Chapter 70. TITLE 145: DEPARTMENT OF PUBLIC LANDS

TITLE 145: DEPARTMENT OF PUBLIC LANDS CHAPTER 145-70 TEMPORARY OCCUPANCY RULES AND REGULATIONS Part 001 - General Provisions § 145-70-205 Occupancy and Easements for § 145-70-001 Authority Private Telecommunications § 145-70-005 Purpose § 145-70-210 Temporary Occupancy § 145-70-010 Definitions Agreement § 145-70-215 Concession Agreements Part 100 - Lease Policies § 145-70-220 Occupancy not Covered in § 145-70-101 General Requirements and this Part Restrictions § 145-70-105 Procedures for Issuing Part 300 - Policies on Appraisals for Leases, Extensions, and Renewals Leases § 145-70-110 Lease Agreements § 145-70-301 Appraisals Requirements § 145-70-115 Lease Form Part 400 - Application Processing Fees § 145-70-120 Underwriting Requirements § 145-70-401 Fee Schedule Part 200 - Policies and Procedures for Appendix A - Lease Form Temporary Occupancy of Public Lands § 145-70-201 Scope Appendix B - Maps § 145-70-202 General Requirements Chapter Authority: N.M.I. Const. art. XI, 1 CMC §§ 2801–2810. Chapter History: Amdts Adopted 47 Com. Reg. 52768 (Aug. 15, 2025); Amdts Proposed 47 Com. Reg. 52154 (June 15, 2025); Amdts Adopted 46 Com. Reg. 51306 (Sept. 15, 2024); Amdts Proposed 46 Com. Reg. 51209 (Aug. 15, 2024); Amdts Adopted 45 Com. Reg. 49938 (July 28, 2023); Amdts Proposed 45 Com. Reg. 49759 (May 28, 2023); Amdts Adopted 44 Com. Reg. 48893 (Sept. 28, 2022); Amdts Proposed 44 Com. Reg. 48842 (Aug, 28, 2022); Amdts Adopted 42 Com. Reg. 43871 (Aug. 28, 2020); Amdts Proposed 42 Com. Reg. 43642 (June 28, 2020); Amdts Adopted 42 Com. Reg. 43224 (Feb. 28, 2020); Amdts Proposed 41 Com. Reg. 42997 (Dec. 28, 2019); Amdts Adopted 41 Com. Reg. 42802 (Sept. 28, 2019); Amdts Proposed 41 Com. Reg. 42740 (July 28, 2019); Amdts Adopted 41 Com. Reg. 42800 (Sept. 28, 2019); Amdts Proposed 41 Com. Reg. 42730 (July 28, 2019); Amdts Adopted 39 Com. Reg. 40376 (Nov. 28, 2017); Amdts Proposed 39 Com. Reg. 39951 (Sept. 28, 2017); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Department of Public Lands adopted the regulations proposed at 37 Com. Reg. 37247 (Nov. 28, 2015) with modifications set forth at 38 Com. Reg. 37440 (Jan. 28, 2016). The Commission numbered unnumbered sections and subsections included in the proposed regulations pursuant to 1 CMC § 3806(a). The Commission changed capitalization for the purpose of conformity throughout the chapter pursuant to 1 CMC § 3806(f). Part 001 - General Provisions § 145-70-001 Authority © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 1 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS The regulations in this chapter are promulgated by the Department of Public Lands pursuant to the authority set forth in Article XI of the Commonwealth Constitution and Public Law 15-2 (1 CMC § 2801 et. seq.). Modified, 1 CMC § 3806(g). History: Amdts Adopted 42 Com. Reg. 43224 (Feb. 28, 2020); Amdts Proposed 41 Com. Reg. 42997 (Dec. 28, 2019); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission inserted a period at the end of the section to correct a manifest error. § 145-70-005 Purpose These promulgated rules and regulations govern new leases, lease renewals, new temporary occupancy agreements, and temporary occupancy agreement renewals of public lands whether by permit, lease, or temporary authorization as in conformity with the obligation to objectively manage the use and disposition of public lands set forth at 1 CMC § 2801 et. seq. No commercial use of public lands is authorized or permitted without a valid lease, temporary occupancy agreement, permit, or concession agreement authorized by these regulations. The Department of Public Lands (DPL) shall enforce these regulations to the extent allowed by law. DPL shall issue written notice of violation to any person or entity using or occupying public lands without authorization or in violation of these regulations for any activity or purpose. History: Amdts Adopted 42 Com. Reg. 43224 (Feb. 28, 2020); Amdts Proposed 41 Com. Reg. 42997 (Dec. 28, 2019); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). § 145-70-010 Definitions (a) “Applicant” means the person, persons, entity, or entities that have submitted a proposal to the DPL to lease or otherwise use public lands including respondents to requests for proposals issued by DPL for the leasing, development, or use of public lands, including without limitation persons or entities who have responded to one or more land use RFPs issued by the DPL. (b) “Commercial Use” means used for revenue generating activities. Active use means the actual physical operations or facilities generating revenue. Passive use means a supplementary use that augments the revenue generating operations or facility (e.g. parking lots). For purposes of these regulations, residential dwellings (e.g. condominiums, apartments or houses) are not recognized as Commercial Use, except that all development shall have no more than 2% of passive use dedicated to employee housing. (c) “Department” means the Department of Public Lands (DPL). (d) “Government” means, for purposes of the regulations in this chapter, the departments and agencies of the CNMI Government other than the Department of Public Lands, unless otherwise specified in these regulations. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 2 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (e) “Lessee” means the person, persons, entity, or entities holding leasehold interests in public lands. (f) “Matured Lease” means a lease over premises that has approached its 40th year or expiration with no extension periods remaining, meets the conditions of Public Law 20-84, and the preexisting lessee has submitted a proposal for a new lease, as authorized by PL 20-84, prior to maturity. (g) “Occupant” means the person or entity whose name appears on the temporary occupancy agreement. (h) “Owner” means the person, persons, entity, or entities holding fee simple title in lands that are not public lands. (i) “Permanent Structure” means a structure placed on or in the ground or attached to another structure or fixture in a fixed position and intended to remain in place for more than 6 months. (j) “Permittee” means a person or persons given a permit by DPL and whose name appears on the permit. (k) “Principal” means the Applicant personally or a person employed by the Applicant with the legal authority to negotiate, decide, and enter into agreements on behalf of the Applicant. (l) “Public Lands” means all those lands defined as public lands by N.M.I. Const. art. XI, § 1 including improvements thereon. (m) “Secretary” means the Secretary of the Department of Public Lands. (n) “Related Party” means the person, persons, entity, or entities who participate in the funding or operations of the Applicant or Lessee’s development or proposed development including without limitation parent companies in multinational company structures, as well as controlling or major shareholders. For the avoidance of doubt, Related Party shall include persons or entities that provide funding to an applicant or lessee. Transactions that, because of their nature, may be indicative of the existence of related parties include: (1) Borrowing or lending on an interest-free basis or at a rate of interest significantly above or below market rates prevailing at the time of the transaction. (2) Making loans with no scheduled terms for when or how the funds will be repaid. (3) Lack of sufficient working capital or credit to continue the business, or lack of complete business plan or financial projections. (o) “Request for Proposal” (RFP) means an open solicitation made through a bidding process by DPL to determine interest of potential lessees to lease and develop certain public lands at terms determined by or acceptable to DPL. History: Amdts Adopted 42 Com. Reg. 43224 (Feb. 28, 2020); Amdts Proposed 41 Com. Reg. 42997 (Dec. 28, 2019); Amdts Adopted 41 Com. Reg. 42802 (Sept. 28, 2019); Amdts Proposed 41 Com. Reg. 42740 (July 28, 2019); Amdts © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 3 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Part 100 - Lease Policies § 145-70-101 General Requirements and Restrictions (a) No right or interest in or to public lands shall be created orally. Any right to use, access, or enjoy public lands must be in writing signed by the Secretary in full compliance with these regulations or is void ab initio. Public lands shall be leased only for Commercial Use. Consideration and preference must first be given to non-productive developed public land or underutilized public land before undeveloped land is considered for development. Consideration for entering into a lease shall be consistent with DPL’s fiduciary duties to its beneficiaries. The Secretary of DPL shall have reasonable discretion regarding issues not anticipated by these regulations. (b) Every lease shall be properly documented via a written lease agreement and such other documents deemed necessary or appropriate by DPL to complete the transaction. All duly executed lease agreements shall be recorded at the Commonwealth Recorder’s Office by the party receiving an interest in Public Land in accordance with 2 CMC § 4913. The Department shall strictly enforce all terms of every lease requirement imposed as a condition of legislative approval of a lease or lease extensions, if any. Leases for mining shall require appropriate environmental impact study, damage mitigation plan, and restoration plan, an assessment on the value of minerals to be mined, and any other studies required by law or DPL as a condition precedent to possession. All costs including those for appraisals, surveys, topographical surveys, geotechnical reports, studies, etc. whether required by the DPL or the Government shall be borne by Applicant. (c) Eligibility. All Applicants must be current and in good standing with the Department of Finance Division of Revenue and Taxation, all licensing and regulatory authorities, and with the DPL. (1) Individuals – must be at least 18 years of age. (2) Businesses – must be duly formed, in good standing and authorized to do business in their jurisdiction of origin AND in the CNMI and must provide all documentation required by the DPL to confirm such status. (3) All Applicants must demonstrate credit worthiness, ability to pay rent, and ability to fund all proposed development, and to comply with all the conditions and covenants of the lease agreement to the satisfaction of the Secretary. (d) Restrictions. (1) It is DPL’s preference not to lease public lands where the proposed structures/facilities will overlap boundaries of adjacent private lands. (i) If necessary and in the best interest of DPL’s beneficiaries, the DPL may permit such development provided that all such proposed development and construction of facilities that will occupy both private and public lands shall be performed in a manner to facilitate and simplify segregation of improvements on the public lands from those on adjacent private lands upon expiration or termination of the lease. Alternatively, a land trust consisting of the private lands and © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 4 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS public lands may be formed with the DPL as trustee, or the fee simple title to the private lands may be assigned to DPL, at Lessee’s expense. For the avoidance of doubt, such permitted improvements shall be designed and constructed to be free and independent from private land improvements so that upon expiration or termination of the Lease, when the DPL takes possession of the improvements, such improvements and DPL’s (or its designee’s) operation thereof shall not be dependent upon adjacent private lands. This restriction shall not apply if the fee simple interest in the private lands is assigned or transferred to the DPL as described herein. (ii) Before commencement of construction or development, Lessee shall be required to place on deposit with DPL the amounts necessary to perform such segregation at the expiration or termination of the lease, as estimated by an engineer selected by DPL and periodically deposit additional amounts to adjust upward for general inflation. (2) Notwithstanding the foregoing, for minor developments such as parking structures attached to adjacent improvements, if such improvements will be of little value to the DPL, the Secretary may waive the obligations set forth in subsection (1) above if the Applicant places on deposit concurrent with the execution of the lease the projected cost of demolition and removal of improvements, and restoration of leased premises. Modified, 1 CMC § 3806(g). History: Amdts Adopted 42 Com. Reg. 43224 (Feb. 28, 2020); Amdts Proposed 41 Com. Reg. 42997 (Dec. 28, 2019); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). § 145-70-105 Procedures for Issuing Leases, Extensions, and Renewals (a) The DPL will deal only with the Principals of the Applicant. (b) DPL shall satisfy its fiduciary duties by taking the following steps towards entering into new leases, extensions, or renewals: (1) Properties not under lease – DPL shall select proposals that provide DPL the greatest revenue over the course of the lease term. All leases must be aligned with DPL’s land use plan. In all instances, the DPL shall negotiate lease terms most favorable to its beneficiaries. (i) Unsolicited Proposals – If the DPL receives a proposal or application to lease Public Land, it shall upon conclusion of negotiations (if any), publish a Notice of Proposed Lease of Public Land in accordance with Public Law 15-2 and these regulations, to determine if there are other interested parties, and consider public comments. If a second or other proposals are received during the notice period, the DPL may either select the most beneficial proposal or issue an RFP. (ii) Solicited Proposals – If the DPL solicits proposals to lease specific parcels or tracts of Public Lands and two or more proposals are received by the DPL, DPL may select the most beneficial proposal. If only one proposal is received the DPL may award the sole Applicant, re- issue the Request for Proposal, or reserve the relevant parcels for future disposition. (2) Properties under lease – if a current Lessee is interested in re-leasing, extending, or renewing its lease, DPL shall: (i) Thoroughly review the performance of the lessee to determine if re-leasing or extending the lease is in the best interest of its beneficiaries. (ii) Issue a Notice of Proposed Lease of Public Lands in accordance with 1 CMC § 2807 up to four years prior to expiration, but only if an extension or renewal of the existing lease is determined © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 5 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS to be in the best interest of DPL and its beneficiaries, and no other firm has indicated an interest to lease affected parcel. (iii) If additional proposals are received in response to such Notice, or if DPL has knowledge of one or more additional interested parties, DPL shall issue an open RFP at least two years prior to the expiration of the existing lease if in DPL’s judgment the second proposal is in the best interest of DPL and is significantly advantageous to the proposal of the existing lessee. (iv) If a competing proposal does not materially enhance the existing lessee’s proposal, operations, or otherwise project to materially increase the revenue to DPL, and lessee has satisfied all the covenants and conditions of its existing lease, it is DPL’s preference to renew the lease with the current lessee with lease payments comparable to that proposed or implied by the best competing proposal, but in no case shall DPL accept lease rent less than what was established in any preceding period. (v) If a current lessee does not intend on re-leasing, extending, or renewing, DPL shall issue an open RFP at least two years prior to the expiration of the existing lease. History: Amdts Adopted 42 Com. Reg. 43224 (Feb. 28, 2020); Amdts Proposed 41 Com. Reg. 42997 (Dec. 28, 2019); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). § 145-70-110 Lease Agreement Requirements DPL shall include in lease agreements provisions typical of commercial practices. All public land leases are on a “triple net” basis “as is where is”. All leases shall conform to the following: provisions: (a) Legal Description of the property(ies) subjected to the lease. (b) Purpose – a detailed description of the intended development and operations. (c) Term – the effective date and duration of the lease shall not exceed 40 years. Note: Upon expiration of the term, the property including all improvements shall revert to DPL for renewal, extension, or re-leasing to the highest best bidder as determined by these regulations in accordance with CNMI law. (d) Fees, Security Deposit, Costs. (1) Prior to the preparation of any lease or supporting document, the Applicant shall deposit an administrative processing fee equal to the greater of 100,000. (2) Prior to any lease approval, lessee must deposit at least 5% of the total cost of the proposed project to which the lease pertains. These funds will be held by the DPL to secure construction start up, and remediation costs. However, for large projects that certified engineers estimate will require more than two years to construct and will be constructed in phases, lessee shall deposit 5% of each phase, or an amount mutually agreeable to both parties prior to construction commencement (for clarity, 5% prior to the commencement of each subsequent phase). Provided, however, that each phase is constructed in a manner that allows for the facility within each phase © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 6 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS to be operatable independent of other phases. DPL may seek the assistance of the Department of Public Works to certify each phase complete. (3) The security deposit requirement shall also apply to lease extensions or renewals where one or more key factors for approval is lessee’s proposal to further develop the property it currently occupies. (4) Upon execution of a lease for public lands, lessee shall deposit as security 250,000 shall be released to lessee upon completion of the project development. Remaining funds shall be retained as security, and Lessee shall be obligated to maintain a constant balance for the term of the lease. (5) Funds shall forfeit to DPL should the project be cancelled or start date delayed more than one year from the execution of the lease. Mere ceremonious commencement (i.e. groundbreaking or ribbon cutting without materially beginning and continuing construction) will not avoid forfeiture. (6) All costs related to the lease including underwriting, leasehold fee simples, surveys, topographical surveys consolidations, excavation, studies, recordings, etc. shall be borne by Applicant or Lessee. In the event of Lessee’s failure to perform any obligation under a lease, DPL may (but shall not be obligated to) expend funds held in Lessee’s account (including security deposits) to satisfy such obligation to the extent feasible (e.g. to procure surveys, appraisals, or insurance). (e) Rental Rates. Rent derived from public lands shall be based on the value of the property, and actually computed and collected on that basis; provided, that the DPL shall, within the limits set by fiduciary duty and the provisions of Public Law 15-2 and 20-84, have discretion in negotiating basic rents and additional rents taking into account changing economic conditions and other relevant trends and factors including other land transactions deemed substantially similar to the proposed lease. For the avoidance of doubt the Secretary of DPL may determine that a property’s true value is greater (but not less than) an appraised value determined by independent appraisal. (1) New Leases – shall include new leases, and renewals. (2) Basic Rent shall be based on the appraised fair market value of the fee simple title to the property. It is the policy of DPL to collect at least 5% of a property’s value each year for the term of the lease as base rent. Notwithstanding this policy, DPL may, at the Secretary’s discretion, approve a base rent below 5% for the initial five (5) year term of a lease if such rate is justified by: (i) prevailing market conditions as documented by a comparative market analysis, vacancy and absorption rate report, market outlook or trend analysis, or similar analysis; or (ii) demonstrated economic hardship as documented by government reports including GDP data, unemployment rates, inflation statistics, declines in sector-specific revenue (e.g., tourism downturns), or local or federal declarations of economic disaster or recession or emergency. In addition, DPL may cap the base rent at 36 million and will benefit the economic development of the Commonwealth. (3) In the event of a local or federal declaration of economic disaster or recession or emergency, DPL may, at the Secretary’s discretion, authorize temporary prospective (but not retroactive) rent relief or defer scheduled rental increases for lessees that demonstrate documented © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 7 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS financial hardship; substantial reduction in business activity or employment; or otherwise establish that such temporary relief is necessary for the lessee to maintain operations on the leased public lands. Any such exercise of discretion by the Secretary shall be documented in writing and shall be limited to the duration of the declared disaster or recession or emergency. Rent relief may include a deferral of the obligation to pay until the end of the disaster or recession or emergency, or approval of a base rent below 5% for the duration of the event consistent with subsection (2) above. (4) All leases shall include a provision requiring periodic review of base rent one every five (5) years during the lease term. Properties shall be re appraised and basic rent adjusted to the then- current fair market value based on an updated appraisal. For the purpose of determining basic rent, the value in subsequent periods shall include all improvements on the property less the value of improvements made by the Lessee during the term of the lease. If a base rent rate below 5% was approved pursuant to subsection (2) above, the rate shall be increased to at least 5% of the property’s value. However, DPL may, at the Secretary’s discretion, approve a base rent rate below 5% for one additional five-year term of the Lease consistent with subsection (2) above, provided that in no event shall the rental rate in the second five-year term be less than the rental rate in the initial five-year term. (5) New Leases – shall be based on the value of the fee simple interest including improvements (if any). (6) Extensions – shall be based on the appraised value of the fee simple interest including improvements less the value of improvements made by the Lessee since the inception of the lease. (7) Renewals – shall be treated as new leases for purposes of determining rent. (8) Matured Leases – All leases approaching maturity that meet the conditions of Public Law 20-84 entering a new lease shall be appraised on the value of the fee simple interest to the property. DPL shall collect up to 3% of Fair Market Value on the property for each year of the term of the matured lease as basic rent. Basic rents for matured leases shall be determined by the following formula which takes into consideration the level of cost proposed for capital improvements by lessees relative to the replacement cost for existing improvements. In no event shall the basic rent rate for matured lessees be less than the amount determined by such formula. In addition, basic rent shall not be below 1.5% per year regardless of the results of this formula unless there is reasonable justification, which may include prevailing market conditions or demonstrated economic hardship consistent with subsection (2) above. If a base rent rate below 1.5% was approved pursuant to such reasonable justification, the rate shall be increased to at least 1.5% of the property’s value after five (5) years. However, DPL may, at the Secretary’s discretion, approve a base rent rate below 1.5% for one additional five-year term of the Lease consistent with subsection (2) above, provided that in no event shall the rental rate in the second five-year term be less than the rental rate in the initial five-year term. For clarity, the replacement cost of improvements is the cost to replace an improvement with another improvement having the same utility (basically, the cost for a brand-new replacement) determined by appraisal reports. Capital investments are additions of a permanent structural change or the restoration of aspects of structures or facilities on a property that will either enhance the property’s overall value or prolong its useful life. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 8 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (9) Additional Rent – Percentage of Business Gross Receipts – due to the scarcity of public lands and in accordance with its fiduciary duties owed to its beneficiaries, DPL shall charge additional rent that allows its beneficiaries to participate in the revenues generated as a result of the lease. This rent shall be charged as a percentage of Lessee’s Business Gross Receipts (BGR) and shall also apply to the BGR of Lessee’s subtenants, concessionaries and others permitted to engage in commercial activity upon the leased premises. DPL may cap the additional rent due at 36 million and will benefit the economic development of the Commonwealth. DPL may grant a waiver from the BGR additional rent requirement for non-governmental telecommunications service providers upon a determination by DPL that such a waiver is in the best interest of the public land beneficiaries. For the sake of clarity, BGR includes enterprise BGR, not just BGR derived from parts of the enterprise situated on public lands. The additional rent per year for every year of the lease term shall be as follows: Business Gross Receipt Payment Schedule Annual BGR Amounts % of Minimum Tier From To BGR Per Tier 1 50,000.49 1.50% 2 100,000.49 1.45% 100,000.50 1,445 4 400,000.49 1.34% 400,000.50 5,340 © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 9 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS 6 1,600,000.49 1.22% 1,600,000.50 19,520 8 6,400,000.49 1.11% 6,400,000.50 71,040 10 135,040 (10) Passive Uses – Rent for standalone leases of public lands for use as parking area or activities that supplement the actual enterprise shall be basic rent and additional rents as outlined in this subsection. Additional rent shall be assessed based on the ratio of public lands to lessee’s other lands on the BGR of the entire enterprise supplemented by the public lands (e.g. Lessee’s private land area is 10,000 square meters. Lessee wants to expand parking area by leasing 400 square meters of public lands. The ratio of public lands for use as parking is 400/10,000 = 4.0%. Rent will therefore be assessed at basic rent, plus 4.0% x applicable % of BGR x BGR). (11) All rental amounts payable under all lease agreements and reimbursement of costs incurred by DPL as a result of enforcing the lease shall be fully assessed and collected from the Lessee. (12) Lease rental payments shall be collected when due or timely pursuit of default provisions of the lease agreement shall be made. (13) Past due rental payments of any amount shall bear interest at one and one half percent (1.5%) per month compounded monthly, from the date it becomes due until fully paid. (14) Application of Rent Payments – Rent payments shall be applied in the following order (with oldest receivables in each category being credited first): (i) Outstanding cost reimbursements due to DPL first. (ii) Penalties due second. (iii) Past due interest third. (iv) Rent last. (f) Construction Quality, Maintenance, Repairs, Alterations. (1) Construction repairs and alterations shall be in good workmanlike manner and in compliance with applicable laws, regulations, ordinances, and building codes. (2) Maintenance – Lessee shall maintain its leased premises in the level of condition at industry standards of similar facilities for the duration of the lease. (3) Alterations – Lessee shall inform DPL of any proposed alterations or improvements exceeding 1.00% of the total cost of the facility or will result in the reducing the value of the property by more than 1.00% shall be subject to DPL’s prior approval. Proposed alterations shall be in line with or enhancive to existing operations and lessee shall submit pro forma financial statements showing the additional revenues (or revenue reduction) anticipated as a result of the alteration. DPL may require additional documentation for a proper assessment. (g) Financing – Submission by lessee (and related party if any portion of the operations will be continuously funded by the related party) of the following periodically as required in the lease agreement: audited financial statements, annual reports of lessee, related parties, and subtenants, and CNMI BGR tax filings from lessee. (1) No later than sixty days after lessee’s fiscal year, financial statements audited by a certified public accountant certified in the United States comparing financial information of the past two years including any restatements on its profit and loss and cash flow statements, change in ownership and owner’s equity, and balance sheet. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 10 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (2) Applicants and lessees with less than $500,000 in BGR may submit management prepared financial statements together with a certified tax transcript for the corresponding period in lieu of audited statements. (3) Publicly held corporations and corporations required to issue annual reports to their shareholders shall submit their annual report to shareholders to DPL at the time of issuance. Lessees shall submit to DPL all periodic reports required by the CNMI Department of Commerce before the filing deadline. (4) Financial statements from lessee and subtenants shall include a schedule of gross receipts indicating sources and deductions in support of the gross receipts fee and any other documents DPL may deem necessary to properly determine lessee’s compliance with conditions or covenants of the lease. (5) Submit CNMI BGR tax filings upon filing but no later than one tax period after the filing deadline. (h) Guarantees. The following guaranties and security are required for all public lands leases: (1) Guarantees from all related parties to guaranty lessee’s obligations under the lease and funding of the proposed development. (2) Formal written resolutions authorizing the guarantee for each guarantor other than individual guarantors. (3) Performance bond, completion bond, deposit, stand by letter of credit, guarantee of payment, any finance document, or a combination thereof covering 100% of development cost. The performance bond, completion bond, deposit, stand by letter of credit, or combination thereof covering 100% of the development costs must be submitted to DPL for its approval, such approval being in the sole discretion of DPL. (i) Assignment and Subleases – Leases shall not be assigned or subleased in part or in whole without the prior written consent of the DPL. (1) Proposed assignees and sublessees shall be subject to the same eligibility requirements, qualifying factors, and level of scrutiny as lessees. (2) Leases of less than two years from date of execution or within two years from date of expiration shall not be assignable. (3) In no instance shall the deposits of applicant or lessee be refunded until assignee or subtenant deposits equal or greater amounts with DPL. (4) Lessee and assignee or subtenant shall provide DPL a complete and accurate copy of their proposed assignment agreement and/or sublease showing the total consideration given for or in connection with the assignment or subleasing transaction. (5) DPL shall charge a fee of 25% of the value of the monthly/annual sublease fee or assignment fee, if any. (j) Renewals, Extensions – DPL will consider proposals to renew or extend leases no sooner than the latter of the completion of construction or two years after the commencement date of the lease agreement, and thereafter, at least two years prior to the expiration of an existing lease. Such consideration shall be based on the lessee’s performance under its existing lease. (1) Consideration for renewal and extension shall be based on lessee’s performance on its existing lease and subject to the same eligibility requirements, qualifying factors, and level of © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 11 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS scrutiny as new lessees. Lessees with more than three late payments within the previous 24-month period shall be ineligible for renewal or extension. (2) Base rent for renewals shall be based on the appraisal of the property including improvements. (k) Mortgage. (1) The lessee and its permitted successors and assigns may, subject to the express prior written approval of the DPL, mortgage its lease and its interest in the property provided that no holder of any mortgage of the lease, or any one claiming by, through or under any such mortgage shall, by virtue thereof, except as otherwise specified in the lease agreement acquire any greater rights hereunder than the lessee. (2) No mortgage of the lease or the lessee’s interest in the leased property, in whole or in part, by the lessee or the lessee’s successors or assigns shall be valid, unless: (i) At the time of the making of such mortgage, there shall be no default under any of the agreements, terms, covenants and conditions to be performed by the lessee under the lease; (ii) The mortgage shall be subject to all the agreements, terms, covenants and conditions of the lease; (iii) The mortgage shall reserve to the DPL prior right, and in the event of lessee’s default under the same and after notice of the same character and duration as required to be given to Lessee, to correct the default or to purchase the same and terminate the lease. (3) The mortgage shall contain the following provisions: The consent by the DPL to an assignment, transfer, management contract, or subletting may be granted, denied or made subject to such conditions as the DPL finds it in the best interest of its beneficiaries. (4) All proceeds from the facility secured by the mortgage shall be used solely for the improvement of the leased property. (l) Termination, Recapture. (1) Notice shall be given to lessees who are in material default as follows: 1st notice with 30 days to cure, final notice with 15 days to cure, and notice of termination effective immediately. (2) DPL may terminate a lease agreement that remains in default forty-five days after the 1st notice has been delivered unless otherwise stated in these regulations for reasons including without limitation: (i) Failure to consistently and significantly reduce past due rents, fees, or taxes or other charges required to be paid by lessees; (ii) Other material defaults due to non performance including without limitation failure to complete development in accordance with the development plan and projections upon which a lease is based; (iii) Abandonment; and (iv) Use of the property other than lessee’s proposed purpose and as stated in the lease. (3) DPL may recapture all or portions of properties under lease in the event the use of the property is not consistent with the proposed development as stated in the lease or in the event of under utilization of public lands when such lands may have a higher and better use via notice to lessee. (m) Holdover. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 12 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (1) If a lessee fails to vacate the leased property upon the expiration, termination or cancellation of its lease, Lessee shall be deemed a holdover tenant. (2) The fee during any holdover period shall be not less than 150% of the latest basic rent amount, and additional rent. (3) Payment of the holdover fee shall in no way constitute a limitation upon any rights or remedies the DPL may be entitled to pursue for violation of the lease, for trespass or illegal possession or for any other cause of action arising out of the holdover tenant’s failure to vacate the premises including the right to evict the holdover tenant without court action, and the cost thereof to be paid by the holdover tenant. (4) The lessee shall be responsible, at its sole cost and expense and even after termination of the lease, for removing any person or entity, authorized or unauthorized by the lessee, from the premises who may have been on the premises prior to the termination of the lease and continues to occupy a portion of the premises thereafter. The failure of the lessee to remove the person or entity from the premises at the end of the lease constitutes a holdover. Modified, 1 CMC § 3806(g). History: Amdts Adopted 47 Com. Reg. 52768 (Aug. 15, 2025); Amdts Proposed 47 Com. Reg. 52154 (June 15, 2025); Amdts Adopted 46 Com. Reg. 51306 (Sept. 15, 2024); Amdts Proposed 46 Com. Reg. 51209 (Aug. 15, 2024); Amdts Adopted 45 Com. Reg. 49938 (July 28, 2023); Amdts Proposed 45 Com. Reg. 49759 (May 28, 2023); Amdts Adopted 42 Com. Reg. 43871 (Aug. 28, 2020); Amdts Proposed 42 Com. Reg. 43642 (June 28, 2020); Amdts Adopted 42 Com. Reg. 43224 (Feb. 28, 2020); Amdts Proposed 41 Com. Reg. 42997 (Dec. 28, 2019); Amdts Adopted 41 Com. Reg. 42802 (Sept. 28, 2019); Amdts Proposed 41 Com. Reg. 42740 (July 28, 2019); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: [Historical codification comments removed.] In codifying 42 Com. Reg. 43224, the Commission retained subsections (e)(2)-(4) and (e)(9)-(14) as unmodified although those subsections had portions omitted from the adopted regulation. In codifying 42 Com. Reg. 43871, the Commission retained subsections (e)-(m) as unmodified although those subsections were omitted from the adopted regulation. § 145-70-115 Lease Form All leases shall be in a form substantially similar to that set forth in Appendix A below. History: Amdts Adopted 41 Com. Reg. 42802 (Sept. 28, 2019); Amdts Proposed 41 Com. Reg. 42740 (July 28, 2019); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: In codifying 38 Com. Reg. 37440 (Jan. 28, 2016), the Commission included the lease form included in Appendix A of this chapter. The Commission substituted “set forth below” with “set forth in Appendix A below” pursuant to 1 CMC § 3806(d). § 145-70-120 Underwriting Requirements In order for the DPL to properly assess and compare proposals, Project Details – All proposals submitted shall include the following: © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 13 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (a) Qualifying Criteria. (1) Character – Evidence of experience in and knowledge of the industry of the proposed development and evidence that applicant and related parties are in good standing with taxing and regulatory authorities, creditors, and depository institutions. (2) Capacity – Evidence of a combined net worth of applicant and related parties of at least 30% of the proposed development cost with current free cash flow to cover at least 150% of basic rent. (3) Capital – Evidence of combined liquid capital (cash or cash equivalents) to cover at least 20% of the total cost of development or attestation from a reputable investment bank experienced in funding similar projects on applicant group’s ability to raise 105% of the capital required to fund the development including applicant’s capital. (b) Business plan including financial projections, opportunities and risks, and who or what the competition is in its industry. Pro forma financial statements including profit and loss statement, cash flows, and balance sheet for first five years of the proposed development, and revenue projections over the life of the lease. If multiple revenue generating activities will be conducted, pro forma statements shall show revenues from each activity including the subletting of commercial space to tenants. Business plans must address the areas of market analysis, financial viability, and operational issues. (c) Financial Documents. (1) Evidence of adequate financing showing commitment to fund the proposed development project and satisfy payment obligations under the proposed lease including documents showing the funding source and an attestation to the legal nature of funds. (2) Financial Statements of applicant, guarantors, related party, or equity investors/shareholders of the Applicant. Audited statements are required for companies with business gross revenues of $500,000 or greater. (d) Ownership, Structure, Resolutions to Enter Lease, Guarantees, Authorizations. (1) List of owners having an ownership interest in the applicant of 10% or greater. (2) Certified entity formation documentation, certificate of incumbency, and transactional authorizations of lessee and related parties. If lessee or any related party is not a domestic entity or resident individual, such party shall first be domesticated and authorized to do business in the Commonwealth. Foreign documents and signatures shall be authenticated and legalized (or apostilled if originated in Hague Convention jurisdiction). An organizational chart showing the relationship of parent companies, subsidiaries, and related parties involved in the funding and operations of the proposed development shall be provided. (3) Formal resolution from applicant authorizing applicant to enter a lease with the DPL and designating a specific director or officer of applicant to negotiate and execute the lease agreement and related transactional documents. (4) Formal resolution from each related party identifying its authorized signatory and authorizing related party to provide full financial support for the proposed project and to guarantee applicant’s obligations under the lease agreement. (5) Evidence of ability to secure performance bond, completion bond and/or stand by letter of credit as security for lessee’s development obligations under the lease. (6) Agreement to issue personal guarantee from all related parties. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 14 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (7) Written authorization from applicant and related parties for creditors, banks, financiers, and depository institutions to release information to DPL regarding account balances, credit standing, and general business conduct of applicant and related parties. (e) Construction Plans and Specifications. Applicant shall provide: (1) Architectural layout and design of the development overall with its application, and the same shall be updated at each phase of development. (2) Renderings showing the proposed layout, elevations of the facility and how it will be situated on the premises. (3) Timeline for construction schedule and cost schedule updated at each phase of development. Modified, 1 CMC § 3806(f), (g). History: Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission inserted open parentheses to subsections (a)(1)–(3); changed “incumbency” and “apostiled” in subsection (d)(2) to “incumbency” and “apostilled” respectively; changed “and/ or” to “and/or” in subsection (d)(5); and inserted a period at the end of subsections (d)(5) and (d)(6). Part 200 - Policies and Procedures for Temporary Occupancy of Public Lands § 145-70-201 Scope DPL’s authority does not extend to the issuance of land use permits and licenses. “Land use” in the licensing and permitting context generally involves the regulation of specific uses or activities, without regard to ownership or authorization to occupy land. The authorities that regulate “land use” in the Commonwealth include Zoning, BECQ, Historic Preservation Office, DLNR Division of Fish and Wildlife, and other Government regulatory agencies that issue permits and licenses pursuant to their respective enabling legislation. DPL, however is charged with management of the use of public lands, subject to its land use plan and all other land use regulations and regulatory agency approvals. The regulations in this Part describe how the DPL will manage and authorize such public land use, and the fees and charges that will be imposed therefore. These regulations neither supersede, nor amend the Commonwealth’s land use regulations. Modified, 1 CMC § 3806(a). History: Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission numbered this section and created the section title. § 145-70-202 General Requirements (a) The temporary occupancy of public lands or properties may be authorized via easements pursuant to § 145-70-205, Temporary Occupancy Agreements (TOA) pursuant to § 145-70-210 © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 15 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (which may take the form of permits, temporary authorizations (TA), and other agreements appropriate for the activity to be conducted): or concessions agreements pursuant to § 145-70- 215.. The activity for which the premises will be used must be permitted by the land use permitting agencies of the CNMI and applicable laws. Except as otherwise stated in these agreements shall generally: (1) Provide a benefit to the public; (2) Be short term (i.e., revocable and for periods not more than five years) or intermittent in nature; (3) Be uniform in expiration dates, as follows: Types of Agreements Expiration Dates Non-Exclusive Beachfront Concession December 31st Agricultural and Grazing Permit January 31st Parking Permit (Parking/Encroachment) February 28th Signboard and Maintenance March 31st Encroachment, Container Storage, and Staging April 30th Roadside Vendor, Telecommunication Tower, Rock Quarry May 31st (4) Be reviewed periodically for compliance; (5) Prohibit the construction of permanent structures; (6) Provide non-exclusive rights to the land or property; (7) Be non-transferable, non-assignable, and cannot be sold, subjected to mortgage, or used as collateral; (8) Self-terminate should occupant or operator cease to exist or ceases the activity described in the application; and (9) Require compliance with all business licensing, permitting, and regulatory requirements for business or other activities to be conducted including without limitation all zoning, building and other permits as applicable. (10) Property valuations for purposes of calculating fees for TOA’s may be determined by DPL’s in-house appraiser or by an appraiser designated according to DPL’s discretion. Modified, 1 CMC § 3806(a), (f). History: Amdts Adopted 44 Com. Reg. 48893 (Sept. 28, 2022); Amdts Proposed 44 Com. Reg. 48842 (Aug, 28, 2022); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission renumbered this section from § 145-70-201 to § 145-70-202. § 145-70-205 Occupancy and Easements for Private Telecommunications (a) Non-exclusive occupancy rights or easements granted to non-governmental telecommunications service providers may be granted for multiple year terms up to 25 years in total. Occupancy or proposed uses that sever, transect, or present a material impediment to the use of the surface land or air above or otherwise render the burdened and/or adjacent lands undevelopable, shall not be eligible for easement or similar authorization contemplated in this © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 16 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS section but instead, shall only be authorized through leases of fully burdened parcels on commercially reasonable terms in accordance with the leasing regulations set forth herein. (b) Underground Telecommunication Cables - The activity involving the use of public lands to lay, maintain and operate underground telecommunication cable wires and related telecommunication equipment. Upon promulgation of these regulations the annual fee for buried cable trenches shall be 5.0% per year of 50.0% of average market price of lands on the island where the trenching will occur. DPL may grant a waiver from the annual fee for underground telecommunication cable wires and related telecommunication equipment upon a determination by DPL that such a waiver is in the best interest of the public land beneficiaries. Average market price shall be an area-weighted average determined by DPL based on recent publicly available real estate sales data for fee simple land transactions. (c) Telecommunication Tower - The activity involving the use of small parcels of public lands to, erect, maintain and operate commercial pedestals, access nodes underground telecommunication cable wires and radio transmitter antenna, and or wireless communication equipment shelter for cellular telephones, paging systems or similar related wireless telecommunication equipment. The annual fee for the use of public land for this purpose shall be 8.00% of the estimated fair market value. In environmentally, historically, or otherwise sensitive areas including tourist destinations, such activity (if permitted in DPL’s sole discretion) may be subject to space-sharing conditions as imposed by DPL. Modified, 1 CMC § 3806(a), (e). History: Amdts Adopted 45 Com. Reg. 49938 (July 28, 2023); Amdts Proposed 45 Com. Reg. 49759 (May 28, 2023); Amdts Adopted 41 Com. Reg. 42800 (Sept. 28, 2019); Amdts Proposed 41 Com. Reg. 42730 (July 28, 2019); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: [Historical codification comments removed.] § 145-70-210 Temporary Occupancy Agreement Temporary Occupancy Agreements (TOA) shall be used for the temporary occupancy of certain public lands laying fallow at the time of application where no proposals have been received by DPL for the long term lease of those lands. In any case, TOA’s do not in any way grant an interest in the land, written or implied, and the new construction of permanent structures shall not be allowed. Allowable purposes include short-term agricultural use, temporary livestock grazing, sporting or social events, or planning activities in anticipation of a lease. TOAs are subject to termination upon 30 day’s written notice by DPL. DPL will consider issuing 5-year agricultural permits to NRCS eligible candidates. For applications submitted by CNMI government entities for sporting events, signboards/banners, filming, and social events, DPL may provide an annual TOA for multiple department/agency requests throughout the period covered by the TOA provided, however, that the department/agency submits a written request to the Secretary for each occurrence. The Secretary may approve such requests via letterhead within thirty days of receipt after which the request shall be deemed © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 17 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS approved if no action is taken by the Secretary. All fees and insurance requirements may be waived provided that the department/agency indemnify DPL of all risks and liabilities. (a) The following apply to all TOA’s: (1) All TOAs are terminable by DPL at will; (2) Applications for renewal (if any) shall be made annually two months prior to expiration or as solicited via a Request for Proposal or at auction; (3) Unless otherwise provided in this section the fee per use shall be an annual charge of 8% of estimated value but not less than 50,000 in an action for wrongful death, 100,000 in bodily injury per person, and 150 per TOA; and (2) Livestock - limited to up to 250,000 (25 Hectares) square meters (per household) of public lands for cattle grazing 50,000 square meters (5 Hectares) for livestock and/or goat grazing, and 20,000 square meters (2 Hectares) for confined livestock, the annual application fee shall be 10 per 10,000 square meters (equivalent to 1 hectare) but shall not exceed 250,000 square meters as follows: Area Size Per Hectare Annual Application Fee Annual TOA Fee Fee 0.01 – 1 Hectare 150 20 170 2.1 – 3 Hectares 150 40 190 4.1 – 5 Hectares 150 60 210 6.1 – 7 Hectares 150 80 230 8.1 – 9 Hectares 150 100 250 10.1 – 11 Hectares 150 120 270 12.1 – 13 Hectares 150 $280 © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 18 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS 13.1 – 14 Hectares 150 150 300 15.1 – 16 Hectares 150 170 320 17.1 – 18 Hectares 150 190 340 19.1 – 20 Hectares 150 210 360 21.1 – 22 Hectares 150 230 380 23.1 – 24 Hectares 150 250 400 (3) Agricultural uses in excess of the limitations in this subsection, or which require fixed terms shall be subject to the lease requirements of these regulations. (i) Occupants with permits to use properties for livestock/grazing prior to and through the effective date of the regulation of February 2016 and subsequent amendments thereafter that (A) have been continuously used/maintained and (B) are currently bound by USDA agricultural program support grant requirements, shall be exempt from the 25 Hectare limit as long as occupant continues to utilize the entire area and receive and is bound by USDA program agricultural grant requirements. (c) Vehicular Parking - The activity that involves a location(s) and designated area(s)/assignment(s) on public land where motor vehicles may be temporarily stored or parked shall only be permitted under a temporary occupancy agreement as follows: (1) Temporary vehicular parking spaces are categorized as primary, secondary, and tertiary parking zones. The parking zone descriptions for Rota and Tinian, respectively are shown in Schedule 145-70-210(c)(1). The parking zones for Saipan are tied to the Saipan Zoning districts as follows: Primary Secondary Tertiary GC: Garapan Core IN: Industrial AG: Agriculture GE: Garapan East VC: Village Commercial RU: Rural BR: Beach Road VR: Village Residential MC: Mixed Commercial PR: Public Resource (2) The annual permit fee per square meter shall be 6 for secondary, and 2 for tertiary zones. (3) Parking Permit Fees - Non-Income Generating Non-Commercial Humanitarian or Social Welfare Non-Profits (Charitable Organizations, NMC Foundation, Health & Social Welfare, and Churches). The annual permit fee per square meter shall be 2 for All Zones. (d) Signboards/Banners - The activity that involves erecting or placement of a temporary board, poster, banner, a piece of cloth or bunting, placard, or other temporary sign varying in size, color, and design which is temporarily displayed, posted, erected, hung, or tied in a certain public © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 19 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS location or tract of land to advertise or to convey information or a direction shall only be permitted as follows: (1) Public lands zones for the placement of signboards or banners are categorized as primary, secondary, and tertiary zones identical to Vehicular Parking. (2) CNMI government and non-commercial Humanitarian or Social Welfare non-profit organizations shall not be charged a fee for local government funded signboards for public awareness purposes. The fees for the placement of signboard by other Applicants are shown in the tables below: SIGNBOARD PERMIT STANDARD FEES Primary Zone Secondary Zone Tertiary Zone Annually 350 100 50 SIGNBOARD PERMIT FEES – NON-COMMERCIAL NON-PROFITS All Zones Annually 50 (3) Political signboards: political signboards are charged an administrative processing fee of 100 and cannot be erected sooner than six months before the election date. A candidate may erect and place a maximum of 10 signboards on its respective electoral senatorial district. A Candidate running for office on a CNMI wide election may erect and place a maximum of 20 signboards on each senatorial district. (i) No signboard shall be placed on the western beach side along Tun Thomas P. Sablan and along Beach Road in Saipan, or such other areas as determined by DPL. (ii) No signboard shall be placed or erected on any trees on public land. (iii) No signboard shall be placed or erected on any utility poles. (iv) No signboard shall be placed or erected within 50 feet from any traffic light. (v) No signboard shall be placed or erected within 6 feet of any road pavement and any public right-of-way. (vi) No signboard shall be placed on any public buildings, facilities, monuments, public parks, and tourist sites. (vii) No signboard exceeding dimensions of 4ft by 8ft shall be placed on public land. (e) Roadside Vendors - The activity that involves the use of a temporary structure, vehicle, or mobile canteen for the sale of local produce or fish, other perishables or non-perishable items such as handicrafts, trinkets, souvenirs, or other goods, at a permitted distance from the side of a road or thoroughfare at a location(s) or designated area(s)/assignment(s) on public land shall be permitted on the same financial terms as other concession TOA: A monthly fee of at least $250 per concession (up to 100 square feet) shall be charged in addition to 1% of BGR. (f) Maintenance – The activity that involves the clearing and cutting of brush or vegetation for no use purposes (ex. fire break) may be permitted as follows: © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 20 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (1) Up to 300 square meters of public lands adjacent to an occupant’s private property may be cleaned and maintained under a maintenance permit. Residential maintenance permits shall be assessed a non-refundable application fee of 100 per year and shall be subject to an assessment equal to 2% of the estimated fair market value of the premises annually. (g) Filming/Photography – The activity involving the use of public lands in the production of video or motion picture films, commercial advertisement filming, photography, and other activities that involve video or film production at certain locations or areas of public lands. (1) The fee for engaging in commercial motion/still filming or photography on public land in any location in the CNMI is 500 per day plus location credits within the publication indicating that the film or photograph was taken in the CNMI, the island, and the specific location. Use of any part of a day is charged as one full day. One full day is defined as a continuous 24-hour period beginning at 12:01 a.m. DPL may use discretion in waiving any fee(s) when requested by Marianas Visitors Authority (MVA) on a case- by-case basis, when the commercial motion/still filming or photography on public land promotes the CNMI. (2) The fee for still/portrait photography not for commercial publication, sale, or distribution (e.g. family portrait intended for sale only to the subject family) shall be 12,000. Each year following promulgation of these regulations, the minimum annual rent shall increase by 5% in each subsequent year. Additionally, permittee shall pay a royalty fee of at least $3 per cubic yard of limestone materials extracted, plus 0.5% of BGR, or such greater amounts as proposed for each category. (3) Extraction of other materials shall be subject to additional permitting and assessed a higher royalty fee as a percentage of market prices as quoted on a major U.S. commodities exchange for those materials or minerals. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 21 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (j) Encroachment – The activity involving the temporary use of public land for commercial or residential purposes may be permitted as follows: (1) The annual fee for the temporary permitted encroachment on public land for commercial purposes is based on 8% of the estimated fair market value or 3% of gross receipts if this amount is greater than the annual permit fee. Assessment of rent against gross receipts shall be apportioned pro-rata based upon increase of business capacity (i.e., showroom space, seating capacity, or the like) by virtue of the encroachment unless the encroachment is deemed by DPL to be of strategic value. However, where an applicant’s business could not proceed or continue without the use of public land (e.g., landlocked parcel, no parking, insufficient ingress or egress, etc.), no such apportionment will apply, and fees will be assessed upon 100% of the business’ gross receipts. (2) The annual fee for the encroachment of public land for residential applicant purposes is 8% of the estimated fair market value. Permanent structures will only be permitted under an encroachment permit if they precede the effective date of these regulations (February 8, 2016)* and they are located on land that DPL is permitted to lease by law and regulation. (k) Community Events – The activity involving the temporary short-term use of public land for government or non-commercial activities that benefit the community (e.g., festivals, holiday celebrations, parades, and the like) may be permitted without charge upon approval by the Secretary, provided the permitted event or activity shall be no more than 45 days in duration. (l) Non-Use – The activity involving the entry upon public land to survey, appraise, or gather other information necessary or helpful to an applicant to lease public lands; or to enter upon public land to construct authorized improvements for public benefit. *So in original. Modified, 1 CMC § 3806(c), (e), (f), (g). History: Amdts Adopted 41 Com. Reg. 42800 (Sept. 28, 2019); Amdts Proposed 41 Com. Reg. 42730 (July 28, 2019); Amdts Adopted 39 Com. Reg. 40376 (Nov. 28, 2017); Amdts Proposed 39 Com. Reg. 39951 (Sept. 28, 2017); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: [Historical codification comments removed.] In codifying 41 Com. Reg. 42800 (Sept. 28, 2019), the Commission retained subsections (f) to (l) as unmodified although they were omitted from the proposed regulation at 41 Com. Reg. 42730 (July 28, 2019). § 145-70-215 Concession Agreements Concession agreements grant the concessionaire the right to conduct business operations from a designated area, zone, or venue on terms determined by DPL. (a) Upon receipt of request for a non-exclusive concession, DPL will determine the desirability of the proposed area use and past performance and/or experience (if any) of the proposed concessionaire. If acceptable to the DPL and if consistent with designated use, zoning, surrounding activities, DPL may issue a notice of intent. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 22 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (b) DPL may issue an RFP or conduct an auction if there are two or more similar competing interests with respect to a given non-exclusive concession area, or in any instance at the discretion of the Secretary. DPL shall issue an RFP or conduct an auction with respect to the exclusive Managaha Island Master Concession. (c) Monthly fees of at least $250 per concession (up to 200 square feet) shall be charged in addition to 3% of BGR. Concessions negotiated through RFP or auction may be subject to higher fees based upon applicant’s proposal or bid amount. (d) The Premises shall be used solely for the business operations of the Occupant. Subconcessions for non-exclusive concessions are not permitted. Any change in ownership of occupant shall be considered an assignment. Assignments are not permitted for non-exclusive concession agreements or permits. (Only one non-exclusive concession agreement is allowed per applicant, permittee, and/or principal.) (e) All concession agreements are terminable by DPL at will. The term of any non-exclusive concession agreement shall be shall be for no longer than one year per concession agreement with a maximum holdover of 12 months. the exclusive Managaha Island Master Concession may be for a term of up to ten years with an option to extend the term by an additional five years at DPL’s discretion. (f) Applications for renewal of non-exclusive concession agreements (if any) shall be made annually at least two months prior to expiration or as solicited via a Request for Proposal or at auction. Applications for renewal of the exclusive Managaha Island Master Concession (if any) shall be made at least one year prior to expiration or as solicited via a Request for Proposal or at auction. (g) Criteria for evaluating an application/proposal for a concession agreement under consideration shall be the same as those outlined in the regulation on leases. For renewals, if a competing proposal does not materially enhance the existing concessionaire’s proposal, operations, or otherwise project to materially increase the revenue to DPL, and the concessionaire has satisfied all the covenants and conditions of its existing concession agreement, it is DPL’s preference to renew the concession agreement with the current concessionaire with payment comparable to that proposed or implied by the best competing proposal, but in no case shall DPL accept rent less than what was established in any preceding period (h) Non-exclusive beach concessions for beach and ocean recreational activities shall be limited as follows: (1) Concessions for activities involving commercial motorized and non-motorized water craft shall not be permitted outside of the area designated by the BECQ – Coastal Resource Management Office and shall occur only within specific zones authorized by DPL. (i) Concessions are restricted to areas adjacent to boundary corners of hotels, or if no hotel is located in the vicinity, to the perimeter boundaries of the public land perpendicular to the high water mark. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 23 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (ii) Beach concession agreements will be limited to twenty five total concessions per year due to limited space and safety concerns and in an effort to maintain a peaceful beach experience for those not participating in concession activities. The number of beach concession agreements may be limited to a lesser amount if the Division of Fish and Wildlife, Coastal Resources Management Office or other CNMI government and federal governments* determines that the marine sports activities cause an impact on marine life species and/or their habitats are disrupted, harmed, or destroyed resulting from such activities. (2) Enforcement procedures shall be as follows: (i) A first violation of agreement terms or conditions will result in a citation and fine of 100,000 in bodily injury per person. 100,000 in property damage for each occurrence, or such higher amounts as DPL may reasonably require. *So in original. Modified, 1 CMC § 3806(e), (f), (g). History: Amdts Adopted 44 Com. Reg. 48893 (Sept. 28, 2022); Amdts Proposed 44 Com. Reg. 48842 (Aug, 28, 2022); Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission struck the figure “(90)” in subsection (g)(3) and struck the figures “(30)”, “(15)”, and “(3)” in subsection (g)(4)(ii) as a mere repetitions of written words. Commission inserted open parentheses to subsections (a)–(g); changed “desirablity” in subsection (a) to “desirability”; changed “Subconcesions” in subsection (d) to “Subconcessions”; changed “an Concession” to “a concession” in subsection (f); and changed “boudary”, “vacinity”, and “perimiter” in subsection (g)(1)(i) to “boundary”, “vicinity”, and “perimeter” respectively. § 145-70-220 Occupancy not Covered in this Part Proposed occupancy and use of public lands not covered under this Part shall be evaluated and determination made by the Secretary for the best interest of its beneficiaries. Modified, 1 CMC § 3806(d). History: Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission substituted “Part” for the term “Subsection” in the section title and the body of the section. Part 300 - Policies on Appraisals for Leases © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 24 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS § 145-70-301 Appraisals (a) Procedures are hereby established for the regular appraisal of all public lands leased for commercial purposes, which ensure that the fair market value basis for computation of basic rent for any given lease is updated no less frequently than every five years. All appraisal reports shall be reviewed by DPL’s staff appraiser for completeness of the technical aspects, and to certify if the appraised value meets or exceeds the fair market value of the property. The findings of the staff appraisers shall be for internal use only. As this information may affect the negotiation of lease terms it shall be held confidential during negotiations. DPL may discuss any areas of concern with the independent appraiser and the applicant. (b) The cost of appraisals and their review shall be borne by applicant or lessee and in no instance shall DPL reimburse the cost to lessee or offset any such costs or expenses against rent. However, DPL shall require the appraiser to acknowledge that DPL is the client and that the report is being prepared on behalf of DPL. (c) Appraisals shall be first prepared by an independent U.S.-CNMI certified general real estate appraiser who is licensed to do business in the CNMI. The appraiser shall acknowledge that the appraisal report is being prepared in accordance with the requirements of the appraisal standards and procedures for the benefit of the Department of Public Lands. (d) All appraisals must be performed and completed in compliance with the current Uniform Standards of Professional Appraisal Practice (USPAP) and the CNMI issued regulations and procedures by the Board of Professional Licensing. (e) The Secretary shall review all appraisal reports for reasonableness, and shall use the value shown in the report as a guide to assess annual base rent. The value may be adjusted upwards for reasonableness if deemed appropriate by the Secretary to take into account the strategic value of the property and recent real estate sales or lease transactions that were not adequately considered by the appraiser in DPL’s opinion. (f) Lessee shall re-appraise the fee simple interest of the leased property every five years on the anniversary of the lease and if necessary rent shall be adjusted upward to current value based on the new appraisal as adjusted by the Secretary in conformance with these regulations. Modified, 1 CMC § 3806(a), (f). History: Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission numbered the leading paragraph (a) and accordingly renumbered the following subsections consecutively. Part 400 - Application Processing Fees § 145-70-401 Fee Schedule © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 25 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS DPL shall charge an application fee to recover the cost of processing. Unless otherwise stated in these regulations, the application and renewal processing fees are as follows: Transaction Application Fee Application for TOA (other than Agriculture and 50 Amendment of TOA 75 Renewal of Concession/Subconcession 250 Livestock 1,500 Lease Agreement Extension 2,500 Sublease Agreement 2,500 Modified, 1 CMC § 3806(b). History: Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission rearranged the material under Part 400 under this section to fit harmoniously with the Code. Part 500 - Request for Proposal Requirements § 145-70-501 Request for Proposals DPL may issue RFPs at the discretion of the Secretary. At a minimum, RFPs shall require the following: (a) A description of the property, including the legal description and physical location in layman’s terms making it readily identifiable by interested firms and the general public; (b) Interested firms shall be allowed to view the property and shall be provided general information on property including photographs, land maps, and boundary descriptions; (c) Requirement for Proposals. Interested firms shall: (1) Identify the applicant, and if the applicant is not a natural person, the names of the officers, directors, and principal shareholders or members of the proposed lessee, and including all real parties in interest; (2) Identify the names of principals, and attorneys that will be involved in negotiating the lease on behalf of the proposed lessee; © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 26 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS (3) Provide a concise statement of the intended use of the property; (4) Provide a detailed description of proposed structures/facilities to be built on the land including architectural renderings and landscaping. If existing improvements will be replaced with new improvements, proposer shall additionally provide plans for removal and disposal of demolished or excavated materials including a timeline of intended progress; (5) Provide a Gantt chart showing construction time line, cost per phase if construction will occur in multiple phases, and total cost of improvements; (6) Provide five-year pro forma financial statements including business gross revenue projections starting in year one of operations including rental income lessee anticipates to receive from subtenants, and the potential BGR of subtenants; (7) Provide an estimate of number of jobs required for operations (total full time equivalents) and shall provide recruiting plans. (d) Criteria for comparing competing proposals include: (1) Rental income to DPL in absolute dollars; (2) Cost of construction of the development (and anticipated value of improvements); (3) Lessee’s credit worthiness and ability to fund the proposed development; (4) Consistency of the proposed development with DPL’s land use plan and other applicable land use laws and regulations. (e) In the event two or more proposals are determined to be similarly advantageous, DPL may request more information from respondents for clarification purposes, or conduct in-person interviews to determine the proposal that is most advantageous to DPL and its beneficiaries. (f) DPL shall always request a best and final offer on the amount of rent payments and public benefit options before selecting the final proposal. (g) In the event there are more than one interested party in the same property (whether all or portions thereof), priority shall be given to the party that is willing to pay the highest premium above the minimum payment amount and whose proposal is most consistent with the highest and best use of the property. (h) Criteria for award: (1) Highest rental income to DPL; (2) Cost of construction; (3) Consistency of the proposed development with DPL’s land use plan; (4) Lessee’s credit worthiness and ability to fund the proposed development; (5) Negotiated lease terms most favorable to DPL. Modified, 1 CMC § 3806(a), (b), (f) (g). History: Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission numbered this section, created the section title, and renumbered subsections (c)(4)[second]–(6) to subsections (c)(5)–(7) respectively. The Commission inserted a semicolon at the end of © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 27 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS subsection (c)(6), inserted a period at the end of subsection (c)(7), inserted a period at the end of subsection (e), and changed the period in subsection (h) to a colon. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 28 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS Appendix A © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 29 of 58

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TITLE 145: DEPARTMENT OF PUBLIC LANDS Modified, 1 CMC § 3806(b). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 54 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS History: Amdts Adopted 39 Com. Reg. 39605 (May 28, 2017); Amdts Proposed 39 Com. Reg. 39351 (Mar. 28, 2017); Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 55 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS Appendix B © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 56 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS Modified, 1 CMC § 3806(b). © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 57 of 58

TITLE 145: DEPARTMENT OF PUBLIC LANDS History: Adopted 38 Com. Reg. 37440 (Jan. 28, 2016); Emergency and Proposed 37 Com. Reg. 37247 (Nov. 28, 2015) (effective for 120 days from Nov. 28, 2015). Commission Comment: The Commission rearranged these maps into Appendix B to fit harmoniously in the Code. © 2025 by The Commonwealth Law Revision Commission (Aug. 15, 2025) Page 58 of 58


Source: CNMI Law Revision Commission