Saipan casino law fix goes to Inos

Senators passed last night by a vote of 7 “yes”—with one abstention and one voting “present”—a controversial bill that fixes the ambiguities of the Saipan casino law and empowers the Lottery Commission to grant an exclusive license for a casino on Saipan.

After waiting for almost five hours for the highly anticipated vote, a crowd of mostly retirees and former defined benefit members erupted in cheers and applause when the bill passed the Senate without amendment at 6:28pm.

Retirees fill the Senate’s gallery on Capital Hill yesterday afternoon to urge senators to pass a bill repealing and reenacting the Saipan casino law in its entirety to clarify its ambiguities, hoping the bill’s passage would lead to the payment of their 25 percent deferred pension since last year. After an almost five-hour session, the Senate passed House Bill 18-195, HD1 by a vote of 7 “yes,” with one abstention and one voting “present.” (Haidee V. Eugenio)

House Bill 18-195, House Draft 1 now heads to Gov. Eloy S. Inos, who earlier told Saipan Tribune that he will immediately sign the bill once the Legislature sends it to his office.

“We were expecting six ‘yes’ votes but we ended up with seven,” Sen. Pete Reyes (Ind-Saipan) said moments after the bill’s passage.

The seven “yes” votes came from Sens. Francisco Borja (Ind-Tinian), Joaquin Borja (Ind-Tinian), vice president Victor Hocog (R-Rota), Paul Manglona (Ind-Rota), Pete Reyes (Ind-Saipan), Jovita Taimanao (Ind-Rota), and President Ralph Torres (R-Saipan).

Sen. Frank Cruz (R-Tinian) abstained from voting.

Floor leader Ray Yumul (Ind-Saipan) voted “present.”

Manglona and Taimanao previously voted against the Saipan casino law, saying they want Saipan voters to decide on it instead.

Manglona said in an interview last night that the Thursday vote is not a “yes” or “no” to Saipan casino, but to address concerns on the bill that he pointed out in a letter to the Lottery Commission.

“And I feel the pain of people here. But the pain of the people on Rota is a hundred times more. For that reason, we have to work on this and other bills, like my initiative to extend the private land leases to 99 years,” he said.

Yumul, during discussion on HB 18-195, told senators that a July 10 letter from attorney Joyce C.H. Tang of Civille & Tang PLLC, retirement settlement fund trustee, pointed to specific concerns about the language of the bill.

The first one raises the concern whether the different language for the senatorial districts regarding payment of their 25-percent pension means Saipan retirees will be treated differently than Rota and Tinian retirees.

The second one raises the concern that retirees now off island could be excluded from payment.

Reyes said this is “monkey wrench being thrown on the bill,” and “another trick to try to delay the process.” He said the semantics doesn’t matter.

When asked by senators, counsel Antonette Villagomez said the bill as written does not treat Saipan, Tinian, and Rota retirees, and those currently off island, differently when it comes to payment of their 25-percent pension.

Yumul said the Legislature should come up with a bill “better” than the one in front of them, so as not to “invite more lawsuits.” He said he wants to help the retirees, and even those who want to vote on a casino in November but asked his colleagues to amend the bill.

Among his proposed amendments, which he didn’t offer on the floor, is to raise the gross revenue tax to 34 percent, from only 5 percent under the casino law.

Yumul said the gross revenue tax rate for Macau is 39 percent; 12 percent in Singapore; and 7.9 percent in Atlantic City. He said the CNMI would only collect some $81,000 a year.

The annual casino business license is $15 million.

‘Struggle’

Nineteen of the 21 members of the public who testified before the Senate from 2:51pm to almost 4:30pm urged senators to pass HB 18-195 and send it to the governor for his signature.

Retirees and former DB members believe that once the bill becomes law, it will pave the way for the Lottery Commission to grant an exclusive Saipan casino license and trigger the release of $30 million to pay for retirees’ deferred 25-percent pension and former DB members’ withdrawn contribution interests.

Retirees spoke mostly about their struggles living with a pension cut since October last year.

“Senators, you have to do the right thing,” said retiree Phillip T. Fejeran.

In between sobs, former DB plan member Adela Capati said she’s thankful that she’s still alive to see the day when she gets the interest on her withdrawn contributions to the Retirement Fund. She said she’s thankful that there are investors willing to do business in the CNMI.

“I hope it would be passed. The impact of a 25-percent pension cut is too much. You know how much they cut from my pension every month? About $936. That’s too much. Before the cut, I was living comfortably. It’s not the same anymore,” said retiree Pedro DLG. Pangelinan in an interview.

Edward D. Babauta, 57, said it’s a struggle to live with a 25-percent pension cut and hopes this would end soon, with the help of a casino industry.

‘Compromise’

Only concerned citizen Leila Staffler urged senators to vote “no” to HB 18-195, because she believes its passage would nullify the referendum petition with over 4,200 voters.

Staffler asked that voters be given a chance to decide in November whether they want a casino on Saipan. She said senators could also allow a legislative initiative to put the question on the ballot.

“Let the people be part of the process. This casino will affect us in so many ways. …Think of all the choices in front of us,” she added. Staffler submitted to the Office of the Attorney General on Monday referendum petitions rejecting the Saipan casino and electronic gaming laws.

Former U.S. Interior assistant secretary for insular affairs David Cohen, now representing Marianas Stars Entertainment Inc., clarified that Marianas Stars doesn’t have a position on casino gaming on Saipan. He said they defer to the prerogative of the people.

Marianas Stars is one of two investors vying for an exclusive Saipan casino license. The other one is Best Sunshine International Ltd.

After reiterating Marianas Stars’ concerns on HB 18-195, Cohen said they earlier proposed a two-license compromise that would have doubled the money for retirees and everyone else. But that was not even brought up at the House of Representatives during a vote on the bill on Tuesday.

In his testimony yesterday before the Senate, Cohen offered Marianas Stars’ “last-ditch compromise to protect the people of Tinian and Rota.”

Cohen asked senators to amend HB 18-195 to prevent a Saipan casino from opening until Jan. 1, 2020.

“…that would give the Tinian Dynasty’s new owners the head start they need to try to survive the otherwise insurmountable competition from Saipan. It would also give Rota at least a narrow window to get its gaming industry, which the people of Rota have approved, on its feet,” Cohen said.