Sunday, September 16, 2007

Synopsis of the Saipan Casino Initiative

Objective, Purpose, and Intent
1. Establishes, regulates and controls gambling in the Third Senatorial District (Saipan and the islands north of Saipan)
2. Establishes a Saipan Casino Commission to be appointed by the Mayor of Saipan with advise and consent of the Saipan and Northern Islands Legislative Delegation. Seven members will be appointed. At least two (2) members shall be of Carolinian Descent, four (4) members shall be of Chamorro Descent, and at least one (1) member shall be a woman.
3. Establishes a Saipan Municipal Treasury within the Office of the Mayor of Saipan. The treasurer will be appointed by the mayor with advise and consent of the Saipan and Northern Islands Legislative Delegation.
4. Establishes a Saipan Casino Fund setup in a FDIC (Federal Deposit Insurance Corporation)bank and administered by the Treasurer. All revenues, taxes, fines, fees and penalties collected in the Third Senatorial District and imposed by the Saipan Casino Commission shall be deposited into the fund.
5. Obligates the Treasurer on an annual basis to hire independent certified public accounting/auditing firm to perform a single annual financial audit of the Saipan Casino Fund, including the activities of the Saipan Casino Commission, the Mayor and the Treasurer relative to the allocations and expenditures of funds appropriated pursuant to this Saipan Casino Act, etc...
6. Authorizes the Attorney General and the Public Auditor to have complete access to the records of the Saipan Casino Fund, including the Office of the Commission, the Maor and the Treasurer in conducting an investigation and prosecution of criminal acts committed against the Fund and any provisions of the Saipan Casino Act.
7. Authorizes and allows one (1) casino license in the Third Senatorial District (Saipan and the islands north of Saipan), whose purpose is for the control, operation and management of casino gaming activities.
8. The Saipan Gaming Commission will issue the casino license to the Northern Marianas Descent Investment Corporation (NMDIC) only. The license shall be perpetual. The NMDIC shall be a profit corporation whose incorporators, directors, officers and shareholders hsall be persons of Northern Marianas Descent.
9. The NMDIC shall issue share of common stock duly subscribed in Five Hundred Dollars ($500.00) par value per share and preferred stocks duly subscribed in one dollar ($1.00) par value only to person of Northern Marianas Descent.
10. No person of Northern Marianas Descent shall own more than one (1) share of common stock and no more than twenty-five thousand (25,000) of preferred shares.
11. Any person of Northern Marianas Descent, who is eighteen (18) years of age or older may subscribe to only one (1) share of common stock and not more than twenty-five thousand(25,000) preferred shares from NMDIC, and pay for such share in an installment amount to be determined under a share subscription agreement with NMDIC.
12. NMDIC is not allowed to sell, lease, transfer or assign the Casino License or any interest to any other person. However, NMDIC, with the approval of the Saipan Casino Commission, may enter into the following casino business gaming activities and operation:
a. A Casino Management Agreement for a fee or profit sharing with a person who has expertise in casino business management and operations.
b. An agreement with a person for the financing, design and construction of a casino hotel complex of not less than 200 rooms and for the management and operation of the casino complex or just the operation fo casino gaming activities for a fee or profit sharing.
c. Casino Establishment Operation Agreement with hotel establishments with no less than 200 rooms for a fee or profit sharing.
13. The minimum condition for approving a casino management agreement or casino establishment operation agreement by the Saipan Casino Commission are:
a. Employment of persons of Northern Marianas Descent (NMD).
b. The U.S. minimum wage shall be applicable to employees of the casino operators and shall govern the hourly pay rate.
c. NMD residents shall be trained in supervisory and management positions and be placed in those positions once qualified within five years of business operation.
d. Employee benefit programs, such as health and dental insurance, sick and vacation leave shall be instituted within the first 12 months of operation.
e. Payment of all applicable fees and taxes.
14. The Division of Public land or its successor, at the request of NMDIC, shall issue public land to NMDIC. The land or lands issued to NMDIC shall not be transferrable. Upon the dissolution of NMDIC, the land including all improvements on it shall revert to the Division of Public Land or its successor without cost.
15. All application fees, license fees, permit fees, fines and penalties, and casino gross revenue tax pursuant to this Saipan Casino Act shall be considered local revenues for the Third Senatorial District (Saipan and the Northern Islands), and shall be available for appropriation by the Saipan and the Northern Islands Legislative Delegation for local purposes as follows:
a. Infrastructure development and collateral equipment
b. Recreation and sports facilities
c. Educational facilities and collateral equipment
d. Public safety and law enforcement facilities and collateral equipment
e. Gambling anonymous program
f. Training and scholarships for NMD students
g. Youth and elderly development programs
h. Medical referral programs
i. Disability programs
j. Health insurance premium special account
k. Social, cultural and indigent programs
l. Low interest home loans
m. Commercial loads