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Fiscal Year 2015 Budget Act, RPPL No. 9-34 2014

PALAU

NINTH OLBIIL ERA KELULAU
RPPL No. _9-34
Seventh Regular Session, July 2014 Passed as Senate Bill No. 9-127, SD3, HD15, CD1

AN ACT

To enact a budget law for Fiscal Year 2015 through the authorization and appropriation of the sum of $76,886,600 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, 2015, 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 2015 Budget Act.”

Section 2. Executive Branch Operations. The sum of $37,719,500 is authorized for appropriation and is hereby appropriated for expenditure and obligation for Fiscal Year 2015 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 $20,719,500 shall come from local revenues; the amount of $12,000,000 shall come from anticipated USDOI-OIA fiscal year 2015 grant assistance provided to Palau; 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 $813,000

(b) Official Expenses 30,000

(c) Grants Coordinator 76,000

(d) Council of Chiefs 150,000

(e) Presidential Stipend 45,000

Sub-Total $1,164,000

(2) Office of the Vice-President

(a) Vice President’s Office $254,000

(b) National Emergency Management Office 124,000

Sub-Total $378,000

(3) Ministry of Finance

(a) Office of the Minister $58,000

(b) Information Systems Support Services 239,000

(c) Bureau of National Treasury 760,000

(d) Bureau of Budget and Planning 242,000

(e) Bureau of Public Service System 133,500

(f) Workmen’s Compensation 37,000

(g) Bureau of Revenue, Customs & Taxation 1,490,000

Sub-Total $2,959,500

(4) Ministry of State

(a) Office of the Minister $58,000

(b) ROP Consulate Office in Guam 87,000

(c) ROP Consulate Office in Saipan 50,000

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

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

(f) ROP Embassy in Taipei, Taiwan 148,000

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

(h) United Nations Representation Office 305,000

(i) Office of the Public Defender 255,000

(j) Bureau of Trade & Foreign Affairs 400,000

(k) Bureau of Domestic Affairs 277,000

(l) Passport Office 52,000

(m) International Organizations Obligations 250,000

(n) Southwest Island Field Trips 40,000

The sum of $40,000 shall be apportioned and allotted at the direction of the Ministry of State in cooperation with the governors of Sonsorol State and Hatohobei State. $20,000 of these $40,000 in funds is allotted for Sonsorol State and $20,000 is allotted for Hatohobei State. Each allotment shall require prior written approval from the governor of Sonsorol State, the governor of Hatohobei State and the Minister of 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 2015 shall be non-lapsing.

Sub-Total $2,642,000

(5) Ministry of Community & Cultural Affairs

(a) Office of the Minister $58,000

(b) Bureau of National Archive 77,500

(c) Bureau of Youth, Sports & Recreation 191,000

(d) Bureau of Aging & Gender 290,000

Of these funds, the sum of $20,000 is earmarked for the purpose of implementing the Family Protection Act.

Of these funds, the sum of $30,000 is earmarked for the purpose of homecare for the elderly with no income.

(e) Sports Facilities Maintenance & Utilities 90,000

(f) Bureau of Arts & Culture 139,000

(g) Olchotel Belau Fair 20,000

(h) Palau Severely Disabled Assistance Fund 225,000

(i) Ngarachamayong Cultural Center 25,000

These funds for the Ngarachamayong Cultural Center are earmarked for the 2015 Mechesil Belau Conference. These funds shall be administered by the Minister of Community & Cultural Affairs in Consultation with Bilung and Ebil Reklai.

Sub-Total $1,115,500

(6) Ministry of Education

(a) Office of the Minister $58,000

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

(c) Bureau of Curriculum & Instruction 495,000

Of these funds, $100,000 is earmarked for SAT 10 tests. These tests will be administered by Palau Community College.

(d) Bureau of School Administration 6,679,000

(e) Food Service Program 721,000

Sub-Total $8,253,000

(7) Ministry of Public Infrastructure, Industries and Commerce

(a) Office of the Minister $58,000

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

(c) PALARIS 124,000

(d) Bureau of Commercial Development 248,000

(e) Palau Small Business Development (UOG) 45,000

(f) Bureau of Aviation 1,610,000

(g) Bureau of Lands and Survey 839,000

Land surveyors (652,000)

LRO (187,000)

(h) Bureau of Public Works 1,266,000

(i) Landfill Operations 35,000

(j) National Capitol Electricity/Maintenance 1,277,000

(k) CIP Office Operations 115,000

Sub-Total $6,032,000

(8) Ministry of Justice

(a) Office of the Attorney General 580,000

(b) Bureau of Immigration 426,000

Of these funds, $50,000 are earmarked for the purpose of upgrading the computer systems.

(c) Bureau of Public Safety 2,853,000

Of these funds, $355,000 are earmarked for the Division of Fire and Rescue.

(d) Bureau of Labor & Human Resources 301,000

Of these funds, $35,000 are earmarked for the purpose of upgrading the computer systems.

(e) Bureau of Marine Law Enforcement 662,000

Sub-Total $4,822,000

(9) Ministry of Health

(a) Office of the Minister $58,000

(b) Bureau of Public Health 1,078,000

(c) Health Admin & Support Service 2,997,500

Health Administration (2,662,500)

Manila Medical Referral (110,000)

Hawaii Medical Referral (125,000)

Taipei Medical Referral (100,000)

(d) Medical Supplies & Drugs 300,000

(e) Hemodialysis 515,000

(f) Hyperbaric Chamber 36,000

(g) Bureau of Clinical Services 1,975,000

(h) Bureau of Nursing 2,025,000

Of these funds, $250,000 is earmarked for the hiring of 15 nurses.

(i) Medical Referrals for Uninsured 190,000

Sub-Total $9,174,500

(10) Ministry of Natural Resources, Environment & Tourism

(a) Office of the Minister $58,000

(b) Bureau of Marine Resources 550,000

(c) Bureau of Agriculture 491,000

(d) Bureau of Tourism 130,000

Sub-Total $1,229,000

Section 2 Total $37,719,500

Section 3. Judicial Branch. The sum of $2,593,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2015 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 $4,921,500 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2015 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 $1,808,000

(2) Senate Legal Counsel Office 209,500

(3) House of Delegates 2,305,500

(a) State Visits 19,000

(4) House Legal Counsel Office 209,500

(5) Joint Staff 275,000

Of this fund, $45,000 is earmarked for the purchase of copier machines.

(6) Association of Pacific Island Legislatures (APIL) 15,000

(7) Inter-Parliamentary Union (IPU)/Asia Pacific Parliamentarians Union(APPU)

15,000

(8) Palau-Japan Parliamentary Friendship 35,000

(9) Electricity for Koror OEK building 30,000

Section 4 Total $4,921,500

Section 5. Boards, Commissions, and Authorities. The sum of $701,000 is authorized for appropriation and is hereby appropriated for expenditure and obligation for Fiscal Year 2015 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 $100,000

(2) Palau Election Commission 170,000

(3) COFA Board of Trustees 25,000

(4) Palau Code Commission 34,000

(5) Palau Public Lands Authority 75,000

(6) Parole Board 30,000

(7) Palau Housing Authority 70,000

(8) Ethics Commission 50,000

(9) Financial Institutions Commission 85,000

Of the funds for the Financial Institutions Commission, the amount of $50,000 or so much thereof as may be necessary shall be earmarked for the operations of the Financial Investigations Unit (FIU).

(10) Language Commission 37,000

(11) Ngardmau Free Trade Zone 25,000

Section 5 Total $701,000

Section 6. State Block Grants. The sum of $6,183,600 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2015 for the purpose of State Governments’ operational and capital improvement projects expenses. The total amount authorized to be appropriated shall be made up of the following available revenues: The amount of $6,183,600 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 $355,000

(2) Airai State 516,750

(3) Angaur State 318,200

(4) Hatohobei State 252,000

(5) Kayangel State 292,600

(6) Koror State 955,150

(7) Melekeok State 343,900

(8) Ngaraard State 389,550

(9) Ngarchelong State 389,550

(10) Ngardmau State 338,250

(11) Ngaremlengui State 347,200

(12) Ngatpang State 332,750

(13) Ngchesar State 355,000

(14) Ngiwal State 338,250

(15) Peleliu State 407,450

(16) Sonsorol State 252,000

Section 6 Total $6,183,600

Section 7. Independent Agencies. The sum of $2,365,000 is authorized for appropriation and is hereby appropriated for expenditure or obligation for Fiscal Year 2015 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 $423,000

(2) Office of the Special Prosecutor 223,000

(3) Palau Env. Quality Protection Brd (EQPB) 400,000

(4) National Postal Service 359,000

(5) Palau Visitors Authority 800,000

(6) National Aviation Administration 160,000

Section 7 Total $2,365,000

Section 8. Other Agencies and Activities. The sum of $1,558,000 is authorized for appropriation and is hereby appropriated for expenditure or obligation for Fiscal Year 2015 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 $200,000

Of these funds, $25,000 are earmarked for publishing Kramer.

(2) Micronesian Legal Services 125,000

(3) Palau Community Action Agency 175,000

(4) Head Start Program 93,000

(5) Palau Red Cross 10,000

(6) WIA Grant Contribution 108,000

Of these funds, the sum of $15,000 is earmarked for the apprentice program for the Civic Action Team.

(7) Civic Action Team Share 250,000

(8) PNOC & Sports Organizations 177,000

(9) Palau Int’l Coral Reef Center 400,000

(10) Youth Congress 5,000

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

(12) Junior Statesmen of America 10,000

Section 8 Total $1,558,000

Section 9. Education Assistance. The sum of $4,728,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2015 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 $2,436,000

(a) PCC Operations (prov, FY04) (2,338,000)

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

(c) PCC CRE (35,000)

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

(2) Aid to Non-Public Schools $857,000

(a) Emmaus High School (70,000)

(b) Bethania High School (135,000)

Of these funds, $50,000 are earmarked for school repairs.

(c) Palau Mission Academy (106,000)

(d) Mindszenty High School (185,000)

(e) Ibobang High School (106,000)

(f) Maris Stella School (105,000)

(g) Koror SDA Elementary School (100,000)

(h) Emmaus Kindergarten (26,000)

(i) SDA Kindergarten (12,000)

(j) Catholic Kindergarten (12,000)

(3) National Scholarship Fund $1,435,000

(a) Spring Semester scholarships & grants (675,000)

(b) Fall Semester scholarships & grants (675,000)

(c) Administrative Expenses (85,000)

Of these funds, $10,000 are earmarked for office repairs.

Section 9 Total $4,728,000

Section 10. Hospital Trust Fund. The amount of $3,662,000, or the actual amount collected, is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 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 $3,758,000 or the actual amount collected is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 for the purposes of the Protected Areas Network Fund, except that 50% of said sum shall be allocated for the operations and improvements of the water and sewer systems pursuant to 40 PNC § 3413, as amended RPPL Nos. 7-42 and 7-57, and as further amended in section 24 of the Fiscal Year 2014 Budget Act. 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. Road Maintenance Fund. The amount of $623,000 is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 for purposes of the Road Maintenance Fund to be used for the routine and periodic maintenance of the Compact Road and other national road infrastructure network. Any unexpended or unobligated balance of the appropriation of this section shall not lapse at the end of the fiscal year.

Section 13. All Other General Fund Revolving Accounts. The amount of $1,052,000, or the actual amount collected, is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 for all other special revolving accounts under the General Fund established pursuant to law. The amount authorized to be appropriated and that is hereby appropriated shall come from fees, fines and other charges derived from various activities and programs 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 14. General Fund Reserve. The amount of $1,000,000 is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 for the purposes of the General Fund Reserve pursuant to 40 PNC § 330.

Section 15. Debt Service. The sum of $2,698,000 is authorized for appropriation and that is hereby appropriated for Fiscal Year 2015 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; the $8,000,000 million Mega International loan agreement for the purpose of undertaking various improvements to the Palau International Airport; and the Asian Development Bank (“ADB”) Water Sector Improvement Program (“WSIP”) loan for various infrastructure and institutional capacity improvement initiatives. The amount of $1,975,000 authorized to be appropriated and that is hereby appropriated in this section shall come from local revenues; and the amount of $723,000 shall come from the 50 percent allocation of the Green Fee for water and sewer improvements. 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 $1,353,000

(2) ICBC PIA Debt Service 622,000

(3) ADB Program Loan (WSIP) 723,000

Section 12 Total $2,698,000

Section 16. Compact Review Office. The sum of $200,000 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2015 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 17. Health Care Fund Contribution. The sum of $304,000 is authorized for appropriation and is hereby appropriated for expenditure in Fiscal Year 2015 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 18. Subsidy to PPUC for Water & Sewer Operations. The sum of $3,419,000 is authorized for appropriation and is hereby appropriated for expenditure in Fiscal Year 2015. Of this sum, $1,704,720 is a subsidy for water and sewer operations to the Palau Public Utilities Corporation (PPUC). The remaining balance of $1,714,280 will be used for capital expenditures as follows:

(1) Improvements commenced under PWSC $488,180

(2) Water Conservation & Drought Preparedness Projects $670,000

(3) Leadership directed improvements to OS water systems $556,100

Of the amount authorized to be appropriated and appropriated in this section the sum of $2,263,000 will come from Tranche 2 of the ADB WSIP Program Loan. The sum of $1,156,000 will come from Green Fee collections. The amount allocated for water and sewer operations is directed to cover costs for fiscal years 2014 and 2015 and is a one-time subsidy that is not intended to be a recurring budget item because PPUC is expected to follow plans described in the ADB loan for cost recovery.

Section 19. 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 2015 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 20. Subsidy to Peleliu Marine Transportation Authority. The sum total of $20,000 is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 as a subsidy to Peleliu Marine Maritime Transportation Authority for the maintenance and operation of the Peleliu State boat Odesangel Dil. The amount authorized to be appropriated in this section shall come from local revenues. Any unexpended balance of the appropriation of this section shall not lapse at the end of the fiscal year.

Section 21. Repair of Old Age Center in Melekeok State. The sum total of $10,000 is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 for the maintenance and repair of the Melekeok State Old Age Center. The amount authorized to be appropriated in this section shall come from local revenues. Any unexpended balance of the appropriation of this section shall not lapse at the end of the fiscal year.

Section 22. Repairs to Angaur State boat. The sum total of $250,000 is hereby authorized to be appropriated and is hereby appropriated for Fiscal Year 2015 for the sole purpose of paying the cost to fix the Propulsion System and the Auxiliaries and Controls of the Angaur State boat, the Regina IV. The amount authorized to be appropriated in this section shall come from local revenues. Any unexpended balance of the appropriation of this section shall not lapse at the end of the fiscal year.

Section 23. Reprogramming. The President shall have the authority to reprogram funds in Sections 2 and 5 in the Fiscal Year 2015 Budget Act in accordance with 40 PNC § 351.

Section 24. 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: August 28, 2014

Approved this 28th day of August , 2014.

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