor himself recognized problematic provisions in the casino bill but signed it anyway after getting an assurance from the House and Senate that they will immediately amend the law.

Some pro-casino lawmakers said it would be easier to have the law amended rather than introduce a new bill that may not even pass the second time around. It was the first time that the Senate passed a Saipan casino bill from the House in at least four years.

They added that they do not want to renege on their commitment to fix the casino legislation that passed the Legislature early this month.

In a phone interview, Taimanao said she hopes that her colleagues at the Senate would allow for the amendment bill to go through a series of public hearings.

The public hearings are set for the following dates: March 31 at the Senate chamber on Saipan at 10am; April 2 at the Pedro P. Tenorio Multipurpose Center on Saipan at 6pm; April 9 at the Tinian Courthouse at 6pm; April 11 at the Rota Mayor’s Office conference room at 10am; and April 16 at the Kagman Community Center on Saipan at 6pm.

Sen. Paul Manglona (Ind-Rota) reiterated yesterday that public hearings will allow lawmakers to directly hear from the people and casino experts on how they feel about a casino industry on Saipan.

“On a very complex issue such as casino industry, we need to bring in people to talk about numbers, impacts, industry concerns, so that the CNMI can do it right and not regret the new law later on. Rushing all of this once again will bring us back to what happened in the first try, a bill with so many problems passed and was signed,” he said.

Rep. Ralph Yumul (Ind-Saipan), one of those who voted “no” to the casino bill’s passage, said he will ask the leadership “to place the amendment [bill] to committee at minimum.”

“This way, we can work on addressing all concerns, even holding public hearing,” he added.

Signature drive

At the same time, a private group’s signature drive to put the Saipan casino question on the ballot once again now hangs in the balance because casino has now become legal on Saipan by virtue of PL 18-38.

“We’re consulting with attorneys. If they say that this popular initiative will take precedence over the casino law, then we will continue gathering signatures. We’re going to have a meeting to continue discussing this,” Marianas Economic Research and Development Foundation president and board chair Isidoro T. Cabrera told Saipan Tribune yesterday.

The Inos administration has yet to release a copy of the new casino law as of yesterday, Covenant Day, a non-working holiday.

The governor’s cover letter spells out his specific concerns about the casino legislation and why it needs to be amended.
Inos announced on Sunday’s Republican Party kickoff rally that he signed the casino bill into law on Friday afternoon, drawing applause and cheers from the crowd of hundreds.

He said with the law’s signing and its planned amendment, retirees will be able to receive the 25 percent that was cut from their pension while others will be able to receive the interest on the retirement contribution they were able to withdraw last year. Inos also wants the Saipan casino industry to subsidize the so-called LEAC rate for Commonwealth Utilities Corp.’s residential customers to help lower CUC utility rates.