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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#

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

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.


'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,


HOUSE BILL 2I-II, HSI, SDI, SD3

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."


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."


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 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."


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."


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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HOUSE BILL 21- 1 1, HSl, SDl, SD3

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."



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."


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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.


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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HOUSE BILL 2I-1I, HSI, SDI, SD3

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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HOUSE BILL 2 I-II , HSI, SD I, SD3

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."


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"


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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HOUSE BILL 2I-11, HSI, SDI, SD3

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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or

(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."


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."


5 Sections 2331-2334 of Title 4 of the Commonwealth Code are hereby renumbered to

6 Sections 2351-2354.


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."




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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HOUSE BILL 2 I-II , HSI, SDI, SD3

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."




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


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 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 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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HOUSE BILL 2 I-I I , HSI, SD I, SD3

(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 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.


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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HOUSE BILL 2 1-I I , HSI, SDI, SD3

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 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

34



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 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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HOUSE BILL 2 I-1 I, HSI, SD I, SD3

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."


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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HOUSE BILL 2 I-I I, HSI, SDI, SD3

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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HOUSE BILL 2 I-11 , HSI, SD I, SD3

(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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HOUSE BILL 2 I- I I, HSI, SDI, SD3

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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HOUSE BILL 21- 1 1 , HSl, SD l, SD3

(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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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

46



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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