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Fiscal Year 2013 Budget Act, RPPL No. 9-05 2013

PALAU

AN ACT

To enact a budget law for Fiscal Year 2013 through the authorization and appropriation of the sum of $65,050,600 from the National Treasury for the annual general operations, special revenue, and debt service budget of the Republic of Palau for the fiscal year ending September 30, 2013, and for related purposes.

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

Section 1. Short Title.
This Act shall be known as and may be cited as, “The Fiscal Year 2013 Budget Act.”

Section 2. Executive Branch Operations. The sum of $37,522,500 is authorized for appropriation and is hereby appropriated for expenditure and obligation for Fiscal Year 2013 for the purpose of covering the operational and contingent expenses of the Executive Branch. The total amount authorized to be appropriated shall be made up of the following available revenues: The amount of $15,838,500 shall come from local revenues; the amount of $13,147,000 shall come from the USDOI-OIA fiscal year 2013 grant assistance provided to Palau; the amount of $1,300,000 from the 50% allocation of the “Green Fee” for water and sewer system improvements, which shall be applied to subsections (7)(k) and (7)(l); the amount of up to $2,237,000 from Tranche 2 of the ADB Program Loan for Water Sector Improvement Project, which shall be applied to subsection (7)(k); and the amount of $5,000,000 shall come from Compact Section 211(f) Trust Fund Investment Account. The total amount authorized for appropriation and that is hereby appropriated in this section shall be allocated according to the following schedule, respectively:

(1) Office of the President

(a) President’s Office 840,000

(b) Official Expenses 30,000

(c) Grants Coordinator Office 73,000

(d) Council of Chiefs 103,000

(e) Presidential Stipend 33,000

Sub-Total $1,079,000

(2) Office of the Vice-President

(a) Vice President’s Office 250,000

(b) National Emergency Management Office 120,000

Sub-Total $370,000

(3) Ministry of Finance

(a) Office of the Minister 30,000

(b) Information Systems Support Services 187,000

(c) Bureau of National Treasury 737,000

(d) Bureau of Budget and Planning 235,000

(e) Bureau of Public Service System 129,000

(f) Workmen’s Compensation 37,000

(g) Bureau of Revenue, Customs & Taxation 1,333,000

Sub-Total $2,688,000

(4) Ministry of State

(a) Office of the Minister 15,000

(b) ROP Consulate Office in Guam 87,000

(c) ROP Consulate Office in Saipan 15,000

(d) ROP Embassy in Washington, D.C. 270,000

(e) ROP Embassy in Tokyo, Japan 350,000

(f) ROP Embassy in Taipei, Taiwan 79,000

(g) ROP Embassy in Manila, Philippines 100,000

(h) United Nations Representation Office 197,000

(I) Office of the Public Defender 190,000

(j) Bureau of Trade & Foreign Affairs 388,000

(k) Bureau of Domestic Affairs 268,000

(l) Passport Office 50,000

(m) International Organizations Obligations 250,000

(n) Southwest Islands Field Trips 75,000

The sum of $75,000 shall be apportioned and allotted at the direction of the Ministry of State in cooperation with the governors of Sonsorol State and Hatohobei State. Government agencies participating in the Southwest Islands Field Trips shall contribute funds to assist in covering the cost at the direction of the Ministry of State. Funds for this appropriation not fully expended in Fiscal Year 2013 shall be non-lapsing.

Sub-Total $2,334,000

(5) Ministry of Community & Cultural Affairs

(a) Office of the Minister 55,500

(b) Bureau of National Archive 75,000

(c) Bureau of Youth, Sports & Recreation 166,000

(d) Bureau of Aging & Gender 215,000

(e) Sports Facilities Maintenance & Utilities 85,000

(f) Bureau of Arts & Culture 135,000

(g) Olchotel Belau Fair 20,000

(h) Palau Severely Disabled Assistance Fund 225,000

Sub-Total $976,500

(6) Ministry of Education

(a) Office of the Minister 45,000

(b) School Books, Supplies & Inst. Equip. 300,000

(c) Bureau of Curriculum & Instruction 383,000

(d) Bureau of School Administration 5,600,000

(e) Food Service Program 700,000

Sub-Total $7,028,000

(7) Ministry of Public Infrastructure, Industries and Commerce

(a) Office of the Minister 45,000

(b) OMIP, UNDP & Other Match 415,000

(c) PALARIS 119,000

(d) Bureau of Commercial Development 208,000

Of the funds for the Bureau of Commercial Development, $15,000 is appropriated and authorized to operate the Palau Ship Registry Administration.

(e) Palau Small Business Development (UOG) 39,000

(f) Pacific Business Center Program (UH) 9,000

(g) Bureau of Aviation 1,500,000

(I) Bureau of Lands and Survey 800,000

(j) Bureau of Public Works 1,200,000

(k) Water & Sewer Operations 3,515,000

(l) Melekeok/Capitol Sewer System 222,000

(m) Landfill Operations 35,000

(n) National Capitol Electricity/Maintenance 1,266,000

(o) CIP Office Operations 29,000

(p) Rural Sanitation Project 100,000

Sub-Total $9,502,000

(8) Ministry of Justice

(a) Office of the Minister 20,000

(b) Office of the Attorney General 400,000

(c) Bureau of Immigration 326,000

(d) Bureau of Public Safety 2,500,000

(e) Bureau of Marine Law Enforcement 625,000

Sub-Total $3,871,000

(9) Ministry of Health

(a) Office of the Minister 55,500

(b) Bureau of Public Health 1,046,000

(c) Health Administration 2,595,000

(d) Manila Medical Referral 97,000

(e) Hawaii Medical Referral 105,000

(f) Medical Supplies & Drugs 600,000

(g) Hemodialysis 515,000

(h) Hyperbaric Chamber 72,000

(i) Medical Referrals 300,000

(j) Bureau of Clinical Services 3,056,000

Sub-Total $8,441,500

(10) Ministry of Natural Resources, Environment & Tourism

(a) Office of the Minister 55,500

(b) Bureau of Marine Resources 527,000 Of these funds, $10,000 shall be earmarked for the operation of the Office of Oceanic and Fisheries Management.

(c) Bureau of Agriculture 400,000

(d) Bureau of Labor & Human Resources 250,000

Sub-Total $1,232,500

Section 2 Total $37,522,500

Section 3. Judicial Branch. The sum of $2,200,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2013 for the purpose of covering the operational and contingent expenses of the Judicial Branch. The entire amount of the funds authorized and appropriated in this section shall come from local revenues.

Section 4. Legislative Branch. The sum of $4,170,500 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2013 for the purpose of covering the operational and contingent expenses of the Legislative Branch. The entire amount of funds authorized and appropriated in this section shall come from local revenues. The total authorization and appropriation shall be allocated according to the following schedule:

(1) Senate 1,558,000

(2) Senate Legal Counsel Office 172,000

(3) House of Delegates 1,955,500

(4) House Legal Counsel Office 209,500

(5) Joint Staff 230,000

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

(7) Inter-Parliamentary Union (IPU)/

Asia Pacific Parliamentarians Union (APPU) 35,000

Section 4 Total $4,170,500

Section 5. Boards, Commissions, and Authorities. The sum of $596,000 is authorized for appropriation and is hereby appropriated for expenditure and obligation for Fiscal Year 2013 for the purpose of funding the operational and contingent expenses of Boards, Commissions and Authorities. The entire amount of funds authorized and appropriated in this section 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 63,000

(2) Palau Election Commission 164,000

(3) Palau Code Commission 34,000

(4) Palau Public Lands Authority 100,000

(5) Parole Board 24,000

(6) Palau Housing Authority 59,000

(7) Ethics Commission 33,000

(8) Financial Institutions Commission 76,000

Of the funds for the Financial Institutions Commission, the amount of $50,000 shall be earmarked for the operations of the Financial Investigations Unit (FIU).

(9) Ngardmau Free Trade Zone Authority 18,000

(10) Language Commission 25,000

Section 5 Total $596,000

Section 6. State Block Grants. The sum of $5,163,600 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2013 for the purpose of State Governments’ operational and capital improvement projects expenses. The entire amount of funds authorized to be appropriated and that is hereby appropriated in this section 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 290,000

(2) Airai State 451,750

(3) Angaur State 258,200

Of these funds, the amount of $10,000 shall be earmarked for the eradication of problems associated with monkeys, elub monitor lizards, and other invasive animals in Angaur State; $10,000 shall be earmarked for repair of CIP projects damaged by Typhoon Bopha, e.g. Angaur Dock Waiting House and other dock repairs; $5,500 shall be earmarked for the Angaur School Minibus. The Angaur State legislature shall determine the management of the funds earmarked herein.

(4) Hatohobei State 187,000

(5) Kayangel State 232,600

The amount of $5,000 shall be earmarked for Typhoon Bopha clean up efforts and repair of the Kayangel Ring Road.

(6) Koror State 890,150

(7) Melekeok State 278,900

(8) Ngaraard State 324,550

(9) Ngarchelong State 329,550

The amount of $5,000 shall be earmarked to hire an outside consultant for the implementation of the Northern Reef Conservation Plan in Ngarchelong State.

(10) Ngardmau State 273,250

(11) Ngaremlengui State 282,200

(12) Ngatpang State 267,750

(13) Ngchesar State 290,000

(14) Ngiwal State 273,250

(15) Peleliu State 347,450

The amount of $5,000 shall be earmarked to fund the repair, maintenance and operation of the Peleliu State boats which shall be administered by the Peleliu Marine Transportation Authority (PMTA).

(16) Sonsorol State 187,000

Section 6 Total $5,163,600

Section 7. Independent Agencies. The sum of $1,852,000 is authorized for appropriation and is hereby appropriated for expenditure or obligation for Fiscal Year 2013 as operating grants or subsidies for independent agencies of the National Government. The entire amount of the funds authorized and appropriated in this section shall come from local revenues. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

(1) Office of the Public Auditor 353,000

(2) Office of the Special Prosecutor 80,000

(3) Palau Env. Quality Protection Brd (EQPB) 320,000

(4) National Postal Service 324,000

(5) Palau Visitors Authority 635,000

(6) National Aviation Administration 140,000

Section 7 Total $1,852,000

Section 8. Other Agencies and Activities. The sum of $1,507,000 is authorized for appropriation and is hereby appropriated for expenditure or obligation for Fiscal Year 2013 as grants or subsidies for recurring programs and activities. The entire amount of funds authorized and appropriated in this section shall come from local revenues. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

(1) Palau National Museum 163,000

(2) Micronesian Legal Services 125,000

(3) Palau Community Action Agency 196,000

(4) Head Start Program 93,000

(5) Palau Red Cross 9,000

(6) WIA Grant Contribution 89,000

(7) Civic Action Team Share 250,000

(8) Peace Corps Contribution 25,000

(9) PNOC & Sports Organizations 170,000

(10) Palau International Coral Reef Center 357,000

(11) Youth Congress 5,000

(12) Palau Little League/T-Ball 5,000

(13) Ngarachamayong Cultural Center 20,000

These funds for the Ngarachamayong Cultural Center shall be earmarked

for the 20th Mechesil Belau Conference.

Section 8 Total $1,507,000

Section 9. Education Assistance. The sum of $4,441,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2013 to subsidize the educational institutions and scholarship program set forth below. The total amount authorized to be appropriated and that is hereby appropriated in this section shall come from local revenue. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

(1) Palau Community College 2,338,000

(2) PCC Board of Trustees 38,000

(3) PCC CRE 35,000

(4) COM Board of Regents 25,000

(5) Aid to Non-Public Schools

(a) Emmaus High School 60,000

(b) Bethania High School 75,000

(c) Palau Mission Academy 100,000

(d) Mindszenty High School 175,000

(e) Ibobang High School 100,000

(f) Maris Stella School 95,000

(g) Koror SDA Elementary School 90,000

(h) Emmaus Kindergarten 20,000

(i) SDA Kindergarten 10,000

(j) Catholic Kindergarten 10,000

(6) National Scholarship Fund

(a) Spring Semester scholarships & grants 600,000

(b) Fall Semester scholarships & grants 600,000

(c) Administrative Expenses 70,000

Section 9 Total $4,441,000

Section 10. Hospital Trust Fund. The amount of $2,000,000, or the actual amount collected, is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2013 for purposes of the Hospital Trust Fund. The amount authorized to be appropriated and that is hereby appropriated shall come from the revenues derived from clinical and public health medical and dental services fees and charges during the fiscal year, so long as the actual expenditures or obligations does not exceed actual revenue receipts. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at the end of the fiscal year.

Section 11. PAN Fund. The sum of $3,000,000 or the actual amount collected is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2013 for the purposes of the Protected Areas Network Fund and for the purpose of improving the water and sewer system of the Republic pursuant to and in accordance with Chapter 34 of Title 24 of the Palau National Code, as most recently amended by Republic of Palau Public Law No. 8-40. The amount authorized to be appropriated in this section shall come from local revenues derived from the collection of the environmental protection fee (“Green Fee”) during the fiscal year. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at the end of the fiscal year.

Section 12. Debt Service. The sum of $2,398,000 is authorized for appropriation and that is hereby appropriated for Fiscal Year 2013 for the purpose of 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 $8,000,000 million Mega International loan agreement for the purpose of undertaking various improvements to the Palau International Airport. The amount authorized to be appropriated and that is hereby appropriated in this section shall come from local revenues. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at the end of the fiscal year. The total authorization and appropriation amount shall be allocated to the following schedule:

(1) ICBC Capitol Relocation Project 1,433,000

(2) ICBC PIA Debt Service 965,000

Section 12 Total $2,398,000

Section 13. Compact Review Office. The sum of $300,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2013 for the purpose of undertaking Compact of Free Association review and its associated activities. The entire amount authorized to be appropriated and that is hereby appropriated in this section shall come from local revenues. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at the end of the fiscal year. The services purchased with funds authorized and appropriated for the purposes of the Compact Review and lobbying services in Washington D.C. in connection with the passage of the Compact II shall be exempt from the competitive procurement requirements of Chapter 6 of Title 40 of the Palau National Code because the services related to the Compact Review Office are particularly specialized to securing the ratification of the Compact II in the United States Congress.

Section 14. Cost of Living Allowance (COLA). The sum of $1,300,000 is authorized for appropriation and hereby is appropriated for expenditure for Fiscal Year 2013 for the purpose of paying a $20.00 bi-weekly cost-of-living allowance to every employee to which the Palau Public Service System applies, that those employees who earn $25,000 or more per year shall not receive the cost-of-living-allowance increase. The said sum is to be apportioned and paid at the direction of the Minister of Finance. Notwithstanding any other laws to the contrary, this cost-of-living allowance shall be exempt from deductions for wage and salary taxes, for Palau Pension Plan contributions, for social security taxes, and for the National Medical Savings Fund. The entire amount authorized to be appropriated and appropriated in this section shall come from local revenues.

Section 15. Health Care Fund Contribution. The sum of $100,000 is authorized for appropriation and is hereby appropriated for expenditure in Fiscal Year 2013 for the purpose of paying subscription costs for citizens who are age sixty (60) years old and older and not working, or are disabled and not working pursuant to 41 PNC §952(a), as amended by RPPL No. 8-14. The entire amount authorized to be appropriated and appropriated in this section shall come from local revenues.

Section 16. 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 are appropriated for Fiscal Year 2013 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 (OEK) 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 (OEK) setting forth expenditures and obligations of all funds received from outside sources and expended or obligated pursuant to this section.

Section 17. Authorize the President to pursue all financing options available.
The President is hereby authorized to pursue all reasonable financing options that are available on behalf of the national government with an outside government, agency, or a financial institution in order to enhance the cash flow of the National Treasury and reduce the budget deficit of the Republic.

Section 18. Amendment. To the extent that Section 19 of RPPL No. 8-40, “The Fiscal Year 2012 Annual National Budget Authorization and Appropriation Act,” may have amended the budget law of the Republic, Section 19 of RPPL No. 8-40 is hereby amended—except the amendment set forth in this Section shall not apply to any expenditure that has already taken place under its authority—to state as follows:

“Section 19. Outside Grants and Development Assistance. All external funds received from development partners and donors, including, but not limited to, grants provided to Palau pursuant to or from; the Compact of Free Association, the Compact Review Agreement; other U.S. Federal Program Grants; Japan Grant Aid; Republic of China (Taiwan) grants; and grants from other countries, organizations, or individual donors; are hereby authorized to be appropriated and are hereby appropriated for Fiscal Year 2012 in the amounts received for those specific programs or projects for which they are granted, donated, or otherwise contributed. 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. The Minister of Finance 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 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 19. Amendment. Section 3 of RPPL No. 8-52, as amended by RPPL No. 8-53, is hereby amended as follows:

“Section 3. Authorization and Appropriation. The sum of $10,000,000 is hereby authorized to be appropriated and the sum of $5,000,000 therefrom is hereby appropriated for expenditure and obligation for the purpose of funding the prompt provision of accommodation and support relief to people affected by the catastrophe, for the procurement of goods, equipment and services for emergency repair operations and emergency capital improvement projects, and for any other related disaster relief, including all other emergency operations, purchases and construction, necessitated by the catastrophe. The appropriation shall come from local revenues and funds received pursuant to loan agreements between the Republic of Palau and the Asian Development Bank regarding Asian Development Bank project number 44031. Amounts apportioned and allocated under this Act shall be done at the direction of the President or his designee. Any unexpended or unobligated balances of this appropriation shall lapse at the end of Fiscal Year 2013.”

Section 20. Reprogramming. The President shall have the authority to reprogram funds appropriated in sections 2 and 5 in the Fiscal Year 2013 Budget Act in accordance with 40 PNC § 351.

Section 21. Amendment. 33 PNC § 2043 as amended by RPPL 9-2 is hereby further amended to state as follows:

Ҥ 2043. Death prior to retirement with Survivor Benefit.

(a) . . .

(b) If the Member is an Employee at his or her date of death and a spouse or beneficiary survives, the death benefits payable shall begin as soon as is administratively practical after the date of the death of the Member. The total death benefit payable under the foregoing sentence shall be the Actuarial Equivalent of the Members Present Value of Accrued Benefit. This subsection shall apply only to members who die after the effective date of this Act.

(c) Any Member or Former Member may elect to designate a beneficiary or beneficiaries to receive any survivor benefits under this Plan.  Such election shall be in writing and on such form as the Administrator, may require.  Such Member or Former Member may also elect, in his or her sole discretion, on forms provided by the Administrator, to have the total death benefit paid in one of the following optional forms of death benefit distribution:

(1) the Actuarial Equivalent of the death benefit shall be paid in the form of a monthly annuity for the life of such beneficiary, or

(2) to the extent available, the Actuarial Equivalent of one and one-half (1- 1/2) times the deceased’s Average Annual Salary shall first be used to provide the surviving beneficiary with a monthly annuity for life.  Any remainder shall be paid to the surviving beneficiary in the form of a single lump sum, or

(3)  to the extent available, the Actuarial Equivalent of one and one-half (1- 1/2) times the deceased’s Average Annual Salary shall first be used to provide a surviving beneficiary with a monthly annuity for life.  If the beneficiary designated to receive this annuity does not survive, the Actuarial Equivalent of the benefit such beneficiary would otherwise receive shall be paid in the form of an annuity or annuities to the surviving beneficiary or beneficiaries to be shared in accordance with the last sentence of the paragraph next following.  Any remainder of the Actuarial Equivalent shall be paid in the form of a single lump sum to the surviving beneficiary or beneficiaries designated by the Member pursuant to his or her election.  The number of such designated beneficiaries shall be limited to three (3).  If more than one (1) named beneficiary designated in the next preceding sentence to receive benefits survives, the Actuarial Equivalent of each such beneficiaries’ benefit shall be equal to the Actuarial Equivalent of the total benefit payable such beneficiaries divided by the number of surviving beneficiaries, or;

(4)  the Actuarial Equivalent of the benefit shall be paid in the form of a single lump sum to the surviving beneficiary or beneficiaries designated by the Member pursuant to his or her election.  The number of such designated beneficiaries shall be limited to three (3).  If more than one (1) named beneficiary designated in the next preceding sentence to receive survives, the Actuarial Equivalent of each such beneficiaries’ benefit shall be equal to the Actuarial Equivalent of the total benefit payable such beneficiaries divided by the number of surviving beneficiaries, or

(5)  in the event that a Member or Former Member does not elect one of the optional forms of death benefit distribution in (1), (2), (3), or (4) above, the Actuarial Equivalent of the total death benefit shall be payable to the surviving spouse of the deceased in the form of a monthly annuity for life. Notwithstanding the foregoing, the Administrator may in his sole discretion and in lieu of any survivor annuity payable hereunder, distribute a single lump sum payment to a survivor if the value of such survivor’s benefit under this section is less than two thousand dollars ($2,000).  A Member or Former Member may elect to designate a contingent beneficiary or contingent beneficiaries to receive benefits under this section in the event that no primary beneficiary survives such Member or Former Member.  Such election shall be in writing and in such form as the Administrator may require.  In the event that no primary beneficiary survives the Member or Former Member, the surviving contingent beneficiary or contingent beneficiaries shall receive any benefits payable under this section in the same form as would otherwise have been payable to the primary beneficiary or beneficiaries.”

Section 22. Amendment. 33 PNC § 2042 is hereby further amended to state as follows:

Ҥ 2042. Death prior to retirement without Survivor Benefit.

Upon death of a Member or Former Member occurring before commencement of his Normal, Early or Late Retirement Benefit or Disability Retirement Benefit, leaving no persons eligible for survivor benefits as provided in section 2043 the following shall be payable:

(a) ...

(b) if the member was an Employee at the date of death and had completed one (1) year of Total Service, such Member shall be entitled to a death benefit equal to the Actuarial Equivalent of the Member's Present Value of the Member's Accrued Benefit. Payment of the death benefit payable under this section shall be made to the estate of the Member in the form of a single lump sum payment.”

Section 23. Amendment. 40 PNC § 1408 as amended by RPPL 9-2 is hereby further amended to state as follows:

Ҥ 1408. Remittance Tax.

(a). . .

b) An excise tax of four percent (4%) is hereby levied which shall be assessed and collected monthly against each noncitizen person remitting money out of the Republic of Palau. Such tax shall be collected by remittance companies and banks and transmitted to the Ministry of Finance on or before the fifteenth (15) day of each month. The Ministry of Finance shall have ten (10) days to remit the remittance and money transfer tax to the Civil Service Pension Plan.

(c)...

(d) Penalties. It is a misdemeanor punishable by a fine not to exceed five hundred dollars ($500.00) for any person to remit money out of the Republic of Palau on behalf of another noncitizen in order to avoid the tax levied under this Section.”

Section 24. Repealer. Section 2209 of Title 40 of the Palau National Code is hereby repealed in its entirety.

Section 25. Amendment. Section 324 of Title 40 of the Palau National Code is hereby amended to extend the date by which the President shall submit a budget as follows:

Ҥ 324. Preparation and introduction of annual national budget.

The annual national budget shall be prepared and introduced as follows:

(a) The head of each budget activity shall submit a proposed operating budget for the next fiscal year, in accordance with budget call instructions, not later than the second Tuesday of June of each year. Heads of budget activities may also submit requests for funding for capital improvement projects; such requests shall be transmitted and justified separately from operating budget funding requests. For budget planning and balancing purposes, the Olbiil Era Kelulau and Judiciary shall submit to the President summary amounts for their respective proposed operational budget activities.

(b) The President shall introduce an authorization and appropriation bill and submit annual budget documentation to the Olbiil Era Kelulau by first day of the July Regular Session of each year except that, for the fiscal year 2011 only, the President may submit annual budget documentation to the Olbiil Era Kelulau on or before May 31st. Sums proposed to be authorized need not be proposed for appropriation in the same bill.”

Section 26. Effective date.
This Act shall take effect upon its approval by the President of the Republic of Palau, or upon its becoming law without such approval.

PASSED: May 27, 2013

Approved this 6th day of June , 2013.

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