Inos more inclined now to ink casino bill

Gov. Eloy S. Inos emerged late yesterday afternoon from a closed-door meeting with lawmakers more inclined than before to approve a Saipan casino bill because the agreed upon proposed amendments—if and when the measure is signed—have addressed his, the public, and lawmakers’ concerns.
These include ensuring tax rebates remain, limiting the exclusive license to 40 years, an adjustable annual license fee depending on consumer price index changes, changing some timelines, specific dedication of funds, and not stopping existing casino and other gaming operations.

“It’s getting better. It’s looking more positive. I think we’re getting into agreement on many of the contentious issues so I think we’ll soon have a final decision,” Inos said in an interview after the meeting at past 5pm.

As of yesterday, there’s no telling when the governor will act on the bill, if at all.

There are a handful of options at this time: veto the bill, sign it, allowing the measure to automatically become law after 40 days without the governor’s signature, and for the Legislature to recall the bill from the governor.

A third meeting with lawmakers is likely, this time to finalize the agreed-upon proposed amendments discussed yesterday, the governor said.

“The major concerns that I have have been addressed and they all agreed to make those changes so now they’re just going over some of the issues that affect the specific senatorial districts,” Inos added.

The House and Senate could also hold back-to-back sessions, if needed, to pass a new bill amending the Saipan casino bill, if and when the governor signs it.

More than half of the 29 members of the House and Senate met with the governor, including Senate President Ralph Torres (R-Saipan) and House Speaker Joseph Deleon Guerrero (Ind-Saipan).

Only two of the lawmakers who voted “no” to the bill’s passage two weeks ago were present: Sen. Frank Cruz (R-Tinian) and Rep. Edmund Villagomez (Cov-Saipan).

“It doesn’t hurt to listen to what they have to say,” Villagomez said. But just like Cruz, he said his position on a Saipan casino bill remains the same.

They both want Saipan voters to decide on the matter.

Sen. Joaquin Borja (Ind-Tinian) said he will again vote “yes” to the amendment bill once it is introduced.

“It’s a better bill, amending the original bill,” he said. “Let’s face reality here. We can no longer rely on just the existing tax base we have…We should have a ‘one heart Commonwealth on this.”

Public hearing request

Tinian Mayor Ramon Dela Cruz, meanwhile, asked the Legislature to hold a public hearing on the casino bill on Tinian to “give the people of Tinian and the Dynasty Casino management an opportunity to ask questions and give input so the legislation might help clarify issues that have been raised since the bill was passed by the CNMI Legislature.”

“Perhaps conducting a public hearing on the bill and the suggested amendments on Tinian is appropriate before the governor makes his final decision whether or not to sign the bill into law,” the Tinian mayor told Senate President Ralph Torres (R-Saipan) in a March 17 letter.

Concerned citizens are also trying to hold a forum to be able to ask lawmakers and the governor about the casino bill. A non-profit foundation is also gathering signatures to be able to put the Saipan casino question on the ballot in November.

It was the first time in at least four years that the Senate passed a Saipan casino bill from the House. The House and Senate passed the major revenue-generating bill only a day apart, and without referral to committees and public hearing.

Saipan voters had twice rejected a casino on the island; the last time was in the 2007 elections. Casino gaming is legal only on Tinian and Rota.

Proposed changes

Based on the draft amendment bill and interviews with the governor and lawmakers, the tax rebate program in the CNMI continues.

But the governor said there are still a lot of changes to the draft amendment bill that were presented and discussed yesterday.

The draft of the amendment bill specifies that electronic gaming machine licenses will still be granted and allowed to operate upon the casino bill’s signing.

The $1 million nonrefundable application fee remains. However, an investor can pay the application fee within 30 days—instead of the original 15 days—after the bill is signed into law, under the draft amendment bill

The applicant would have to submit the application to the Commonwealth Lottery Commission.

The annual license fee remains at $15 million, but the investor has to pay $30 million to cover the first and third year license fee within 45 days—and not within 15 days—from the day the bill was signed.

Under the draft amendment bill, the $15 million annual license fee “shall be adjusted every five years” based on the cumulative change in the consumer price index developed by the Department of Commerce for Saipan for the previous five years.

A business plan has to be submitted to the Commonwealth Lottery Commission “no later than 45 days” after the bill is signed into law, a change from the original proposal of only a 30-day deadline.

Inos said the exclusive casino license holder is still required to invest “at least” $2 billion, to include “a casino and a resort” with a minimum of 2,000 guest rooms.

Senate Vice President Victor Hocog (R-Rota) and the governor separately said the administration and lawmakers agreed to prioritize funding retirement fund-related issues, including annual payments to the retirement settlement trust fund and restoring the 25 percent cut from retirees’ pension.

Hocog said after these are addressed, then that’s the only time that each senatorial district would get “equal” amount from the license fee.

But a more specific language has yet to be finalized on this portion of the amendment bill.

The governor also said there is clarification “as to what applies to the First and Second Senatorial Districts.”

“It’s a Commonwealth Act but the law will not affect the operations of casino gaming authorized under local initiatives,” Inos said.

This would ensure that proceeds would also be allocated to Rota and Tinian and not only Saipan, among other things.

The Tinian mayor and Tinian Dynasty Hotel & Casino previously asked the governor to veto the casino bill because of its present language that could shut down the Dynasty the moment the bill is signed.

The governor said the exclusive license will be back to 40 years—initial 25 years plus 15-year extension.

The Saipan casino bill allows for up to 80 years exclusive license, and this could violate Articles 11 and 12 of the NMI Constitution because land leases are only up to 40 and 55 years, depending on whether the casino and related facilities will be built on public or private land.

The governor also said his suggestion to see portions of gross revenue taxes from the casino gaming operation allocated to help subsidize the so-called LEAC rate for residential customers of the Commonwealth Utilities Corp., is taken into consideration. This could help lower utility rates.

Besides lawmakers including Saipan casino bill main author House floor leader Ralph Demapan (Cov-Saipan) and Rep. Felicidad Ogumoro (R-Saipan), also in the meeting were House legal counsel John Cool, Senate legal counsel Joe Bermudes and administration counsel Jim Stump and others from the Office of the Attorney General.