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FY 2011 Budget Act, RPPL 8-18 2010

PALAU

EIGHTH OLBIIL ERA KELULAU
RPPL NO. 8-18
Tenth Special Session, June 2010 (Intro. As House Bill No. 8-88-10S, HD3, SD3, CD1, PD1)

AN ACT

To authorize the sum of $56,776,000 and appropriate the sum of $54,631,000 from the National Treasury for the annual general operating, special revenue, COFA Review, and debt service budget of the Republic of Palau for the fiscal year ending September 30, 2011 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 2011 Annual National Budget Authorization and Appropriation Act."

Section 2. Executive Branch Operations. The sum of $33,454,000 is authorized for appropriation and the sum of $31,409,000 is hereby appropriated for expenditure and obligation for Fiscal Year 2011 for the purpose of covering the operational and contingent expenses of the Executive Branch. The total amount authorized to be appropriated and hereby appropriated shall be made up of the following available revenue sources: The amount of $13,409,000 shall come from local revenues and the amount of $18,000,000 from the investment earnings from the fund created pursuant to Section 211(f) of the Compact of Free Association and direct assistance to Palau under the Compact of Free Association. The total authorized for appropriation and hereby appropriated shall be allocated according to the following schedule, respectively:

Authorized Appropriated

(1) Office of the President

(a) President's Office $679,000 $629,000

(b) Official Expense 34,000 34,000

(c) Grants Coordinator Office 76,000 76,000

(d) Council of Chiefs 110,000 110,000

Sub-Total $899,000 $849,000

(2) Office of the Vice-President

(a) Vice President's Office $243,000 $243,000

(b) National Emergency Management Office 87,000 87,000

Sub-Total $330,000 $330,000

(3) Ministry of Finance

(a) Office of the Minister 0 0

(b) Information System Supplies Services $170,000 $170,000

(c) Bureau of National Treasury 631,000 631,000

(d) Bureau of Budget & Planning 194,000 194,000

(e) Bureau of Public Service System 97,000 97,000

(f) Workmen's Compensation 40,000 40,000

(g) Bureau of Revenue, Customs & Taxation 1,095,000 1,095,000

Sub-Total $2,227,000 $2,227,000

(4) Ministry of State

(a) Office of the Minister $58,000 $58,000

(b) ROP Consulate Office in Guam 81,000 78,000

(c) ROP Embassy in Wash., D.C. 315,000 302,000

(d) ROP Embassy Tokyo, Japan 388,000 372,000

(e) ROP Embassy in Taipei, Taiwan 90,000 86,000

(f) ROP Consulate Office in Saipan, CNMI 0 0

(g) ROP Embassy in Manila, Philippines 136,000 131,000

(h) United Nation Representation Office 223,000 214,000

(I) Office of the Public Defender 142,000 136,000

(j) Bureau of Asia and Pacific Affairs 87,000 84,000

(k) Bureau of United Nation & the America Affairs 78,000 75,000

(l) Bureau of EU, Mid East, Africa & Other States 58,000 56,000

(m) Bureau of Int'l Trade and Technical Assistance 53,000 51,000

(n) Bureau of Domestic Affairs 280,000 269,000

(o) International Organizations Obligations 250,000 250,000

(p) European Union Representation 25,000 25,000

(q) Passport Office 35,000 34,000

Sub-Total $2,299,000 $2,221,000

The President of the Republic is hereby authorized to reprogram funds in section 2(4) of this Act as necessary pursuant to Executive Order No. 284 that re-organized the Bureaus within the Ministry of State.

(5) Ministry of Community & Cultural Affairs

(a) Office of the Minister $58,000 $58,000

(b) Bureau of National Archive 59,000 59,000

(c) Bureau of Youth, Sport & Recreation 135,000 135,000

(d) Bureau of Aging & Gender 227,000 218,000

(e) Sports Facilities Maintenance & Utilities 83,000 83,000

(f) Bureau of Arts & Culture 156,000 150,000

Of this amount no more than $25,000 shall be used for Olchotel Belau Fair in calendar year 2011.

(g) Palau Severely Disabled Assistance Fund 211,000 202,000

Of this amount, $18,000 shall be used to cover the administrative costs associated with the implementation of this fund.

Sub-Total $929,000 $905,000

(6) Ministry of Education

(a) Office of the Minister $58,000 $58,000

(b) School Books, Supplies & Instrument Equipments 291,000 291,000

(c) Bureau of Curriculum & Instructions 372,000 372,000

(d) Bureau of School Administration 5,032,000 5,032,000

(e) Food Service Program 600,000 600,000

From this amount, the Ministry of Education shall, to the maximum extent possible, arrange to provide free lunches to all public school students. Upon request the Ministry shall accommodate those elementary schools that choose to prepare their own student's lunches.

Sub-Total $6,353,000 $6,353,000

(7) Ministry of Public Infrastructure, Industries and Commerce

(a) Office of the Minister $58,000 $58,000

(b) OMIP, UNDP, & Other Match 500,000 500,000

(c) PALARIS 126,000 121,000

(d) Bureau of Commercial Development 218,000 209,000

(e) Palau Small Business Development(UOG) 30,000 30,000

(f) Pacific Business Center Program (UH) 20,000 20,000

(g) Bureau of Aviation 1,103,000 739,000

(h) Bureau of Lands and Survey 791,000 759,000

(I) Bureau of Public Works 1,418,000 1,361,000

(j) Water & Sewer Operation 2,328,000 2,000,000

(k) Melekeok/Capitol Sewer System 87,000 83,000

(1) Landfill Operations 44,000 42,000

(m) National Capitol Electricity/Maintenance 631,000 606,000

(o) CIP Office Operations 32,000 31,000

(p) Rural Sanitation Project 139,000 133,000

(q) Matching Funds for Infrastructure Maintenance 600,000 0

Sub-Total $8,125,000 $6,692,000

(8) Ministry of Justice

(a) Office of the Minister $58,000 $58,000

(b) Office of the Attorney General 471,000 452,000

(c) Bureau of Immigration 255,000 245,000

(d) Bureau of Public Safety 2,361,000 2,267,000

(e) Division of Marine Law Enforcement 679,000 652,000

Sub-Total $3,824,000 $3,674,000

(9) Ministry of Health

(a) Office of the Minister $58,000 $58,000

(b) Bureau of Public Health 1,109,000 1,109,000

(c) Health Services Admin. & Support Services 1,912,000 1,912,000

Health Administration (1,727,000) (1,727,000)

Manila Medical Referral (80,000) (80,000)

Hawaii Medical Referral (105,000) (105,000)

(d) Medical Supplies & Drugs 600,000 600,000

(e) Medical Referrals 540,000 540,000

Thirty-five percent (35%) of the authorized and appropriated funds for this budget activity shall be earmarked for the purpose of meeting the national government's obligation under RPPL 8-14 (the new Health Insurance law).

(f) Bureau of Clinical Services 2,554,000 2,554,000

(g) Hemodialysis 520,000 520,000

Sub-Total $7,293,000 $6,993,000

(10) Ministry of Natural Resources, Environment & Tourism

(a) Office of the Minister $58,000 $58,000

(b) Protected Areas Network 0 0

(c) Bureau of Marine Resources 490,000 490,000

(d) Bureau of Agriculture 372,000 372,000

(e) Bureau of Labor & Human Resources 255,000 245,000

Sub-Total $1,175,000 $1,165,000

The President of the Republic is hereby authorized to reprogram funds in section 2(10) of this Act as necessary pursuant to Executive Order No. 283 that reorganized the Bureaus within the Ministry of Natural Resources, Environment & Tourism.
Section 2 Total $33,454,000 $31,409,000

Notwithstanding any other provision of existing law, retroactive to Fiscal Year 2010, the President may reprogram funds from one budget activity to another within the Executive Branch budget.

Section 3. Boards, Commissions, and Authorities. The sum of $788,000 is authorized for appropriation and is hereby appropriated for expenditure and obligation for Fiscal Year 2011 for the purpose of funding 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:

Authorized Appropriated

(1) Foreign Investment Board $78,400 $78,000

(2) Palau Election Commission 165,000 165,000

(3) Palau Code Commission 41,000 41,000

(4) Palau Public Lands Authority 136,000 136,000

(5) Parole Board 24,000 24,000

(6) Palau Housing Authority 64,000 64,000

(7) Ethics Commission 39,000 39,000

(8) Financial Institutions Commission 82,000 82,000

Of this amount, $50,000 shall be earmarked to fund the Financial Intelligence Unit.

(9) Ngardmau Free Trade Zone Authority 115,000 115,000

Of this amount, $100,000 shall be earmarked for the purpose of conducting a feasibility study for the development of Ngardmau Port. These funds shall be disbursed in accordance with the applicable laws of the Republic.

(10) Language Commission 44,000 44,000

Section 3 Total $788,000 $788,000

Section 4. Judicial Branch. The sum of $2,175,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2011 for the purpose of covering the operational and contingent expenses of the Judicial Branch. The total amount authorized to be appropriated and appropriated shall come from local revenues. The total authorization and total appropriation shall be allocated according to the following schedule, respectively:

(1) Judiciary $2,175,000

Section 4 Total $2,175,000

Section 5. Legislative Branch. The sum of $3,720,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2011 for the purpose of covering the operational and contingent expenses of the Legislative Branch. The total amount authorized to be appropriated and appropriated shall come from local revenues. The total authorization and appropriation shall be allocated according to the following schedule:

(1) Senate $1,514,000

(2) Senate Legal Staff 160,000

(3) House of Delegates 1,682,000

(4) House Legal Staff 160,000

(5) Joint Staff 194,000

(6) APPU/IPU Membership 0

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

Section 5 Total $3,720,000

Section 6. State Block Grants. The sum of $4,322,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2011 for the purpose of State Governments' operational and capital improvement projects expenses. The entire amount of funds authorized to be appropriated and appropriated shall come from local revenues and other revenue sources. 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 $242,000

(2) Airai State 387,000

(3) Angaur State 209,000

(4) Hatohobei State 149,000

(5) Kayangel State 186,000

(6) Koror State 780,000

(7) Melekeok State 232,000

(8) Ngaraard State 273,000

(9) Ngarchelong State 273,000

(10) Ngardmau State 227,000

(11) Ngaremlengui State 235,000

Of this sum, $5,000 shall be earmarked for the expenses and costs incurred by the Ngaremlengui State Public Land Authority.

(12) Ngatpang State 222,000

(13) Ngchesar State 242,000

(14) Ngiwal State 227,000

(15) Peleliu State 289,000

(16) Sonsorol State 149,000

Section 6 Total $4,322,000

Section 7. Multipurpose Building in Ngaraard. Forty thousand dollars ($40,000) is hereby authorized and appropriated for the purpose of the completion of the Multipurpose Building in Ngaraard that was previously funded by the National Government. The funds shall be allotted to the appropriate Ngaraard State Authority. The total amount authorized and appropriated shall come from local revenue.

Section 8. Independent Agencies. The sum of $1,954,000 is authorized for appropriation and is hereby appropriated for expenditure or obligation for Fiscal Year 2011 as operating grants or subsidies for independent agencies of the National Government. The total amount authorized to be appropriated and appropriated shall come from local revenues. The amounts authorized and appropriated in this section shall not be subject to reprogramming or reallocation. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

Authorized Appropriated

(1) Office of the Public Auditor $340,000 $340,000

(2) Office of the Special Prosecutor 218,000 218,000

(3) Palau Env. Quality Protection Board (EQPB) 398,000 398,000

(4) National Postal Service 267,000 267,000

(5) Palau Visitors Authority 605,000 605,000

(6) National Aviation Administration 126,000 126,000

Section 8 Total $1,954,000 $1,954,000

Section 9. Other Agencies and Activities. The sum of $1,521,000 is authorized for appropriation and the sum of $1,421,000 is hereby appropriated for expenditure or obligation for Fiscal Year 2011 as grants or subsidies for recurring programs and activities. The total amount authorized to be appropriated and appropriated shall come from local revenues. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

Authorized Appropriated

(1) Palau National Museum $161,000 $161,000

(2) Micronesian Legal Services 125,000 125,000

(3) Head Start Program 101,000 101,000

(4) Palau Red Cross 10,000 10,000

(5) WIA Grant Contribution 97,000 97,000

(6) Civic Action Team Share 250,000 250,000

(7) Peace Corps Contribution 25,000 25,000

(8) PNOC & Sports Organization 165,000 1 65,000

(9) Palau International Coral Reef Center 372,000 372,000

(10) Palau Community Action Agency 215,000 115,000

Section 9 Total $1,521,000 $1,421,000

Section 10. Education Assistance. The sum of $4,014,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2011 to subsidize the educational institutions and scholarship program set forth below. The total amount authorized to be appropriated and appropriated shall come from local revenues. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

(1) Palau Community College $2,137,000

(a) PCC Operations (2,039,000)

(b) PCC Board of Trustees (38,000)

(c) PCC CRE Match (35,000)

(d) COM Board of Regents (25,000)

(2) Aid to Non-Public Schools 607,000

(a) Emmaus High School (51,000)

(b) Bethania High School (68,000)

(c) Palau Mission Academy (52,000)

(d) Mindszenty High School (161,000)

(e) Ibobang High School (75,000)

(f) Maris Stella School (89,000)

(g) Koror SDA Elementary School (82,000)

(h) Emmaus Kindergarten (15,000)

(I) SDA Kindergarten (7,000)

(j) Catholic Kindergarten (7,000)

(3) National Scholarship Fund 1,270,000

(a) Spring Semester scholarships & grants (600,000)

(b) Fall Semester scholarships & grants (600,000)

(c) Administrative Expenses (70,000)

Section 10 Total 4,014,000

Section 11. Hospital Trust Fund. The amount of $1,700,000 or the actual amount collected is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2011 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 the fiscal year's end.

Section 12. Debt Service. The sum of $2,713,000 is authorized for appropriation and is hereby appropriated for Fiscal Year 2011 for the purpose of the payment of periodic interest and principal payments pursuant to the promissory notes under the $20 million International Commercial Bank of China "ICBC") (Taiwan) loan agreement for the purpose of completion of Phase II of the national capitol construction project in Melekeok State; and the $8 million Mega International loan agreement for the purpose of undertaking various improvements to the Palau International Airport. The amount authorized to be appropriated and appropriated shall come from local revenues. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at the fiscal year's end, and the total authorization and appropriation amount shall be allocated to the following schedule:

Authorized Appropriated

(1) ICBC Capitol Relocation Project $1,613,000 $1,613,000

(2) ICBC PIA Debt Service 1,100,000 1,100,000

Section 12 Total $2,713,000 $2,713,000

Section 13. Compact Review Office. The sum of $150,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2011 for the purpose of undertaking Compact of Free Association review and its associated activities. 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. The entire amount authorized to be appropriated and appropriated shall come from local revenues.

Section 14. Outside Grants and Development Assistance. All external funds received from development partners and donors, including, but not limited to, the 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 hereby are appropriated for Fiscal Year 2011 in the amounts received for those specific programs or projects for which they are granted, donated, or otherwise contributed. U.S. Federal Program and other external grants cost recoveries associated with such program grants may be retained for use by the Minister of Finance for such purposes as are needed to implement such programs or projects for which they were granted; and 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 shall report monthly to the Olbiil Era Kelulau the receipt of any outside grant or development assistance in the proceeding month.

Section 15. Repeal and Reconciliation. The last clause of Section 217 of Title 35 of the Palau National Code, that requiring one-fourth of all revenues derived by a state land authority's administration of public lands inure to the National Treasury, is hereby repealed retroactive to January 1, 2009. The Koror State Government and its land authority forthwith shall meet with the National Government and shall reconcile the amounts each owe to the other: as of January 1, 2009 with respect to the debts of Koror State the National Government; and as of September 30, 2009 with respect to the debts of the National Government to Koror State. In consideration of the repeal of the provision requiring Koror State to pay the National Government one-fourth of all revenues derived by its land authority's administration of public lands, the Koror State Government and its land authority shall reasonably accommodate, free of charge, the needs of the National Government to utilize public buildings and public lands in Koror State.

Section 16. 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 17. Presidential Reprogramming. Except as otherwise provided herein, the sums appropriated under sections 2, 3, and 8 of this Act may be reprogrammed by the President in accordance with 44 PNC §351.

Section 18. Amendment. 24 PNC § 3422 is hereby amended to read as follows:

"§ 3422. Protected Areas Network Fund ("PANF"); creation; relationship; and funds.

(a) . . .

. . .

(c) The funds administered, managed, and invested by the PANF as the financial Trustee Corporation to the Pan shall consist of:

(1) Funds from the environmental protection fee as donated by the national government to be used for the general operation of the PAN. The PANF shall place five percent (5%) received from the environmental protection fee and any unallocated funds remaining at the end of each Fiscal Year in the Micronesia Conservation Trust Endowment for PANF's exclusive use at a later time, pursuant to the guidelines of the Micronesia Conservation Trust.

. . ."

Section 19. Amendment. Protected Area Network Bridge Funds. Section 3413(e) of Title 40 of the Palau National Code is hereby amended as follows:

"(e) Because the PANF Board is not yet fully established and cannot yet legally disburse funds collected from the Environmental Protection Fee ("Green Fee") to conservation sites that have met all legal requirements, the funds collected through the Green Fee are hereby authorized and appropriated for fiscal year 2011 as follows:

(A) The amount of $200,000 is to be authorized and appropriated to several states and/or sites for institutional capacity and development. These funds shall not lapse at the end of the fiscal year. This amount is to be divided as follows:

(1) $50,000 to Ngarchelong State for start-up costs involved in implementing the Ebiil PAN site and Northern Reefs management plans;

(2) $50,000 to Ngiwal State for developing PAN site regulations, awareness and completion of the management plan, of which $15,000 is for legal assistance to Kelulul a Kiuluul and building its capacity to undertake policy decisions relating to PAN;

(3) $50,000 to Melekeok State for institutional building as well as refining and implementation of the Lake Ngardok PAN site management plan; and

(4) $50,000 to Hatohobei State for Helen Atoll.

(B) The amount of $25,000 is authorized and appropriated to the Belau National Museum for it to develop, with partners, protocols for bird monitoring for PAN sites.

Section 20. 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: September 28, 2010

Approved this 30th day of September , 2010.
/s/
Johnson Toribiong
President
Republic of Palau