Running Head: ARTICLE 12
Article 12 and the CNMI Residents
Alyssia Ashley De Los Santos Olarte
Northern Marianas College
English 101 Section 07
Dr. Kimberly Bunts-Anderson
Article 12
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Table of Contents
Abstract ........................................................................................................................................... 3
Article 12 and the CNMI Residents ................................................................................................ 4
Literature Review............................................................................................................................ 4
Methods........................................................................................................................................... 5
Results ............................................................................................................................................. 6
How Does the CNMI Land Tenure Differ From Other Countries? ................................................ 8
How Will Opening Article 12 Benefit the CNMI? ......................................................................... 9
Conclusion .................................................................................................................................... 10
References ..................................................................................................................................... 11
Appendix ....................................................................................................................................... 14
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Abstract
Over the years, politicians and residents have been arguing about the controversial topic of
Article 12. While most agree that the law was created for the protection of the indigenous people,
others argue it is a hindrance for future economic development. This paper explains the pros and
cons of having Article 12 open for residents regardless of ethnicity and compromising by setting
a small percentage of land up for purchase. By doing online research, information such as land
ownership comparisons of the CNMI and other countries along with benefits of having
foreigners come in and purchase land helped weigh the outcome of the essay question which
asks if Article 12 should have people born and raised in the NMI own land regardless of
ethnicity or blood. Through this essay, one will uncover the history of the NMI as well as how
the land ownership of Article 12 differs from other countries.
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Article 12 and the CNMI Residents
Article 12 is said to be a" drag and anchor holding back any meaningful and long-term economic
growth in the commonwealth", words said by Guam Chamber of Commerce Chairman Gerald S.
A. Perez. The Constitution of the Northern Mariana Islands contains a law, Article 12, that states
only NMI descendents with 25% or more of Chamorro or Carolinian blood are allowed to
purchase land. The law has been a controversial topic for politicians for said bloodlines are
diluting and the percentages are decreasing. In addition, the law seems unfair for other residents
whom were born and raised in the islands. The main question is "Should Article 12 have people
who were born and raised in the NMI own land regardless of ethnicity and blood?" Through
researching articles online, reading books about the history of the NMI, surveying groups of
people with different ethnicity, and interviewing experts on the topic, Article 12 is a law set out
to protect the rights of the indigenous people of the Northern Mariana Islands. However, with the
rise of local residents that are non-NMI descent, the Northern Mariana Islands should change the
law set to having locals regardless of ethnicity require land or overall change the law and allow
anyone to purchase the law. With the topic of change, the youth of the Northern Mariana Islands
either full heartedly agree or acclaim to be neutral.
Literature Review
With Article 12 being a controversial topic, politicians have been debating back and forth on
what to do with the law. Through online research, Torres (2012) and Nevitt (2005) both explain
the history of the CNMI and how the law came about. However, Torres (2012) explained the
thought of how NMI refuses to be like Guam and have culture die out while Nevitt (2005)
explains his point while being objective. Economy wise, researchers have gathered information
on the rise and fall of tourism and garment factories in the CNMI (Nevitt, 2005; Demise of last
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three garment factories on Saipan, 2009). Nevitt (2005) gives an overview of the situation while
the other goes into detail with interviews of Richard Pierce, Special Assistant to the Governor for
Trade Relations and Economic Affairs. With these different authors explaining about the Article
12 law, history, and economy, Guam Chamber of Commerce Chairman, Gerald S. A. Perez,
stated how Article 12 is holding back the CNMI and that "Article 12 denies serious investors not
only from Guam but also from other countries the freedom to maximize the use of real property"
(Rabago, 2013). The authors have done their own research, which was objective, whether they
are explaining information, or re-stating what another expert said, the work was efficient.
Methods
On top of literature review, the process of attaining new information was time
consuming. From setting a schedule and abiding by that schedule, interesting information popped
up. The first week after the assignment was given was dedicated to research. Spending time in
the library gave some information about the history of the Northern Mariana Islands and how the
constitution came about. With that was also research on how other countries dealt with land
ownership. The second week was dedicated on pilot and final drafts of surveys. The group that
was targeted was mostly young adults for they are the future.
The pilot study was meant for peers to make comments to help the student make
improvements. For the survey, the student researcher used a reliable online survey generator
called surveymonkey.com. Questions included demographics such as gender, age, nationality,
country of birth, and number of years residing in the CNMI. Some questions were about asking
the participant about owning land in the CNMI or other countries and how important land
ownership is to them.
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The third and fourth week were meant for interviews. Among the people who were meant
to be interviewed, only one accepted and went through with the interview: NMI history teacher
of Mount Carmel School Rosiki Camacho. Having contacted him and pushed for the interview,
he accepted and scheduled a meeting.
Results
From the surveys given, majority of the people aspired for change and would not mind
altering or abolishing the law. According to the survey, there were 10 questions and 61 recipients
who answered (See Appendix A). Among them were about 34 females and 34 males. Majority of
the recipients who answered were mixed ethnicity but only about 27 people were qualified as
NMI descent (See Appendix A1). On the other hand, 29 out of the 61 recipients stated they own
land outside of the CNMI (See Appendix A6). Most of the people valued their land and refused
to change the law. However, based from the surveys, 60% of the people agreed to have Article
12 either open to residents of the CNMI or did not mind if the law was changed to have residents
regardless of ethnicity (See Appendix A2). In addition, 62% of the recipients also agreed in
putting a small amount of land up for purchase from foreigners and non-NMI descents (See
Appendix A4). Majority of the questions asked were about the recipient's opinions and beliefs.
One question specifically asked what they would want to change about the law. One person
answered "I would abolish that constitutional provision altogether. The blood quantum provision
has been vague from the beginning, and it is hurting the economy by preventing long-term
investors"(See Appendix8). Another recipient answered, "I wouldn't want to change it. It is fair
to those who want to sell their share of land or all of it. To those who marry and have kids with
off islanders, well it's their decision on how they want the future generation to hold that
responsibility whether they want to lease it or sell it to others" (See Appendix 8). In contrast to
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answers for the change of Article 12, one who cannot own land supported article 12 by stating,
"No. They made that law to preserve the land for its native people. I, myself, cannot own land"
(See Appendix 8). Though many answered for the alteration of the law, a small percentage
fought for the law to remain, it is meant to protect the NMI indigenous people.
Along with the surveys, an interview with Mount Carmel Schools NMI history teacher,
Mr. Rosiky Camacho, was conducted. He stated, "It does not matter about the quantum vote; if
you can prove that you are an NMI descent, then good" (See Appendix B). The quantum vote
explains that article 12 is done with its 25 years and can be put up to vote by the people. In this
case, the vote to have the law changed to people having "somewhat" NMI descent (Nevitt, 2005).
He stated that in the beginning, during the German Era, George Fritz did not allow foreigners to
own land. Camacho explained how land was used to sustain family living back then. People were
attached to the land because that was all they had (See Appendix B). Camacho stated, "If you
take a fisherman out of the ocean, he cannot fish. If you take a farmer away from the land, he
cannot farm" (See Appendix B). Camacho then stated how he is better off standing on his own
land than renting an apartment. In addition to this, he stated that Article 12 "is kind of like a safe
guard" for the people. A landowner can get monthly payments from renting or leasing his land
compared to selling it overall and just having a onetime payment. One concern that Camacho did
state is that it is unfair for a person who is born and raised in the CNMI and developed an
attachment with the land but cannot fully own the land vs. a person of NMI descent but resides in
another country with no interest of coming home, whatsoever. Camacho stated, "To resolve this,
why not open the law and allow people to own in different direction"(See Appendix B).
Camacho gave his honest opinion and stated the pros and cons of having Article 12 open to
residents or foreigners to own land.
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How Does the CNMI Land Tenure Differ From Other Countries?
The CNMI requirements, as stated in Article 12 of the constitution ("Commonwealth
Code", 2013), to purchase and own land is to be a US citizen, 25% or more of CNMI Chamorro
or Carolinian blood, or adopted by a local before the age of 18. Foreigners are not allowed to
purchase land, however they are allowed to lease it. Philippines require a natural-born citizen of
the country to own any land, as stated in Article 12 Section 7-8 ("1987 Constitution", 1987).
Foreigners cannot own land unless joint with a married partner who is a Filipino citizen or
purchasing not more than 40% of shares in a condominium or town house constituted under the
condominium principle with Condominium Certificates of Title Deeds (Collingz, 2011). Unlike
Philippines, The United States appears more lenient. Stated in the United States Homestead Act
and Desert Land Act (Seitzinger, 2013, p. 13), American citizenship or intention of citizenship is
required for foreigners to acquire land. Locals, on the other hand, simply require US citizenship
and state residency to acquire land.
The CNMI goes by real property fee simple ("Property in CNMI", 2007) which states the
owner has complete control of the land. With that, the CNMI does not enforce property tax.
Philippines, however, enforces residential tax which consists of 20% of the market value of the
land (Castillo, 2013). Tax rates, which are calculated with the land market value, can be either
province real property of 1% interest rate or city and municipality in Metro Manila Real
Properties, which consists of 2% interest rate. Payments of property tax could be paid in full or
in quarterly installments (Castillo, 2013). Unlike Philippines' tax calculations, the United States
calculations for property tax are the taxable assessment multiplied by the tax rate ("How
Property Taxes Are Calculated", 2011). Since taxable assessment deals with the levy of local
government, property tax varies by state. However, all 50 states offer some type of property tax
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relief program which can lock in the assessed value of the property once a certain age is reached,
or deferral of taxes until the owner dies or moves ("Taxes by State", 2013). Property tax in the
United States is paid annually, the exact day of those payments vary with the state. Although the
Philippines and the United States both enforce taxes, the amount and payments of those taxes
vary with the country and/ or state.
How will opening article 12 benefit the CNMI? Repealing Article 12 will attract
business investors and owners to purchase land in the CNMI plus create establishments that will
help increase the islands economy. The law states that only NMI descents are allowerd to own
land, however, non-NMI descents are allowed to be leased the land for a certain amount of years.
With the CNMIs low wages, tax, and power bill, most businessess declare bankruptcy. The
lowest Gross Domestic Product of the CNMI was in 2009 with a -18.8% decline from 2008
(CNMI Department of Commerce: Economic Strategic Planning, 2013). That year was also the
same year the last of 34 garment factories shut down (Demise of last three garment factories on
Saipan, 2009). Knowing investors and owners can buy land and have complete control of that
land will attract more tourists to the CNMI and increase our economy (Northern Mariana Islands
- International tourism, n.d.). "The result of combination of factors, including security guaranteed
by the US flag, the prospering Asian economy, favorable tax and immigration laws, and
seemingly unregulated access to land, tourists from Asia (primarily Japan) began to travel to the
CNMI and investors wanted to capitalize on the budding industry." (Nevitt, 2005).
If business and tourism increase, employment rates would significantly increase. During
the years, population and unemployment rates increased but declined after the year 2009. It is
said that around the year 2000, the employment rate of the CNMI reached 14% then decreased to
8% by the year 2005 (Northern Mariana Islands - Unemployment Rate - Historical Data Graphs
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per Year, n.d.) By the year 2012, the employment of CNMI increased yet again to 11.20%
(Central Intelligence Agency, n.d.). With Article 12 repealed, business will come in leading to an
increase in tourism, job opportunities, and population.
Conclusion
With the research, surveys, and interview with Rosiky Camacho, there is a greater understanding
of the Article 12 law and how it affects the CNMI and the residents. Article 12 states that only
NMI descents with 25% or more Chamorro or Carolinian blood are allowed to purchase land.
After research about the pros and cons of opening the land to the public, the results remain
balanced. The research question "Should Article 12 have people who were born and raised in the
NMI own land regardless of ethnicity and blood?" remains objective. Sixty percent of the
recipients agreed to allow residents regardless of ethnicity to own land. With that, 62% of the
recipients agreed to put a small amount of land for foreigners to purchase as a beginning step of
change. In contrast to the law, Rosiky Camacho stated that the law is somewhat a safeguard for
the NMI descents. What is needed is compromise. Land ownership varies with countries. The
Philippines only allows Filipino citizens to purchase land with an exception of condominiums.
The United States allows foreigners to own land but with special requirements while residents
only needs to prove their residency. Having Article 12 altered to having residents and foreigners
contributes many benefits and is more favorable among the young adults.
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References
Castillo, C. (2013, January 5). What You Need To Know About Real Property Tax (RPT).
Retrieved from http://www.foreclosurephilippines.com/2013/01/real-property-tax-rptphilippines.html
Commonwealth Code, Commonwealth Law Revision Commission Saipan, MP ArticleXII.
(2013). Commonwealth
Law Revision Commission. Retrieved from
http://cnmilaw.org/articlexii.html
Collingz, B. (2011, August 12). PLC International Marketing Networks: Philippine
Constitutional Property Ownership Laws. Foreign Nationals beware of buying land
properties. [Web blog post]Retrieved from http://plcinternationalmarketingnetworks.
blogspot.com/2011/08/philippine-constitutional-property.html
CNMI Department of Commerce: Economic Strategic Planning. (June, 2013). [Presentation
Slides]. Retrieved from http://www.frbsf.org/community-development/files/SixtoIgisomar-CNMI-Dept-of-Commerce-6-4-2013.pdf
Demise of last three garment factories on Saipan. (January, 2009).Retrieved from
http://www.radioaustralia.net.au/international/radio/onairhighlights/demise-of-last-threegarment-factories-on-saipan
How property taxes are calculated. (2011, October 14). Department of Taxation and Finance.
Retrieved from http://www.tax.ny.gov/pit/property/learn/
Nevitt, Brooke E. (2005, August). Consequences of Good Intentions Exploring Land Rights in
The Commonwealth of the Northern Mariana Islands. Retrieved from University of
Hawaii
Library
website:
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http://scholarspace.manoa.hawaii.edu/bitstream/handle/10125/11785/uhm_ma_3244_r.pd
f?sequence=2
Northern Mariana Islands - International tourism. (n.d.). Northern Mariana Islands. Retrieved
from http://www.indexmundi.com/facts/northern-mariana-islands/international-tourism
Northern Mariana Islands - Unemployment Rate - Historical Data Graphs per Year. (n.d.).
Northern Mariana Islands - Unemploymet Rate - Historical Data Graphs per Year.
Retrieved, from http://www.indexmundi.com/g/g.aspx?c=cq&v=74
Property in Commonwealth of Northern Mariana Islands | Commonwealth of Northern Mariana
Island Real Estate Investment. (2007, July 17). Global Property Guide. Retrieved from
http://www.globalpropertyguide.com/Pacific/Commonwealth-of-Northern-MarianaIslands
Rabago, M. (September 06, 2013). Perez to Saipan Chamber: "Land Alienation Provision
Holding
Back
CNMI
Economy".
Pacific
News
Center
.
Retrieved
from
http://www.pacificnewscenter.com/index.php?option=com_content&view=article&id=37
492:video-perez-to-saipan-chamber-qland-alienation-provision-holding-back-cnmieconomyq&catid=45:guam-news&Itemid=156
Seitzinger, M. (2013, June 17). Foreign Investment in the United States: Major Federal Statutory
Restrictions
[Electronic mailing list message]. Retrieved from
http://www.fas.org/sgp/crs/misc/RL33103.pdf
Taxes by State. (2013, January). Retrieved from https://www.retirementliving.com/taxes-%20bystate
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The 1987 Constitution of the Republic of the Philippines- Article XII. (1987, February
11). Official Gazette . Retrieved from http://www.gov.ph/the-philippineconstitutions/the-1987-constitution-of-the-%20republic-of-the-philippines/the-1987constitution-of-the-republic-of-the-philippines-article-xii/
Torres, N. M. (2012). Self-Determination Challenges to Voter Classifications in the Marianas
After Rice v. Cayetano: A Call for a Congressional Declaration of Territorial Principles.
Asian-Pacific Law
& Policy
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Vol.
14:1. 160-165. Retrieved from
http://blog.hawaii.edu/aplpj/files/2013/01/APLPJ_14.1_Torres_vFINAL2.pdf
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Appendices
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Appendix A
This explains the answers received from the surveys.
A1
Article 12
A2
A4
16
A3
A5
Article 12
A6
A8
17
A7
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Appendix B
Here is the audio recording of the interview with Mr. Rosiky Camacho.