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SHEFA board leery of possible impact of casino law
With the passage of the casino law, concerns have been raised whether the Saipan Higher Education Financial Assistance will still have the funds it needs to run the program after April 2, 2015. This is because the casino law mandates the Commonwealth to stop issuing new or additional licenses for pachinko, poker or other similar amusement machines after that date.
The casino law, Public Law 18-56, Section 2302(d), states that “after April 2, 2015, no new or additional licenses for poker, pachinko or similar amusement machines, but not including electronic gaming machines as defined in 6 CMC 3154(a)(4), shall be granted or allowed to operate outside of the approved casino establishment, hotel, or La Fiesta within the Third Senatorial District.”
However, all licenses issued for poker, pachinko, and similar amusement machines that began operation prior to April 2, 2015, shall be allowed to continue to operate.
That means SHEFA will have to rely solely on the revenue brought in by existing poker machines. And with poker arcades slowly being phased out from villages, there is a possibility that SHEFA will run out of funds in the next couple of years.
Lawmakers appropriate some $3 million in poker license fees to SHEFA every year. SHEFA provides financial assistance to some 500 or more students both on and off-island.
The SHEFA board met yesterday morning to discuss whether the new casino law will benefit or hurt the program but the discussion was later tabled due to the absence of SHEFA vice chair Jose Mafnas.
SHEFA administrator Merissa S. Rasa said that Mafnas has more information on the status of SHEFA after April 2, 2015, and what will happen to SHEFA in the long run.
SHEFA board member Juan K. Tenorio said they should also discuss alternative sources of funding for the scholarship program.
SHEFA board chair Josephine T. Sablan said that looking into the matter is vital because they still haven’t fully digested whether it will hurt the financial assistance given to students and the office itself.
Board member Ursula L. Aldan was also present at the meeting.
