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FY 2009 Budget Act, RPPL 8-2 2009

PALAU

RPPL NO. 8- 2
(Intro. As H. B. No. 8-17-1S, HD4, SD4, CD1)

AN ACT

To authorize and to appropriate the sum of $58,350,987 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, 2009 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 AThe 2009 Annual National Budget Authorization and Appropriation Act.@

Section 2. Executive Branch Operations. The sum of $33,490,136 is hereby authorized for appropriation and is appropriated for expenditure and obligation for fiscal year 2009 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 $21,650,136 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) 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) Presidential Stipend 6,350

(d) Grants Coordinator Office 68,634

(d) Council of Chiefs 125,000

Sub-Total $ 879,825

(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/Administration

(a) Minister of Finance/Administration 13,500

(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 $ 2,176,703

(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

(l) 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 28

(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

Sub-Total $ 955,893

(6) Ministry of Education

(a) Office of the Minister 38,793

(b) 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 Infrastructure, Industry and Commerce

(a) Office of the Minister 38,793

(b) Airport Operations 1,247,354

(c) Bureau of Commercial Development 253,649

(d) Palau Small Business Development Center 29,841

(e) Pacific Business Center Program 20,000

(f) PALARIS Office 144,232

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

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

(i) Rural Sanitation Project 159,152

(j) CIP Office Operation 149,205

(k) Bureau of Lands & Survey 910,000

(1) OMIP & Other Grant Match 99,470

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

(n) Landfill Operations/Solid Waste 49,735

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

(p) Bridge & Road Maintenance 300,000

Sub-Total $ 7,961,133

(8) Ministry of Justice

(a) Office of the Minister 27,793

(b) Office of the Attorney General 519,233

(c) Bureau of Immigration 292,442

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

(e) Patrol Boat Operations 763,970

Sub-Total $ 4,108,093

(9) Ministry of Health

(a) Office of the Minister 38,793

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

(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 Natural Resources, Environment, and Tourism

(a) Office of the Minister 38,793

(b) Bureau of Agriculture 412,801

(c) Bureau of Marine Resources 512,271

(d) Bureau of Labor and Human Resources 298,410

(e) Protected Areas Network (PAN) 49,735

Sub-Total $ 1,312,010

Section 2 Total $ 33,490,136

Section 3. Boards, Commissions. and Authorities. The sum of $757,074 is authorized and is appropriated for expenditure and obligation for fiscal year 2009 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

Of this amount, $52,000 shall be earmarked to fund the Financial Intelligence Unit established pursuant to Section 15 of RPPL No. 6-4, as amended by Section 16 of RPPL No. 7-39, and moved to the Financial Institutions Commission pursuant to Executive Order No. 246.

(9) Ngardmau Free Trade Zone Authority 20,000

Section 3 Total $ 757,074

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 2009 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 $3,983,000 is hereby authorized to be appropriated and is appropriated for expenditure or obligation for fiscal year 2009 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 $2,983,000 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 1,600,000

(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 $ 3,983,000

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 2009 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 40 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

(3) Angaur State 232,625

(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 2009 as operating grants or subsidies for independent agencies 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:

(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 $1,633,538 is authorized for appropriation and is appropriated for expenditure or obligation for fiscal year 2009 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 $633,538 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 246,532

(4) Palau Headstart Program 115,000

(5) WIA Grant Contribution 99,470

(6) Civic Action Team Share 250,000

(7) Peace Corps Contribution 25,000

(8) Palau International Coral Reef Center 425,000

(9) Palau Nat=l Olympic Comm. & Sports Organizations 149,205

(10) Palau Red Cross 10,000

Section 8 Total $ 1,633,538

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 2009 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 $2,226,550 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

(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 2009 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 $2,782,558, plus any sum necessary for related banking fees and interest charges is hereby authorized to be appropriated and is appropriated for fiscal year 2009 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. (AMega@) 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

Section 11 Total $ 2,782,558

Section 12. Low-Income Household Assistance. To authorize and appropriate the sum of $46,000 to conduct a household income survey to determine the feasibility of providing assistance to low income families in the Republic of Palau. The source of funding shall come from local revenue. The survey shall include, but not be limited to, the following:

(1) A definition of "low income," which shall he based on both household income and the number [sic] members of that household.

(2) A determination of the minimum income necessary to cover the current cost of living in the Republic of Palau.

(3) A determination of the cost of operating a low-income assistance program that ensures that eligible individuals are able to meet their financial and material needs.

Section 13. Compact Review Fund. The sum of $500,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2009 for the purpose of conducting review and discussions regarding the Compact of Free Association with the United States. 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. The source of funding shall come from local revenue.

Section 14. Rental Payments to Koror State. There is hereby authorized to be appropriated and is appropriated for fiscal year 2009 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 15. PPUC Subsidy.
(a) $945,987 of the remaining balance of the subsidy transferred to PPUC pursuant to RPPL No. 7-47 shall revert back to the National Treasury and be deemed a source of local revenue to be authorized and appropriated pursuant to law.

(b) The remainder of the subsidy transferred to PPUC pursuant to RPPL No. 7-47 shall remain with PPUC and not be expended for any purpose, including electricity rate subsidies authorized by RPPL No. 7-47, until the following has occurred:

(1) PPUC and the Minister of Finance have determined and agreed to the amount owed by the National Government to PPUC for electricity;

(2) The PPUC Task Force, formed pursuant to Executive Order No. 253, has submitted its report to the Olbiil Era Kelulau as required by that Executive Order; and

(3) The Olbiil Era Kelulau has enacted legislation authorizing the transfer and expenditure of the funds.

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 for Fiscal Year 2009, are hereby authorized to be appropriated and are appropriated in the amounts received for those specific programs or projects for which they are granted, donated, or otherwise contributed, provided, however, that where a grant is received without a formula for its distribution it shall be disbursed pursuant to Article XII Section 5 of the Constitution. The Minister of Finance/Administration shall report monthly to the Olbiil Era Kelulau the receipt of any outside grant or development assistance in the preceding month. In addition to all other reporting requirements established by law or regulation, the Minister of Finance/Administration 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 Allotment. 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. 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: March 18, 2009

Approved this 27th , day of March , 2009.

/s/
HE Johnson Toribiong, President
Republic of Palau