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AN ANALYSIS OF THE SAIPAN CASINO ACT By Tina Sablan MANY of us have received letters,
pamphlets, e-mails, phone calls, and house visits from individuals urging
us to vote “yes” on the Saipan Casino Act. We have watched interviews
with the proponents on television, and listened to them on the radio.
We have read their letters to the editor and their paid advertisements.
The propaganda in favor of the Saipan Casino Act has been carefully crafted
to target people’s sense of desperation, and to distract citizens
as much as possible from reading and understanding the Saipan Casino Act
itself. How many of us have actually read the Saipan Casino Act in its entirety?
We have compiled here both a list of the misleading claims that have been
made by Saipan Casino Act proponents, as well as a section-by-section
analysis of the Saipan Casino Act to help voters understand the serious
ramifications of this initiative. Regardless of our positions on casino gambling, our focus in evaluating this initiative must be on the Saipan Casino Act itself.
SAIPAN CASINO “The Saipan Casino Act will save government jobs.” The Saipan Casino Act proposes to drain scarce taxpayer dollars from other agencies and public services in the creation of an expensive Casino Commission and Saipan Municipal Treasury. Rather than save government jobs, the Saipan Casino Act may result in more job losses. ”The Saipan Casino Act does not create a monopoly because there could be multiple casinos operating on Saipan.” The Saipan Casino Act creates a Casino Commission that is allowed to issue only one exclusive perpetual license to one for-profit corporation, the Northern Marianas Descent Investment Corp. This is a monopoly. And yes, there may be multiple casinos on Saipan. There could also be no casinos. Or too many casinos. The Saipan Casino Act sets no limits whatsoever, and forces prospective casino investors to go through one monopolistic corporation, the NMDIC, in order to do business on Saipan.
“The Saipan Casino Act creates a ‘regulatory monopoly’
to ensure that some of the revenues generated from casinos will remain
on island.” Monopolies by their very nature do not regulate themselves
or other businesses well. Regulation is the job of the government, not
a for-profit corporation. Moreover, because of the way the Act is written,
it is unlikely that there will be any casino investors willing to partner
with NMDIC, and therefore little likelihood that there will even be any
casino revenue to keep on island. “The Saipan Casino Act provides for independent regulation of casinos on Saipan.” The Saipan Casino Act does not prohibit Casino Commissioners, the Executive Director of the Casino Commission, the Saipan Municipal Treasurer, or any of their staff from owning shares in NMDIC, the sole casino licensee. The Commissioners, the Executive Director, the Treasurer, and their staff are the people who would be responsible for regulating casino operations on Saipan. This is a direct conflict of interest. This is not independent regulation. “The Saipan Casino Act will eliminate poker.” There is nothing in the Saipan Casino Act that relates to the elimination of poker. In fact, the Saipan Casino Act, if it becomes law, is likely to increase the number of poker machines on Saipan. Poker machines are a common feature for any casino – including the casino on Tinian, and casinos in Las Vegas, Reno, and many other gambling centers around the world. “Opponents to the Saipan Casino Act are financed by the poker industry or the Tinian Dynasty… They are lying … They fear change… They are not from here and don’t understand the suffering of the people.” These are personal and groundless attacks on all citizens who have read and understood the serious and harmful implications of the Saipan Casino Act, and have made an informed decision to oppose the Act. “The Saipan Casino Act will quickly bring a much-needed infusion of cash into the economy from tourists and gamblers.” There is no guarantee that the Saipan Casino Act will generate any revenue for the CNMI, and zero likelihood that it will happen quickly even if it does. It will certainly not happen quickly enough to prevent any job losses projected for the end of this year, as some Saipan Casino Act proponents have suggested. “A ‘no’ vote means ‘yes’ to the Saipan Casino Act.” This is a fairly common tactic that has been used in other jurisdictions to deliberately confuse voters. A “no” vote means that you do not approve of the initiative.
SECTION-BY-SECTION ANALYSIS OF THE SAIPAN CASINO ACT
Administration of the Saipan Casino Commission and Treasury
Article II, Section 1. Saipan Casino Commission. There is hereby established
a Saipan Casino Commission with all the rights to sue and be sued. The
Mayor shall within thirty (30) days after the effective date of this Act,
appoint seven (7) members of the Commission. At least two (2) members
shall be of Carolinian Descent. At least four (4) members shall be of
Chamorro Descent. At least one member of the seven (7) Commissioners shall
be a woman.
Article II, Section 1. Executive Director. The Commission shall hire an
Executive Director… Qualifications of the Executive Director. The
Executive Director shall... [h]ave no interest, directly or indirectly,
or equity in any of the Casino Operator business, other than owning shares
in the NMDIC. Costs of the Saipan The Saipan Casino Race-based hiring and appropriations under the Saipan Casino Act Minimum wage employment under the Saipan Casino Act Amending the Saipan Fees and taxes under the Saipan Casino Act NMDIC: A risky business Other concerns raised by the Saipan Casino Act ------------------------------------------------ |
The administration of Gov. Benigno R. Fitial is opposing the Saipan
casino initiative, citing that a public land giveaway provision
embedded in the initiative violates the CNMI Constitution.
According
to a statement issued by the Governor's Office Friday, language in the
Saipan gaming initiative effectively forces the Department of Public
Lands to lease public lands to the Indigenous Entrepreneurs Group for
the paltry sum of $1 per year.
“This is a violation of our
Constitutional mandate to maximize the benefits of public land leases
for the CNMI's indigenous population and for the CNMI's general
welfare,” said Public Lands Secretary John S. Del Rosario.
The
CNMI Constitution requires the government to transfer public land
proceeds after expenses to the Marianas Public Lands Trust for
investment purposes. MPLT's investment earnings are then to be
transferred to the Legislature for general appropriation.
Although
the Fitial administration generally avoids taking a position on popular
initiatives, preferring to defer to the people, it is not pleased with
the gaming initiative's public land lease provision, the statement said.
“This
provision would force our government to make uneconomical decisions
regarding our scarce public land resources,” said press secretary
Charles Reyes. “It would force our government to lease public lands for
less than what the free market would bear for political reasons.”
Tony
Muna, the Governor's Special Assistant for Management and Budget, also
expressed similar reservations regarding the public land lease
provision of the Saipan casino initiative.
Fitial also
disagrees with the Saipan Casino Initiative's proposed wholesale
giveaway of valuable public lands for the benefit of one indigenous
group rather than the indigenous population as a whole.
“Because
it usurps the government's constitutional fiduciary duty to protect
public lands and maximize its benefits to the people, the
administration endorses a negative vote on the Saipan casino
initiative,” the statement said.
The Saipan Casino Initiative
would be put to a vote in the Nov. 3 mid-term elections. To be
ratified, the initiative has to be approved by at least two-thirds of
registered voters-about 7,000.
The initiative provides for the
creation of a gaming commission consisting of indigenous people. Under
the proposal, the commission shall issue the casino license only to the
Northern Marianas Descent Investment Corp., which a for-profit
corporation whose incorporators, directors, officers and shareholders
shall be of Northern Marianas descent.
The Saipan Casino
Initiative also gives casino employment preference to residents of
Northern Marianas descent in the Commonwealth.
According to its
proponents, the initiative's indigenous regulation concept is patterned
after the Indian Reservation in the mainland.
IEG previously
said local ownership or control is directly linked to landownership,
which is limited to indigenous people as embodied in Article 12 of the
CNMI Constitution.
They also said the Saipan casino will benefit
the entire community-even Tinian and Rota-as it transforms the island
into the Las Vegas of the region.
IEG is headed by former congressman and House speaker Pedro R. Guerrero.
The
Saipan Sasino Initiative is being opposed by Tinian, which believes
that a casino on Saipan would undermine the casino on their island.
I have previously written about the public health effects of casinos on
a community. I addressed the broad topic of casino gambling. However,
the issue before the Saipan voters is not simply “Should casino
gambling be permitted on Saipan?” The real question before the voters
is about a very specific Act: the Saipan Casino Act. Do you know what
is in the Act?
If
you are planning on voting on this initiative next week, you should, at
the very least, read the Act. You have to know what you are voting for,
and the only way to know is to read the Act. The Act is about 30 pages
long, and covers a lot of specific details. It's irresponsible to cast
a vote on an issue that you're not informed about. This is an important
issue.
I know of people who are conceptually in favor of
casino gambling on Saipan, but when they read the Act, they realize
that they do not support the details of the Act, and decide to vote
against it. It's not about “Yes Casino.” The vote is about the details
contained in the Act. So take a look at the Act. It is available at the
website of the Commonwealth Election Commission, votecnmi.gov.mp.
According to the website, copies are also available at the public
library. If you can't get access to a copy, stop by my office and we'll
print a copy for you.
I will quote a few of the paragraphs of
the Saipan Casino Act. These are just a few of the sections of the Act.
They will give you an idea of the type of detail that is up for vote
next week. Read the Act in its entirety, or gather a group of people to
read and discuss it. It's the only way to know what you'll be voting
on.
Here are a few paragraphs.
“Commission. The Mayor
[of Saipan] shall within thirty (30) days after the effective date of
this Act, appoint seven (7) members of the Commission. At least two
members shall be Carolinian Descent. At least four members shall be of
Chamorro Descent. At least one member of the seven Commissioners shall
be a woman.” (Article II, Section 1a)
“Subpoenas - Oaths. The
Commission shall have the power and right to issue subpoenas and to
compel the attendance of witnesses at any place within the Municipality
of Saipan.” (Article II Section 3)
“Casino License. There shall
be one casino license allowed in the Third Senatorial District [Saipan]
and its shorelines, seaports and within the territorial waters of the
NCMI that surround Saipan and the Islands north of Saipan, which
purpose is for the control, operation and management of casino gaming
activities.” (Article III, Section 1)
“Grant of Casino License.
The Commission, upon this Act becoming law, shall issue the casino
license only to the Northern Marianas Descent Investment Corporation
(NMDIC). The license shall be perpetual... The incorporators,
directors, officers and shareholders of the NMDIC shall be persons of
NMD. NMDIC shall issue shares of common stock duly subscribed in Five
Hundred Dollar (US$500.00) par value per share and preferred stocks
duly subscribed in one dollar ($1.00) par value per share to natural
NMD persons only. No natural person of NMD shall own more than one (1)
share of common stocks and twenty-five thousand (25,000) of preferred
shares.” (Article III, Section 2a)
“Public Land. The Department
of Public Land (DPL) or any future entity responsible for the
administration of public lands in the Commonwealth, upon this Act
becoming law and at the request of NMDIC, shall issue, public land to
NMDIC. NMDIC shall hold leasehold interest to all public land issue by
DPL and pay one dollar ($1.00) per year for the land or lands issued by
DPL for as long as NMDIC is in business.” (Article III, Section 8)
“Initial
Operating Cost. In the event the Delegation is not able to provide
funding for the initial operating cost, the Commission and the
Treasurer may incur debt from any government agency or private entity
to fund the initial cost of their operation. The debt is not public
debt, but shall be repaid.” (Article X, Section 7)
The issue is
certainly not, as some have attempted to couch it, “Are you in favor of
economic development on Saipan,” nor is it even “Are you in favor of
casino gambling on Saipan.” It is, “Are you in favor of the details of
the Saipan Casino Act.” Become familiar with the content of the Act.
Ask questions. It's the only way to form a responsible opinion.
(David
Khorram, MD is a board certified ophthalmologist and director of
Marianas Eye Institute. Comments and questions are welcome. Call
235-9090 or email him through www.MarianasEye.com, or leave comments at
www.MarianasEye.blogspot.com. Copyright © 2007 David Khorram)
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I no longer live on Saipan, but still have great concern for the people
who live on your beautiful island. I have been reading the online
versions of the newspapers regularly and see that the casino initiative
is a regular topic. When I lived on Saipan, I worked as a psychologist
at the Community Guidance Center and had the opportunity to see
first-hand how gambling has impacted the lives of your families. I have
personally met with your abused spouse and your neglected children who
were left in the car when you were inside the poker house. I have wiped
their tears, as have all of my CGC colleagues. We value your families
and have seen how gambling is destroying your lives.
I
am now working in an area of Wisconsin that has several casinos owned
and run by Native American groups, and have seen the impact on these
communities of having a locally owned and run casino. I believe
strongly that the impact of casinos is more negative than positive.
Instead of presenting my opinions on the matter, I encourage
individuals to take a look at the research on casinos. Please see the
website
www.bsos.umd.edu/econ/evans/wpapers/evans_topoleski_casinos.pdf
for a summary of studies on the impact of casinos on local cultures.
The benefits are an increase in jobs for some and a slight reduction in
mortality (which seems to be related to more people having health
insurance because they are employed). However, the documented and
proven problems include significantly higher rates of bankruptcies,
violent crimes, and property crimes in the communities where the
casinos are located. So, overall, about 5 to 12 percent more people
would be employed, but the entire community would suffer from higher
rates of crime and bankruptcy. In addition, the research indicates that
adding a new casino to an area creates more local gamblers. It does not
just "reshuffle" or relocate the existing gamblers, it creates more
gamblers within the community (i.e. locals as well as tourists). So
please, I urge you to read the research and think it through.
I
find it interesting that some people believe that having a casino will
eliminate or reduce the gambling problem in the local residents. The
research says otherwise. All gambling is gambling. Having a casino just
adds more of it.
Dr. Kate LaPierre
Rhinelander, WI
So I have for a few weeks now been wondering what is going on in regards to this Saipan
Casino Act and the heated debates we are seeing on both sides of the
issue. I was not very surprised that when mentioning Gambling in the CNMI it will rouse up a good debate. What has surprised me the most is the way these debates have gone.
I
have read the letters tot he editor, visited the PRO and CON web blogs,
read comments and posts on various forums, personally spoken to people
on both sides of the fence, etc. The thing that surprised me the most
(and was the most alarming to me me) was that the PRO side almost never
referenced or acknowledged any clause or provision actually contained
within the SCA itself. Even more ludacris they would shun any debate dealing with exact provisions or the SCA initiative. They instead have been staunchly touting the SCA passage as a way for the CNMI to gain extreme wealth. They also speak loudly about how the passage of the SCA
will kill the poker industry. They also speak of how this will save
Govt Jobs and so on and so forth. Never once have I seen any of the
proponents reference any clause within the Act that spells these
benefits out.
How can people so blindly support something? I
understand that their maybe a few people who will personally gain from
the passage of this Act (7 Commissioners and Employees of NMDIC) but what of all the others?
Why would they purposely avoid looking at the SCA itself and instruct the voting populace to just blindly vote "yes" based on unproven, unfounded claims?
Why would they shun any question from a concerned voter that references any part of the SCA itself?
Why would they not want people to read and understand fully all of the provisions of the SCA?
I
thought at first it was due to a strong influence by a few connected
individuals who have already been given the head nod to have a
Commissioners Seat ($4k/month and then readjust it themselves
personally after 4 years) or perhaps one of the people who are
connected personally to the relatively unknown NMDIC (Who is NMDIC?
Does it exist?). I thought that perhaps their lobbying efforts were
garnering so much public support and blind faith. I have seen this in
the past. But I still was not conviced that this would be the root cause of a cluster group to so strongly and vehemently defend the SCA against any type of challenge or questioning.
There must be more to the SCA than I first saw (a few fat cats wanting my hard earned tax dollars to go to their mansions on the hill and fancy SUVs).
I think I have found it:
The PUBLIC LANDS PROVISION in the Saipan Casino Act. This provision has the strength and power to justify NMDIC pay top dollar to ensure that the SCA passes.
Here is the section in it's entirety:
ARTICLE XII - Section 8. Public Land. The Department of Public Land (DPL) or any future entity responsible for the administration of public lands in the Commonwealth, upon this Act becoming law and at the request of the NMDIC, shall issue public land to NMDIC. NMDIC shall hold leasehold interest to all public land issue by DPL and pay one dollar ($1.00) per year for the land or lands issue by DPL for as long as NMDIC is in business. The land or lands issue to NMDIC shall not be transferable. Upon dissolution of NMDIC, the land including all improvements shall revert back to DPL or its future named entity without cost.