Law to prevent sale/resale of Army exchange goods signed


Acting governor Ralph Torres signed into law last week a bill that punishes and deters the sale or resale of products obtained from the Army and Air Force Exchange Services.

Public Law 19-15 also gives the CNMI Department of Commerce the authority to enforce this act, the “AAFES Fraud and Abuse Prevention Act of 2015.”

The law states that some businesses licensed to sell alcoholic beverages, tobacco products, and other merchandise are improperly reselling products obtained from the Army Exchange.

“The Legislature finds that those engaging in the sale and/or resale of AAFES products do so to the detriment of distributors, wholesalers and retailers engaging in legitimate transactions who are forced to compete with the below market price of AAFES merchandise,” the law states. “There are no current provisions that would serve as both a deterrent and punishment for these activities that are harmful to both the business community and the general welfare of the Commonwealth.”

Fines for violations are slated at $2,000 for each violation, according to the law.

The bill was introduced by Rep. Edwin K. Propst (Ind-Saipan) as House Bill 19-47.

Dennis B. Chan | Reporter
Dennis Chan covers education, environment, utilities, and air and seaport issues in the CNMI. He graduated with a degree in English Literature from the University of Guam. Contact him at

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