Teno rejects plan to increase fines for businesses without license

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Posted on Jan 24 2000
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Saying the Legislature had overlooked a similar law already in place, Gov. Pedro P. Tenorio has disapproved a measure seeking to penalize violators of a regulation requiring businesses to obtain government license.

He said that since Public Law 11-73 enacted last year has imposed penalty to businessmen found operating without a valid license, the Legislature should have instead amended its provisions to increase the fines.

Under that law, businessmen found selling merchandise or providing services for compensation without a valid business permit will be fined $500 and additional $100 per day for continual violation.

But the bill offered by Rep. David M. Apatang had sought a fine of not more than $50,000, imprisonment of up to five years or both found guilty of the felony offense.

“The bill fails to acknowledge Section 6 of PL 11-73, which provides penalty for any person found operating a business in the CNMI without a valid business license,” said the governor in vetoing House Bill 11-478.

“Perhaps if the Legislature wishes to increase such penalties from what the current law contains, then [such section] should be amended,” added Mr. Tenorio.

Mr. Apatang filed the measure to discourage proliferation of illegal business establishments on the island and enforce regulations on business license as he noted that such requirement has oftentimes been violated due to absence of penalty provisions.

The severity of the proposed penalties were designed to both encourage compliance among potential investors and punish violators, especially those who have suddenly decided to establish business without the necessary permit, according to the lawmaker.

The Department of Commerce is the sole authority in issuing license, but it does not have any enforcement powers to apprehend business owners violating Commonwealth laws.

Mr. Apatang’s proposal stemmed largely from the proliferation of prepaid telephone cards sold in stores which are not licensed under CNMI regulations as well as foreign remittance service centers operating without necessary permits.

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