COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS

COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS Eloy S. Inos Governor Honorable Francisco M. Borja Chairman, Tinian and Aguiguan Legislative Delegation Nineteenth Northern Marianas Commonwealth Legislature Saipan, MP 96950 Ralph DLG. Torres Lieutenant Governor IDEe 1 5 2015 Honorable Reynaldo M. Cing Chairman, Fifteenth Tinian and Aguiguan Municipal Council Commonwealth Legislature Saipan, MP 96950 Dear Mr. Chairmen Borja and Cing: This is to inform you that I have signed into law Tinian Local Bill No, 19-02, entitled, "To make limited appropriations for personnel and operations of the Tinian Casino Gaming Control Commission, the Office of the Mayor of Tinian, and the Tinian Municipal Treasury for Fiscal Year 20 16 pursuant to 10 CMC 2571 [Part VI, Section 50 of the Revised Tinian Casino Gaming Control Act of 1989] and 1 CMC 1405(a) [Public Law 11-17]; and for other purposes." The bill was passed by the Nineteenth Tinian and Aguiguan Legislative Delegation and the Fifteenth Tinian and Aguiguan Municipal Council. This bill becomes Tinian Local Ordinance No. 19-2. forwarded for your reference. Copies bearing my signature are cc: Governor, Spe er of the House, President of the Senate, Press Secretary, Office of the Mayor of Tinian and Aguiguan, Tinian Municipal Treasurer, Department of Finance, Special Assistant for Management and Budget, Commonwealth's Law Revision Commission, Special Assistant for Programs and Legislative Review Caller Box 10007 Saipan, MP 96950 Telephone: (670) 237-2200 Facsimile: (670) 664-221112311

TINIAN & AGUIGUAN LEGISLATIVE DELEGATION Second Senatorial District Nineteenth Northern Marianas Commonwealth Legislature P. O. Box 500129 Saipan, MP 96950 Senator Francisco M. Borja, Chairman Senator Jude U. Hofschneider, Floor Leader Senator Francisco Q. Cruz, Vice Chairman Representative Edwin P. Aldan, Legislative Secretary December 11, 20 15 Honorable Eloy S. Inos Governor Commonwealth of the Northern Mariana Is. Saipan, MP 96950 Dear Governor Inos: I am honored to transmit for your action Tinian Local Bill No. 194 entitled: A LOCAL APPROPRIATION BILL FOR AN ACT FOR THE SECOND SENATORIAL DISTRICT "To make limited appropriations for personnel and operations of the Tinian Casino Gaming Control Commission, the Office of the Mayor of Tinian, and the Tinian Municipal Treasury for Fiscal Year 2016 pursuant to 10 CMC 2571 [Part VI, Section 50 of the Revised Tinian Casino Gaming Control Act of 1989} and 1 CMC 14 05 (a) [Public 11-17}." " The bill was passed unanimously on First and Final Reading by the Tinian and Aguiguan Legislative Delegation of the Nineteenth Northern Marianas Commonwealth Legislature, a quorum duly present, during its Second Day, Second Emergency Session, 20 15 held on December 7, 20 15 and unanimously concurred by the members of 15 th Tinian and Aguiguan Municipal Council, a quorum duly present, during its Fifth Regular Session held on December 10, 20 15. Respectfully submitted, q u Delegation CI Enclosures

TINIAN & AGUIGUAN LEGISLATIVE DELEGATION SECOND SENATORIAL DISTRICT NINETEENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE TINIAN LOCAL ORDINANCE NO. TINIAN LOCAL BILL NO. 19- A LOCAL APPROPRIATION BILL FOR AN ACT FOR THE SECOND SENATORIAL DISTRICT To make limited appropriations for personnel and operations of the Tinian Casino Gaming Control Commission, the Office of the Mayor of Tinian, and the Tinian Municipal Treasury for Fiscal Year 2016 pursuant to 10 CMC 2571 [Part VI, Section 50 of the Revised Tinian Casino Gaming Control Act of 1989] and 1 CMC 1405(a) [Public 11-17]. Offered by Senator Francisco M. Borja on December 1,2015 DELEGATION ACTION Referred to Public Hearing Comments Received Standing Committee Report Passed First & Final Reading None None Mayor's Comm. 19-50 (12/1115) None December 7, 2015 MUNICIPAL COUNCIL'S ACTION Referred to Council Concurred by the 15t h Tinian & Aguiguan Municipal Council Tinian & Aguiguan Municipal Council December 8, 2015 December 10, 20 L4u=---=--=-=-=..::r::-..:...=-=A---=- Alicia DLG. Leo Delegation Clerk " A uerrero

TINIAN & AGUIGUAN LEGISLATIVE DELEGATION NINETEENTH NORTHERN MARIANAS COMMONWEALTH LEGISLATURE SECOND SENATORIAL DISTRICT TINIAN LOCAL ORDINANCE NO. TINIAN LOCAL BILL NO. 19-:Z, Dl A LOCAL APPROPRIATION BILL FOR AN ACT FOR THE SECOND SENATORIAL DISTRICT To make limited appropriations for personnel and operations of the Tinian Casino Gaming Control Commission, the Office of the Mayor of Tinian, and the Tinian Municipal Treasury for Fiscal Year 2016 pursuant to 10 CMC 257 1 [Part VI, Section 50 of the Revised Tinian Casino Gaming Control Act of 1989] and 1 CMC 1405(a) [Public 11-17]. BE IT ENACTED BY THE SECOND SENATORIAL DISTRICT DELEGATION PURSUANT TO CHAPTER 4, DIVISION 1, TITLE 1 OF THE COMMONWEALTH CODE: 1 Section 101. Findings. The Tinian and Aguiguan Legislative Delegation is 2 cognizant of the Delegation's obligation to pass a Tinian Local Budgt for Fiscal Year 3 20 16 on or before October 1, 20 15. However, the Tinian Casino Gaming Control 4 Commission's (TCGCC) estimated revenue projection for FY20 16 dated August 19, 5 20 15 cannot be substantiated or verified due to the closure of the casino of the Tinian 6 Dynasty on August 14, 20 15. Since the closure of the casino at Tinian Dynasty, there has 7 been no casino gaming revenue or tax collected by the TCGCC. Moreover, the annual 8 license fee of $500,000 was not paid by Tinian Dynasty on or before October 1. 9 The Delegation further finds that TCGCC and Tinian Dynasty have been 10 negotiating an amicable resolution to the issues surrounding Tinian Dynasty's casino

TIN IAN LOCAL ORDINANCE NO. TINIAN LOCAL BILL NO. 19.,:2, Dl 1 operator's license. Pursuant to their agreement, Tinian Dynasty has deposited the amount 2 of $250,000 as partial payment of the annual license fee and will make the final 3 installment payment on or before December 31, 2015. 4 Based on the intial deposit of $250,000 and second installment of $250,000, the 5 Delegation finds it acceptable to appropriate the limited funds for the operations of 6 TCGCC, Office of the Mayor of Tinian, and the Tinian Municipal Treasurer from 7 October 1, 2015 to March 31, 2016 subject to the availability of the funds and on a pro- 8 rated basis. Upon the identification of additional gaming funds, the Delegation shall 9 immediately appropriate the additional funds for the programs authorized under this Act. 10 Section 102. Purpose. This Act appropriates limited local funds generated 11 pursuant to 10 CMC 2571 [Revised Tinian Casino Gaming Control Act of 1989, Part 12 VI, 50(1), 50(2), and 50(3)] for personnel and operations of the Tinian Casino Gaming 13 Control Commission, the Tinian Municipal Treasury, and the Office of the Mayor from 14 October 1, 2015 to March 31, 2016. 15 Section 103. Estimated Local Revenues. Pursuant to Mayor's Comm. 19-50, the 16 estimated local revenues generated pursuant to 10 CMC 2571(a), d(1), d(2), e(1) e(2) 17 and e(3) [Revised Tinian Casino Gaming Control Act of 1989, Part VI, 50(2)(a) and 18 (b), and Sections 50(3)(a), (b), and (c)] for the Municipality of Tinian and Aguiguan for 19 Fiscal Year 2016 are hereby identified and classified as resources in this local 20 appropriations Act. 21 Local Funds Anticipated for Fiscal Year 2016: 22 1. Casino license fee $500,000 23 2. Gaming Tax $ 29,978 24 3. Table games and slot machines $ 27,325 25 $557.603 Page 2 of8

TIN IAN LOCAL ORDINANCE NO. """':;:'"_ TINIAN LOCAL BILL NO. 19-RDl 1 Section 104. Municipal Government Limted Appropriations. 2 (a) The amount of $557,603 for programs and activities of the Municipal 3 Government of Tinian and Aguiguan, including all activities of the Tinian Casino 4 Gaming Control Commission - Commissioners, the Tinian Casino Gaming Control 5 Commission - Administration, the Office of the Mayor, Public Programs, and the Office 6 of the Tinian Municipal Treasurer are hereby appropriated as set forth in the worksheets 7 attached hereto as "Appendix A" and incorporated by reference in this Act. 8 (b) The amount appropriation in subsection (a) of this Section shall include the 9 activities of the Tinian Casino Gaming Control Commission - Commissioners and 10 Administration beginning October 1,2015. 11 Section 105. Public Programs. Public programs funded by the funds generated 12 pursuant to 10 CMC 2571 [Revised Tinian Casino Gaming Control Act of 1989, Part 13 VI, 50(1), 50(2), and 50(3)] are hereby limited to the programs listed in "Appendix 14 A. " 15 Section 106. Administrative Guidelines. 16 (a) The funds appropriated under Section 104 this Act shall be distributed and 17 allotted by the Office of the Municipal Treasurer in accordance with the expenditure class 18 codes approved in the individual activities budget worksheet attached hereto. 19 (b) The funds appropriated herein shall be allotted at the beginning of each month 20 to each budget activity at a pro-rated rate of the amount appropriated subject to the 21 availability of funds and approval of the respective expenditure authorities as provided in 22 Section 109 of this Act; 23 Section 107. Reduction in the Level of Appropriations. In order to provide 24 expenditure authorities with flexibility in determining the allocation of funding for their 25 operations, expenditure authorities must reduce their expenditures to achieve the level of 26 appropriation under this Act. Page 3 of8

TIN IAN LOCAL ORDINANCE NO. TINIAN LOCAL BILL NŌ-. -1-9-':: ':>, D1 1 Expenditure authorities may reduce previous levels of expenditure by: 2 (1) A reduction in work hours; 3 (2) A reduction in wages; 4 (3) Furlough; 5 (4) A reduction in force; 6 (5) A reduction in expenditures for "all others"; or 7 (6) A combination of reductions under subsections (1) through (5). 8 The reduction in work hours shall not apply to inspectors employed by the Tinian 9 Casino Gaming Control Commission - Administration, as required by Parts II and X of 10 the Revised Tinian Casino Gaming Control Act of 1989 upon the reopening of the Tinian 11 Dynasty Hotel & Casino. 12 Section 108. Appropriation Worksheet. Unless otherwise provided in this Act, 13 the funds appropriated pursuant to Section 104 hereof shall be expended in compliance 14 with the appropriations worksheet attached hereto as "Appendix A" and incorporated by 15 reference herein. In case of any conflict between the attached worksheet and the 16 Administrative Provisions of this Act, the Administrative Provisions shall prevail. 17 Section 109. Expenditure Authorities. 18 (a) The Mayor of Tinian and Aguiguan shall be the expenditure authority of the 19 funds appropriated to the Office of the Mayor, the Office of the Municipal Treasurer, and 20 the Public Programs. 21 (b) Notwithstanding any law to the contrary, the Chairman of the Tinian Casino 22 Gaming Control Commission (TCGCC) shall be the expenditure authority of the funds 23 appropriated to the Commissioners and the Administration of the Tinian Casino Gaming 24 Control Commission. Page 4 of8

TIN IAN LOCAL ORDINANCE NO. --:-_ TIN IAN LOCAL BILL NO. Dl 1 Section 110. Management of Funds. 2 (a) The Tinian Municipal Treasurer shall regulate and control the expenditure 3 of public funds that are appropriated and allocated by this Act, so that no activity may 4 expend appropriated funds contrary to this Act or fiscal management policies; and 5 (b) Vacant positions or FTEs shall not be announced or filled without 6 certification of available funds by the Tinian Municipal Treasurer and approved for 7 expenditure by the respective expenditure authority. Zero-funded positions or FTEs shall 8 not be filled and funds appropriated herein shall not be reprogrammed to fund 9 zero-funded positions or FTEs. 10 (c) Notwitstandng any law to the contrary and immediately upon approval of this 11 Act, all employment positions or contracts may be amended or adjusted to reflect any 12 increase in salary enumerated in the appropriation worksheet set forth in "Appendix A" 13 of this Act subject to certification of availability of funds. 14 (d) Notwithstanding any law to the contrary, the funds appropriated pursuant to 15 this Act shall not be used to increase the salary of any employee or position from its 16 current level or new level as set forth and appropriated by this Act. 17 Section 111. Reprogramming and Proportionate Reduction of Funds. Except 18 as provided in Section 110 of this Act, in the event that the estimated revenue collected is 19 ten (10) percent below the projected or estimated revenue indicated in Section 103 of this 20 Act, the respectivie expenditure autohority shall have full reprogramming authority of all 21 funds in order to properly manage expenditures so as to not create a deficit. In such an 22 event, the Mayor shall proportionately reduce the amounts appropriated herein. 23 Section 112. Supplemental Appropriations. In the event that the Municipal 24 Treasuer determines that the estimated local revenues collected will be increased by 25 $100,000 or more of the projected or estimated revenue indicated in Section 103 of this 26 Act, the Municipal Treasurer shall transmit within fifteen (15) calendar days a special Page 5 of8

TINIAN LOCAL ORDINANCE NO. --::::-_ TINIAN LOCAL BILL NO. 19-Q D1 1 budget message to the Tinian Mayor's Office, the Chairman of the Tinian Legislative 2 Delegation and the Chairman of the Tinian Municipal Council proposing to increase the 3 reserve for the fiscal year or provide additional budget authority for the fiscal year. Any 4 increases in revenues shall be held in reserve, unless appropriated by the Tinian and 5 Aguigan Legislative Delegation. 6 Section 113. No Continuing Appropriations. The Tinian Casino Gaming 7 Control Commission and the Tinian Municipal Treasurer through the Mayor shall 8 provide revenue projections and proposed appropriations on or before June 1, 2016. The 9 Tinian Municipal Council, together with the Tinian and Aguiguan Legislative Delegation, 10 shall pass a balanced budget by October 1, 20 16 unless all casino operations have 11 shutdown or gaming funds are not available. With the exception of the Office of the 12 Municipal Treasurer, the gaming inspectors, the licensing officer, and the executive 13 director of the Tinian Casino Gaming Control Commission, no expenditures shall be 14 made absent an appropriation measure signed into law for Fiscal Year 2017. However, in 15 the event that a licensed casino operator closes its casino operations at anytime, the 16 gaming inspectors shall be furloughed until such time that the casino operations opens for 17 business notwithstanding the approval of an appropriation measure. 18 Section 114. Criminal Penalties. Without limitation on the applicability of any 19 other part of the Planning and Budget Act of 1983, as amended, the criminal penalties set 20 forth therein (1 CMC 7701 et seq.) shall apply to this Act. 21 Section 115. Severability. If any provision of this Act or the application of any 22 such provision to any person or circumstance should be held invalid by a court of 23 competent jurisdiction, the remainder of this Act or the application of its provisions to 24 persons or circumstances other than those to which it is held invalid shall not be affected 25 thereby. Page 6 of8

TINIAN LOCAL ORDINANCE NO. --...-_ TIN IAN LOCAL BILL NO. 19.ill. Section 116. Savings Clause. This Act and any repealer contained herein shall not be construed as affecting any existing right acquired under contract or acquired under statutes repealed or under any rule, regulation or order adopted under the statutes. Repealers contained in this Act shall not affect any proceeding instituted under or pursuant to prior law. The enactment of this Act shall not have the effect of terminating, or in any way modifying, any liability, civil or criminal, which shall already be in existence on the date this Act becomes effective. Section 117. Effective Date. This Act shall take effect upon its approval by the Governor, or its becoming law without such approval. Passed this 7th day of December, 2015, on the island of Saipan, Commonwealth of the Northern Mariana Islands pursuant to 1 CMC 1405(a) {Public Law 11-17} by the members of the Tinian and Aguiguan Legislative Delegation, Eighteenth Northern Marianas Commonwealth Legislature. Senator Francisco Q. Cruz Vice Chairman Repres ntative Edwin P. Aldan Legislative Secretary Page 7 of8

TINIAN LOCAL ORDINANCE NO. -=-_ TINIAN LOCAL BILL NO. 19.2..m. A),2015, on the island of Tinian, Concurred this /!J ay of Commonwealth of the Northern Mariana Islands by the members of the Fifteenth Tinian and Aguiguan Municipal Council. Councilm n Reynaldo M. Cin Chairman H. Borja Councilman Edwi M. Hofschneider Sec tary Certified as a Local Appropriation Bill by:,2015. o ernor Commonwealth of the No ern Mariana Islands Page 8 of8

FV2016 TALD Budget Appendix A Mayor of Tinian and Municipal Treasurer TINIAN MAYOR'S OFFICE Name Title 1 Allen M. Perez (VIce: Jose P. Kiyoshil CEO 2 Ignacio K. Quichcho Senior Policy Advisor 3 Eric Henry C.San Nicolas Legislative Liason 4 Maria M. Castro City Planner 5 Admin Assistant Vacant 6 Hofschneider, Freddy Jr.U. Budget Analyst 7 Lorena Lyn T. Cabrera Administrative Assistant 8 Francisco B. Mendiola Community Worker 9 Joseph Ray C. Arriola, Jr. Community Worker 10 Peter Mario l. Cruz (vacant) Community Worker 11 Marian A. Mendiola Comm unity Worker Vincent C. Reyes, Jr. (vice: Thomas 12 C. Masga) Community Worker 13 Vivian R. Miah Community Worker 14 Winfreda A. Cruz Community Worker 15 Marcus G. Untalan Community Worker 16 Sivester A. Javier (vacant) Community Worker Base Salary 60,000.00 55,000.00 55,000.00 50,000.00 22,000.00 38,000.00 25,000.00 25,000.00 I I TOTAL TINIAN MUNICIPAL TREASURER Name Title Base Salary 1 Charlene M. Lizama Municipal Treasurer 50,000.00 2 Bernadita DLG. San Nicolas Deputy Municipal Treasur 48,000.00 3 Maria Barbara Borja Procurement OffICer 40,000.00 4 Lillian C. Cepeda Fiscal Officer 40,000.00 5 Jacklyn U. Sanchez Financial Clerk 6 Marilyn B. Borja Secretary TOTAL $ 214,000.00

FY2016 TALD Budget Appendix A TCGCC Commision Division No. Position Title Incumbent Base Sala1)'_ 1 2 3 4 5 6 Chairman Vice Chairwoman Commissioner Commissioner Commissioner Special Assistant to the Commissioners Mathew C. Masga 75,000.00 Bernadita C. Palacios 75,000.00 Esther H. Barr 1.00 Lydia F. Barcinas 75,000.00 Patrick San Nicolas 75,000.00 Vacant 1.00 Total Staff Compensation 300,002.00 ----- - ----.- -

FY2016 TAW Budget Appendix A Combined Budget of Municipality of Tinian and Agriguan nnian Casino Gaming Commission No. Une item MOT and TMT Commission Administration Combined Total 1 Personnel Costs with Benefits 2 Back Pay 3 Supplemental Medical Assistance $111,500 $19,500 $88,377 $129,226 $60,000 $329,103 $60,000 $19,500 4 Professional Services $50,000 $50,000 5 Guesthouse Expenses 6 Contingency 7 Utilities 8 Communication $24,000 $60,000 $12,000 $3,000 $24,000 $60,000 $12,000 $3,000 $265,000 $88,377 $204,226 $557,603 Note 1: Personnel Costs and Benefits are projected to last in four pay periods; Note 2: Back Pay relates to the personnel costs of the Tinian casino Gaming Commission whose employees worked after the shut down; Note 3: Supplemental Medical Assistance is projected for three months of support and assistance; Note 4: Professional Services are projected to last for three months; Note 5: Guesthouse Expenses include fuel and a leased vehicle for eight months; Note 6: Contingency includes public programs and other unexpected events and transactions; Note 7: Utilities are projected to last for four months, and Note 8: Communication is projected to last for four months. ;.03 : t"" = - o a.... 1:1 1:1 :z?.. \C I N

FY2016 TALD Budget Appendix A Municipality of Tinian and Agriguan Schedule of Revenue Estimates No. Sources 1 Casino Licnese Fees 2 Gaming Tax 3 Slots FY2016 Revenue Estimates $500,000 $29,978 $27,625 Total Revenue Estimates $557,603