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Supplemental Budget Act, RPPL No. 9-07 2013

PALAU

NINTH OLBIIL ERA KELULAU

First Regular Session, January 2013
RPPL No. 9-7
(Passed as Senate Bill No. 9-4, SD1, HD4)

A BILL FOR AN ACT

To assess a tax of $2.00 on all sales of tobacco products; to remove code of ethics reporting requirements for traditional leaders; to authorize and appropriate additional sums from the National Treasury for the general operations budget of the Republic of Palau for the fiscal year ending September 30, 2013, and for other related purposes.

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

Section 1. Amendment. Title 40 of the Palau National Code is hereby amended as follows:

"§ 1301. Imposition of import tax.

(a) Every person who imports into the Republic any of the products set forth as follows in items (1), (2), (4), (5), (6), (7), (8), (9), and (10) below, regardless of purpose, and every person who imports any of the other products set forth below into the Republic for commercial purposes, shall be assessed and levied and shall pay taxes thereon at the following rates:

(1) cigarettes: from the effective date of this Act to December 31, 2013 $2.00, from January 1, 2014 to December 31, 2014 $3.00, and from January 1, 2015 onward $4.00 per .017 kilograms (approximately .06 ounces), which is the weight of a pack of twenty (20) cigarettes two inches in length, not including the filter; provided that persons arriving in the Republic by common carrier may bring in up to one (1) pack of up to twenty (20) cigarettes without taxation;

(2) all other tobacco products, other than cigarettes, including any products consisting of or containing the processed leaves of plants from the genus Nicotiana or species tabacum used for smoking, chewing or as snuff, and including all products which contain tobacco in any form in a amount that is more than an incidental ingredient or component and that is intended for human consumption and may include all parts and materials, such as filters, rods and similar matter: $2.00 from the effective date of this Act to December 31, 2013, $3.00 from January 1, 2014 to December 31, 2014, and $4.00 from January 1, 2015 onward per .017 kilograms (approximately .06 ounces) for cigars, pipe tobacco, chewing tobacco, or loose smoking tobacco; provided that persons arriving in the Republic by common carrier may bring in either one (1) cigar or three (3) ounces of pipe tobacco, chewing tobacco, or loose smoking tobacco, without taxation;

(3) . . ."

Section 2. Regulations. The Director of the Bureau of Revenue, Customs and Taxation shall, pursuant to the requirements of the Administrative Procedure Act, 6 PNC Chapter 1, promulgate rules and regulations implementing Section 1 of this Act.

Section 3. Amendment. Section 2 of RPPL No. 9-5 is hereby amended to read as follows:

"Section 2. Executive Branch Operations. The sum of $39,492,500 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 $16,788,500 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 $1,000,000 shall come from Tranche 1 of the ADB Program Loan for Water Sector Improvement Project which shall be applied to subsections 7(k); 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 it is hereby appropriated in this section shall be allocated according to the following schedule, respectively:

...

(4) Ministry of State

...

(h) United Nations Representation Office 237,000

...

Sub-Total $2,374,000

...

(7) Ministry of Public Infrastructure, Industries and Commerce

...

(j) Bureau of Public Works 1,270,000

i. Of the funds authorized and appropriated for the Bureau of Public Works, the sum of $50,000 is hereby earmarked for the sole purpose of establishing a navigational buoy in Kayangel State's Tacheruuch Channel at Ngkesol Reef. At the end of fiscal year 2013, any unexpended or unobligated funds of this sum shall not lapse.

(ii) Of the funds authorized and appropriated for the Bureau of Public Works, the sum of $20,000 is hereby earmarked for the sole purpose of purchasing safety equipment for the Division of Road and Equipment including, but not limited to, safety gear for those employees that maintain the roads such as coveralls, goggles, shoes, and gloves, and safety equipment such as cones, flags and signs to demarcate where employees are at work. At the end of fiscal year 2013, any unexpended or unobligated funds of this sum shall not lapse.

(k) Water & Sewer Operations 4,515,000

...

Sub-Total $10,572,000

...

(9) Ministry of Health

...

(d) Manila Medical Referral 97,0000

(e) Hawaii Medical Referral 205,000

(f) Medical Supplies & Drugs $1,100,000

At the end of fiscal year 2013, any unexpended or unobligated funds of this sum shall not lapse.

...

(i) Medical Referrals 300,000

...

(k) Hospital Oxygen & A/C System Improvements 100,000

(l) Hospital CT Scan Repairs 119,000

(m) Taiwan Medical Referral 30,000

Sub-Total 9,290,500

(10) Ministry of Natural Resources, Environment & Tourism

...

(c) Bureau of Agriculture 411,000

...

...

Sub-Total $1,243,500

Section 2 Total $39,492,500"

Section 4. Amendment. Section 4 of RPPL No. 9-5 is hereby amended to read as follows:

"Section 4. Legislative Branch. The sum of $4,302,500 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for fiscal year 2013 for the purpose of funding 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 1,598,000

(2) Senate Legal Counsel Office 209,500

(3) House of Delegates 1,995,500

...

(5) Joint Staff (earmark $10,000 to purchase a flat-bed truck,

$5,000 to repair the OEK network switch 245,000

Section 4 Total $4,302,500"

Section 5. Amendment. Section 5 of RPPL No. 9-5 is hereby amended to read as follows:

"Section 5. Boards, Commissions and Authorities. The sum of $621,000 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:

...

(4) Palau Public Lands Authority 113,000

...

(10) Language Commission 37,000

Section 5 Total $621,000"

Section 6. Amendment. Section 7 of RPPL No. 9-5 is hereby amended to read as follows:

"Section 7. Independent Agencies. The sum of $1,872,000 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 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:

...

(4) National Postal Service 334,000

...

(6) National Aviation Administration 150,000

Section 7 Total $1,872,000

..." Section 7. Amendment. Section 15 of RPPL No. 9-5 is hereby amended to read as follows:

"Section 15. Health Care Fund Contribution. The sum of $320,000 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 §592(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 8. Settlement, Waiver, and General Release Agreement. The sum of $120,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2013 for the purpose of providing compensation and closure of the incident that led to the disappearance of certain individuals on official mission in their capacity as Police Officers for the Bureau of Public Safety. The entire amount authorized to be appropriated and appropriated in this section shall come from local revenues. Any unexpended balance shall not lapse at the end of the fiscal year.

Section 9. Adjudicated Claims. The sum of $50,000 is hereby authorized to be appropriated and is appropriated for fiscal year 2013 for the purpose of satisfying court judgment in Civil Action No. 03-384. The entire amount authorized to be appropriated and appropriated in this section shall come from local revenues.

Section 10. Uighur Detainees Temporary Settlement Assistance. The sum of $30,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2013 for the purpose of supporting housing and living allowances for the Uighur detainees. The entire amount authorized to be appropriated and appropriated in this section shall come from local revenues. The Public Auditor shall undertake an examination of all past expenditures and current obligations incurred in supporting housing and living allowance for the Uighur detainees and issue a report by October 1, 2013.

Section 11. 9th Pacific Mini Games. The sum of $85,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2013 for the purpose of providing funding support for airfare and athletes per diem costs of Team Palau to participate in the 9th Pacific Mini Games to be held in Wallis & Futuna from 2-12 September 2013. The entire amount authorized to be appropriated and appropriated in this section shall come from local revenues.

Section 12. Authorization of the National Health Insurance to Finance Hospital Trust Fund Purchases. Notwithstanding 41 PNC § 939 the Olbiil Era Kelulau hereby authorizes three hundred thousand dollars ($300,000) to be advanced from the Health Care Fund to the Hospital Trust Fund created by 34 PNC § 332 as a zero percent (0%) interest loan to be utilized by the Ministry of Health only for the purposes set forth in 34 PNC § 332. The entire amount advanced is to be paid back by crediting future billings from the Belau National Hospital to the Health Care Fund in monthly installments representing at least four percent of the total initial principal. The Minister of Finance, Minister of Health, and the Administrator of the Health Care Fund shall enter into a Memorandum of Understanding that shall govern the coordination of functions of each entity with regard to executing the loan contemplated by this Section. Such Memorandum of Understanding must be provided to the Olbiil Era Kelulau and approved with a Joint Resolution before the funds authorized in this Section may be advanced to the Hospital Trust Fund. The Minister of Health shall provide a quarterly report to the Olbiil Era Kelulau on the status of repaying the payment advance back to the Health Care Fund."

Section 13. Amendment. Amend Chapter 6 of Title 33 of the Palau National Code as follows:

"§ 601.  Definitions.

In this chapter:

(a)  . . .

. . .

(o)  "Public official" means any national elected official, any minister, any director of a bureau or chief of a division of the national government, any state chief executive officer, any member of a state legislature, any member of a national or state board, commission or authority, and any procurement officer or other employee responsible for the award of contracts on behalf of the Republic, or any of its separate branches or subdivisions, or on behalf of any state, or any of its separate branches or subdivisions; "public official" does not mean a traditional male or female leader who by virtue of their traditional title automatically receives or is appointed to a public position; however, a traditional leader who runs for an elected office shall be required to comply with the reporting requirements as set forth in this chapter."

Section 14. Effective Date. This Act shall take effect upon its approval by the President of the Republic, or upon its becoming law without such approval.

Passed: July 23, 2013

Approved this 31st day of July 2013

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