‘Delay federalization further’

At least five of the nine witnesses at the U.S. House Subcommittee on Insular Affairs, Oceans and Wildlife’s oversight hearing on the implementation of Public Law 110-229 asked for a further delay in the Nov. 28, 2009 start of federalization transition or until Chinese and Russian tourists are included in the Guam-CNMI Visa Waiver Program.

Subcommittee chair Guam Delegate Madeleine Z. Bordallo and member CNMI Delegate Gregorio “Kilili” C. Sablan, along with some of the witnesses, raised doubts on the U.S. Department of Homeland Security’s ability to set up operations in the CNMI and effectively include Chinese and Russian tourists in the special visa waiver program by November.

The start of transition to federal system was pushed back by 180 days, from June 1 to Nov. 28, 2009, the maximum allowed by law.

“I can’t believe [that] with a $14 billion military buildup on Guam…we need any more security than that. What other state or part of our nation has such a buildup in its history?” Bordallo asked, referring to additional security measures needed by DHS to include China and Russia from the Guam-CNMI visa waiver program.

When Bordallo asked CNMI Gov. Benigno R. Fitial on his view about the implementation of P.L. 110-229, the governor said: “It’s not helping our economy at all. It’s creating uncertainty that drives away potential investors. It’s not really working well.”

Ranking Republican member Rep. Henry E. Brown of South Carolina also asked Fitial about his recommended delay in the federalization implementation date.

“I’m asking for a full year delay [from Nov. 28, 2009],” Fitial told Brown who will be traveling to the CNMI along with other subcommittee members in August. (See sidebar)

One of the witnesses, Saipan Chamber of Commerce president James T. Arenovski, asked for the granting of a multiple-entry visa for transitional guest workers in the CNMI.

“Any foreign worker who’s granted federal status, including as a transitional worker, should be issued a multiple-entry visa while within the Commonwealth for the same reasons I have described in relation to foreign investors. It is untenable to grant legal status and not grant the ability to exit and re-enter,” Arenovski said in his oral testimony at the hearing.

He said granting “green cards” to foreign workers is not the answer to the CNMI’s labor issue under a federal system.

David Cohen, a former deputy assistant secretary of the U.S. Interior’s Office of Insular Affairs, reiterated during the hearing that making long-term guest workers eligible for green cards would be the best way to stabilize the islands’ workforce.

Fitial, for his part, wants a delay on any discussions on the future status of long-term guest workers, set by law to occur no later than May 2010.

“I don’t think we should give citizenship to anybody who comes in and work for long term,” Fitial said when asked by Sablan whether he thinks workers who are needed by the CNMI economy should be kept in the CNMI without an improved immigration status.

Nikolao Pula, acting deputy assistant secretary of the U.S. Interior’s Office of Insular Affairs, also asked Congress to extend the statutory deadline for the report on long-term foreign workers by one year to May 8, 2011.

He said this is to allow for time to gather sufficient data and other factors to complete the report.

Pula, just like other witnesses, pointed to the importance of nurturing the CNMI economy.

Richard Barth, DHS acting principal deputy assistant secretary for policy, said DHS is currently analyzing the comments received on the interim final rule on the visa waiver program.

“At this time, I’m not at liberty to discuss what, if any, changes might result from the analysis,” Barth told the subcommittee.

The oversight hearing lasted three hours starting at 10am in Washington, D.C. on Tuesday, or from midnight to 3am on Wednesday on Saipan.

Bordallo, Sablan and other witnesses took turns emphasizing that during deliberations on the legislation, the purpose for the special visa waiver program was to facilitate travel, but DHS’ regulations issued on Jan. 16 made it more difficult for tourists to travel to the Marianas.

“I am deeply troubled that under the department’s regulations, the newly created Guam-CNMI Visa Waiver Program is actually more onerous in some respects than the mainland visa waiver program,” said Bordallo.

Fitial, Guam Gov. Felix P. Camacho, Guam Vice Speaker Benjamin F. Cruz, DFS Pacific Division director Jim Beighly and Arenovski asked for further delay in the implementation of the visa waiver program until such time DHS sets up additional layer of security to allow Chinese and Russian tourists to enter the Marianas without visas.

Before reading a summary of his formal testimony, Fitial told the subcommittee that he just received “bad news from home this morning,” referring to the CNMI’s general obligation bonds rating, which was downgraded from Ba3 to B2 by Moody’s Investor Service due to several key factors that include the demise of the garment industry.

Fitial, in his oral testimony, said the CNMI will suffer from a loss of close to $57 million in direct economic impact and over $185 million in indirect economic impact if Chinese and Russian tourists are excluded from the visa waiver program.

The Guam governor, for his part, said the federal regulations should allow Guam to tap into a vast tourism market such as China, especially now that travel from the main tourism market of Japan has been slowing down.

Sablan asked DHS’ Barth to confirm the department’s budget for the federalization of the CNMI.

DHS has estimated that it will need over $97 million to fulfill its responsibilities under P.L. 110-229 but had only been budgeted some $5 million.

President Obama’s proposed FY 2010 budget also does not specifically fund the buildup of CNMI’s borders.

“I want to know, where will the remaining $92 million come from?” Sablan asked Barth, who said there will be reprogramming of funds within DHS for FY 2010.

Fitial asked in his oral testimony, “Is the Department of Homeland Security ready to implement P.L. 110-229? The Commonwealth is concerned DHS will not be prepared on Nov. 28, 2009 to enforce the law.”

He also asked the subcommittee to obtain current and detailed information regarding DHS’ implementation plan, including the funds already expended, the additional funds needed, and the projected timetable for their expenditure.

“I humbly ask for your [subcommittee] to allow your people, your neighbor to live as Americans in prosperity, and not in poverty,” Fitial said as he ended his oral testimony.

Sablan asked Barth whether DHS will hire from the current employees of the CNMI Division of Immigration, to which Barth said “yes.”

Barth added that DHS will be hiring a total of 87 individuals over the next several years in the CNMI.

Panel 1 of the witnesses included Fitial, Camacho and Cruz, while panel 2 included Dr. David Gootnick, director of the Government Accountability Office’s International Affairs Trade, Pula and Barth. Panel 3 consisted of Beighley, Cohen and Arenovski.

Bordallo asked Fitial whether the CNMI had problems with Russian and Chinese tourists who overstayed, to which Fitial said yes, but that the islands managed to find the overstaying Chinese tourists and deported them.

Camacho said Guam had never encountered such a problem.

Sablan asked Bordallo to consider holding another oversight hearing prior to the Nov. 28 implementation date.

“We will keep an eye on this,” Bordallo said.

Other subcommittee members present at the hearing were Delegate Donna M. Christensen of the U.S. Virgin Islands, Delegate Eni Faleomavaega of American Samoa, Rep. Neil Abercrombie of Hawaii, Rep. Jason Chaffetz of Utah, and Rep. Dale Kildee of Michigan.