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FY 2007 Supplemental Budget Act, RPPL 7-29 2007

SEVENTH OLBIIL ERA KELULAU
RPPL NO. 7-29
Tenth Regular Session, April 2007 (Intro. As HB No. 7-166-10, HD4,SD3)

AN ACT

To authorize and appropriate additional sums from the National Treasury for the general operations budget of the Republic of Palau for the fiscal year ending September 30, 2007; and to authorize the President to negotiate for a line of credit; and for related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Short Title. This Act may be cited as "The Fiscal Year 2007 Supplemental Budget Authorization and Appropriation Act".

Section 2. Amendment. Section 3(2)(a) of RPPL No. 7-25 is hereby amended to read as follows:

"Section 2a. Executive Branch Operations. The sum of $33,753,000 is hereby authorized for appropriation and is appropriated for expenditure and obligation for fiscal year 2007 for the purpose of covering the operational and contingent expenses of the Executive Branch. The total amount authorized to be appropriated and that is appropriated shall be made up of the following available revenues: The amount of $22,049,000 shall come from local revenues provided that if actual local revenue is insufficient, the amount of $758,000 or so much thereof as necessary may be derived from Compact Section 213 Investment Account: the amount of $4,000,000 shall come from Compact Section 211 (a) funds; the amount of $3,840,000 shall come from the Compact Section 215 Inflation Adjustment fund derived from Compact Section 211(a); the amount of $150,000 shall come from Compact Section 211 (c) funds and shall be applied to subsection (4)(1); the amount of $96,000 shall come from the Compact Section 215 Inflation Adjustment funds derived from the inflation adjustment of Compact Section 211 (c) and shall be applied to subsection (7)(c); the amount of $631,000 shall come from Compact Section 211 (d) funds and shall be applied to subsection(8)(d); and the amount of $3,000,000 shall come from Compact Section 211 (f) Trust Fund Investment Earnings. The total authorized and appropriated shall be allocated according to the following schedule, respectively:

. . . .

(3) Ministry of Finance

. . . .

(g) Bureau of Revenue, Customs & Taxation 1,060,000

Sub-Total 2,26 1,000

(4) Ministry of State

. . .

(l) Bureau of Domestic Affairs 360,000

(m) Passport Office 89,000

(n) International Organizations Obligations 218,000

Sub-Total $2,502,000

. . .

(10) Ministry of Resources & Development

. . .

(j) Water & Sewer Operations 2,295,000

. . .

(l) New Capitol Complex Electricity & Maintenance 500,000

. . .

Sub-Total $7,187,000

Section 2a Total $33,753,000

Section 3 a. Boards, Commissions, and Authorities. The sum of $720,000 is hereby authorized

. . . .

(1) Foreign Investment Board

. . . .

(10) Palau National Code Commission $43,000

Section 3a Total $720,000

Section 5a. Legislative Branch. The sum of $3,933,500...the amount of $2,933,500 shall come from local revenues or so much thereof as necessary may be derived from the Compact Section 213 Investment Account; . . . .

(1) Senate $1,313,000

(2) House of Delegates $1,900,500

. . . .

(5) Joint Staff 290,000

Out of this amount, the sum of $30,000 shall be used to purchase a copy machine, $3,000 shall be used to purchase computer anti-virus software, and $10,000 shall be used for hosting the Asia Pacific Parliamentary Union.

. . . .

Section 5a Total $3,933,500

Section 8a. Other Agencies and Activities. The sum of $1,710,958 . . . . the amount of $710,958 shall come from local revenues or so much thereof as necessary may be derived from the Compact Section 213 Investment Account; ...

(1) . . . .

(2) . . . .

(3) Palau Community Action Agency 248,458

Apprentice Training Program with the Civic Action Team 26,000

Child Care Service 14,560

Salary and Wages 22,898

. . . .

(11) Second Post Constitutional Convention 20,000

These funds are appropriated with direct instructions to the Pacific Savings Bank receiver or successor that all funds deposited in the account of the Second Post Constitutional Convention shall be repaid directly to the National Treasury.

(12) Congressional Reapportionment Commission 7,500

Section 8a Total $1,710,958

. . . .

Section 15a. Adjudicated Claims. The sum of $797,000 ... National Government. Of this amount, the sum of $348,982 is hereby appropriated to satisfy the judgment entered in the case of Ibai Lineage v. Republic of Palau and Palau Community College, Civil Action Number 05-169, on April 4, 2007 and the sum of $258,346 is hereby appropriated to satisfy the judgment entered in the case of Republic of Palau v. Wally et. al., Civil Action No. 05-245, on May 17, 2007. The sums in each of these cases were determined by the Supreme Court as of April 4, 2007 and May 17, 2007 respectively. Interest continues to accrue on each of these sums. These judgments must be satisfied in full, including interest, no later than 30 days from the effective date of this Act . . . . . The entire amount authorized to be appropriated, and that is appropriated shall come from local revenues or so much thereof as necessary may be derived from the Compact Section 213 Investment Account.

Section 16a. Pacific Games. The sum of $250,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 for the purpose of facilitating the participation of Palauan Athletes in the 2007 Pacific Games to be held in Apia, Samoa. The entire amount authorized and appropriated shall come from local revenues.

. . . ."

Section 3. Amendment. Section 14 of RPPL No. 2-3 as amended by RPPL No. 7-25 is hereby further amended to read as follows:

"Sale of Code and other legal, publications. The published volumes of the Palau National Code shall be sold to recoup the costs of producing and publishing the Palau National Code. The Palau National Code shall be published on a regular basis by the Palau National Code Commission or in conjunction with any appropriate government entity established for such publication. All proceeds received for legal publications shall be placed in a separate National Treasury revolving fund to be administered by the publisher of publications sold or publication services rendered. An amount equal to all proceeds received from sales or services provided before or after this law becomes effective shall be deposited in the publishing revolving fund. Said revenues are authorized to be appropriated and are appropriated from year to year for deposit in the publishing revolving fund and segregated and separated from all other funds and accounts in the National Treasury. Funds may be disbursed from such revolving fund to pay the costs of producing, marketing and selling legal publications. The appropriations on funds not expended shall not lapse at the end of the year."

Section 4. Line of Credit. The President is hereby authorized to negotiate for and enter into a revolving line of credit, for Fiscal Year 2007 and Fiscal Year 2008 only, with a financial institution ("Lender") in the maximum amount of $3,000,000 for each respective Fiscal Year, at a reasonable interest rate, for the purpose of ensuring timely acquisition of goods and services on the following conditions:

(a) Such funds shall be used solely for:

(1) goods or services purchased under specific grant(s), the provisions of which require reimbursement of such expenditures from the grantor to the Republic of Palau;

(2) State block grants;

(3) National Scholarship Fund;

(4) Palau Foreign Missions' expenses; and

(5) Payments pursuant to the promissory notes issued to the International Commercial Bank of China (now known as Mega International Commercial Bank Co., Ltd.). Where draw downs are made from the revolving line of credit under this section, they shall be repaid to the lender for the specific purpose of paying down the balance of the line of credit, within 30 days of the date that the reimbursement is received by the Republic of Palau for each reimbursable expenditure made;

(b) Such funds may be used to make payments for authorized and appropriated expenditures ending on September 30, 2007 for which cash flows are temporarily insufficient due to the uneven periodic receipt of revenues;

(c) Notwithstanding the above, all draw-downs from the line of credit must be completely repaid to the lender on or before September 3 0 of each respective Fiscal Year, so that $3,000,000 shall be an available line of credit for Fiscal Year 2007 and Fiscal Year 2008.

(d) Expenditures as set forth above and related expenses to the Lender are hereby authorized and appropriated, and shall be paid by local revenues; and

(e) The Minister of Finance shall file quarterly reports to the Olbiil Era Kelulau, specifying all expenditures from the line of credit and repayments to the Lender paying down the line of credit.

Section 5. Compact of Free Association Board of Trustees.
(a) Section 407 of Title 40 of the PNC, creating the Compact of Free Association Board of Trustees, is hereby repealed to reflect the elimination of the Board.

(b) Section 408 of Title 40 of the PNC, regarding Trust Fund Administration, is hereby amended as follows:

"(a) The Minister of Finance shall give its advice to the President of the Republic, with respect to investment of the funds in the 211 (f) Trust Fund.

(b) The Minister of Finance, along with the Chairman of the Senate Ways and Means Committee and the Chairman of the House Ways and Means Committee, shall make recommendations to the President regarding the hiring and firing of the Trust Fund investment consultant, investment managers and custodian.

(c)The Minister of Finance shall make a quarterly financial report to the President of the Republic and the Olbiil Era Kelulau.

(d) It is hereby authorized that all funds received by the Republic of Palau pursuant to sections 211(b), 211(c), 211(d), 211(e), 211(f), 212(b), 213, 215, and 221 (b) of the January 10, 1986 Compact of Free Association may be commingled into the 211 (f) Trust Fund for investment purposes; however, those funds and the income derived there from shall remain segregated for appropriation and accounting purposes. No funds shall be withdrawn from the 211 (f) Trust Fund, any investment account containing funds received pursuant to any Compact section, or any investment account containing funds from the General Fund Reserve, except through the constitutional appropriation process.

(e) No later than the end of each quarter, the Minister of Finance shall submit to the Olbiil Era Kelulau a written report of the interest earned on all invested compact funds . . .

(f) The President shall submit all monthly, quarterly, annual and special reports on the investment of such funds from all sources to the Olbiil Era Kelulau immediately upon receipt thereof.

(g) Of the funds received by the Republic under Compact Section 211(b), twenty-five percent shall be devoted to the energy needs of those parts of Palau not served by the central power-generating facility in Aimeliik.

(h) The sum of $66,000,000 is hereby authorized to be appropriated for the purposes set forth in Compact section 211(f). The amount authorized to be appropriated shall, upon receipt from the United States Government, be invested in a Trust Fund under the terms and conditions of the Compact, including that distributions (withdrawals) of Trust Fund interest or principal shall not begin earlier than the fifth anniversary after the effective date of the Compact; distributions (withdrawals) of principal and interest from the Trust Fund may only be done upon subsequent authorization and appropriation by law. Trust Fund management shall be under the President or his designee.

(i) All funds derived from the Compact Section 213 Investment Account pursuant to the Fiscal Year 2007 Supplemental Budget Authorization and Appropriation Act shall be reimbursed in the future so that the purpose of the Compact 213 Investment Account funds shall be maintained."

Section 6. Effective Date. This Act shall take effect upon its approval by the President of the Republic of Palau or upon becoming law without such approval, except as otherwise provided by law.

PASSED: May 31, 2007
Approved this 31st day of MAY , 2007.

/s/
Tommy E. Remengesau, Jr., President
Republic of Palau