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RALPH DLG. TORRES ARNOLD I. PALACIOS Lieutenant Governor Governor
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
OFFICE OF THE GOVERNOR
The Honorable Blas Jonathan "BJ" T. Attao Speaker, House of Representatives Twenty-First Northern Marianas Commonwealth Legislature Saipan, MP 96950
The Honorable Victor B. Hocog Senate President, The Senate Twenty-First Northern Marianas Commonwealth Legislature Saipan, MP 96950
Dear Mr. Speaker and Mr. President:
0 7 JAN 2021
This is to inform you that I have signed into law House Bill No. 2I-11, HSI, SDI, SD3 entitled, "To clarify the powers of the Commonwealth Casino Commission and to make needed changes to the Commonwealth Code given the unique regulatory oversight of the Casino Industry in the Commonwealth; and for other purposes.," which was passed by the House of Representatives and the Senate of the Twenty-First Northern Marianas Commonwealth Legislature.
This bill becomes Public Law No. 21-38. Copies bearing my signature are forwarded for your reference.
Sincerely,
cc: Lt. Governor; Press Secretary; Secretary of Finance; Commonwealth Casino Commission; Law Revision Commission; Public Auditor; Special Assistant for Administration; Special Assistant for Programs and Legislative Review
Juan A. Sablan Memorial Building • Capitol Hill, Saipan Caller Box 10007 • Saipan, MP 96950 • 670.237.2200 • governor.gov.mp
@GovemorCNMI 11 @ 't#
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Public Law No. 2I-38
House of �resentatives
December 1 1 , 2020
The Honorable Ralph DLG. Torres Governor Commonwealth of the Northern
Mariana I slands Capitol Hill Saipan, MP 96950
Dear Governor Torres:
I have the honor of transmitting herewith for your action H. B. No. 2I- 1 1 , HSI, SDI, SD3, entitled: "To clarify the powers of the Commonwealth Casino Commission and to make needed changes to the Commonwealth Code given the unique regulatory oversight of the Casino Industry in the Commonwealth; and for other purposes.", which was passed by the House of Representatives and the Senate of the Twenty-First Northern Marianas Commonwealth Legislature.
Sincerely yours,
Attachment
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rtwenty-Pirst Legisfature
of the
Public Law No. 2 1 -38
Commonweafth of the !Northern �ariana I sfands
IN THE HOUSE OF REPRESENTATIVES
FIRST REGULAR SESSION
FEBRUARY 8, 2019 REPRESENTATIVE LORENZO I. DELEON GUERRERO of Saipan, Precinct 5 (for himself,) in an open and public
meeting with an opportunity for the public to comment, introduced the following Bill:
H.B. No. 2I-II, HSI, SDI, SD3
AN ACT
To CLARIFY THE POWERS OF THE COMMONWEALTH CASINO COMMISSION AND TO MAKE NEEDED CHANGES TO THE COMMONWEALTH CODE GIVEN THE UNIQUE REGULATORY OVERSIGHT OF THE CASINO INDUSTRY IN THE COMMONWEAL TH; AND FOR OTHER PURPOSES.
The Bill was referred to the House Committee on Gaming, which submitted Standing Committee Report No. 21-40; adopted 10/15/2019.
THE BILL WAS PASSED BY THE HOUSE OF REPRESENTATIVES ON
FIRST AND FINAL READING, DECEMBER 10, 2019; with amendments in the form ofH. B. No. 21-11, HSI and transmitted to the
THE SENATE.
The Bill was referred to the Senate Committee on Cannabis and Gaming, which submitted Standing Committee Report No. 21-85; adopted 3/13/2020.
THE BILL WAS PASSED BY THE SENATE ON FIRST AND FINAL READING, MARCH 13, 2020; with amendments in the form of H. B. No. 21-11, HS 1, SD 1, SD3 and was returned to
THE HOUSE OF REPRESENTATIVES ON APRIL 16, 2020.
The House of Representatives accepted the Senate amendments and passed H. B. No. 21-11, HS I, SD 1, SD3 during its 8th Day, Fourth Regular Session on December 10, 2020.
THE BILL WAS FINALLY PASSED ON DECEMBER 10, 2020.
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Public Law No. 2 1 -38
'Twenty-Pirst Legisfature
of the
Commonweafth of the :Northern ::Mariana I sfands
IN THE HOUSE OF REPRESENTATIVES
EIGHTH DAY, FOURTH REGULAR SESSION
DECEMBER 10, 2020
H.B. No_ 2I-II, HSI, SDI, SD3
AN ACT
To CLARIFY THE POWERS OF THE COMMONWEALTH CASINO COMMISSION AND TO MAKE NEEDED CHANGES TO THE COMMONWEALTH CODE GIVEN THE UNIQUE REGULATORY OVERSIGHT OF THE CASINO INDUSTRY IN THE COMMONWEAL TH; AND FOR OTHER PURPOSES.
BE IT ENACTED BY THE TWENTY-FIRST NORTHERN MARIANAS COMMONWEALTH LEGISLATURE:
1 SECTION 1. FINDINGS AND PURPOSE.
2 The Commonwealth Casino Commission was established to regulate casino gaming by
3 the exclusive casino licensee. The Commonwealth Casino Commission has since organized
4 and promulgated, on an emergency basis, regulations governing the conduct of casino gaming
5 by the casino licensee and will continue its oversight responsibilities by adopting permanent
6 regulations shortly . In so doing, the Commission has identified, and will continue to identify,
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1 areas where further legislation is required to enable the Commission to discharge its obligations
2 to the people of the Commonwealth.
3 The Legislature finds and declares that this Act is necessary and is a proper use of the
4 legislative power granted by Article I I of the Commonwealth Constitution.
5 SECTION 2. AMENDMENT.
6 Section 6706 (b) of Title 1 of the Commonwealth Code is hereby amended as follows:
7 "(b) This section shall not apply to concession stands on Managaha I sland,
8 CNMI airports, the casino facilities regulated by the Commonwealth Casino
9 Commission, hotels, hotel resorts, or golf course resorts."
10 SECTION 3. AMENDMENT.
11 Section 2305 of Title Four of the Commonwealth Code is hereby amended as follows:
12 "§ 2305. Administrative Procedure. Any action taken by the Commonwealth
13 Casino Commission, including the promulgation of any rule or regulation and the
14 imposition of any civil penalty, shall be subject to the Administrative Procedure Act
15 (1 CMC §§ 9101 et seq.). Provided that Commission orders regarding an applicant or
16 licensee's security or safety procedures and the storage or movement of money shall
17 not be published in the CNMI Register but shall be effective against applicants or
18 licensees as if it had been published in the Register, if the applicant or licensee was
19 given actual notice of the order."
20 SECTION 4. AMENDMENT.
21 Section 2307(d) of Title Four of the Commonwealth Code is hereby amended as
22 follows:
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( d) The Secretary of Finance shall establish and maintain a Commonwealth
Casino Application Fee Special Fund (CCAF Special Fund) to be kept separate and
apart from the general funds of the Commonwealth government. The nonrefundable
application fees shall be deposited in the CCAF Special Fund and expended by the
Commonwealth Casino Commission, subject to appropriation, for the investigation of
license applicants pursuant to 4 CMC § 2318 and any other costs associated with
reviewing the applications, granting or denying applications for the exclusive license.
The expenditure authority for the Commonwealth Casino Commission shall be the
Chairman of the Commonwealth Casino Commission. Any funds remaining in the
CCAF Special Fund after the issuance of the exclusive license and payment of all
encumbered expenses related to reviewing the application and granting or denying the
application for the exclusive license, including travel or meeting cost, shall be
transferred to the Commonwealth Casino Commission Regulatory Fee Fund as
established by 4 CMC § 2309 (f) for disposition subject to appropriation.
SECTION 5. AMENDMENT.
Section 2309 (f) of Title Four of the Commonwealth Code is hereby amended as
follows:
"(f) The Commonwealth Casino Commission shall establish and maintain a
Commonwealth Casino Commission Regulatory Fee Fund (CCCRF Fund) to be kept
separate and apart from the general funds of the Commonwealth government. The non
refundable application fees, investigative fees, Casino Regulatory Fees, and renewal
fees for casino employee licenses, casino key employee licenses, casino service
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provider licenses, casino vendor licenses, casino junket operator licenses, machine and
table licenses, casino-related application fees, renewal fees, or casino-gaming related
regulatory fees of any kind established by and charged by the Commission shall be
deposited into the CCCRF Fund. Regulatory fines or penalties imposed by the
Commission shall be deposited into the CCCRF Fund. Any money or property received
by the Commission from any other government or governmental agency or entity of
any kind whatsoever, except for monies appropriated to the Commission by
commonwealth law shall be deposited into the CCCRF Fund. The CCCRF Fund shall
be subject to annual appropriation beginning fiscal year 20 1 7. The Secretary of Finance
shall transfer any balance in or owed to its CCCRF fund existing on the effective date
of this act to the CCCRF Fund established by the Commonwealth Casino Commission.
The CCCRF shall be expended by the Commonwealth Casino Commission for the
operation, personnel, and all other expenses of the Commission including but not
limited to the investigation and licensing of key employees, employees, service
providers, vendors, junket applicants, machines, gaming tables, and any other fees and
costs associated with reviewing the applications for various licenses. The expenditure
authority for the Commission shall be the Chairperson of the Commonwealth Casino
Commission or his designee. The CCCRF Funds are earmarked for the Commission' s
use in regulating the casino licensee and the casino industry and are ftet subject to
further appropriation in the annual appropriations and are available without fiscal year
limitation. The Commission shall maintain records and account for the expenditures
made from both the Commonwealth Casino Application Fund (for future l icense
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application fees) and CCCRF Fund and submit reports to the Governor and the
presiding officers of the Legislature."
SECTION 6. AMENDMENT.
Section 2309(g) of Title Four of the Commonwealth Code is hereby amended as
follows:
"(g) Notwithstanding Section 2309(f) and 2314(1) of this chapter, the Casino
7 Regulatory Fee of $3 ,000,000 for fiscal year 2016 is hereby appropriated to the
8 Commonwealth Casino Commission for its personnel and operations expenditures. The
9 expenditure authority of the funds appropriated herein shall be the chairperson of the
10 Commission or his designee. Subsequent Casino Regulatory Fee payments shall be
11 subject to appropriation as provided in Section 2314(1) . The Commission i s authorized
12 to hire or fill 35 full-time employee positions for FY 2016. Thereafter, as an
13 autonomous agency, the Commission shall determine its staffing levels for full-time,
14 part-time, seasonal and temporary employees."
15 SECTION 7. AMENDMENT.
16 Section 2309 of Title Four of the Commonwealth Code is hereby amended by the
1 7 addition of a new subsection as follows:
18 "(i) The Commonwealth Casino Commission shall establish and maintain a
19 Commonwealth Casino Commission Appropriations Fund (CCCA Fund) to be kept
20 separate and apart from the general funds of the Commonwealth government. The
21 monies appropriated to it pursuant to law shall be deposited into the CCCA Fund.
22 Unless otherwise directed by the appropriating body, the expenditure authority for the
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Commission shall be the Chairperson of the Commonwealth Casino Commission or his
designee."
SECTION 8. AMENDMENT.
Sections 2313(a) and (b) of Title Four of the Commonwealth Code is hereby amended
as follows:
"(a) The Commonwealth Casino Commission is hereby established as an
autonomous public agency of the government of the Commonwealth of the Northern
Mariana I slands. As an autonomous public agency, it shall establish and maintain its
own bank accounts, process the payrol l of its members and employees, process
payment for its operational expenses, and handle procurement matters pursuant to
regulations consistent with Commonwealth law enacted therefore. The Commission
shall enact its own procurement policy, personnel policy, personnel classification
structure, and a salary schedule for its employees consistent with Commonwealth law;
provided that 1 CMC §8246 and §8248 shall not apply to any employee of the
Commonwealth Casino Commission.
(b) Appointment of Commissioners and Term. The Commission shall consist of
five commissioners.
(1) The governor shall appoint all five commissioners subject to the advice and
consent of the Senate. The governor shall appoint one commissioner from the First
Senatorial District, one commissioner from the Second Senatorial District, and three
commissioners from the Third Senatorial District. This section shall apply to all
commissioners appointed after the effective date of this act.
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1 (2) Each member shall serve a term of six years, except that of the members
2 first appointed, two shall serve a term of four years, and three shall serve a term of six
3 years, however, each member shall serve one term. A term of a member is defined as
4 the time a member serves as a Commissioner regardless of the duration. This provision
5 shall be effective as of May 1, 2014.
6 (3) The first members of the Commission shall be appointed as provided in this
7 section before May 2, 20 1 4. The terms of all the members first appointed shall begin
8 from May 1, 2014, regardless of the actual date of appointment.
9 ( 4) Any vacancy shall be filled by the governor appointing a qualified person
1 0 for the unexpired term thereof or for a new six year term. No member shall serve more
11 than one term. A member removed from the Commission for cause shall not be re-
12 appointed to the Commission."
13 SECTION 9. AMENDMENT.
14 Section 2313 of Title Four of the Commonwealth Code is hereby amended by the
15 addition of a new subsection as follows:
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"(k) Commonwealth Casino Commission agents deemed essential.
Notwithstanding any other provision of law to the contrary, in the event of a budgetary
or other crisis which necessitates a temporary closure of the nonessential
commonwealth agencies of the Commonwealth the members, employees, and agents
of the Commission shall be deemed to be essential and shall continue to perform their
duties."
SECTION 10. AMENDMENT.
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Subsection 23 1 4 of Title Four of the Commonwealth Code is hereby amended as
follows:
§ 231 4. Powers and Duties of the Commission. The Commission shall have
all the powers and authority necessary to carry out the purposes of this chapter,
including, without limitation, the responsibility:
(a) To conduct hearings pertaining to the violation of this chapter or regulations
promulgated hereto; including hearings for the purpose of approving casino licenses
and other business allowed under this chapter.
(b) To promulgate such rules and regulations, as may be necessary to fulfill the
intent, policies and purposes of this chapter. The Commission may use such rules and
regulations to interpret, enlarge upon, except provisions defining the authority and
powers of the Commission, or define, or any provision of this chapter to the extent that
such provision is not specifically defined by this chapter. The rules and regulations
shall, at a minimum, provide for the following:
(1) A code of ethics for the members of the Commission and its officers
and employees.
(2) Supervision, monitoring and investigation or other means to ensure
the suitability and compliance with the legal, statutory and contractual
obligations of owners, operators, and employees of casinos and other persons
licensed under this chapter.
(3) The examination, supervision and monitoring of the continuing
fiscal and financial capability of casino owners, operators, concessionaires and
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other parties with any direct relation to the sole casino and to protect the public
in the event that such capability is significantly diminished.
(4) To collaborate in the definition, coordination and execution of the
economic policies for the operations of the casino games of fortune and other
ways of gaming, pari-mutuels, wagering and casino gaming activities offered
to the public.
(5) To authorize and certify all the equipment and utensils used by the
operations of the concessionaires approved in the respective concessions.
(6) To issue licenses for "junket" promoters of casino games of fortune
or other casino gaming activities.
(7) To examine, supervise and monitor the eligibility of the single or
collective junket promoter(s), their partners and principal employees.
(8) To examine, supervise and monitor the activities and promotions of
the junket promoters in relation to their compliance with legal, statutory, and
contractual obligations, and other responsibilities stipulated in the applicable
legislation and contracts.
(9) To investigate and penalize any administrative infractions practiced
according to the appropriate substantial and procedural legislations.
(10) To ensure that the relationship of the licensed gaming operators
with the government and the public is in compliance with the Commission's
regulations and provides the highest interest to Commonwealth.
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( 11) The exclusion and removal of undesirable persons from the sole
casmo.
(12) Civil penalties for the violation of provisions or regulations
imposed under this chapter.
(13) Penalties for the late payment of applicable fines, or fees.
(c) To levy fines and penalties for the violation of provisions of this chapter and
the regulation promulgated by the Commission.
(d) To require and demand access to and inspect, examine, photocopy, and audit
all papers, books and records of the casino operator, the casino licensee, or any vendor
licensee, service provider licensee, or junket licensee on its premises or elsewhere as
practical, including inspecting the gross income produced by the licensee's business
and verification of their income, and all other matters affecting the enforcement of the
Commission's policy or as required pursuant to this chapter.
( e) For the types of gaming and games to be covered by the casino license and
their structure.
(f) The Commission shall also regulate sports betting, pari-mutuel betting, and
other wagering which relies on events occurring within or without the casinos regulated
by the Commission.
(g) The Commission shall not regulate betting or wagering associated with
cockfighting.
(h) The Commission shall have the authority to issue a license to a casino
licensee. The license shall not be suspended or revoked absent finding of clear and
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convincing evidence during a hearing pursuant to 1 CMC § 9101 et seq. by unanimous
vote of the Commonwealth Casino Commission.
(i) Information, data deemed confidential; exceptions.
(1) Except as otherwise provided in this chapter, all information
required by the Commission to be furnished pursuant to this chapter or the
regulations promulgated hereunder, or which may be otherwise be obtained,
relative to the internal controls or to the finances, earnings, taxes, or revenue of
any applicant or licensee shall be considered to be confidential and shall not be
revealed in whole or in part except in the course of the necessary administration
of this chapter, or upon the lawful order of a court of competent jurisdiction, or
to the Office of the Public Auditor upon request, or to the Attorney General
upon request, or to a law enforcement agency of the United States Government
upon request, or, with the approval of the Attorney General, to a duly authorized
government agency.
(2) All information and data pertaining to an applicant's criminal record,
family, and background furnished to or obtained by the division or the
Commission from any source shall be considered confidential and shall be
withheld in whole or in part, except that any information shall be released upon
the lawful order of a court of competent jurisdiction or to the Office of the
Public Auditor upon request, or to the Attorney General upon request, or to a
law enforcement agency of the United States Government upon request, or, with
the approval of the Attorney General, to a duly authorized government agency.
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(3) The following information to be reported periodically to the
Commission by a casino licensee shall not be considered confidential and shall
be made available for public inspection:
(A) A licensee's gross revenue from all authorized casmo
gaming activities as defined in this chapter, and the licensee's gross
revenue from simulcast wagering;
(B)(i) The dollar amount of patron checks initially accepted by
a licensee, (ii) the dollar amount of patron checks deposited to the
licensee's bank account, (iii) the dollar amount of such check initially
dishonored by the bank and returned to the licensee as uncollected, and
(iv) the dollar amount ultimately uncollected after all reasonable efforts;
(C) The amount of gross revenue tax or investment alternative
tax actually paid and the amount of investment, if any, required and
allowed, pursuant to Commonwealth law;
(D) A list of the premises and the nature of improvements, costs
thereof and the payees for all such improvements, which were the
subject of an investment required and allowed pursuant to
Commonwealth law;
(E) A list of the premises, nature of improvements and costs
thereof which constitute the cumulative investments by which a licensee
has recaptured profits pursuant to Commonwealth law;
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(F) All quarterly and annual financial statements presenting
historical data which are submitted to the Commission, including all
annual financial statements which have been audited by an independent
certified public accountant licensed to practice in the CNMI; and
(G) The identity and nature of services provided by any person
or firm receiving payment in any form whatsoever for professional
services in connection with the authorization or conduct of games
conducted at a casino establishment.
U) The Commission may impose reasonable charges and fees for direct costs
incurred in the review, redaction, and copying, by the Commission of documents
subject to public inspection without regard to whether the document is merely inspected
by the requestor or whether copies are requested. Such fees shall be deposited into the
CCCRF Fund.
(k) The Commission shall regulate one live training facility of non-permanent
duration and all permanent facilities as are consistent with the provisions of the Casino
License Agreement granted to the exclusive casino licensee and together shall be
operated by the exclusive casino licensee.
(I) The Commission shall submit to the legislature for approval on or before
April 1 of each year a proposed annual budget for the next fiscal year in accord with
the budgeting and planning procedure applicable to all departments of the Executive
Branch beginning fiscal year 201 7. Within its proposed budget, the Commission shall
itemize all personnel, travel, and other expenses for the fiscal year in question; the sums
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1 required to be expended during the year with respect to its casino regulatory
2 responsibilities; and a detailed statement of all other Commission assets, liabilities,
3 revenues and expenditures.
4 SECTION Il. AMENDMENT.
5 Section 2314 of Title Four of the Commonwealth Code is hereby amended by the
6 addition of subsections as follows:
7 "(m) The Commission may hold investigative hearings which may be
8 conducted by one or more members with the concurrence of a majority of the
9 Commission with public notice, or by a hearing examiner appointed by the
10 Commission, with public notice, at such times and places, within the Commonwealth,
11 as may be convenient. The Commission may have open working meetings, with notice,
12 within the Commonwealth, to discuss and deliberate about any matter over which the
13 Commission has jurisdiction. The Commission may attend gaming-related workshops,
14 conferences and trainings which shall not constitute a working meeting. Final action
15 shall only occur in an open meeting after appropriate notice has been given to the
16 public.
17 (n) Subject to the provisions set forth in 4 CMC § 2314(i), the Commission may
18 determine which information in its possession is unsuitable for public disclosure due to
19 safety or security concerns, and to withhold the same from public inspection, copying
20 or disclosure. The Commission may determine which information is suitable for
21 disclosure and allow the disclosure and dissemination of the information. The Office
22 of the Public Auditor and the Attorney General shall have access and authority to freely
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inspect, examine, audit, and photocopy all information in the Commission's possession
upon request, including but not limited to all forms, applications, contracts, security
plans, lists, internal procedures, orders, or documents of any kind, without regard to the
manner of storage of the information, be it physical, electronic or otherwise.
( o) The Commission or any of its members with the concurrence of the majority
has full power and authority to issue subpoenas and compel the attendance of witnesses
at any place within the Commonwealth, to administer oaths, receive evidence, and to
require testimony under oath. The Commission or any member thereof with the
concurrence of the majority may appoint hearing examiners who may issue subpoenas,
administer oaths, and receive evidence and testimony under oath.
(p) The Commission may pay transportation and other expenses of witnesses as
it may deem reasonable and proper. Notwithstanding any other provision of law, the
Commission may require any licensee or applicant which is the subject of the hearing
to pay for all costs and expenses of said hearing, including the expenses of any witness.
( q) The Commission may initiate regulatory proceedings or actions appropriate
to enforce the provisions of the gambling, or gaming laws of the Commonwealth,
except for the local gaming initiatives of the First and Second Senatorial Districts and
the regulations promulgated thereto, when appropriate shall, in conjunction with the
Attorney General, sue civilly to enforce the provisions of the gambling and gaming
laws of the Commonwealth, except for the local gaming initiatives of the First and
Second Senatorial Districts and the regulations promulgated thereto, and may request
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that the Attorney General prosecute any public offense committed in violation of any
provision of gambling or gaming laws of the Commonwealth.
(r) To have sole jurisdiction to resolve disputes between patrons of a licensed
casino facility subject to regulation by the Commission, and the licensee wherein the
patron is attempting to collect a payout or other debt. The Commission shall provide
by regulation the procedures by which disputes are to be resolved and may impose
charges and fees therefore. Notwithstanding any other law to the contrary, the
Commission's decisions on patron disputes may be reviewed by the Commonwealth
Superior Court which may affirm the decision and order of the Commission or the
hearing examiner, or it may remand the case for further proceedings, or reverse the
decision only if the substantial rights of the petitioner have been prejudiced because the
decision is:
( 1) In violation of constitutional provisions;
(2) In excess of the statutory authority or jurisdiction of the Commission
or the hearing examiner;
(3) Made upon unlawful procedure;
(4) Unsupported by any evidence; or
(5) Arbitrary or capricious or otherwise not in accordance with law.
(s) To have sole jurisdiction to determine whether a person or entity requires
licensure or a finding of suitability in order to own, be employed by, receive revenue
or profits (whether directly or indirectly) from, or do business with, a licensed casino
facility subject to regulation by the Commission, regardless of the location of the person
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or entity. Further, the Commission shall have sole jurisdiction to determine whether a
person or entity remains suitable in order to continue to own, be employed by, receive
revenue or profits (whether directly or indirectly) from, or continue to do business with,
a casino facility regulated by the Commission. Notwithstanding any other law to the
contrary, the Commission's decisions on licensure or finding of suitability may be
reviewed by the Commonwealth Superior Court which may affirm the decision and
order of the Commission or the hearing examiner, or it may remand the case for further
proceedings, or reverse the decision only if the substantial rights of the petitioner,
applicant or license holder have been prejudiced because the decision is:
( 1) In violation of constitutional provisions;
(2) In excess of the statutory authority or jurisdiction of the Commission
or the hearing examiner;
(3) Made upon unlawful procedure;
(4) Unsupported by any evidence; or
(5) Arbitrary or capricious or otherwise not in accordance with law.
(t) The Commission shall have the authority to require performance and
completion bonds in any amount agreeable to the Commission or any other means of
assurance in lieu of a "bond" acceptable to the Commission that the project will be
timely and fully completed, free of any mechanic's or other liens, prior to or during the
construction of any facility that houses a facility or entity which requires a license from
the Commission. In addition to other Commonwealth regulatory agencies, the
Commission may regulate the interior design, cleanliness or sanitation of any portion
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of the integrated resort, or other facility which requires or has a license issued by the
Commission.
(u) To allow gaming to commence at any time, and in such locations in Saipan,
as the Commission deems appropriate subject to other applicable CNMI laws and
regulations.
(v) Notwithstanding any other provision of law, the Commonwealth Casino
Commission shall have all oversight responsibility and authority necessary to assure
compliance with this chapter, including but not limited to authority over: the
commencement of operations and achieving minimum initial investment requirements.
The Commission shall approve the casino licensee's set number of games, such as, but
not limited to, slot machines or gaming tables, either in total or by category, or by
location.
(w) To regulate the advertising, regardless of location, of any casino or other
facility subject to licensure by the Commission.
(x) Self-Exclusion: The Commission may create self-exclusion programs in
which problem gamblers or problem garners, may, and any licensed casino or other
facility licensed by the Commission must participate. Such programs may include, but
not be limited to, provisions which require problem gamblers to forfeit to the
Commonwealth any chips, credits or wagering instruments of any kind on their
possession in any facility from which they have been excluded, as well as provisions
requiring any licensed facility to forfeit to the Commonwealth any or all of a self-
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excluded patron's losses if the excluded person is permitted to gamble or game once
they have self-excluded.
(y) The Commission may accept money and property from other governments
and governmental agencies and entities as a result in inter- and intra- governmental
cooperation.
(z) The Commission may exercise all powers incidental, convenient or
necessary to enable it to administer or carry out any of the provisions of this chapter.
(aa) The Commission shall cause to be made and kept a record of all
proceedings at regular and special meetings of the Commission. These records are open
for public inspection, copying, and disclosure.
(bb) The Commission shall maintain a file of applications for licenses under
this chapter, together with a record of all actions taken with respect to those
applications. The file and record are open for public inspection, photocopying, and
disclosure.
(cc) The Commission shall maintain an alphabetical listing of all vendors doing
business with the casino licensee, which shall include but not be limited to each
vendor's name, registration or license number, mailing address, telephone number,
authorized representative, and nature of services. The listing shall be open to public
inspection, shall be updated regularly and at a minimum on a monthly basis, and shall
be posted online at the Commission's official website.
( dd) The Commission may maintain such other files and records as they may
deem desirable, and make these available for public inspection."
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1 SECTION I2. AMENDMENT.
2 Section 10101 (y) of Title Six of the Commonwealth Code is hereby amended by the
3 addition of a new subsection as follows:
4 "(22) Enforcement and Investigation officers of the Commonwealth Casino
5 Commission Division of Enforcement & Investigations."
6 SECTION I3. AMENDMENT.
7 Section 8282(t) of Title One of the Commonwealth Code is amended as follows:
8 "(t) Investigators, enforcement officers and inspectors of any gaming or casino
9 commission; and"
10 SECTION I4. AMENDMENT.
11 Article Two of Chapter One of Division Three of Title Six of the Commonwealth Code
12 is hereby amended with the addition of a new section as follows:
13 "Section 3160. Wearing mask, hood, or other device on licensed property.
14 (a) No person shall enter upon or into any casino gaming establishment in the
15 Commonwealth regardless of location, while wearing any mask, hood, false whiskers,
16 personal disguise (whether complete or partial) or other device whereby any portion of
17 the face is so hidden, concealed, or covered as to conceal the identity of the wearer:
18 ( 1) With the intent to intimidate, steal from, threaten, abuse, or harass
19 any other person; or
20 (2) While she or he is engaged in conduct that could reasonably lead to
21 the institution of a civil or criminal proceeding against her or him, with the
22 intent of avoiding identification in such a proceeding.
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(b) This section shall not apply to persons wearing head coverings, veils that do
not cover the entire face, or the like pursuant to religious beliefs or customs.
(c) Any person who violates (a) shall be punished by imprisonment for not more
than 12 months, fined not more than $3,000, or both."
SECTION I5. AMENDMENT.
Title Seven of the Commonwealth Code is hereby amended by the addition of a section
as follows:
"Section xxx. Order of court for release of confidential information:
9 Procedure.
10 An application to a court for an order requiring the Commission or its members
11 or employees to release any information declared by law or regulation or
12 Commonwealth Casino Commission Order to be confidential or otherwise unsuitable
13 for public copying, review or disclosure shall be made only upon motion in writing on
14 10 court days' written notice to the Commission, the Attorney General and all persons
15 who may be affected by the entry of such order. Copies of the motion and all papers
16 filed in support of it shall be served with the notice by delivering a copy in person or
1 7 by certified mail to the last known address of the person to be served."
18 SECTION I6 . .AMENDMENT.
19 Title Seven of the Commonwealth Code is hereby amended by the addition of a section
20 as follows:
21 "Section xxx. Commonwealth Casino Commission may Refuse to Disclose
22 Certain Information.
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1 Commonwealth Casino Commission may refuse to disclose or reveal certain
2 matters in court or administrative proceedings. The Commonwealth Casino
3 Commission may refuse to reveal, in any court or administrative proceeding except a
4 criminal proceeding brought by the Commonwealth or the United States, the identity
5 of an informant, or the information obtained from the informant, or both the identity
6 and the information. Provided that the Commonwealth Casino Commission shall reveal
7 such matters upon request by the Attorney General."
8 SECTION I 7. AMENDMENT.
9 Title Four of the Commonwealth Code is hereby amended by the addition of a section
10 as follows:
11 "Section 2329. Contracts or agreements with certain unsuitable or
12 unlicensed persons prohibited; termination of contract or agreement.
13 (a) A person who has:
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(1) Been denied a license by the Commonwealth Casino Commission;
(2) Been found unsuitable by the Commonwealth Casino Commission;
(3) Had a license or finding of suitability revoked by the Commonwealth
Casino Commission; shall not enter or attempt to enter into any contract or
agreement with:
(i) the exclusive casino licensee regulated by the Commonwealth
Casino Commission; or
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1 (ii) a holder of any license granted by the Commonwealth Casino
2 Commission; either directly or indirectly, through any business
3 organization under such a person's control, that involves the operations
4 of a licensee without the prior approval of the Commission. This
5 provision does not prohibit any person from purchasing any goods or
6 services for personal use from a licensee at retail prices that are available
7 to the general public.
8 (b) Every contract or agreement with a person that is subject to the provisions
9 of subsection (a) shall be deemed to include a provision for its termination without
10 liability on the part of the licensee or applicant. Failure to expressly include that
11 condition in the contract or agreement is not a defense in any action brought pursuant
1 2 to this section to terminate the agreement."
13 SECTION I8. AMENDMENT.
1 4 Title Four of the Commonwealth Code is hereby amended by the addition of a section
1 5 as follows:
1 6 "Section 2330. Remedies are cumulative.
1 7 The remedies of the Commonwealth Casino Commission, the Commonwealth,
1 8 its political subdivisions and agencies for the imposition, collection and payment of any
1 9 penalty, fine, fee, license fees, taxes, and interest provided for in the Commonwealth
20 Code, the regulations of the Commission, and the regulations of any other government
2 1 agency are cumulative to each other and any action taken or not taken by the
22 Commission, the Commonwealth or any agency does not constitute an election by the
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1 Commonwealth, the Commission or any other agency to pursue or not pursue any
2 remedy to the exclusion of any other remedy for which provision is made in the Code
3 or any regulation."
4 SECTION I9. AMENDMENT.
5 Sections 2331-2334 of Title 4 of the Commonwealth Code are hereby renumbered to
6 Sections 2351-2354.
7 SECTION 20. AMENDMENT.
8 Title Four of the Commonwealth Code is hereby amended by the addition of a new
9 section 2331 as follows:
10 "Section 2331. Remuneration, contracts and employment prohibited for
11 certain unsuitable or unlicensed persons. If any person who is required by law or the
12 regulations promulgated by the Commonwealth Casino Commission to be licensed or
13 found suitable because of the person's connection with a corporation, partnership,
14 limited partnership, limited-liability company or other business organization holding or
15 applying for a license, or a holding company or intermediary company, including a
16 publicly traded corporation, fails to apply for a license or a finding of suitability after
17 being requested to do so by the Commission or is denied a license or a finding of
18 suitability, or if the person's license or finding of suitability is revoked, the corporation,
19 partnership, limited partnership, limited-liability company, business organization,
20 holding company, intermediary company or any person who directly or indirectly
21 controls, is controlled by or is under common control with the corporation, partnership,
22 limited partnership, limited-liability company, business organization, holding company
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or intermediary company shall not, and any licensee or an affiliate of the licensee shall
not, after receipt of written notice from the Commission:
(a) Pay the person any remuneration for any service relating to the
activities of a licensee, except for amounts due for services rendered before the
date of receipt of notice of such action by the Commission. Any contract or
agreement for personal services or the conduct of any activity at a licensed
gaming establishment between a former employee whose employment was
terminated because of failure to apply for a license or a finding of suitability,
denial of a license or finding of suitability, or revocation of a license or a finding
of suitability, or any business enterprise under the control of that employee and
the licensee, holding or intermediary company or registered publicly traded
corporation is subject to termination. Every such agreement shall be deemed to
include a provision for its termination without liability on the part of the licensee
upon a finding by the Commission that the business or any person associated
therewith is unsuitable to be associated with a gaming enterprise. Failure
expressly to include such a condition in the agreement is not a defense in any
action brought pursuant to this section to terminate the agreement.
(b) Enter into any contract or agreement with the person or with a
business organization that the licensee knows or under the circumstances
reasonably should know is under the person's control which involves the
operations of a licensee, without the prior approval of the Commission.
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1 ( c) Employ the person in any position involving the activities of a
2 licensee without prior approval of the Commission."
3 SECTION 21. AMENDMENT.
4 Title Four of the Commonwealth Code is hereby amended by the addition of a new
5 section 2332 as follows:
6 "Section 2332. Inspections.
7 (a) The Commonwealth Casino Commission may inspect every game, gaming
8 device, gambling device, electronic table game, and associated equipment which is
9 manufactured, sold or distributed for use in the Third Senatorial District, before it is
10 put into play and may inspect every game, gaming device, gambling device, electronic
1 1 table game, and associated equipment, which is offered for play or possessed by any
1 2 person within the Third Senatorial District, by the gaming licensee, or by any other
1 3 licensee or person required to be licensed by the Commission.
1 4 (b) The Commission may inspect all associated software and equipment used
15 with a game, gaming device, gambling device, electronic gaming machine, electronic
16 table game, which is manufactured, sold or distributed for use in the Third Senatorial
17 District before the equipment or system is installed or used by a licensee or any other
18 person as well as at any time while the licensee or any other person possesses, tests,
19 validates, or uses the equipment, software, or system.
20 ( c) The Commission shall conduct recurring inspections of the devices,
2 1 machines and equipment and may determine, charge, and collect an inspection and/or
22 test validation fee from each manufacturer, seller, distributor, casino gaming licensee,
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1 other licensee, or independent testing laboratory for the inspection and validation of
2 any game, gaming device, gambling device, electronic gaming machine, electronic
3 table game, or associated software or associated equipment subject to the
4 Commission's authority."
5 SECTION 22. AMENDMENT.
6 Title Four of the Commonwealth Code is hereby amended by the addition of a new
7 section 2333 as follows:
8 "Section 2333. Contempt. If any person in proceedings before the
9 Commonwealth Casino Commission disobeys or resists any lawful order or refuses to
1 0 respond to a subpoena, or refuses to take the oath or affirmation as a witness or
1 1 thereafter refuses to be examined, or is guilty of misconduct during the hearing or so
1 2 near the place thereof as to obstruct the proceeding, the Commission may certify the
1 3 facts to the Commonwealth Superior Court where the proceedings are held. The court
1 4 shall thereupon issue an order directing the person to appear before the court and show
1 5 cause why the person should not be punished as for contempt. The court order and a
1 6 copy of the statement of the Commission must be served on the person cited to appear.
1 7 Thereafter, the court has jurisdiction of the matter, and the same proceedings must be
1 8 had, the same penalties may be imposed and the person charged may purge himself or
1 9 herself of the contempt in the same way as in the case of a person who has committed
20 a contempt in the trial of a civil action before the Superior court."
2 1 SECTION 23. AMENDMENT.
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1 Title Four of the Commonwealth Code is hereby amended with the addition of a new
2 section 2334 as follows:
3 "Section 2334. Malfunctions.
4 (a) When wagering, gambling, gaming or in any way using any gambling
5 machine, gaming machine, electronic gaming machine, or electronic table game, any
6 malfunction of the machine (either hardware or software) voids all plays and pays.
7 (b) The Commonwealth Casino Commission may determine what constitutes a
8 malfunction of gambling machine, gaming machine, electronic gaming machine, or
9 electronic table game hardware and software in the Third Senatorial District."
1 0 SECTION 24. AMENDMENT.
1 1 Title Four of the Commonwealth Code is hereby amended by the addition of a new
1 2 section 2335 as follows:
1 3 "Section 2335. Enforcement.
1 4 (a) The Division of Enforcement and Investigations, a division of the
1 5 Commonwealth Casino Commission, and any other inspector, agent or employee of the
1 6 Commission appointed by the Executive Director shall have the primary responsibility
1 7 and authority to enforce the provisions of the gambling and gaming laws of the
1 8 Commonwealth and the regulations promulgated thereunder. This authority shall be
1 9 concurrent with the authority of any other law enforcement agency as provided by law.
20 (b) Any agent, inspector or other person who is trained and authorized by the
2 1 Executive Director of the Commonwealth Casino Commission to enforce the
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provisions of: the casino and gambling laws or gaming laws of the Commonwealth;
and the regulations promulgated thereunder may:
(1 ) Arrest any person, if there exists probable cause to believe that such
person committed an act in violation of the casino, gambling or gaming laws
and regulations of the Commonwealth;
(2) Seize any evidence related to any violation of any provision of the
casino, gaming, or gambling laws and regulations of the Commonwealth;
(3) Execute any warrant or other process issued by a court of competent
jurisdiction.
( c) If the Commonwealth Casino Commission enters into a mutual agreement
with any other casino or gaming commission established by local law or referendum
within the CNMI which provides for the rendering of assistance, any agent, inspector
or other person who is authorized by the Executive Director of the Commonwealth
Casino Commission to enforce the provisions of the casino, gaming, and gambling laws
of the Commonwealth, and the regulations promulgated thereunder may assist the other
local commission in the enforcement of the local laws and regulations promulgated
thereunder both in the Third Senatorial District and the senatorial district in which the
requesting commission is located. Such assistance is hereby declared to be within the
scope of the Casino Commission agent's jurisdiction and duties as a law enforcement
officer of the Commonwealth.
( d) If the Commonwealth Casino Commission enters into a mutual agreement
with any other law enforcement agency which provides for the rendering of assistance,
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1 any agent who is authorized by the Executive Director of the Commonwealth Casino
2 Commission to enforce the provisions of the casino, gaming, and gambling laws of the
3 Commonwealth, and the regulations promulgated thereunder may assist the other law
4 enforcement agency in the enforcement of the laws and regulations enforced by the
5 other law enforcement agency in the other agency's jurisdiction within or without the
6 Third Senatorial District. Such assistance is hereby declared to be within the scope of
7 the Casino Commission agent's jurisdiction and duties as a law enforcement officer of
8 the Commonwealth."
9 SECTION 25 . AMENDMENT.
1 0 Title Four of the Commonwealth Code is hereby amended by the addition of a new
1 1 section 2336 as follows:
1 2 "Section 2336. Jurisdiction.
1 3 (a) The jurisdiction of the Commonwealth Casino Commission shall extend
1 4 throughout the entirety of the Commonwealth of the Northern Mariana Islands as may
1 5 be necessary to enforce the casino, gambling and gaming laws of the Commonwealth
1 6 including, but not limited to:
1 7 ( 1 ) all places within the CNMI which are casinos regulated by the
1 8 Commonwealth Casino Commission;
1 9 (2) all persons or facilities in the CNMI which are required by law or
20 regulation to be licensed by the Commonwealth Casino Commission;
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(3) all places in the Third Senatorial District where casino gaming
2 devices, casino gambling devices, or their software or constituent parts (whether
3 licensed or unlicensed) are found.
4 (b) The jurisdiction of the Commonwealth Casino Commission shall extend
5 outside the Third Senatorial District to any location within or without the
6 Commonwealth where any : gambling device; gaming device; (or hardware or software
7 component thereof); or any gambling or gaming accessory; which is to be shipped to
8 the Third Senatorial District is found, or where any applicant for a license issued by the
9 Commission is found."
1 0 SECTION 26. AMENDMENT.
1 1 Title Four of the Commonwealth Code is hereby amended by the addition of a new
1 2 section 2337 as follows:
1 3 "Section 2337. No Liability for Official Acts.
14 No member or employee of the Commonwealth Casino Commission may be
1 5 sued for doing or omitting to do any official act in the performance of the powers and
1 6 duties as prescribed in this chapter.
1 7 SECTION 27. AMENDMENT.
18 Title Four, Division 5, Chapter 18 of the Commonwealth Code is hereby amended by
1 9 the insertion of a new article 1 0 as follows:
20 "Article 10. Liens on Miscellaneous Items.
2 1 Section 51564. Liens on Casino Gaming Machines.
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Notwithstanding any other law to the contrary, no person may obtain a lien or
security interest of any kind on any machine or part thereof which is regulated by the
Commonwealth Casino Commission unless that person first obtains permission from
the Commonwealth Casino Commission and a license from the Commission prior to
entering into the transaction which purports to create the security interest."
SECTION 28. AMENDMENT.
Section 4804 of Title 4 of the Commonwealth Code is hereby amended as fol lows:
"§ 4804. Effect of Operating Agreement; Nonwaivable Provisions.
(a) Except as otherwise provided in subsections (b) and (c), all members of a
limited liability company may enter into an operating agreement, which need not be in
writing, to regulate the affairs of the company and the conduct of its business, and to
govern relations among the members, managers, and company. To the extent the
operating agreement does not otherwise provide, this Act governs relations among the
members, managers, and company.
(b) The operating agreement may not:
( 1 ) Unreasonably restrict a right to information or access to records
under Section 4858 ;
(2) Eliminate the duty of loyalty under Section 4859(b) or 4883(b)(3),
but the agreement may :
(i) Identify specific types or categories of activities that do not
violate the duty of loyalty, if not manifestly unreasonable; and
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(ii) Specify the number or percentage of members or
disinterested managers that may authorize or ratify, after full disclosure
of all material facts, a specific act or transaction that otherwise would
violate the duty of loyalty;
(3) Unreasonably reduce the duty of care under Section 4859(c) or
4883(b)(3 );
( 4) Eliminate the obligation of good faith and fair dealing under section
4859( d), but the operating agreement may determine the standards by which the
performance of the obligation is to be measured, if the standards are not
manifestly unreasonable;
(5) Vary the right to expel a member in an event specified in Section
488 1 (6);
(6) Vary the requirement to wind up the l imited liability company' s
business in a case specified in Section 490 1 (a)(3) or (a)(4); eF
(7) Restrict rights of a person, other than a manager, member, and
transferee of a member' s distributional interest, under this Act; or
(8) Limit or amend in any way the requirements of ( c) or
4 CMC 4823(d) .
( c) The operating agreement of any limited l iability company which has applied
for or been granted by the Commonwealth Lottery Commission or Commonwealth
Casino Commission a casino gaming l icense or any other license which is now or in
the future subject to regulation by the Commonwealth Casino Commission must be in
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writing and shall include any language required by the Commonwealth Casino
Commission by regulation as well as language substantially as follows:
( 1 ) Notwithstanding anything to the contrary expressed or implied in the
articles or this agreement, the sale, assignment, transfer, pledge or other
disposition of any interest in the limited-liability company is ineffective unless
approved in advance by the Commonwealth Casino Commission. If at any time
the Commission finds that a member which owns any such interest is unsuitable
to hold that interest, the Commission shall immediately notify the limited
liability company of that fact. The limited-liability company shall , within
1 0 days from the date that it receives the notice from the Commission, return to
the unsuitable member the amount of his capital account as reflected on the
books of the limited-liability company. Beginning on the date when the
Commission serves notice of a determination of unsuitability, pursuant to the
preceding sentence, upon the limited-liability company, it is unlawful for the
unsuitable member:
(A) To receive any share of the distribution of profits or cash or
any other property of, or payments upon dissolution of, the limited
liability company, other than a return of capital as required above;
(B) To exercise directly or through a trustee or nominee, any
voting right conferred by such interest;
(C) To participate in the management of the business and affairs
of the limited-liability company; or
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1 (D) To receive any remuneration in any form from the l imited-
2 liability company, for services rendered or otherwise.
3 (2) Any member that is found unsuitable by the Commission shall return
4 all evidence of any ownership in the limited-liability company to the limited-
5 liability company, at which time the limited-liability company shall within
6 1 0 days, after the limited-liability company receives notice from the
7 Commission, return to the member in cash, the amount of his capital account as
8 reflected on the books of the limited-liability company, and the unsuitable
9 member shall no longer have any direct or indirect interest in the l imited-
1 0 liability company."
1 1 SECTION 29. AMENDMENT.
1 2 Section 4823 of Title Four of the Commonwealth Code i s hereby amended by the
1 3 addition of a new subsection ( d) as follows:
1 4 " ( d) The articles of organization of any limited liability company which has
1 5 been granted a casino gaming license, or any other license which is now or in the future
1 6 subject to regulation by the Commonwealth Casino Commission must be in writing and
1 7 shall include any language required by the Commonwealth Casino Commission by
1 8 Order or regulation as well as language substantially as follows:
1 9 ( 1 ) Notwithstanding anything to the contrary expressed or implied in
20 these articles, the sale, assignment, transfer, pledge or other disposition of any
2 1 interest in the limited-liability company is ineffective unless approved in
22 advance by the Commonwealth Casino Commission. If at any time the
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Commission finds that a member which owns any such interest is unsuitable to
hold that interest, the Commission shall immediately notify the limited-liability
company of that fact. The limited-liability company shall , within 1 0 days from
the date that it receives the notice from the Commission, return to the unsuitable
member the amount of his capital account as reflected on the books of the
limited-liability company. Beginning on the date when the Commission serves
notice of a determination of unsuitability, pursuant to the preceding sentence,
upon the limited-liability company, it is unlawful for the unsuitable member:
(A) To receive any share of the distribution of profits or cash or
any other property of, or payments upon dissolution of, the limited
liability company, other than a return of capital as required above;
(B) To exercise directly or through a trustee or nominee, any
voting right conferred by such interest;
(C) To participate in the management of the business and affairs
of the limited-liability company; or
(D) To receive any remuneration in any form from the limited
liability company, for services rendered or otherwise.
(2) Any member that is found unsuitable by the Commission shall return
all evidence of any ownership in the l imited-liability company to the limited
liability company, at which time the limited-liability company shall within
1 0 days, after the limited-liability company receives notice from the
Commission, return to the member in cash, the amount of his capital account as
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reflected on the books of the limited-liability company, and the unsuitable
2 member shall no longer have any direct or indirect interest in the limited-
3 liability company."
4 SECTION 30. AMENDMENT.
5 Section 23 1 7 of Title Four of the Commonwealth Code is hereby amended by the
6 addition of a new subsection (g) as fol lows:
7 "(g) License not Property Right. A license granted by the Commonwealth
8 Casino Commission:
9 ( 1 ) I s a purely personal privilege;
1 0 (2) I s valid for the period stated in the license, unless sooner revoked;
1 1 (3) I s renewable only as provided or allowed by the Commission by
1 2 Regulation;
1 3 ( 4) I s revocable or suspendable as provided by the Commission by
1 4 Regulation;
1 5 ( 5 ) I s transferable from the premises for which the license was originally
1 6 issued to another premises subject to the provisions of the gaming laws of the
1 7 Commonwealth or the regulations promulgated thereunder, and other
1 8 applicable laws and regulations;
1 9 ( 6) Expires upon the death of the licensee, except as may be provided
20 by the Commission by Regulation;
2 1 (7) Does not constitute property;
22 (8) I s not alienable;
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1 (9) I s not subject to attachment or execution;
2 ( 1 0) Does not descend by the laws of testate or intestate devolution."
3 SECTION 3 1 . AMENDMENT.
4 Chapter One of Division Three of Title Six of the Commonwealth Code is hereby
5 amended by the addition of the following Article as fol lows:
6 "Article 5. Crimes involving gaming.
7 Section 101. Definitions. As used in this Article:
8 (a) "Associated equipment" means any equipment or mechanical,
9 electromechanical or electronic contrivance, component or machine used remotely or
1 0 directly in connection with gaming, any game, race or sports book or pool that would
1 1 not otherwise be classified as a gaming device, including dice, playing cards, l inks
1 2 which connect to progressive slot machines, equipment which affects the proper
1 3 reporting of gross revenue, computerized systems of betting at a race book or sports
1 4 pool, computerized systems for monitoring slot machines and devices for weighing or
1 5 counting money.
1 6 (b) "Cashless wagering system" means a method of wagering and accounting
1 7 in which the validity and value of a wagering instrument or wagering credits are
1 8 determined, monitored and retained by a computer operated and maintained by a
1 9 licensee which maintains a record of each transaction involving the wagering
20 instrument or wagering credits, exclusive of the game or gaming device on which
2 1 wagers are being made. The term includes computerized systems which facilitate
22 electronic transfers of money directly to or from a game or gaming device.
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( c) "Cheat" means to alter the elements of chance, method of selection or
criteria which determine:
( 1 ) The result of a game;
(2) The amount or frequency of payment in a game;
(3) The value of a wagering instrument; or
( 4) The value of a wagering credit.
( d) "Commission" means the Commonwealth Casino Commission.
(e) "Game" means any activity that includes elements of prize, consideration,
and chance; or any "game" that is approved by the Commission for the casino' s
purposes.
(f) "Gaming" means to deal, operate, carry on, conduct, maintain, expose for
play, or the playing of any game;
(g) "Gaming device" means any object used remotely or directly in connection
with casino gaming or any game which affects the result of a wager by determining win
or loss and which does not otherwise constitute associated equipment. The term
includes, without limitation:
( 1 ) A slot machines or other electronic gaming machines (EGMs),
however styled.
(2) A collection of two or more of the following components:
(A) An assembled electronic circuit which cannot be reasonably
demonstrated to have any use other than in a slot machine or in a
electronic gaming machine;
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(B) A cabinet with electrical wiring and provisions for mounting
a coin, token or currency acceptor and provisions for mounting a
dispenser of coins, tokens or anything of value;
(C) An assembled mechanical or electromechanical display unit
intended for use in gambling or gaming; or
(D) An assembled mechanical or electromechanical unit which
cannot be demonstrated to have any practical use other than in a slot
machine.
(3) Any object which may be connected to or used with a slot machine
to alter the normal criteria of random selection or affect the outcome of a game.
( 4) A system for the accounting or management of any game in which
the result of the wager is determined electronically by using any combination
of hardware or software for computers.
(5) A control program, which includes any software, source language or
executable code which affects the result of a wager by determining win or loss
as determined pursuant to regulations adopted or orders issued by the
Commission.
( 6) Any combination of one of the components set forth in paragraphs
(A) to (D), inclusive, of this subsection and any other component which the
Commission determines by regulation to be a machine used directly or remotely
in connection with gaming or any game which affects the results of a wager by
determining a win or loss.
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(7) Any object that has been determined to be a gaming device pursuant
to regulations adopted or orders issued by the Commission.
(h) "Wager" or "Wagering" means a contract in which two or more parties agree
that a sum of money or other thing, tangible or intangible, shall be paid or delivered to
one of them or that shall gain or lose on the happening of an uncertain event or upon
the ascertainment of a fact in dispute.
(i) "Wagering credit" means a representative of value, other than a chip, token
or wagering instrument approved by the Commonwealth Casino Commission, that is
used for wagering at a game, gaming device, race book or sports pool and is obtained
by the payment of cash or a cash equivalent, the use of a wagering instrument or the
electronic transfer of money.
Section 1 02. Fraudulent acts. It is unlawful for any person:
(a) To alter or misrepresent the outcome of a game or other event on which
wagers have been made after the outcome is made sure but before it is revealed to the
players.
(b) To place, increase or decrease a bet or to determine the course of play after
acquiring knowledge, not available to all players, of the outcome of the game or any
event that affects the outcome of the game or which is the subject of the bet or to aid
anyone in acquiring such knowledge for the purpose of placing, increasing or
decreasing a bet or determining the course of play contingent upon that event or
outcome.
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(c) To claim, collect or take, or attempt to claim, collect or take, money or
anything of value in or from a gambling game, with intent to defraud, without having
made a wager contingent thereon, or to claim, collect or take an amount greater than
the amount won.
( d) To place or increase a bet after acquiring knowledge of the outcome of the
game or other event which is the subject of the bet, including past-posting and pressing
bets.
(e) To reduce the amount wagered or cancel the bet after acquiring knowledge
of the outcome of the game or other event which is the subject of the bet, including
pinching bets.
(f) To manipulate, with the intent to cheat, any component of a gaming device
m a manner contrary to the designed and normal operational purpose for the
component, including, but not limited to, varying the pull of the handle of a slot
machine, with knowledge that the manipulation affects the outcome of the game or with
knowledge of any event that affects the outcome of the game.
(g) To offer, promise or give anything of value to anyone for the purpose of
influencing the outcome of a race, sporting event, contest or game upon which a wager
may be made, or to place, increase or decrease a wager after acquiring knowledge, not
available to the general public, that anyone has been offered, promised or given
anything of value for the purpose of influencing the outcome of the race, sporting event,
contest or game upon which the wager is placed, increased or decreased.
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Section 103. Use or possession of device, lenses, software or hardware to
obtain advantage at playing game prohibited. It is unlawful for any person to use,
possess with the intent to use or assist another person in using or possessing with the
intent to use any computerized, electronic, electrical or mechanical device, or any
software or hardware, or any lens, contact lens, or eyeglasses or eyewear, or any
combination thereof, which is designed, constructed, altered or programmed to obtain
an advantage at playing any game in an establishment licensed by the Commission,
including, without limitation, a device that:
(a) Projects the outcome of the game;
(b) Keeps track of cards played or cards prepared for play in the game;
( c) Analyzes the probability of the occurrence of an event relating to the
game; or
( d) Analyzes the strategy for playing or betting to be used in the game,
except as may be made available as part of an approved game or otherwise
permitted by the Commission.
Section 104. Counterfeit, unapproved or unlawful instruments or items.
(a) It is unlawful for any person, in playing or using any gambling game,
associated equipment or cashless wagering system designed to be played with, receive
or be operated by chips, tokens, wagering credits or other wagering instruments
approved by the Commission or by lawful coin or bills of the United States of America
knowingly to use other than chips, tokens, wagering credits or other wagering
instruments approved by the Commission or lawful coin or bills, legal tender of the
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United States of America, or to use coin or tokens not of the same denomination as the
coin or tokens intended to be used in that gambling game, associated equipment or
cashless wagering system.
(b) It is unlawful for any person, neither a duly authorized employee of a
licensee regulated by the Commission nor a law enforcement officer or member or
agent of the Commission acting in furtherance of such employment, to have on his or
her person or in his or her possession on or off the premises of any licensed gaming
establishment any key or device known to have been designed for the purpose of and
suitable for opening, entering or affecting the operation of any gambling game, cashless
wagering system or drop box, or any electronic or mechanical device connected thereto,
or for removing money or other contents therefrom.
( c) Possession of more than one of the devices, equipment, products or materials
described in this section permits a rebuttable inference that the possessor intended to
use them for cheating.
Section 105. Cheating. It is unlawful for any person, whether the person is a
l icensee or employee of, or a player in, an establishment l icensed by the Commission,
to cheat at any game played in an establishment licensed by the Commission.
Section 1 06. Unlawful manufacture, sale, distribution, marking, altering or
modification of equipment and devices associated with gaming.
(a) It is unlawful to manufacture, sel l or distribute any cards, chips, dice, game
or device which is intended to be used to violate any provision of this Article.
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(b) It is unlawful to mark, alter or otherwise modify any associated equipment
or gaming device which should be or is regulated by the Commission, in a manner that:
( 1 ) Affects the result of a wager by determining win or loss; or
(2) Alters the normal criteria of random selection, which affects the
operation of a game or which determines the outcome of a game.
Section 1 07. Penalties.
(a) A person who violates any provision of Section 2 through Section 6,
inclusive, is guilty of a felony and shall be punished:
( 1 ) For the first offense, by imprisonment for a maximum term of not
more than 6 years, or by a fine of not more than $50,000, or by both fine and
imprisonment.
(2) For a second or subsequent violation of any of these provisions, by
imprisonment for a minimum term of not less than 1 year and a maximum term
of not more than 6 years, and shall be further punished by a fine of not more
than $50,000. The court shall not suspend a sentence of imprisonment imposed
pursuant to this paragraph, or grant probation to the person convicted.
(3) Notwithstanding the foregoing, for
(b) A person who attempts, or two or more persons who conspire, to violate any
provision of Section 2 through Section 6, inclusive, each is guilty of a felony and shall
be punished by imposing the penalty provided in subsection 1 for the completed crime,
whether or not he or she personally played any gambling game or used any prohibited
device."
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SECTION 32. AMENDMENT.
2 Section 23 1 2(d) of Title 4 of the Commonwealth Code is hereby amended as fol lows:
3 "( d) "Casino gross gaming revenue" means the total sums actually received from casino
4 gaming activities, including, but not l imited to, cash, credit card payments received and checks
5 or markers of any kind received, whether collected or not, less the total amount paid out as
6 winnings, provided that any sum, payment, check or marker of any kind (whether collected or
7 not) received in payment for credit extended by a casino or operator for purposes of casino
8 gaming activities or for the issue of a chip or chips for casino gaming activities shall be
9 included as a sum actually received from gaming, and provided further that no allowance shall
1 0 be permitted for any bad debt, fee, credit card fee, rebate, incentive program, or any other
1 1 discount;"
1 2 SECTION 33. SEVERABILITY.
1 3 If any provisions of this Act or the application of any such provision to any person or
1 4 circumstance should be held invalid by a court of competent jurisdiction, the remainder of this
1 5 Act or the application of its provisions to persons or circumstances other than those to which
1 6 it is held invalid shall not be affected thereby.
1 7 SECTION 35. SAVINGS CLAUSE.
1 8 This Act and any repealer contained herein shall not be construed as affecting any
1 9 existing right acquired under contract or acquired under statutes repealed or under any rule,
20 regulation, or order adopted under the statutes. Repealers contained in this Act shall not affect
2 1 any proceeding instituted under or pursuant to prior law. The enactment of the Act shall not
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1 have the effect of terminating, or in any way modifying, any liability, civil or criminal, which
2 shall already be in existence on the date this Act becomes effective.
3 SECTION 36. EFFECTIVE DATE.
4 This Act shall take effect upon its approval by the Governor, or its becoming law
5 without such approval.
A ttested to by:
Certified by: S�NA THAN "BJ" T. A TTA O House of Representatives 2151 Northern Marianas Commonwealth Legislature
Comm nwealth of the Northern Mariana Islands
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