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FY 2008 Supplemental Budget Act, RPPL 7-53 2008

RPPL No. 7-53
(Re: as Senate Bill No. 7-264, SD5,
HD7, CD1)

AN ACT

To authorize and appropriate an additional $973,000 from the National Treasury for the general operations budget of the Republic of Palau for the fiscal year ending September 30, 2008, to authorize continuing budget authority for fiscal year 2009, and for related purposes.

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

Section 1. Short Title. This Act may be cited as AThe Fiscal Year 2008 Supplemental Budget Authorization and Appropriation Act.@

Section 2. Amendment. Section 2 of RPPL No. 7-37 is hereby amended to read as follows:

ASection 2. Executive Branch Operations. The sum of $34,382,286 is hereby authorized for appropriation and is appropriated for expenditure and obligation for fiscal year 2008 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 $21,569,286 shall come from local revenues; the amount of $4,000,000 shall come from Compact Section 211 (a) funds; the amount of $3,960,000 shall come from the Compact Section 215 Inflation Adjustment fund derived from Compact Section 211(a); the amount of $150,000 shall come from Compact Section 211(c) funds and shall be applied to subsection (4)(1); the amount of $99,000 shall come from the Compact Section 215 Inflation Adjustment funds derived from the inflation adjustment of Compact Section 211(c) and shall be applied to subsection (7)(c); the amount of $631,000 shall come from Compact Section 211(d) funds and shall be applied to subsection (8)(d); the amount of $973,000 shall come from the proceeds of the Mega Bank Loan for the repair, improvements and maintenance of the Palau International Airport; and the amount of $3,000,000 shall come from Compact Section 211(f) Trust Fund Investment Earnings. The total authorized and appropriated shall be allocated according to the following schedule, respectively:

. . . .

(4) Ministry of State

. . . .

(n) International Organizations Obligations 304,000

Sub-Total $2,452,936

. . . .

(6) Ministry of Education

. . . .

(d) Bureau of School Administration 4,733,000

Of this sum, the amount of $50,000 shall be earmarked to fund chairs and a walkway for the multipurpose building at Palau High School and to purchase student desks and chairs for the Mersai Building at Palau High School.

. . . .

Sub-Total $6,563,793

(7) Ministry of Commerce and Trade

. . . .

(b) Airport Operations 1,311,354

. . . .

Sub-Total $1,952,047

. . . .

(9) Ministry of Health

. . . .

(c) Office of Health Services Administration 1,723,149

. . . .

Sub-Total $7,019,258

(10) Ministry of Resources & Development

. . . .

(b) PALARIS Office 194,232

. . . .

(I) Water & Sewer Operations 2,533,837

Of this sum, $15,000 shall be earmarked for sewer pump repairs and $8,000 shall be earmarked for water system pump repairs.

. . . .

Sub-Total $7,686,096

Section 2 Total $34,282,286

. . . .@

Section 3. Amendment. Section 3 of RPPL No. 7-37 is hereby amended to read as follows:

ASection 3. Boards, Commissions, and Authorities. The sum of $792,074 is authorized and is appropriated for expenditure and obligation for fiscal year 2008 for the purpose of covering the operational and contingent expenses of Boards, Commissions and Authorities. The entire amount of funds authorized and appropriated shall come from local revenues. The total authorization and the total appropriation shall be allocated according to the following schedule, respectively:

. . . .

(2) Palau Election Commission 213,940

Of this sum, the amount of $15,000, or so much thereof as necessary, may be used to defray the cost of operating polling places in Hawaii, Guam and the Commonwealth of the Northern Mariana Islands (CNMI) in the 2008 General Election.

. . . .

Sub-Total $792,074

. . . .@

Section 4. Amendment. Section 8 of RPPL No. 7-37 is hereby amended to read as follows:

ASection 8. Other Agencies and Activities. The sum of $1,722,512 is authorized for appropriation and is appropriated for expenditure or obligation for fiscal year 2008 as grants or subsidies for recurring programs and activities. The total amount authorized to be appropriated and appropriated shall be made up of the following available revenues: the amount of $722,512 shall come from local revenues; and the amount of $1,000,000 shall come from Compact Section 211(a) funds. The total authorization and appropriation shall be allocated according to the following schedule, respectively:

(1) Palau National Museum 246,020

Sub-Total $1,722,512

. . . .@

Section 5. Pacific Savings Bank Investigation and Prosecution. The sum of $200,000 is hereby authorized to be appropriated and is appropriated for expenditure and obligation for fiscal year 2009, for exclusive use by the Independent Counsel to take the lead in carrying out an investigation and prosecution of all matters relating to the failure of Pacific Savings Bank Ltd. (APSB@). Any unexpended or unobligated balance of this appropriation shall not lapse at the fiscal year end. The entire amount shall come from local revenues. In addition to the authority of the Receiver of PSB to hire independent counsel as provided in RPPL No. 7-41, Section 65(a), the Independent Counsel is authorized to represent the Receiver of PSB in civil actions. Upon request by the Independent Counsel, the Attorney General and the Special Prosecutor may provide assistance to the Independent Counsel. The Independent Counsel is authorized to hire such staff as may be necessary to carry out the functions under this chapter. 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 Independent Counsel resigns before finishing his or her duties and responsibilities, the Independent Counsel must give adequate notice to the President to allow sufficient time for hiring a replacement.

Section 6. Amendment. 40 PNC ' 504, is amended to add a new subsection, to read as follows:

A' 504(s). Line of Credit. In addition to the authority granted above, and not in lieu thereof, the President is hereby authorized to negotiate for, and to execute all documents relating to, obtaining a revolving line of credit for no more than one year periods, renewable annually, with a Lender in the maximum amount of $3,000,000, at a reasonable interest rate, for the purposes of ensuring timely acquisition of goods and services, to pay block grants and to fund academic scholarships on the following conditions:

(1) The President is authorized to seek a line of credit from any Lender able to advance the funds on the terms and conditions set forth below for any given year, and may seek the line of credit from the National Development Bank of Palau. In seeking the loan, the President shall be required to explain to the Lender the reason the loan is required.

(2) Funds drawn down from such a revolving line of credit shall be used solely for

(a) State block grants;

(b) The National Scholarship Fund; and/or

(c) The purchase of goods or services authorized under specific grant(s), the provisions of which require reimbursement of such expenditures from the grantor to the Republic of Palau;

(3) To the extent funds drawn down from the revolving line of credit are expended pursuant to subsection (s)(2)(c) above, they shall be repaid to the Lender for the specific purpose of paying down the balance of the revolving line of credit, within 30 days of the date that the reimbursement is received from or on behalf of the grantor, by the Republic of Palau for each reimbursable expenditure made. All repayments are authorized and appropriated for that purpose, and the source of such repayments shall be the grant reimbursements received.

(4) All draw downs from such a line of credit, including interest and related costs, must be completely repaid to the Lender on or before October 30 of each year, so that the balance owed to the Lender on the line of credit is $0 as of close of business on October 30 of each year.

(5) Payments to the Lender, which are not reimbursable under the terms of grants, including principal, interest and related costs of obtaining or extending the line of credit, are hereby authorized and appropriated, and shall be paid by local revenues.

Section 7. Amendment. Section 5a of RPPL No. 7-25, as amended by RPPL 7-29, is hereby further amended to read as follows:

Section 5a. Legislative Branch. The sum of $3,933,500 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 $2,933,500 shall come from local revenues or so much thereof as necessary may be derived from the Compact Section 213 Investment Account; and the amount of $1,000,000 shall come from Compact Section 211(f) Trust Fund Investment Earnings. Any unexpended or unobligated balance of the $30,000 earmarked for the copy machine in the allocation of subsection (5) o f this section shall not lapse co at fiscal year end. The total authorization and the total appropriation shall be allocated according to the following schedule, respectively:

. . . .

(5) Joint Staff 290,000

Out of this amount, the sum of $30,000 shall be used to purchase a copy machine....@

Section 8. Water and Wastewater Charges. The Minister of Finance, in cooperation with the relevant Ministry, shall promulgate rules and regulations pursuant to the Administrative Procedures Act, 6 PNC Chapter 1, to establish fees and charges, with subsidy options for fixed and low income groups, that at minimum recover the actual costs of the provision of water and wastewater services. Such fees and charges, pursuant to rules and regulations, shall take effect not later than April 1, 2009.

Section 9. Continuing Budget Authority. Pursuant to 40 PNC '327, there is hereby authorized and enacted a Continuing Budget Authority for fiscal year 2009.

Section 10. Amendment. Section 1301 of Chapter 40 of the Palau National Code is hereby amended to read as follows:

A' 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) . . . .

(11) bottled water: 25% ad valorem;

(12) . . . .@

Section 11. 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 17, 2008

Approved this 18th day of Sept. , 2008.

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