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Plan to restructure MVA Board opposed
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Posted on Apr 21 2000
The Marianas Visitors Authority has opposed a proposed measure which would change the structure of the board of directors reducing the number of members that will be appointed by the governor because it is unconstitutional and in violation of the CNMI public policy.
Currently, five members of the board are appointed by the governor while the four remaining members are elected by the MVA tourism industry members.
In a letter sent to Rep. Dino M. Jones, MVA Managing Director Perry Tenorio said MVA was created in conformance with Public Law 11-15 which declared the Authority as a public corporation.
It is presently funded in part by 25 percent of the excise taxes levied on the sale of alcoholic beverages and 70 percent of the taxes levied on hotel occupancy.
While MVA gets some funds from dues paid by its members, majority of its funding comes from tax revenues. MVA Board Chair Dave M. Sablan expressed concern that the share of MVA from the government revenues may be reduced when most of the members are from the private sector.
Earlier court rulings show that MVA is a “state agency” or a non-profit organization contained within the Commonwealth government and exercising quasi-corporate powers. At the same time, the court found that MVA is subject to the governor’s reorganization power under the NMI Constitution.
By adding more members from the private sector to the MVA board may dilute the power of the executive branch to have a part in administering the agency which takes care of the island’s tourism economy.
Since HB 12-135 attempts to remove MVA from the executive branch by diluting its control over the agency, Mr. Tenorio said he finds the proposed bill unconstitutional and a violation of the separation of powers.
“Furthermore, to reduce the control of MVA — an integral part of the executive branch — to two appointees would in effect place public funds under the control of board members accountable — by the very nature of their election to the MVA board of directors — to the private sector rather than to the executive branch,” Mr. Tenorio said.
