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FY 2008 National Budget Act, RPPL 7-37 2007

SEVENTH OLBIIL ERA KELULAU
RPPL NO.07-37
Thirty-second Special Session, November 2007
(Intro. As H.B No. 7-189-32S, HD4, SD3, CD1, PD1)

AN ACT

To authorize and appropriate the sum of $ 59,465,551 from the National Treasury for the annual general operating special revenue and debt service budget of the Republic of Palau for the fiscal year ending September 30, 2008 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 2008 Annual National Budget Authorization and Appropriation Act."

Section 2. Executive Branch Operations. The sum of $33,686,286 is authorized for appropriation and is appropriated for expenditure and obligation for fiscal year 2008 for the purpose of covering the operational and contingent expenses of the Executive Branch. The total amount authorized and appropriated shall be made up of the following available revenues: The amount of $21,846,286 shall come from local revenues; the amount of $4,000,000 shall come from Compact Section 211(a) funds; the amount of $3,960,000 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 $99,000 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:

(1) Office of the President

(a) President's Office $ 650,000

(b) Official Expense 29,841

(c) Grants Coordinator Office 68,634

(d) Presidential Stipend 25,000

(e) Council of Chiefs 125,000

Sub-Total $ 898,475

(2) Office of the Vice-President

(a) Vice President's Office $ 296,000

(b) National Emergency Management Office 95,492

Sub-Total $ 391,492

(3) Ministry of Finance

(a) Minister of Finance $ 38,793

(b) Information Systems Support Services 193,967

(c) Bureau of National Treasury 607,762

(d) Bureau of Budget and Planning 177,057

(e) Bureau of Public Service System 109,417

(f) Workmen's Compensation 41,000

(g) Bureau of Revenue, Customs & Taxation 1,034,000

Sub-Total $ 2,201,996

(4) Ministry of State

(a) Office of the Minister $ 38,793

(b) ROP Consulate Office in Guam 95,000

(c) ROP Embassy in Washington, D.C. 315,320

(d) ROP Embassy in Tokyo, Japan 315,320

(e) ROP Embassy in Taipei, Taiwan 99,470

(f) ROP Consulate Office in Saipan, CNMI 45,000

(g) ROP Embassy in Manila, Philippines 120,000

(h) United Nations Representation Office 222,813

(i) Office of the Public Defender 184,020

(j) Bureau of Foreign Affairs 256,633

(k) Bureau of Int'l Trade and Technical Assistance 69,629

(i) Bureau of Domestic Affairs 348,145

(m) Passport Office 38,793

(n) International Organizations Obligations 200,000

Sub-Total $ 2,348,936

(5) Ministry of Community & Cultural Affairs

(a) Office of the Minister $ 38,793

(b) Palau National Archive 45,200

(c) Bureau of Community Services 215,850

(d) Aging Program 223,808

(e) Sports Facilities Maintenance & Utilities 100,000

(f) Bureau of Arts & Culture 142,242

(g) Palau Severely Disabled Assistance Fund 190,000

Of this sum, the amount of'$15,000, or so much thereof as necessary, may be used to defray the cost of administering the program.

Sub-Total $ 955,893

(6) Ministry of Education

(a) Office of the Minister $ 38,793

(h) School Books, Supplies & Instructional Equip. 292,000

(c) Bureau of Curriculum & Instruction 900,000

(d) Bureau of School Administration 4,568,000

(e) Food Service Program 600,000

Sub-Total $ 6,398,793

(7) Ministry of Commerce & Trade

(a) Office of the Minister $ 38,793

(b) Airport Operations 1,247,354

Of this sum, the amount of $466,000, or so much thereof as necessary, may be used to defray the cost of the Airport Rescue and Fire Fighting (ARFF) program.

(c) Bureau of Commercial Development 253,649

(d) Bureau of Human Resource Development 298,410

(e) Palau Small Business Development Center 29,841

(f) Pacific Business Center Program 20,000

Sub-Total $ 1,888,047

(8) Ministry of Justice

(a) Office of the Attorney General $ 519,233

(b) Bureau of Immigration 292,442

(c) Bureau of Public Safety 2,504,655

(d) Patrol Boat Operations 943,970

Of this sum, the amount of $180,000, or so much thereof as necessary, may be used to defray the costs associated with the biennial 'slipping' (Refit) of the patrol boat.

Sub-Total $ 4,260,300

(9) Ministry of Health

(a) Office of the Minister $ 38,793

(b) Bureau of Public Health 1,203,587

The sum of $75,000 shall be earmarked for the Non- Communicable Disease Program.

(c) Office of Health Services Administration 1,661,149

(d) Manila Medical Referral Office 89,523

(e) Hawaii Medical Referral Office 119,364

(f) Medical Supplies & Drugs 400,000

(g) Medical Referrals 600,000

(h) Bureau of Hospital and Clinical Services 2,844,842

Sub-Total $ 6,957,258

(10) Ministry of Resources & Development

(a) Office of the Minister $ 38,793

(b) PALARIS Office 144,232

(c) Bureau of Agriculture 412,801

(d) Bureau of Marine Resources 512,271

(e) Bureau of Public Works 1,526,865

(f) CIP Office Operations 149,205

(g) Bureau of Lands & Survey 910,000

(h) OMIP and Other Grants Match 99,470

(i) Water & Sewer Operations 2,282,837

(j) Rural Sanitation Project 159,152

(k) New Capitol Complex Electricity & Maintenance 650,000

(l) Protected Area Network (PAN) 49,735

(m) Landfill Operations/Solid Waste Management 49,735

(n) New Capitol/Melekeok Sewer System 100,000

(o) Bridge and Road Maintenance 300,000

Sub-Total $ 7,385,096

Section 2 Total $ 33,686,286

Section 3. Boards Commissions and Authorities. The sum of $ 777,074 is authorized and is appropriated for expenditure and obligation for fiscal year 2008 for the purpose of covering the operational and contingent expenses of Boards, Commissions and Authorities. The entire amount of funds authorized and appropriated shall come from local revenues. The total authorization and the total appropriation shall be allocated according to the following schedule, respectively:

(1) Foreign Investment Board $ 89,523

(2) Palau Election Commission 198,940

(3) Palau Code Commission 42,772

(4) Palau Public Land Authority 149,205

(5) Parole Board 27,852

(6) Palau Housing Authority 66,645

(7) Ethics Commission 44,762

(8) Financial Institutions Commission 117,375

(9) Ngardmau Free Trade Zone Authority 40,000

Section 3 Total $ 777,074

Section 4. Judicial Branch. The sum of $2,219,000 is hereby authorized to be appropriated and is appropriated for expenditure or obligation for fiscal year 2008 for the purpose of covering the operational and contingent expenses of the Judicial Branch. The total amount authorized to be appropriated and appropriated shall be made up of the following available revenues: The amount of $1,219,000 shall come from local revenues; and the amount of $1,000,000 shall come from Compact Section 211(f) Trust Fund Investment Earnings.

Section 5. Legislative Branch. The sum of $3,598,000 is hereby authorized to be appropriated and is appropriated for expenditure or obligation for fiscal year 2008 for the purpose of covering the operational and contingent expenses of the Legislative Branch. The total amount authorized to be appropriated and appropriated shall be made up of the following available revenues: The amount of $2,598,000 shall come from local revenues; and the amount of $1,000,000 shall come from Compact Section 211(f) Trust Fund Investment Earnings. The total authorization and appropriation shall be allocated according to the following schedule:

(1) Senate $ 1,215,000

(2) Senate Legal Counsel 185,000

(3) House of Delegates 1,758,000

(4) House Legal Counsel 185,000

(5) Joint Staff 225,000

(6) Inter-Parliamentary Union/Asia-Pacific Parliamentary Union 20,000

(7) Association of Pacific Island Legislatures (APIL) 10,000

Section 5 Total $ 3,598,000

Section 6. State Block Grants. The sum of $4,811,000 is hereby authorized to be appropriated and is appropriated for expenditure or obligation for fiscal year 2008 for the purpose of State Governments operations and capital improvement projects expenses. The entire amount of funds authorized to be appropriated and is appropriated shall come from local revenues. The amount authorized for appropriation shall be available for expenditure for operations and CIP projects in accordance with 5 PNC Chapter 22. The total authorization and total appropriation shall be allocated according to the following schedule, respectively:

(1) Aimeliik State $ 269,625

(2) Airai State 430,625

Of this sum, $10,000 shall be earmarked for the construction of a bridge at Oikull, Ngerbechat. Any remaining balance after construction shall be used for Airai CIP.

(3) Angaur State 232,625

The sum of $10,000, or so much necessary thereof, shall be earmarked to be used for the payment of employer share of the Social Security and Pension Plan Contributions as stipulated in the Public Auditor's Report.

(4) Hatohobei State 165,625

(5) Kayangel State 207,625

(6) Koror State 867,625

(7) Melekeok State 258,625

(8) Ngaraard State 303,625

(9) Ngarchelong State 303,625

(10) Ngardmau State 252,625

(11) Ngaremlengui State 261,625

(12) Ngatpang State 247,625

(13) Ngchesar State 269,625

(14) Ngiwal State 252,625

(15) Peleliu State 321,625

(16) Sonsorol State 165,625

Section 6 Total $ 4,811,000

Section 7. Independent Agencies. The sum of $ 2,202,131 is hereby authorized and is appropriated for expenditure or obligation for fiscal year 2008 as operating grants or subsidies for independent agency of the National Government. The total amount authorized to be appropriated and appropriated shall be made up of the following available revenues: The amount of $1,202,131 shall come from local revenues; and the amount of $1,000,000 shall come from Compact Section 211(a). The total authorization and appropriation shall be allocated according to the following schedule, respectively:

Appropriated

(1) Office of the Public Auditor $ 373,013

(2) Office of the Special Prosecutor 273,543

(3) Palau Environmental Quality Protection Bd (EQPB) 397,880

(4) National Postal Service 283,490

(5) Palau Visitors Authority 725,000

Of this sum, the amount of $25,000, or so much thereof as necessary, shall be used to defray the cost of holding the annual Olchotel Belau Fair.

(6) National Aviation Administration 149,205

Section 7 Total $ 2,202,131

Section 8. Other Agencies and Activities. The sum of $1,660,512 is authorized for appropriation and is appropriated for expenditure or obligation for fiscal year 2008 as grants or subsidies for recurring programs and activities. The total amount authorized to be appropriated and appropriated shall be made up of the following available revenues: the amount of $ 660,512 shall come from local revenues; and the amount of $1,000,000 shall come from Compact Section 211(a) funds. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

(1) Palau National Museum $ 184,020

(2) Micronesian Legal Services 129,311

(3) Palau Community Action Agency 361,532

Of this sum, $115,000 shall he earmarked for the Headstart Program.

(4) WIA Grant Contribution 99,470

(5) Civic Action Team Share 250,000

(6) Peace Corps Contribution 25,000

(7) Palau International Coral Reef Center 425,000

Of this sum, the amount of $25,000, or so much thereof as necessary, shall be used to defray the expenses associated with membership and participation in the U.S. Coral Reef Task Force and the International Coral Reef Initiative (ICRI).

(8) Palau Nat'l Olympic Comm. & Sports Organizations 149,205

$20,000 of these funds are earmarked to reimburse travel expenses incurred for travel to the South Pacific Games in Samoa. Funds will only be disbursed upon receipt of proper documentation to include receipts for travel expenses.

(9) Palau Red Cross 4,974

(10) Second Post Convention Committee 32,000

Section 8 Total $ 1,660,512

Section 9. Education Assistance. The sum of $4,226,550 is hereby authorized to be appropriated and is appropriated for expenditure or obligation for fiscal year 2008 to subsidize the educational institutions and scholarship program set forth below. The total amount authorized to be appropriated and appropriated shall be made up of the following available revenues: The amount of $2,220,550 shall come from local revenues; and the amount of $2,000,000 shall come from Compact Section Education Block Grant 221(b)(1) funds and shall be applied to subsection (1). The total authorization and appropriation shall be allocated according to the following schedule, respectively:

(1) Palau Community College $ 2,242,730

(2) PCC CRE Program 39,000

(3) PCC Board of Trustees 43,880

(4) COM Board of Regents 24,378

(5) Aid to Non-Public Schools

(a) Emmaus High School 51,408

(b) Bethania High School 67,728

(c) Palau Mission Academy 51,408

(d) Mindszenty High School 160,752

(e) Ibobang High School 75,000

(f) Maris Stella School 89,115

(g) Koror SDA Elementary School 82,236

(h) Emmaus Kindergarten 15,240

(i) SDA Kindergarten 7,620

(j) Catholic Kindergarten 7,112

All schools receiving funds under Section 9(5) must provide the Olbiil Era Kelulau the school policy regarding the use and promotion of the Palauan language on campus within 30 days of the enactment of this law.

(6) National Scholarship Fund

(a) Spring Semester scholarships & grants 600,000

(b) Fall Semester scholarships & grants 600,000

(c) Administrative Expenses 68,943

Section 9 Total $ 4,226,550

Section 10. Hospital Trust Fund. The amount of $1,700,000 or the actual amount collected is hereby authorized to be appropriated and is appropriated for fiscal year 2008 for purposes of the Hospital Trust Fund. The amount authorized to be appropriated and appropriated shall come from revenues derived from clinical and public health medical and dental services fees and charges during the fiscal year; provided that the actual expenditures or obligations shall not exceed actual revenue receipts. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at fiscal year end. The appropriated funds shall be segregated and deposited into a separate bank account. No funds shall be withdrawn from this account except for specific use as authorized by law.

Section 11. Debt Service. The sum of $2,982,558, plus any sum necessary for related banking fees and interest charges is hereby authorized to be appropriated and is appropriated for fiscal year 2008 for the purpose of payment of periodic interest and principal payments pursuant to the promissory notes under the $20 million Mega International Commercial Bank, Ltd. ("Mega") loan agreement for the purpose of completion of Phase II of the national capitol construction project in Melekeok State; and the $8 million Mega loan agreement for the purpose of undertaking various improvements to the Palau International Airport and for the purpose of establishing and maintaining a Line of Credit Facility to facilitate the Republic's cash flow capacity. The amount authorized and appropriated shall come from local revenues. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at fiscal year end.

(1) Mega Capitol Relocation Project $ 1,652,858

(2) Mega PIA Improvement Project 1,129,700

(3) Line of Credit Facility 200,000

Section 11 Total $ 2,982,558

Section 12. Public Service System Reclassification. The sum of $620,440 is hereby authorized to be appropriated and is appropriated for expenditure or obligation for fiscal year 2008 for the purpose of implementing the Public Service System Reclassification pursuant to RPPL No. 7-13(12). The entire amount authorized to be appropriated and is appropriated shall come from local revenues.

Section 13. Social Security Contribution Payment. The sum of $182,000 is hereby authorized to be appropriated and is appropriated for expenditure or obligation for fiscal year 2008 for the purpose of making additional employer social security contribution payments for national government employees. The entire amount authorized to be appropriated shall come from local revenues.

Section 14. Compact Review Fund.
The sum of $800,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2008 for the purpose of conducting review and discussions regarding the Compact of Free Association with the United States. The President shall appoint a Chief Representative of the Republic of Palau for the purpose of Compact review with the United States pursuant to the Constitution. These funds may be obligated or expended only when such position has been filled pursuant to the Constitution. None of these funds shall be reprogrammed or used to pay prior debts. The services purchased with funds appropriated by and for the purposes in this section are exempt from the competitive procurement requirements of Chapter 6 of title 40 of the Palau National Code. Any unexpended or unobligated balance shall not lapse at fiscal year end.

Section 15. Rental Payments to Koror State. There is hereby authorized to be appropriated and is appropriated for fiscal year 2008 the amount of funds necessary for purposes of monthly payments to Koror State for the rent of housing units in accordance with paragraph 18 of the Land Settlement Agreement executed February 3, 1997, to the extent that a like or greater amount is first collected from the Koror State Government for amounts owed to the National Government pursuant to provisions of law that require remittance to the National Treasury of 25% of all revenues derived from leases of public land in Koror; appropriate offsets of the revenues collected and payments made under this section are to be recorded in a separately identified budgetary account.

Section 16. Outside Grants and Development Assistance. All funds received from outside sources, including, but not limited to, U.S. Federal Program Grants, Japan Grant Aid, Republic of China (Taiwan) grants, other countries, organizations, or individual donors, are hereby authorized to be appropriated and are appropriated for fiscal year 2008 in the amounts received for those specific programs or projects for which they are granted, donated, or otherwise contributed. U.S. Federal Program Grants cost recoveries associated with such program grants may be retained for use by the President for such purposes as are needed to implement such programs or projects for which they were granted. The Minister of Finance shall report monthly to the Olbiil Era Kelulau the receipt of any outside grant or development assistance in the proceeding month. In addition to all other reporting requirements established by law or regulation, the Minister of Finance shall submit quarterly reports to the President and the Olbiil Era Kelulau setting forth expenditures and obligations of all funds received from outside sources and expended or obligated pursuant to this section.

Section 17. Apportionment and Allottment. Unless otherwise stated in this Act, amounts appropriated in this Act shall be apportioned and allotted at the direction of the President.

Section 18. Presidential Reprogramming. The sums appropriated under sections 2, 3, 7 and 8 of this Act may be reprogrammed by the President in accordance with RPPL No. 6-11.

Section 19. Land Fill Operations Fund.
(a) The Ministry of Resources and Development is hereby authorized to promulgate regulations to provide for the charging of fees for services provided at land fill operations throughout the Republic.

(b) The Minister of Finance shall create within the National Treasury a special revolving fund to be identified as "The Land Fill Operations Fund", which shall be segregated from other funds of the National Government and into which shall be deposited all fees collected from the services provided at land fill operations throughout the Republic. All monies received pursuant to this section are hereby authorized and appropriated to be used at the direction of the Minister of Resources and Development exclusively for the management and operation of land fills throughout the Republic. Any unexpended or unobligated balance of the fund shall not lapse at fiscal year end.

Section 20. Amendment. 40 PNC § 1401 is hereby amended to read as follows:

"§1401. Hotel Room Tax.

(a) An excise tax is hereby levied which shall be assessed and collected monthly, against guests of a room or rooms in a hotel, lodging house or similar facility with twenty-one (21) rooms or more, located in the Republic, of ten percent (10%) of the net room charge for such accommodation, or $10.00 per room per night, whichever is greater. For facilities with twenty (20) rooms or less, an excise tax is hereby levied of ten percent (10%) of the net room charge for such accommodation, or $5.00 per room per night, whichever is greater. Every hotelkeeper doing business located in the Republic shall pay to the Director on or before the fifteenth day of each month, all hotel room taxes collected under this section. This tax will be effective on January 1, 2008.

(b) . . . ."

Section 21. Amendment. 40 PNC § 1406 is hereby amended to read as follows:

"§ 1406. Fish export tax.

Every person exporting any species of tuna or any species of billfish in any form whatsoever for commercial purposes shall be assessed a tax of $0.35 per kilogram of such tuna or billfish so exported. The Minister of Finance shall promulgate such regulations and inspection procedures as are necessary to ensure the proper collection of this tax. This tax will be effective on January 1, 2008."

Section 22. Amendment. RPPL 7-25 § 28 is hereby amended to read as follows:

"Section 28a. Pacific Savings Bank Investigation. The sum of $200,000....closing of Pacific Savings Bank, Ltd. Any unexpended or unobligated balance of the appropriation of this Section shall not lapse at fiscal year end. ...."

Section 23. Amendment. RPPL 7-34 §§ 3 and 4 are hereby amended to read as follows:

"Section 3. Appropriation. The sum of $180,000 is hereby authorized for appropriation and is appropriated for expenditure and obligation for Fiscal Year 2007 for the purposes of repairing and renovating 8 classrooms at Palau High School that were damaged as a result of fire. The total amount shall come from the Compact Section 213 Investment Account or local revenue at the discretion of the Minister of Finance. Any unexpended or unobligated balance of the appropriation of this Section shall not lapse at fiscal year end."

"Section 4. Appropriation. The sum of $160,000 is hereby authorized for appropriation and is appropriated for expenditure and obligation for Fiscal Year 2007 for the purpose of renovating the Food Services Building into a multi-purpose student lounge to be used for the student tutoring program serving lunches and other student activities. The total amount shall come from the compact Section 213 Investment Account or local revenue at the discretion of the Minister of Finance. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at fiscal year end."

Section 24. Amendment. Section 2206 of Title 40 of the Palau National Code is hereby amended as follows:

"§ 2206. Reporting; failure to report.

The Bureau of National Treasury shall submit a financial report to the Olbiil Era Kelulau detailing the amount of funding made upon disbursement of block grants to recipients thereof, and each State Government receiving funds in the form of block grants shall submit within 30 days of the date each funded project is completed a financial report to the Olbiil Era Kelulau and Minister of Administration detailing how the funds were spent. A State Government may use its discretion to determine appropriate expenditures out of its block grant for salaries, wages, capital improvement projects, and community programs. If the report is not submitted, the National Treasury may not disburse and the state government may not receive any further allotment of any block grant appropriation from the National Government."

Section 25. 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: December 01, 2007
Approved this 1st day of Dec. , 2007.
/s/
Tommy E. Remengesau, Jr.
President, Republic of Palau