Title 4, Economic Resources

Annual Report. The regulator, with the assistance of each relevant agency and the CUC, or its successor in interest, shall publish in hard copy or electronically a public report annually, beginning in January 2007, which shall explain to the public, the governor and the legislatu…

Policy to Encourage Clean Energy Transportation and Reduce Diesel and Gasoline Engine Emissions. It is the policy of the CNMI to encourage the use of clean-running commercial sector buses, including mini-buses. It is the policy of the CNMI to substitute for gasoline and diesel fu…

CUC to Offer Electric Charging Stations. The CUC, or by contract with an independent power producer, shall offer sufficient electric vehicle charging stations, in at least two locations easily available to users, to power electric buses and minivans on a 24/7 basis. Such stations…

Commercial Buses to Meet Clean Energy Standards. Reserved. Source: PL 15-23, § 2(8673); reenacted without change by PL 15-87 § 2(8673).

Title. This chapter shall be known as the Resident Workers Fair Compensation Act of 1995. Source: PL 9-71, § 1. Commission Comment: PL 9-71 took effect November 16, 1995. According to PL 9-71, § 2: Section 2. Findings. It is the finding of the Legislature that the current mandate…

Definitions. Where they appear in this chapter the following terms have the following meanings: (a) “Nonresident workers” is used in accordance with the meaning established in 3 CMC § 4412. (b) “Resident workers” is used in accordance with the meaning established in 3 CMC § 4412.…

Compensatory Payment. All benefits mandated by law to be given to foreign national workers, including, but not limited to subsidized food, housing, local transportation, health insurance, or medical expenses must also be given to citizen or permanent resident workers as provided …

Regulation. The Secretary of Labor shall promulgate regulations to implement the provisions of this chapter within 30 days of November 16, 1995. Source: PL 9-71, § 5, modified; PL 17-1 § 6(B) (March 22, 2010).* Commission Comment: With respect to the reference to the “Secretary o…

Article 4. Reserved.

MIHA-CEDA Loan Write-off. The CEDA shall write-off approximately $6,635,588 of the principal and any and all interest that has accrued and/or will accrue on that portion of the principal on the effective date of this chapter, on that specific loan entered into by and between CEDA…

CUC-CEDA Loan and Interest Waiver. Pursuant to the Memorandum of Agreement between the CEDA and the Commonwealth Utilities Corporation [CUC], CEDA may waive $16,068,750.00 of the principal amount owed by CUC, such amount being the aggregate sum of all outstanding sewer and water …

CEDA-CUC Loan Principal and Interest Write-off. The Commonwealth Economic Development Authority (CEDA) is hereby authorized to waive the sum of $45,500,000.00 of the principal amount owed by the Commonwealth Utilities Corporation (CUC), such amount being the aggregate sum of all …

Definitions. For the purpose of this chapter: (a) A “foreign sales corporation” or “FSC” means a Commonwealth domestic corporation which is: (1) An FSC or small FSC as defined in Section 922 of the United States Internal Revenue Code of 1986, as the same may be amended from time …

Tax Exemptions. (a) In accordance with Section 927(e)(5) of the United States Internal Revenue Code of 1986, as amended, and notwithstanding any other law to the contrary, no tax shall be imposed by the Commonwealth on any foreign trade income derived before January 1, 1987. (b) …

FSC License. In order to qualify for the tax exemptions of 4 CMC § 1602(b), an FSC shall first obtain a license from the Secretary of Finance. The FSC license shall be issued upon application by the FSC and payment of the annual license fee of $500. The initial application to the…

Informational Returns. Even if no tax is due, an FSC shall file an informational tax return with the Chief of the Division of Revenue and Taxation, Department of Finance. The informational tax returns shall be filed at the same time the FSC’s tax returns shall be filed with the U…

License Revocation or Cancellation. (a) So long as a licensed FSC pays its annual license fee and otherwise complies with 4 CMC § 1603, an FSC shall be presumed to be validly licensed. (b) In the event the Secretary of Finance has any cause to believe any FSC license was invalidl…

One Hundred Percent Rebate Offset of Mirror Tax Procedure. (a) Rebate Offset. To the extent any foreign trade income, or interest, dividends, royalties and other investment income and carrying charges, received or accrued by a FSC, as defined in Sections 921(d)(2) and (3) and 927…

Regulations. The secretary or his designee may issue regulations consistent with the purposes of this chapter. Source: PL 9-22, § 1 (§ 1607). Commission Comment: With respect to the reference to the “secretary” of the Department of Finance, see Executive Order 94-3 (effective Aug…

Authorized Shares. (a) The articles of incorporation must prescribe the classes of shares and the number of shares of each class that the corporation is authorized to issue. If more than one class of shares is authorized, the articles of incorporation must prescribe a distinguish…

Terms of Class or Series Determined by Board of Directors. (a) If the articles of incorporation so provide, the board of directors may determine, in whole or part, the preferences, limitations, and relative rights (within the limits set forth in 4 CMC § 4341) of: (1) Any class of…

Issued and Outstanding Shares. (a) A corporation may issue the number of shares of each class or series authorized by the articles of incorporation. Shares that are issued are outstanding shares until they are reacquired, redeemed, converted, or canceled. (b) The reacquisition, r…

Fractional Shares. (a) A corporation may: (1) Issue fractions of a share or pay in money the value of fractions of a share; (2) Arrange for disposition of fractional shares by the shareholders; and (3) Issue scrip in registered or bearer form entitling the holder to receive a ful…

Subscription for Shares Before Incorporation. (a) A subscription for shares entered into before incorporation is irrevocable for six months unless the subscription agreement provides a longer or shorter period or all the subscribers agree to revocation. (b) The board of directors…

Issuance of Shares. (a) The powers granted in this section to the board of directors may be reserved to the shareholders by the articles of incorporation. (b) The board of directors may authorize shares to be issued for consideration consisting of any tangible or intangible prope…

Liability of Shareholders. (a) A purchaser from a corporation of its own shares is not liable to the corporation or its creditors with respect to the shares except to pay the consideration for which the shares were authorized to be issued (4 CMC § 4352) or specified in the subscr…

Share Dividends. (a) Unless the articles of incorporation provide otherwise, shares may be issued pro rata and without consideration to the corporation’s shareholders or to the shareholders of one or more classes or series. An issuance of shares under this subsection is a share d…

Share Options. A corporation may issue rights, options, or warrants for the purchase of shares of the corporation. The board of directors shall determine the terms upon which the rights, options, or warrants are issued, their form and content, and the consideration for which the …

Form and Content of Certificates. (a) Shares may but need not be represented by certificates. Unless this part or another statute expressly provides otherwise, the rights and obligations of shareholders are identical whether or not their shares are represented by certificates. (b…

Shares Without Certificates. (a) Unless the articles of incorporation or bylaws provide otherwise, the board of directors of a corporation may authorize the issue of some or all of the shares of any or all of its classes or series without certificates. The authorization does not …

Restriction on Transfer of Shares and Other Securities. (a) The articles of incorporation, bylaws, an agreement among shareholders, or an agreement between shareholders and the corporation may impose restrictions on the transfer or registration of transfer of shares of the corpor…

Expense of Issue. A corporation may pay the expenses of selling or underwriting its shares, and of organizing or reorganizing the corporation, from the consideration received for shares. Source: PL 10-7, § 1 (Bus. Corp. Reg. § 6.28).

Shareholder’s Preemptive Rights. (a) The shareholders of a corporation do not have a preemptive right to acquire the corporation’s unissued shares except to the extent the articles of incorporation so provide. (b) A statement included in the articles of incorporation that “the co…

Corporation’s Acquisition of its Own Shares. (a) A corporation may acquire its own shares and shares so acquired constitute authorized but unissued shares. (b) If the articles of incorporation prohibit the reissue of acquired shares, the number of authorized shares is reduced by …

Distributions to Shareholders. (a) A board of directors may authorize and the corporation may make distributions to its shareholders subject to restriction by the articles of incorporation and the limitation in subsection (c) of this section. (b) If the board of directors does no…

Events Causing Member’s Dissociation. A member is dissociated from a limited liability company upon the occurrence of any of the following events: (1) The company’s having notice of the member’s express will to withdraw upon the date of notice or on a later date specified by the …

Member’s Power to Dissociate; Wrongful Dissociation. (a) Unless otherwise provided in the operating agreement, a member has the power to dissociate from a limited liability company at any time, rightfully or wrongfully, by express will pursuant to section 4881(1). (b) If the oper…

Effect of Member’s Dissociation. (a) Upon a member’s dissociation: (1) In an at-will company, the company must cause the dissociated member’s distributional interest to be purchased under Chapter 7; and (2) In a term company: (i) If the company dissolves and winds up its business…

Business License Fees. (a) Business License Required. Before engaging in or continuing in a business, a person shall first obtain from the Secretary of the Department of Finance a license to engage in or conduct that business. (b) A business shall be required to purchase one gene…

Authority to Make Inquiry. (a) The Secretary of Finance is authorized to enter the premises of any establishment conducting business within the CNMI to make any inquiry into the establishment’s compliance with the business licensing requirements under this chapter. (b) The author…

Penalty for Violation of Business License Requirements. (a) Any person found operating or engaging in a business to sell merchandise, goods, or commodities, or providing services for compensation without a valid business license shall be subject to a penalty of $1500.00 and upon …

Regulations. The Secretary of Finance shall promulgate any necessary rules and regulations necessary to carry out the intent of this act as it relates to the duties conferred upon the Secretary of Finance. Source: PL 11-73, § 7, modified.

Definitions. For purposes of this article: (a) “Business” means any individual, estate, firm, company, partnership, joint venture, association, trust, receiver, club, syndicate, cooperative association, corporation or any other entity required to be licensed under 4 CMC, Division…

Business Licenses Authorized. Licenses for commercial farming and fishing as defined in 3 CMC § 4331(e) are authorized for any business which is at least 75 percent owned and controlled by persons lawfully residing in the Commonwealth or the United States of America without restr…

Production for Feeding Own Employees Prohibited. No business employing more than ten persons shall engage in farming or fishing for the purpose of feeding employees of the business or the employees of any other business unless duly licensed to do so. Any person who violates this …

Definitions. In this article: (a) “Department” means the CNMI Department of Commerce. (b) “Licensee” means a person issued a pawnbrokers license. (c) “Pawnbroker” means a person who lends money by requiring the borrower to post personal property as collateral. It does not include…