Home | Databases | WorldLII | Search | Feedback Palau Sessional Legislation

Clarify Procedures for Small Purchase, FY 2007 Budget, RPPL 7-25 2007

AN ACT

To amend 40 PNC 625(c) to clarify the procedures for government procurement on small purchases under $5,000 and for related purposes.

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

Section 1. Legislative findings. The Olbiil Era Kelulau finds that there is some confusion in the Ministry of Finance about the requirements for multiple bids on government procurement of small purchases under $5,000. The Olbiil Era Kelulau finds that it is the intent of the current law not to require multiple bids or price quotes on small purchases under $5,000. Due to the confusion at the Ministry of Finance, the Olbiil Era Kelulau finds that it is appropriate to clarify the law on this issue by amending 40 PNC 625(c).

Section 2. Amendment. 40 PNC 625(c) is hereby amended to read as follows:

"§ 625. Small Purchases.

(a) . . .

(b) . . .

(c) For all small purchases over $2,000.00, and for the purchase of event hosting services over $5,000.00 not put to bid, the Procurement Officer concerned or his designee shall obtain price quotations from at least three (3) venders and base the selection on competitive price, quality, delivery time and other relevant factors. A written documentation of the three price quotes, the vendors submitting the quotes and the basis for selection shall be maintained in the purchase order file. Small purchases under $5,000.00 may be limited to local vendors. On small purchases under $2,000.00 and on purchases of event hosting services under $5,000.00, procurement officers are encouraged to obtain multiple price quotations, but it is not required. Three price quotations are not required on any small purchase under $10,000.00 if there is adequate documentation that there are fewer that three suppliers of the items within the Republic.

(d) . . ."

Section 3. Fiscal Year 2007 Annual National Budget.
The following, Section la through Attachment A, shall be an authorization for appropriation of the sum of $60,863,531, and an appropriation of the sum of $57,657,417, 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, 2007:

Section 1a. Short Title. This Section 3 may be known and cited as "The Fiscal Year 2007 Annual National Budget Authorization and Appropriation Act".

Section 2a. Executive Branch Operations. The sum of $32,958,000 is hereby authorized for appropriation and is appropriated for expenditure and obligation for fiscal year 2007 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 $21,241,000 shall come from local revenues; the amount of $4,000,000 shall come from Compact Section 211(a) funds; the amount of $3,840,000 shall come from the Compact Section 215 Inflation Adjustment fund derived from Compact Section 211(a); the amount of $150,000 shall come from the Compact Section 211(c) funds, and shall be applied to subsection (4)(1); the amount of $96,000 shall come from the Compact Section 215 Inflation Adjustment funds derived from the inflation adjustment of Compact Section 211(c) funds, and shall be applied to subsection (7)(c); the amount of $631,000 shall come from the 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 authorization and the total appropriation shall be allocated according to the following schedule, respectively:

(1) Office of the President

(a) President's Office $723,000

(b) Official Expense 38,000

(c) Grants Coordinator Office 71,000

(d) Presidential Stipend 25,000

Sub-Total $857,000

(2) Office of the Vice President

(a) Vice President's Office $304,000

(b) National Emergency Management Office 98,000

Sub-Total $402,000

(3) Ministry of Finance

(a) Office of the Minister of Finance $40,000

(b) Information Systems Support Services 200,000

(c) Bureau of National Treasury 627,000

(d) Bureau of Budget and Planning 183,000

(e) Bureau of Public Service System 110,000

(f) Workmen's Compensation 41,000

(g) Bur. of Rev., Customs & Taxation 1,016,000

Sub-Total $2,217,000

(4) Ministry of State

(a) Office of the Minister $40,000

(b) ROP Consulate Office in Guam 100,000

(c) ROP Embassy in Washington, D.C. 325,000

(d) ROP Embassy in Tokyo, Japan 325,000

(e) ROP Embassy in Taipei, Taiwan 100,000

(f) ROP Consulate Office in Saipan, CNMI 50,000

(g) ROP Embassy in Manila, Philippines 125,000

(h) U. N. Representation Office 230,000

(i) Office of the Public Defender 200,000

(j) Bureau of Foreign Affairs 265,000

(k) Bureau of Int'l Trade and Technical Assistance 75,000

(1) Bureau of Domestic Affairs 330,000

(m) Passport Office 40,000

(n) International Organ. Obligations 141,000

(o) Appropriations and funding for the Republic of Palau Consulate Office in Guam and the Consulate Office in Saipan, CNMI, shall cease by September 30, 2007.

Sub-Total $2,346,000

(5) Ministry of Community & Cultural Affairs

(a) Office of the Minister $40,000

(b) Palau National Archive 40,000

(c) Bureau of Community Services 223,000

(d) Aging Program 240,000

(e) Sports Facilities Maintenance & Utilities 125,000

(f) Bureau of Arts & Culture 143,000

(g) Palau Severely Disabled Assistance Fund 200,000

Of the amount that is authorized for appropriation and that is appropriated pursuant to this subparagraph, only $8,000 shall be used for administrative expenses, including the purchase of a new computer. In addition, there may be an increase in monthly benefits for recipients, for the duration of the Fund, according to the amendment in Section 26a of this Section 3.

Sub-Total $1,011,000

(6) Ministry of Education

(a) Office of the Minister $40,000

(b) School Books, Supplies & Instructional Equip. 270,000

(c) Bureau of Curriculum & Instruction 900,000

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

Of the amount that is authorized for appropriation, and that is appropriated pursuant to this subparagraph, $40,000 shall be used to hire new Physical Education teachers.

(e) Food Service Program 649,000

All money collected through the existing lunch fee of .25¢ per student per day shall be deposited in a Food Service Program Fund established within the National Treasury and shall only be used to subsidize the Food Service Program. The Minister of Education shall make a written report as to the status and use of this Fund each year to the Olbiil Era Kelulau.

(f) Classroom Fixtures 250,000

The entire amount shall be used to purchase classroom supplies and equipment, chairs, and tables for the public schools of the Republic of Palau.

(g) School baseball program 15,000

Sub-Total $6,692,000

(7) Ministry of Commerce & Trade

(a) Office of the Minister $40,000

(b) Airport Operations 788,000

(c) Bureau of Commercial Dev. 262,000

(d) Bureau of Human Resource Development 308,000

(e) Palau Small Business Development Center 30,000

(f) Pacific Business Center Program 20,000

Sub-Total $1,448,000

(8) Ministry of Justice

(a) Office of the Attorney General 522,000

All funds authorized for appropriation, and appropriated pursuant to this subparagraph used to pay for the employment or salary of attorneys or other personnel not solely employed by the Office of the Attorney General shall be accounted for and listed in a report prepared by this Office at the beginning of each fiscal year but no later than October 30th of each year. Any changes in the payment of attorneys or other personnel not solely employed by the Office of the Attorney General throughout the year shall be submitted, in writing, to the Olbiil Era Kelulau within fifteen (15) days of the change. The list shall include the name of the employees, their primary employer, and all payments made from the Office of the Attorney General's allocated budget.

(b) Bureau of Immigration 294,000

(c) Bureau of Public Safety 2,518,000

(d) Patrol Boat Operations 769,000

(e) Matching funds 100,000

The entire amount that is authorized to be appropriated, and that is appropriated pursuant to this subparagraph, shall be used to match funds that have been or will be granted from USDA grants or received in any other manner for: the acquisition of four (4) new ambulances; the construction of new female, and juvenile facilities at the Koror Jail; the construction of a Fish and Wildlife Facility; and the expansion of the Division of Fire and Rescue facility.

Sub-Total $4,203,000

(9) Ministry of Health

(a) Office of the Minister $40,000

(b) Bur. of Public Health 1,210,000

(c) Office of Health Services Administration 1,670,000

(d) Manila Medical Referral Office 90,000

(e) Hawaii Medical Referral Office 120,000

(f) Medical Supplies & Drugs 500,000

(g) Medical Referrals 700,000

(h) Bureau of Hospital and Clinical Services 2,860,000

Sub-Total $7,190,000

(10) Ministry of Resources & Development

(a) Office of the Minister $40,000

(b) PALARIS Office 145,000

(c) Bureau of Agriculture 430,000

(d) Bureau of Marine Resources 528,000

(e) Bureau of Public Works 1,674,000

(f) CIP Office Operations 160,000

(g) Pothole Repair 75,000

None of the amount that is authorized for appropriation and that is appropriated pursuant to this subparagraph may be used to hire additional employees. The Minister of Resources and Development shall utilize the existing employees of the Bureau of Public Works for pothole repairs.

(h) Bureau of Lands & Survey 938,000

(i) OMIP and Other Grants Match 165,000

(j) Water & Sewer Operations 2,000,000

Within sixty (60) days after the effective date of this Act, the Minister of Resources and Development shall submit a report to the Olbiil Era Kelulau regarding the costs and a plan to extend water services from Everfortune to Ngiruchelbad's residence. The report shall detail options about installing all water lines outside of the Compact Road. Where installation on the Compact Road is necessary, the report shall detail how all water line crossings shall utilize culverts or bridges.

(k) Rural Sanitation Project 165,000

(l) New Capitol Complex Electricity & Maintenance 250,000

The total amount authorized for appropriation, and that is appropriated pursuant to this subparagraph shall be used to supplement the existing budgets of the three branches of the National Government to pay for the New Capitol Complex Electricity and Maintenance.

(m) Protected Area Network (PAN) 50,000

(n) National Government: Visit to Hatohobei and Sonsorol States 22,000

Sub-Total $6,592,000

Section 2a Total $32,958,000

Section 3a. Boards, Commissions, and Authorities. The sum of $677,000 is hereby authorized for appropriation and are appropriated for expenditure and obligation for fiscal year 2007 for the purpose of covering the operational and contingent expenses of Boards, Commissions and Authorities. The entire amount of funds authorized to be appropriated, and that are 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 $90,000

(2) Palau Election Commission 120,000

(3) COFA Board of Trustees 9,000

(4) Palau Public Land Authority 150,000

(5) Parole Board 28,000

(6) Palau Housing Authority 67,000

(7) Ethics Commission 45,000

(8) Financial Institutions Commission 118,000

(9) Ngardmau Free Trade Zone Authority 50,000

Section 3a Total $677,000

Section 4a. Judicial Branch. The sum of $2,276,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 for the purpose of covering the operational and contingent expenses of the Judicial Branch. The total amount authorized to be appropriated, and that is appropriated shall be made up of the following available revenues: the amount of $1,276,000 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 the total appropriation shall be allocated according to the following schedule, respectively:

(1) Judiciary $1,585,000

(2) Land Court 691,000

Section 4a Total $2,276,000

Section 5a. Legislative Branch. The sum of $3,761,500 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 for the purpose of covering the operational and contingent expenses of the Legislative Branch. The total amount authorized to be appropriated, and that is appropriated shall be made up of the following available revenues: the amount of $2,761,500 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 the total appropriation shall be allocated according to the following schedule, respectively:

(1) Senate $1,261,000

(2) Senate Legal Counsel 200,000

(3) House of Delegates 1,820,500

(4) House Legal Counsel 200,000

(5) Joint Staff 250,000

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

(7) Inter-Parliamentary Union 20,000

Section 5a Total $3,761,500

Section 6a. State Block Grants. The sum of $4,811,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 for the purpose of State Governments operations and capital improvement projects expenses. The entire amount of funds authorized to be appropriated and that 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 the 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 6a Total $4,811,000

Section 7a. Independent Agencies. The sum of $2,410,000 is hereby authorized for appropriation and is appropriated for expenditure and obligation for fiscal year 2007 as operating grants or subsidies for independent agencies of the National Government. The total amount authorized to be appropriated and that is appropriated shall be made up of the following available revenues: the amount of $1,410,000 shall come from local revenues; and the amount of $1,000,000 shall come from Compact Section 211(a). The total authorization and the total appropriation shall be allocated according to the following schedule, respectively:

(1) Office of the Public Auditor $375,000

(2) Office of the Special Prosecutor 275,000

(3) Palau Environmental Quality Protection Brd (EQPB) 400,000

(4) National Postal Service 285,000

(5) Palau Visitors Authority 925,000

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 150,000

Section 7a Total $2,410,000

Section 8a. Other Agencies and Activities. The sum of $1,620,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 as grants or subsidies for recurring programs and activities. The total amount authorized to be appropriated, and that is appropriated shall be made up of the following available revenues: the amount of $620,000 shall come from local revenues; and the amount of $1,000,000 shall come from Compact Section 211(a) funds. The total authorization and the total appropriation shall be allocated according to the following schedule, respectively:

(1) Palau National Museum $185,000

(2) Micronesian Legal Services 130,000

(3) Palau Community Action Agency 185,000

(4) Head Start 115,000

(5) WIA Grant Contribution 100,000

(6) Civic Action Team Share 250,000

(7) Peace Corps Contribution 25,000

(8) Palau International Coral Reef Center 475,000

Of this sum, the amount of $25,000, or so much thereof as necessary, shall be used to defray the expenses associated with the Co-Secretariat responsibilities of the International Coral Reef Initiative (ICRI) with the Government of Japan.

(9) Palau Nat'l Olympic Comm. & Sports Organ. 150,000

(10) Palau Red Cross 5,000

Section 8a Total $1,620,000

Section 9a. Education Assistance. The sum of $4,287,619 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 to subsidize the educational institutions and scholarship program set forth below. The total amount authorized to be appropriated, and that is appropriated, shall be made up of the following available revenues: the amount of $2,287,619 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 $2,300,000

(2) PCC CRE Program 40,000

(3) PCC Board of Trustees 45,000

(4) COM Board of Regents 25,000

(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 70,000

Section 9a Total $4,287,619

Section 10a. Hospital Trust Fund. The amount of $1,433,000 or the actual amount collected is hereby authorized to be appropriated and is appropriated for fiscal year 2007 for purposes of the Hospital Trust Fund. The amount authorized to be appropriated, and that is 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. For the 2007 fiscal year, $613,000 shall be earmarked from the actual monies collected above the appropriated amount of $1,433,000 to the Hospital Trust Fund, for the purchase of the additional equipment as listed in Attachment A. The Minister of Health shall submit a report at the end of each quarter to the Presiding Officers of the Olbiil Era Kelulau detailing all purchases based on the general listing contained in Attachment A. The Minister of Health shall have discretion as to the purchase of such additional equipment.
Section 11a. Debt Service. The sum of $1,850,858, plus any sum necessary for related banking fees and interest charges, is hereby authorized to be appropriated and is appropriated for fiscal year 2007 for the purpose of payment of periodic interest and principal payments pursuant to the promissary notes issued to the International Commercial Bank of China (now known as Mega International Commercial Bank Co., Ltd.). The amount authorized to be appropriated, and that is 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) ICBC Capitol Relocation Project $1,692,858

(2) ICBC PIA Improvement Project 158,000

Section 11a Total $1,850,858

Section 12a. Public Service System Reclassification. The sum of $620,440 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 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 that is appropriated shall come from local revenues.

Section 13a. Prior Year Accounts Payable.
The sum of $500,000 is hereby reserved for fiscal year 2007 for the purpose of prioritizing available cash flow toward the liquidation of prior year accounts payable in order for the Republic to timely meet its obligations and the sum of $1,119,114 is hereby reserved for the fiscal year 2006 prior year accounts payable. Within thirty (30) days after the effective date of this Act, the Minister of Finance shall submit a report of all prior year accounts payable to the President of the Senate and the Speaker of the House of the Olbiil Era Kelulau for review. The Olbiil Era Kelulau shall approve all prior year accounts payable as submitted by the Minister of Finance by Joint Resolution. The Olbiil Era Kelulau shall not act on any reserved prior year accounts or make them payable until the Minister of Finance has submitted such report.

Section 14a. Compact Review Commission. The sum of $250,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 for the purpose of carrying out the mandate of the Compact Review Commission pursuant to RPPL No. 7-15. The entire amount authorized to be appropriated and that is appropriated shall come from local revenues.

Section 15a. Adjudicated Claims. The sum of $797,000 is hereby authorized to be appropriated for expenditure and obligation for fiscal year 2007 for the purpose of settling various land cases against the National Government. Of this amount, the sum of $50,000 is hereby appropriated to satisfy the judgment entered in the case of Rehuher v. Ngarchelong State, Civil Action Number 02-044, on August 26, 2003 and of this amount the sum of $10,000 is hereby appropriated to satisfy the judgment entered in the case of Ngiraikelau v. ROP. et al, Civil Action Number 05-159 on July 25, 2005. No further amounts maybe appropriated pursuant to this section to pay for pending claims or controversies, unless those claims or controversies are subject to a final judgment or final settlement agreement. The entire amount authorized to be appropriated, and that is appropriated shall come from local revenues.

Section 16a. Pacific Games. The sum of $250,000 is hereby authorized to be appropriated for expenditure and obligation for fiscal year 2007 for the purpose of facilitating the participation of Palauan Athletes in the 2007 Pacific Games to be held in Samoa. The entire amount authorized to be appropriated shall come from local revenues.

Section 17a. Pension Plan Contribution. The sum of $1,000,000 is hereby authorized to be appropriated for expenditure and obligation for fiscal year 2007 for the purpose of providing additional sums to the pension plan fund pursuant to RPPL No. 2-26 and RPPL No. 3-21. Of the amount authorized to be appropriated, $400,000 is hereby appropriated for expenditure and obligation for fiscal year 2007 for investment purposes. The entire amount authorized to be appropriated shall come from local revenues.

Section 18a. VHF Equipment. The sum of $42,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007 for the Bureau of Public Safety, for the purpose of improving the existing VHF radio equipment and purchasing and installing new VHF radio equipment, and maintaining the operation of all VHF radio equipment in its control. The entire amount authorized to be appropriated, and that is appropriated shall come from local revenues. The funds in this section may be used as matching funds with any outside grant or assistance in accordance with the terms of this section.

Section 19a. Rental Payments to the States of the Republic of Palau. There is hereby authorized to be appropriated and is appropriated for fiscal year 2007 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 twenty-five percent (25%) of all revenues derived from leases of public land in Koror in 2007; all prior years' balances owed by any State of the Republic of Palau to the National Government prior to 2007 shall be forgiven; further, appropriate offsets of the revenues collected and payments made under this section are to be recorded in a separately identified budgetary account.

Section 20a. Outside Grants and Development Assistance. All funds received from outside sources, including, but not limited to, U.S. Federal Program Grants and Japan Grant Aid, Republic of China(Taiwan) grants, other countries, organizations, and/or individual donors are hereby authorized to be appropriated and are appropriated for fiscal year 2007 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 submit quarterly reports to the President and the Olbiil Era Kelulau, setting forth expenditures and obligations of all funds received and awarded from outside sources and expended or obligated pursuant to this section for every project or program, received, awarded, and/or funded by outside grants or development assistance, and the status of each project or program. In addition to all other reporting requirements established by law or regulation, the Minister of Finance shall provide, upon request by the Olbiil Era Kelulau, detailed information including, but not limited to, the project number and copies of original project documents pertaining to each grant received.

Section 21a. Apportionment and Allotment. Unless otherwise stated in this Section 3, amounts appropriated in this Section 3 shall be apportioned and allotted at the direction of the President.

Section 22a. Presidential Reprogramming. The sums appropriated under Sections 2a, 3a, 7a, and 8a of this Section 3 may only be reprogrammed by the President in accordance with RPPL No. 6-11, as amended, and other applicable reprogramming laws. However, for the purposes of this Act, reprogramming may only be done within each respective section.

Section 23a. Amendment. Section 14 of RPPL No. 2-3 is hereby amended to read as follows:

"Sale of Code and other legal publications. The published volumes of the Palau National Code shall be sold to recoup the costs of producing and publishing the Palau National Code. Full authority and responsibility is given to the Palau National Code Commission to establish the sale price of the Code and to handle all duties incident in selling the Code. The Palau National Code shall be published on a regular basis by the Palau National Code Commission or in conjunction with any appropriate government entity established for such publication. All funds derived from the sales or services of the Palau National Code and other publications shall be deposited into the General Fund of the Republic of Palau's National Treasury."

Section 24a. Procurement amendment. The Compact Review Commission shall not be subject to the government procurement laws, as established in Title 40 of the Palau National Code and elsewhere.

Section 25a. Amendment. 40 PNC 222 is hereby amended to read as follows:

"Section 222. Appointment and removal of the Public Auditor; compensation; vacancy.

(a) The President shall appoint the Public Auditor subject to confirmation by the Olbiil Era Kelulau. No person shall be appointed Public Auditor unless he or she is: a certified public accountant, has received an equivalent, internationally recognized certification, or has served as acting Public Auditor for a period of three years or more, and has a minimum of five years experience in accounting or governmental finance.

. . . .

(e) In the event that there is a vacancy in the Office of the Public Auditor, the Chief Justice of the Supreme Court shall appoint a temporary public auditor with the same qualifications as required by law for the Public Auditor who shall serve until the vacancy is filled as provided in the Constitution and subsections (a) and (b) of this section. In no case may the Chief Justice appoint a person who has previously been rejected for such appointment by the Olbiil Era Kelulau."

Section 26a. Amendment. RPPL No. 6-26(15)(d) is hereby amended to read as follows:

"(d) Monthly Stipend. Those individuals who are determined by the Ministry to be homebound and need 24 hour per day care will be eligible to receive a monthly stipend of $50.00 per month. Those individuals who are determined by the Ministry to be wheelchair bound and/or blind shall be eligible to receive a monthly stipend of $30.00 per month. The Minister may increase the monthly stipends if it is determined that there are available funds in the Fund."

Section 27a. State Financing.
Each State of the Republic of Palau is hereby authorized to negotiate and initiate a line of credit or loan, or both, in an amount of up to $2,000,000 U.S. Dollars for any State program or purpose. Each State that uses such line of credit or loan shall be responsible to repay the line of credit and loan, along with the applicable interest, and all other related fees. Any such line of credit or loan shall be the sole responsibility of the State that takes out such a line of credit or loan.

Section 28a. Pacific Savings Bank Investigation. The sum of $200,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2007, as a one-time appropriation, for exclusive use by an independent legal counsel to carry out an investigation and prosecution of the matters related to the closing of the Pacific Savings Bank, Ltd.. The President of the Republic shall hire an independent counsel within ninety (90) days after the effective date of this Act. The Attorney General shall carry on with all cases filed before the effective date of this Act, however, the independent counsel shall, upon his or her hiring date, take the lead on investigating and prosecuting matters relating to the closing of the Pacific Savings Bank, Ltd. while the independent counsel is employed. Upon the request by the independent counsel, the Attorney General and the Special Prosecutor shall provide assistance to the independent counsel. The independent counsel shall only be removed for cause or by lack of appropriation. The Independent Counsel will not be removed for cause without the President's first consulting the President of the Senate and the Speaker of the House of Delegates and ascertaining that their consensus is in accord with his proposed action. In the event that the independent counsel has to leave before the finishing his or her duties and responsibilities, the independent counsel must provide adequate notice to the President to provide time for hiring a replacement.

Section 29a. Budget Authority for the Fiscal Year 2007 Annual National Budget Authorization and Appropriation Act. The budget authority for the Fiscal Year 2007 Annual National Budget Authorizations and Appropriation Act shall commence from October 1, 2006 and continue through September 30, 2007.

ATTACHMENT A HOSPITAL TRUST FUND: PROJECTED ADDITIONAL MEDICAL EXPENSES FY 2007

EXPENSE: ESTIMATED COST:

1. Hawaii Medical Referral Office: ($75,000)

a. Purchase patient transport van $25,000

b. Office and patient care support $30,000

c. Emergencies and contingencies $20,000

2. Specialty Clinics: ($123,000)

a. ENT (Ear, Nose & Throat) from Tripler $15,000

b. Eye doctors from Stanford & John Hopkins $16,000

c. Cardiology for children $10,000

d. Cardiology for adults $10,000

e. Urology $15,000

f. Reconstructive Surge (RSF) $8,000

g. Ophthalmology $16,000

h. Allergy $8,000

i. Pulmonary $7,000

j. Radiology $10,000

k. Dermatology $8,000

3. Equipment, tools, spare parts and services: ($415,000)

a. Expansion of Oxygen System $35,000

b. Boiler for Operating Room $15,000

c. Connection AC to emergency power $10,000

d. Install Alternate Voltage Regulator in X-ray $8,000

e. Purchase 5 dialysis machines $30,000

f. Service contract for bio-medical systems $85,000

g. Service contract for X-ray systems $125,000

h. Diagnostic System for BioMed Dept. $45,000

i. Expansion of Medical Warehouse $25,000

j. Expansion of Hemodialysis $25,000

k. Construct Surgical Ward Attendant Lounge $12,000

Total $613,000
Section 4. 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: January 03, 2007
Approved this1 3rd day of January , 2007.

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