VOTE NO TO "SAIPAN CASINO ACT"

THANK YOU FOR SAVING THE ISLAND OF SAIPAN

DECISION HAS BEEN MADE AND THE VERDICT IS OUT:


NO TO THE SAIPAN CASINO ACT

THANK YOU AGAIN FOR ALL THE SUPPORTERS WHO FOUGHT AGAINST THIS ACT AND STOPPED THE ACT FROM DESTROYING OUR ISLAND..

SI YU'US MA'ASE, GHILISOW, AND THANK YOU!!

THANK YOU FOR VOTING NO TO THE SAIPAN CASINO ACT

THANK YOU FOR VOTING "NO" TO THE SAIPAN CASINO ACT...

SAVE SAIPAN - VOTE NO TO THE SAIPAN CASINO ACT

VOTE "NO" TO THE ''SAIPAN CASINO ACT"


VOTE NO TO THE SAIPAN CASINO ACT

the below was extracted from www.mvariety.com



AN ANALYSIS OF THE SAIPAN CASINO ACT


By Tina Sablan
& Glen Hunter
For Variety

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.
We urge all Saipan voters, however, to make it a point to read and understand the entire Act before going to the polls on November 3. A copy of the Act is available at the Joeten Kiyu Public Library, and also online at the Election Commission Web site, www.votecnmi.gov.mp. We would also be happy to provide a hard copy of the initiative to anyone who requests one; please call 483-3935.

Regardless of our positions on casino gambling, our focus in evaluating this initiative must be on the Saipan Casino Act itself. 

SAIPAN CASINO
ACT CLAIMS

“The Saipan Casino Act is the only economic solution being proposed right now; opponents aren’t offering any solutions.” Citizens who read and understand the Saipan Casino Act will see that it is not a solution to our economic problems. Rather, it proposes more problems at enormous cost to taxpayers. 

“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.
The Saipan Casino Act does not explain why the Casino Commission must specifically require two Carolinian members, four Chamorro members, and one woman. The Saipan Casino Act also does not define “Carolinian Descent” and “Chamorro Descent.” It does require that all members of the Casino Commission be of Northern Marianas Descent as defined under Article XII of the CNMI Constitution. Article XII, however, does not make a distinction between Chamorro Descent or Carolinian Descent; it treats the two cultural groups as one classification, “Northern Marianas Descent.”
Also, there are no explicit guidelines that would establish the independence of this Commission from any casino operations. The Act does not restrict members of the Commission from owning shares in the Northern Marianas Descent Investment Corporation.

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.
The Saipan Casino Act requires the Casino Commission to hire an Executive Director.
Although the Act states on the one hand that the Executive Director shall not have any interest or equity in the casino operator’s business, it also states on the other hand that the Executive Director would be allowed to own shares in the Northern Marianas Descent Investment Corporation, the sole corporation licensed by the Casino Commission to operate casinos on Saipan. This is a direct conflict of interest.
Article II, Section 6. Treasury. There is hereby established within the Office of the Mayor a “Saipan Municipal Treasury”… The Mayor, within 30 days after the approval of this Act, shall appoint a Treasurer to be confirmed by the [Saipan and Northern Islands] Delegation… Qualification of the Treasurer. The Treasurer shall … possess the same qualifications required of the Executive Director...
Like the Casino Commissioners and the Executive Director, the Saipan Municipal Treasurer would also be allowed to own shares in the NMDIC under this Act. This is another direct conflict of interest.

Costs of the Saipan
Casino Act

Article II, Section 1. Compensation – Commission. The Commission members shall meet at least fifteen (15) days a month or as often as necessary to perform its duties and responsibilities pursuant to this Act and be compensated monthly not to exceed $4,000.00 per month. The Commission, subject to the approval of the Delegation, may alter the compensation of the Commission after 5 years from inception of the Commission.
The Act provides for 7 (seven) members to be appointed to the Saipan Casino Commission, each of whom will be paid a salary of up to $4000 per month, for working as little as fifteen (15) days a month. After five years, with the approval of the Saipan and Northern Islands Delegation, the commissioners may opt to raise their salaries. Commission members’ salaries alone will cost CNMI taxpayers $366,000 a year for the first five years – and the salaries may go up even higher after that.
Article II, Section 1. Saipan Casino Commission – Compensation. The Commission shall establish a pay scale for the Commission personnel, including the Executive Director, subject to the approval of the [Saipan and Northern Islands] Delegation... Commission – Initial Funding. The [Saipan and Northern Islands] Delegation shall provide the initial funding for the operations and activities of the Commission…
Article II, Section 1. Administrative Expenditures. Subject to the budget authority, the Executive Director may hire and terminate such staff, obtain such equipment, rent or build such additional office space, and generally make such regular office expenditures and acquisitions as necessary to establish and maintain a working office suitable for the Commission to effectively function pursuant to this Act.
Article I, Section 6. Compensation of the Treasurer. The Treasurer shall have the same compensation established for the Executive Director of the Commission... Treasury — Initial Funding. The [Saipan and Northern Islands] Delegation shall provide the initial funding for the operations and activities of the Saipan Municipal Treasury.
Article X, Section 7. Initial Operating Cost. In the event the [Saipan and Northern Islands] Delegation is not able to provide funding for the initial operating costs, the Commission and the Treasurer may incur debt from any government agency or private entity to fund the initial cost of operation. The debt is not public debt, but shall be repaid.
The Saipan Casino Act clearly states that the initial operating costs for the Casino Commission and the Municipal Treasury shall be drawn from taxpayers, but it does not set any limits on the budget for the Casino Commission or the Municipal Treasury, or any caps on salaries paid to the Executive Director and the Treasurer.
The Act also allows the Commission and the Treasurer to incur debt from other government or private entities, but it doesn’t say how much debt, or how soon it shall be repaid.
Finally, although the Act does not provide any budget breakdown for the Commission, Executive Director, Saipan Municipal Treasury, related staff, and operating costs, we can arrive at a reasonable estimate for just how much the Saipan Casino Act may cost in taxpayer dollars per year, with no guarantee of a return:
• Commission (7 members) - $366,000
• Commission Staff and Consultants - $180,000
• Municipal Treasurer - $ 85,000
• Treasury Staff - $105,000
• Executive Director - $ 85,000
• Director’s Staff - $105,000
• Travel Expenses (for all above) - $ 60,000
• Attorney Fees - $200,000
• Operating Expenses (equipment, vehicles, etc) - $250,000
• Anticipated Legal Fees (fend off legal challenges) - $200,000
The total approximate cost of the Casino Commission, Executive Director, Saipan Municipal Treasury, staff, and operations per year is $1,636,000.

The Saipan Casino
Monopoly License

Article III, Section 1. Casino License. There shall be one casino license issued in the Third Senatorial District…
Article III, Section 2. Grant of Casino License. The Commission, upon this Act becoming law, shall issue one casino license to the Northern Marianas Descent Investment Corporation. The license shall be perpetual. The NMDIC shall be a profit corporation established in accordance with the laws of the Commonwealth of the Northern Mariana Islands.
The Saipan Casino Act grants an exclusive and perpetual license to one for-profit corporation, the NMDIC. In essence, the Saipan Casino Act authorizes a monopoly. Furthermore, though the Act specifically requires that the Casino Commission shall grant a monopoly license to NMDIC, there are no provisions in place that would allow the Commission a basic regulatory control: the ability to revoke or suspend this license, should NMDIC abuse it.
NMDIC will have the authority to decide how many (if any) casinos would be allowed to do business in Saipan. The Saipan Casino Act does not provide for a cap on the maximum number of casinos that would be allowed; NMDIC can team up with as many or as few operators as they please. The Saipan Casino Act forces all potential casino investors to go through NMDIC in order to establish operations on Saipan.

Race-based hiring and appropriations under the Saipan Casino Act
Article II, Section 1. Qualification of Commission Members. A member must be NMD [Northern Marianas Descent] …
Article II, Section 8. Hiring. When hiring executive, administrative, or professional staff, the Commission and the Treasurer shall give first preference to NMD residents in the Commonwealth…
Article III, Section 2. Grant of Casino License. The incorporators, directors, officers, and shareholders of the NMDIC shall be persons of NMD...
Article III, Section 4. Casino Management Agreement. The minimum conditions for approving a casino management agreement or casino establishment operation agreement are: a) Employment. Give first preference to NMD residents in the Commonwealth…
Article VI, Section 1 . Fees and Taxes – Local Purpose. An appropriation for local purposes shall be limited to … assistance for NMD who are residents of the Third Senatorial District ….
If it becomes law, the Saipan Casino Act will trigger litigation because it is discriminatory and violates the 14th Amendment of the U.S. Constitution, the CNMI’s equal protection clause, and the Equal Employment Opportunity Act. Challenges to the race-based requirements for Casino Commission membership and employment, race-based discrimination in casino employment, and for publicly funded race-based benefits, are all likely to be raised in court.
Public lands at risk under the Saipan Casino Act
Article III, Section 8. Public Land. The Department of Public Land or any future entity responsible for the administration of public lands in the Commonwealth, upon this Act becoming law at the request of NMDIC shall issue public land to NMDIC. NMDIC shall hold leasehold interest to all public land issue [sic] by DPL and pay one dollar ($1.00) per year for the land or lands issue [sic] by DPL for as long as NMDIC is in business…
Should this Saipan Casino Act become law, NMDIC will have the authority to request any and all public land from the Department of Public Lands for only one dollar a year. The Act does not specify which public lands may or may not be requested; even public lands that are currently in use (i.e., public parks, the fishing base, public schools, sites of historical and cultural value, etc.) may be fair game. The Saipan Casino Act does not even specify that NMDIC may only request public lands on Saipan – this for-profit corporation may request public land on Rota, Tinian, and the Northern Islands. Furthermore, the Act does not restrict the uses of public land given to NMDIC to only casinos, or limit how much land can be taken, nor does it explicitly recognize DPL’s authority to deny requests for public land. No safeguards are in place within the Saipan Casino Act to protect public lands from potential abuse by NMDIC.

Minimum wage employment under the Saipan Casino Act
Article III, Section 4. Minimum wage. The U.S. minimum wage shall be applicable to employees of the casino operator, and will govern the hourly pay rate.
This section of the Saipan Casino Act has been interpreted by some readers to mean that the U.S. mainland wage of $7.25 an hour will apply to casino employees. However, now that the U.S. federal minimum wage law applies to the CNMI, the U.S. minimum wage for the CNMI is currently $3.55. Which U.S. minimum wage law shall apply for casino employees? The U.S. mainland wage, or the U.S. CNMI wage? The Saipan Casino Act does not say.

Amending the Saipan
Casino Act

Article X, Section 8. General – Amendment. Any proposed amendment to the “Saipan Casino Act” shall be approved or disapproved by the NMD registered voters only in the Third Senatorial District through local initiative.
In order for the Saipan Casino Act to become law, 2/3 of the qualified voters on Saipan, or approximately 8000 people, must vote “yes” on the initiative. If the Act requires amendments for any reason, these amendments can only be made through local initiative. This means that any errors that exist in the Act now will be extremely difficult to correct in the future. Furthermore, although the Saipan Casino Act gives the opportunity to all registered voters of Saipan to decide whether or not to approve this initiative this year, future initiatives to amend the Saipan Casino Act can only be approved by a fraction of Saipan’s voters – that is, only NMD voters. Non-NMD voters who endorse the Saipan Casino Act in this election will not have a say in any changes that are proposed to the Saipan Casino Act in future elections.
The constitutionality of restricting voting to NMD residents in future initiatives to amend the Saipan Casino Act is likely to be challenged. Moreover, the Commonwealth Election Commission currently does not have a database of NMD registered voters. The Saipan Casino Act, if it becomes law, will incur additional costs in the preparation of this database that will be required should initiatives to amend the law arise.

Fees and taxes under the Saipan Casino Act
Article VI, Section 1. Fees and Taxes — Casino license fee and annual fees payable to the Saipan Municipal Treasury. The Licensee shall pay non-refundable casino license fee of U.S. $300,000 to the Commission upon commencement of its casino gaming activities or within one year after commencement of operations, whichever is later… A casino operator shall pay a non-refundable casino operator’s permit fee of U.S. 250,000 to the Commission upon the Commission’s approval of the casino operator’s agreement with the Licensee… An annual license fee of U.S. $300,000 for the Licensee and $250,000 for the casino operator shall be paid each year thereafter…
Assuming that there would be casino operators willing to pay an initial $250,000 permit fee and share profits with NMDIC, there is no guarantee that the casino establishment will be successful enough for a) NMDIC to be able to afford the required licensing fee within one year of opening the casino and every year after that; and b) that the casino operator will be able to afford the annual permit fee. There is no room in the Saipan Casino Act for flexibility on either the licensing fee or the permit fee. The Act does not state what the consequences would be, if any, should NMDIC and/or its partner casino operator fail to pay the fees.

NMDIC: A risky business
Article III, Sections 2 and 3. Grant of the Casino License. The Commission, upon this Act becoming law, shall issue the casino license only to the Northern Marianas Descent Investment Corporation. The license shall be perpetual… License Not Transferable. The Licensee shall not sell, lease, transfer, or assign its license or interest to any other person.
Article III, Section 8. Public Land. The land or lands issue [sic] to NMDIC shall not be transferable. Upon dissolution of NMDIC, the land including all improvements shall revert to back to DPL or its future named entity without cost.
The Saipan Casino Act states that a perpetual monopoly license to operate casinos shall be issued to NMDIC, and that the license cannot be sold, leased, transferred, or assigned to anyone other than NMDIC. The Saipan Casino Act also states that any public lands issued to NMDIC must be returned to the Department of Public Lands should NMDIC dissolve.
This means that should NMDIC cease to exist for any reason whatsoever, so too, would casino operations on Saipan. Under the Saipan Casino Act, the Casino Commission cannot seek additional licensees, nor can it take over NMDIC. Saipan’s casino industry would come to a complete halt, except that the Casino Commission and Saipan Municipal Treasury would continue to exist. Another local initiative must be launched to either amend the Saipan Casino Act to permit additional licensees or to abolish the Casino Commission and Saipan Municipal Treasury altogether.
Any prospective casino investor, therefore, would be accepting a significant risk in choosing to do business with NMDIC. NMD residents would also be accepting a significant risk in choosing to invest in NMDIC.

Other concerns raised by the Saipan Casino Act
Who is NMDIC? Many people do not realize that the Northern Marianas Descent Investment Corporation already exists as a for-profit corporation. NMDIC was formally incorporated on Saipan in December 2006. Its Board Directors are: Pedro R. Guerrero; Paz Younis; Karl T. Reyes; Herman R. Guerrero; Felicidad Ogumoro; David C. Sablan; and Isidro R. Ogarto.
What experience do these individuals have in the casino industry? What experience do they have in business in general? What experience do they have in securing investors who would be willing to share profits with them? Do they have promissory agreements from potential investors? Do they have the financial backing to pay the $300,000 fee for their monopoly license? What experience do they have in financial management to ensure that NMDIC does not go bankrupt or fall subject to any form of corporate crime that may cause NMDIC to dissolve? Does NMDIC have a business plan, and if so, where is it?
What is a realistic timeframe by which we can expect the casino industry to establish itself on Saipan, if this Saipan Casino Act passes? Proponents of the Saipan Casino Act often describe this initiative as a “quick” way to bring in additional revenue for the CNMI. How soon will “quick” be?
The closest example we have is Tinian. The Tinian Gaming Act was passed in 1989. The first casino on Tinian opened its doors in 1998, nine years later. Even 18 years after the Tinian Gaming Act was passed, our neighboring island has yet to see the development of a second casino. It is important to note that the Tinian Gaming Act is even more investor-friendly than the Saipan Casino Act; it does not require that a perpetual monopoly license be issued to corporation. It should also be noted that unlike the Tinian Gaming Act, the Saipan Casino Act contains race-based language that could tie up the Casino Commission and the NMDIC in 14th Amendment litigation for years to come.
Litigation may take years to settle. It may take years, if ever, to identify casino investors willing to partner with the NMDIC, a corporation with no track record in the casino industry. It may take years, if ever, to construct casinos, install games, and attract gamblers to the CNMI. It will take years for a single casino, if ever one is established, to be able to pay off initial debts incurred and show a profit. And during this time, the Casino Commission and the Saipan Municipal Treasury (established within 30 days of the Saipan Casino Act becoming law) will continuously draw approximately $1.6 million per year from local government coffers – without having realized a single penny in returns.
How will the cash-strapped CNMI government find the estimated $1.6 million needed to keep the Casino Commission afloat while awaiting possible (but not guaranteed) income generated from casino investors? Which government agencies will tapped, which public services will suffer, and how many jobs will be lost in order to provide the annual $1.6 million needed to cover operating costs? How will taxpayers bear this burden? Why should we consent to it?
***
We have only highlighted some of the more disturbing elements that we have identified in the Saipan Casino Act. Once again, we urge all voters to read the entire initiative for themselves at the Joeten Kiyu Public Library or at www.votecnmi.gov.mp , or call 483-3935 for a hard copy of the initiative.
We owe it to ourselves and to future generations to know exactly what we are voting on come November 3.

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READ THE ENTIRE SAIPAN CASINO ACT IN ITS ENTIRETY

You can read the entire Saipan Casino Act initiative in its entirety by going to the following link:

Saipan Casino Act



ALSO FOR AN ONGOING FORUM REGARDING THE SAIPAN CASINO ACT, PLEASE VISIT:

http://www.tinasablan.com/forum/?p=13
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VOTE NO TO THE SAIPAN CASINO ACT

The below was extracted from www.saipantribune.com


'Casino provision violates Constitution'

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.


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PLEASE HELP SAVE OUR LAND AND PEOPLE - VOTE NO TO THE SAIPAN CASINO ACT

The below was extracted from www.saipantribune.com


THE SAIPAN CASINO ACT - READ IT!

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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VOTE NO TO THE SAIPAN CASINO ACT AND SAVE OUR ISLAND FROM FURTHER DISASTER

The below was extracted from www.saipantribune.com


Gambling is gambling

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

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NO GUARANTEE - VOTE NO TO THE SAIPAN CASINO ACT

The below was extracted from www.saipantribune.com


ECONOMIC JACKPOT!!! FUNDS GUARANTEED!!!


By Anthony Pellegrino

Have you read the billboards with headlines of Economic Jackpot! And Funds Guaranteed? These guaranteed funds for the economic jackpot are to be used for at least 12 community projects should the casino gambling act be passed in Nov. 3. At first glance they are pretty impressive promises.

It suddenly dawned on me that with all the pros and cons being argued by everyone, no one has done any numbers to show how big this economic jackpot is supposed to be and how much money it will take to achieve it. I decided to calculate how much it would take to have the people benefit from this act of madness called casino gambling to save our island.

Below is my conservative estimate of the amount of money the government must collect from the casinos to meet all the Fund's Guaranteed promises. You do your own.

Benefit Items Mentioned Estimated Amount Needed Per Year

1. Medical Referral- $6,000,000.00

2. Training and Scholarship (for whom?) $5,000,000.00

3. Recreation and Sports Facilities $5,000,000.00

4. Youth and Elderly Development Programs $5,000,000.00

5. Educational Facilities and Collateral $10,000,000.00
Equipment

6. Gambling Anonymous $3,000,000.00

7. Public Safety and Law Enforcement Facilities $8,000,000.00
Collateral Equipment

8. Disability Programs (What are they?) $5,000,000.00

9. Health Insurance Premium Special Account $10,000,000.00

10. Social, Cultural, and Indigenous Programs $5,000,000.00

11. Low Interest Home Loans $20,000,000.00

12. Infrastructure Development and $25,000,000.00
Collateral Equipment.

My conservative total adds up to $107,000,000.00 to be received each year to fulfill the guaranteed funds promises. Remember these are only my rough calculations. Make your own.

Next, I estimated how much money the casinos will have to pay the government as Gross Revenue Tax of 5 percent. The casinos must earn $2,140,000,000.00 to pay $107,000,000.00 in gambling revenue per year. We are talking about over two billion dollars per year of revenue. That means the casinos must take in daily $5,863,014.00 of retained earnings.

Now let's see how many people have to lose and how much each person has to lose to make $107,000,000.00 for the government. I estimate that each gambler will have to lose about $3,000.00. This translates to 713,333 gamblers who must lose at least $3,000.00 each. You can do the numbers.

I don't intend to mislead you by suggesting that the above numbers are accurate. But someone must show us the numbers of this whole casino gambling salvation plan. Exactly how large does this economic jackpot have to be to give us the expected benefits? Can someone give us the figures, please?

Several other unanswered questions bother me. Who will be administrating and collecting this huge amount of money? Will it be the government or the gaming commission? Who will control the spending of this money? Will it be the gaming commission or the local government? Who will allocate the money and how will it be allocated?

What if the government grants the casino operators an Investment Qualifying Certificate which means that they will not have to pay any taxes for the next twenty-five years? Where then will these guaranteed funds come from?

Another point that bothers me is the phrase: Guaranteed Funds! Who is the guarantor? How can anyone make such a definite and positive statement as guaranteed funds? What happens if the funds do not materialize? Who will be responsible?

How soon after the vote is taken will the casinos be up and running? Will the hotels we have be converted into plush casino halls? Can you picture the Saipan Grand Hotel, the Hotel Nikko Saipan, the Saipan World Resort, Fiesta Resort and Spa, Aqua Resort Club, or Hyatt Regency Saipan as gaming hotels? Will we be having Las Vegas headliner entertainment shows?

Where will the non-gamblers and gamblers stay? Will there be enough rooms to accommodate the gamblers of say 750,000 and another 500,000 non-gamblers for an estimated total of 1,250,000 tourists? How soon can new hotels be built and where? Can we be ready in say two or three years for all this exciting new action?

What will all the unemployed government people relying on the opening of the casino hotels do during this time frame for a living? And will they want to work in a casino or even be qualified to work in one? Who promises $7.25 per hour? Are we going to force the casino owners to pay that hourly wage? When the operators are short of local help will they be forced to pay non-resident workers the same wage scale? And so the unanswered questions continue and continue. But answers are few and very vague.

You may think I am totally against casino gambling. No, I am not against it and not for it. But as a businessman of 44 years experience, I am used to asking questions before I make an investment. We are being asked to turn our pristine island into a mini Macau or Las Vegas or Atlantic City gambling Mecca. That is why we must ask the hard questions now, not later when it is too late to turn around.

If anyone can truly promise with solid guarantees all that is stated as a matter of fact about the many benefits, I will change my mind and urge you to vote in favor of casino gambling. I would be a fool not to go along with the program. But I don't like taking advantage of people who are decent and begging to make a better life as we are. Please don't believe false promises.

As a cautious individual having seen many con games in my life and many broken dreams, I strongly urge you to do your homework. Ask the questions and insist on the answers. Think them through and if your gut feelings say that casino gambling is a good thing after you examine the answers, than go for it. But be prepared to wail at the river of broken dreams if it doesn't happen as has been promised and guaranteed.

May God bless us all as we head into the future with a dream on our sleeve.

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VOTE NO TO THE SAIPAN CASINO ACT

The below was extracted from pragmaticplato.blogspot.com

The Saipan Casino Act Conspiracy

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.

If the SCA passes it will give NMDIC the rights to ALL PUBLIC LANDS at $1/year forever. That is right ANY AND ALL PUBLIC LANDS can be given to one for-profit corporation. The SCA does not state what the land can be used for. It does not state that it can not be sublet. It does not bar the NMDIC from doing anything at all with the land.

This is huge. There is no saving clause in the SCA that gives DPL the power to deny any request for land from NMDIC.

NMDIC can request ALL/ANY PUBLIC LAND in ANY DISTRICT. Yep Tinian and Rota too. There are no safeguards in place what so ever.

NMDIC will be the the sole lessee of ALL PUBLIC LANDS if they choose to request them. Why wouldn't they? They are a for-profit corporation. They will issue requests from the get go. They will amass all the public land. They will build whatever they want on the land and they will pay $1/year forever for it.

You may say that the this is no big deal. We can pass the SCA and if they do try this we can have the legislature amend the SCA to prevent this.

WE CAN'T. The legislature can not in anyway alter this Act once it is passed. In order to change it it would have to be through legislative initiative. The same drawn out process it is going through now.

This is INSANE.

Someone stop the madness.

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