NITIJELA OF THE MARSHALL ISLANDS

28TH CONSTITUTIONAL REGULAR SESSION, 2007
BILL NO: 154 N.D.1
P.L. 2007-86

_________

APPROPRIATIONS (FINANCIAL YEAR 2008) ACT, 2007
_________

A
BILL FOR AN
ACT

To provide -

(a) in accordance with Article VIII of the Constitution, for the issue from the Marshall Islands General Fund, including funds provided under the Compact of Free Association, as Amended and other funds, of a total sum of $123,332,933 to meet the expenditures of the Government for the Financial Year 2008, and to appropriate sums to program areas; and

(b) for a Contingencies Fund in accordance with Section 9 of Article VIII of the Constitution; and

(c) for contingent appropriation of amounts that may be received in the future; and

(d) for delegation of expenditures approval under Section 5 of Article VIII of the Constitution; and

(e) for controls on reprogramming and transfer of funds within appropriation areas; and

(f) for control on specific expenditures.

BE IT ENACTED BY THE NITIJELA OF THE MARSHALL ISLANDS:

Section 1. Short Title.

This Act may be cited as the Appropriations (Financial Year 2008) Act, 2007 and shall be deemed to have come into effect on 1, October, 2007.

Section 2. Statement of National Objective.

It is the intention of the Government of the Republic of the Marshall Islands to enact and implement a national budget for the whole of the Financial Year 2008 as provided in the FY 2008 Budget Statement (including Medium Term Budget and Investment Framework), attached as Appendix A.

Section 3. Interpretation.

In this Act:

(1) “program area” means program areas set out in Schedules 1 to Schedule 4 as indicated by the headings in those schedules.

(2) “unanticipated income” means any money, not being loan money, that:

(a) becomes available for expenditures from a source at a time when the Nitijela is not meeting; and

(b) has not been specifically included in the budget estimates for the Financial Year, which the Cabinet is satisfied should, in the interests of the Republic of the Marshall Islands, be expended, in whole or in part, before the expenditures could reasonably be authorized by an Appropriation Act or a Supplementary Appropriation Act.

Section 4. Appropriations from the Marshall Islands General Fund.

(1) Total Appropriation. The sum of $34,999,891 is hereby appropriated, and may be withdrawn from the Marshall Islands General Fund and expended pursuant to Article VIII of the Constitution for program areas as set out in Schedule 1.

(2) Compact Funds: All Funds provided under the Compact of Free Association, as Amended, in the amount $68,226,451 shall be credited to the General Fund and shall be appropriated in accordance with the relevant provisions and Schedule 2 of this Act.

(3) Restrictions on Reprogramming of Compact Funds. Funds Received under the Compact of Free Association, as Amended shall not be transferred to any other activity, or reprogrammed or expended for any purpose during the Financial Year other than the permissible uses of those funds as provided for in the Compact of Free Association as Amended and its Subsidiary Agreements.

(4) Lapse of Compact Funds. All moneys received under the Compact of Free Association, as Amended and appropriated herein shall not lapse at the end of the Financial Year, but shall continue until either the purpose of the appropriation is completed or funds are expended, whichever occurs first.

(5) Notwithstanding the provisions of any other law or agreement, any entity or organization receiving funds under the Compact of Free Association as Amended, shall not receive such funding if the Auditor General or its contractors have determined that the books, accounts and financial records of any such entity or organization have not been auditable for the past three preceding fiscal years until such time as the Auditor General or its contractor determine that such entity or organization has taken necessary corrective action to render such books, accounts and financial records in an auditable condition to permit a financial audit to proceed.

Section 5. Appropriation of U.S. Agency and other Foreign Grants.

(1) The sum of $12,810,129 (being the total amount of special U.S. Federal Agency and other Foreign Grants including capital grants from the Republic of China) is appropriated and may be withdrawn from the Marshall Islands General Fund pursuant to Article VIII of the Constitution, for program areas in accordance with Schedules 4 and 5, during the Financial Year.

(2) The amounts set out in Schedules 4 and 5 are not available for expenditure as reprogrammed expenditure under Article VIII Section 7 of the Constitution, except as authorized by or under the agreements with the donor nation and/or institution.

(3) The appropriation made by Subsection (1) shall not lapse, except those made under the capital grant allocations from the Republic of China, at the end of the Financial Year, but shall continue until either the grant expires or the funds are expended, whichever occurs first.

Section 6. Funding of the Office of the Auditor General.

The Secretary of Finance shall withhold and deposit in the special account in the Marshall Islands General Fund, 0.6 percent of all amounts appropriated in Schedules 1 and 5, and the sum so withheld and deposited may be withdrawn and expended by the Auditor-General in accordance with the budget approved for his/her office by the Cabinet, for the operations and activities of his/her office.

Section 7. Contingencies Fund.

(1) In accordance with Article VIII, Section 9(1) of the Constitution, up to $200,000 is authorized to be advanced against the General Fund for purposes of the Contingencies Fund.

(2) Where, during the Financial Year, an amount of unanticipated income is received by the Government for the purpose of an urgent and unforeseen need, the amount prescribed in Subsection (1) for the Contingencies Fund is increased by the amount of that unanticipated income, to meet such need.

Section 8. Unanticipated Income.

Where, during the Financial Year, an amount of unanticipated income is received by the Government for a specified program area, otherwise than as set out in Section 7 (2), that amount is appropriated for the corresponding program area in Schedules as the case may be, and the amount of the appropriation for that program area is increased accordingly.

Section 9. Notification to the Cabinet by the Minister.

When any money is received under Section 7 (2) or Section 8 herein above, the Minister of Finance shall notify the Cabinet of the receipt of such money, and such money shall not be expended without the approval of the Cabinet.

Section 10. Lapsing of Certain Appropriations.

Any increase in the amount prescribed for the Contingencies Fund provided for by Section 7(2) ceases and any increase in the amount of an appropriation affected by Section 9 lapses:

(a) On the effective date of the next Appropriation Act or Supplementary Appropriation Act enacted after the date referred to in Subsection (1); or

(b) On the adoption of a Resolution to that effect by the Nitijela, whichever occurs first.

Section 11. Delegation of Authority to Approve.

(1) For the purposes of Article VIII, Section 5 (1) of the Constitution, the authority to approve expenditure in a program area in accordance with Schedules 2-5 is hereby delegated to:

(a) The member of the Cabinet primarily responsible for that program area; and;

(b) If the responsible member of the Cabinet so directs by instrument in writing, and subject to any limitations imposed by the instrument and to general control by the member, an appropriate person, authority, or agency.

(2) The Chief Justice of the High Court is hereby vested with the authority to approve expenditure of the Judiciary Fund in accordance with the provisions of 27 MIRC Chapter 1.

(3) Any expenditure otherwise than in accordance with Schedule 1, 2, 3, 4 and 5 shall require the approval of the Cabinet in accordance with Article VIII, Section 5(1) of the Constitution.

Section 12. Reprogramming and Transfers Between and Within Program Areas.

Before any reprogramming of expenditure between program areas is approved under Article VIII, Section 7 (1) of the Constitution, the Cabinet shall approve such reprogramming.

Section 13. General.

(1) In the event the actual receipts into the Marshall Islands General Fund fall short of the total amount appropriated in Schedules 6, 7, 8 and 9, the Cabinet may make the necessary adjustments to Schedules 1, 2, 3 and 4 to accommodate the shortfall.

(2) All contracts awarded by the Government and associated agencies must comply with the provisions of the RMI Procurement Code. Funds will only be released by the Ministry of Finance upon proof of compliance with the code.

(3) Gross Revenue Tax of 3% on all Government contracts will be withheld by the Ministry of Finance at the time of payment, and credited against the contractor’s liability to pay gross revenue tax for the period of the payment. The contractor is still required to file a tax for return for the period.

(4) All Government Ministries and associated agencies must have been audited and have complied with all the audit recommendations prior to receiving any quarterly allocation. Any Ministry or Department unable to comply with all the audit requirements must provide an expense report before release of any funds.

(5) No funds appropriated under this Act shall be released to any Local Government, statutory corporation or agency whose financial records have not been auditable for the past two preceding fiscal years, until such Local Government, statutory corporation or agency has taken the necessary steps to render such records auditable, or provides a full and complete report of its expenses to Cabinet.

Section 14. Special Revenue Fund.

Any moneys in excess of an appropriation made in Schedule 3 (Special Revenue Funds) may be expended during the Financial Year only in accordance with terms of the Act establishing such Special Revenue Fund.

Section 15. Effective Date.

This act shall take effect on the date of certification in accordance with Article IV, Section 21 of the Constitution.

CERTIFICATE

I hereby certify:

(1). That Nitijela Bill No: 154	 N.D.1 was passed by the Nitijela of the Republic of the Marshall Islands on the 21st day of September, 2007; and

(2). That I am satisfied that Nitijela Bill No:154 N.D.1 was passed in accordance with the relevant provisions of the Constitution of the Republic of the Marshall Islands and the Rules of Procedures of the Nitijela.

I hereby place my signature before the Clerk this 24th day of September 2007.

Attest:

_________________________
Litokwa Tomeing
Speaker,
Nitijela of the Marshall Islands	_________________________
Joe E. Riklon
Clerk,
Nitijela of the Marshall Islands	

	APPROPRIATION BILL SCHEDULE		
	REPUBLIC OF THE MARSHALL ISLANDS		
	Financial Year 2008 Expenditure Budget		
	For the Twelve Month Period Ending September 30, 2008		
		FY 2008	
		N.D.1	
		SCHEDULE 1	
			
	RECURRENT GENERAL APPROPRIATIONS

			
10	- PRESIDENT & CABINET	1,878,719	
	Office of the President	249,116	
	President & Ministers	589,985	
	Cabinet Operations	437,051	
	Customary Law Commission	175,399	
	RMI/USP Joint Secondary Education Project	224,000	
	RMI National Band	142,982	
	National Training Council	60,186	
			
11	- CHIEF SECRETARY	705,380	
	Administration	210,823	
	Deputy Chief Secretary-Ebeye	95,101	
	EPPSO	231,005	
	OEPPC	94,001	
	Disaster Office	44,000	
	Postal Office	30,450	
			
12	- SPECIAL APPROPRIATION	5,459,014	
	Jaluit Power Plant	125,000	
	Land Leases
T o.,.7 _r cas~°S	578,000	
	Majuro Landowners Electricity	730,000	
	Lease Housing	233,000	
	Marshall Islands Visitors Authority	150,000	
	MWSCO Water	100,000	
	International Subscriptions/Membership Fees	274,500	
	RMI-USP MoU	25,600	
	Copra Price Stabilization Subsidy (Tobolar)	1,092,185	
	ADB Loan Repayment	1,518,729	
	General Election	410,000	
	Presidential Summit	172,000	
	RMI Consulate (Honolulu) Office upgrade	50,000	
			
13	- COUNCIL OF IROIJ	409,147	
	Council of Iroij - Administration	83,043	
	Council of Iroij Members	326,104	

31	- NITIJELA	1,710,160	
	Nitijela Operation	565,144	
	General Membership	971,709	
	Speaker’s Contingency	57,879	
	Committee Expense	56,275	
	Legislative Counselors	59,153	
			
15	- AUDITOR GENERAL	455,744	
	Auditor General Administration (.06%)	0	
	Administration - CB	103,514	
	Auditor General Salary	42,230	
	Single Audit Match	310,000	
			
27	- FOREIGN AFFAIRS	2,486,577	
	Administration	634,219	
	Compact Office	390,854	
	Washington DC Embassy	371,141	
	USAKA LNO	85,760	
	Honolulu Office	144,338	
	RMI UN Mission - New York	209,294	
	Tokyo Embassy	281,074	
	Taipei Embassy
_	191,484	
	Fiji Office	145,263	
	Korea Embassy	33,150	
			
17	- PUBLIC SERVICE COMMISSION	468,520	
	Public Service Commission	93,813	
	PSC Administration	374,707	
			
18	- JUDICIARY	914,479	
	General Courts	698,225	
	Traditional Rights Court	135,293	
	Community Court	79,956	
	Judicial Service Commission	1,005	
			
19	- ATTORNEY GENERAL	840,024	
	Attorney General Office	630,943	
	Immigration-Majuro	151,212	
	Immigration-Ebeye	57,869	

20-HEALTH	3,130,042	
Majuro Administration	502,630	
Health Planning & Statistics	145,549	
Majuro Hospital Operation	1,109,834	
Primary Health Care Admin	119,231	
Youth Adolescent Health	16,632	
Population Activities & Family Planning	52,341	
Human Services (SAPS Match)	9,547	
Outer Island Dispensaries	373,118	
Dental Services - Majuro	301,160	
Ebeye Hospital Services
Ebeye Hospital Services	500,000	
		
ENVIRONMENTAL PROTECTION AUTHORITY	202,480	
EPA Administration	202,480	
		
21 - EDUCATION	4,163,759	
College of the Marshall Islands	2,000,000	
Scholarship Board	173,223	
MOE Administration	688,914	
MOE Development Staff	114,130	
National Standards Office	220,309	
Elementary Instructional	532,262	
Vocational Education	93,450	
Property Maintenance	341,471	
		
22 - TRANSPORTATION & COMMUNICATION	1,762,801	
Office of the Secretary	334,831	
Communication	161,417	
Directorate of Civil Aviation	229,020	
Marshall Islands Shipping Corporation	1,037,533	
		
23 - RESOURCES & DEVELOPMENT	723,136	
R & D Administration	175,982	
Agro Forestry
^ ^-^ p,.	175,394	
Trade & Investment	224,758	
Renewable Energy Office	83,452	
RMI Commercial Office (Hawaii)	63,550	
		
24 - INTERNAL AFFAIRS	2,398,278	
Administration Office	369,791	
Library/Historic Preservation	40,100	
National Archives	24,717	
Historic Preservation Act	46,694	
Land & Surveys	117,729	
Local Government Affairs	139,171	
Local Government Fund	396,620	
Grant in Aid	242,000	
Community Development	105,058	
Youth Bureau	79,690	
Women in Development	82,091	
Sports & Recreation	192,863	
Volunteer Program	29,139	
Electoral Administration	106,491	
National Elections	36,259	
V7AB Radio Station	209,356	
Identification Division/ID Cards
__	41,843	
Registrar's Office	46,485	
Print Shop	38,852	
Central Adoption Administration	53,329	
		
25 - JUSTICE	2,943,864	
Public Defender - Majuro	281,650	
Public Safety - Majuro	1,574,067	
Public Safety - Ebeye	474,515	
Sea Patrol	505,513	
Land Registration	108,119	
		
26 - FINANCE	2,919,750	
Secretary's Office	68,379	
Accounting & Administration	322,115	
EDP/Information Technology	114,015	
Revenue Division Majuro	260,188	
Custom Division	253,228	
Treasury Division
-	117,042	
Budget & Inti Aid Division	231,638	
Single State Agency	64,141	
Procurement & Supply Division	196,676	
Ebeye - Finance	108,301	
Ebeye Revenue/Custom Office	90,138	
Banking Commissioner	126,889	
Centralized Electricity Bills - Majuro	900,000	
Centralized Electricity Bills - Ebeye	67,000	
		
28 - PUBLIC WORKS	1,428,017	
Operation & Maintenance - Majuro	490,663	
CGMA	572,610	
Outer Islands Projects	164,744	
YFU 82	200,000	
		
TOTAL GENERAL FUND RECURRENT EXPENDITURES	34,999,891	
		
COMPACT SECTORAL GRANTS	SCHEDULE 2	
		
15 - AUDITOR GENERAL	500,000	
Single Audit	500,000	
		
20 - HEALTH	6,512,349	
MOH Utility	780,000	
Lease Housing	804,542	
Majuro Hospital	3,014,918	
OIHCS	777,455	
Ebeye Health Administration	35,235	
Ebeye Preventive Services	50,403
50,403	
Ebeye Public Health	57,308	
Ebeye Dental Services	130,244	
Kwajalein Atoll Dispensaries	66,421	
Ebeye Hospital Operations	795,823	
EBEYE SPECIAL NEEDS		
Ebeye Special Needs (Ebeye Hospital)	1,570,406	
		
21 - EDUCATION	11,336,978	
College of the Marshall Islands (Compact Designated)	1,000,000	
MOE Lease Housing	400,000	
MOE Administration	963,333	
Scholarship Board	716,428	
National Standard Office/Policy Planning	106,036	
Curriculum/Elementary Institutional	80,000	
Middle School	389,826	
Elementary Education - Uliga Elementary School	212,516	
Elementary Education - Rita	314,039	
Elementary Education - Delap	270,574	
Elementary Education - Ajeltake	126,898	
Elementary Education - Woja	102,773	
Elementary Education - Laura	178,430	
Elementary Education - Rairok	218,182	
Elementary Education - Ejit	50,693	
Elementary Education - Ebeye	821,136	
Elementary Education - Outer Islands	2,363,881	
Vocational Education	14,800	
Secondary Education - MIHS	986,303	
Laura High School	277,020	
Secondary Education - JHS	432,633	
Northern Island High School	375,893	
Kwajalein Atoll High School	293,643	
Aid to Private School	347,109	
MOE Property & Maintenance	294,832	
		
EBEYE SPECIAL NEEDS	1,775,424	
Ebeye Special Needs (MOE)	1,675,424	
Ebeye Special Needs (Scholarship)	100,000	
		
SUPPLEMENTAL EDUCATION GRANT (SEG)	5,990,490	
Elementary Text books	500,000	
Elementary Supplies, Materials and Instructional Aids	108,485	
Secondary textbooks	200,000	
Secondary Supplies, Materials and Instructional Aids	164,253	
Instructional Service Center	80,000	
Early Childhood Education	1,559,375
_	
Music and Art Program	30,000	
Close-up program	36,000	
School enrichment program	117,385	
Food program	332,325	
High School Practicum Program	30,000	
National Training Program	486,004	
National Vocational Technical Institute	423,651	
Adult Education and Literacy (CMI)	100,000	
National Scholarship Board	669,000	
Substitute teachers	120,000	
Contractual services for program development	140,000	
World teach and Dartmouth	410,000	
Professional Development	321,286	
Program development	20,000	
		
ENVIRONMENTAL PROTECTION AUTHORITY	215,860	
Kwajalein Environmental Impact Assessment	215,860	
		
FOREIGN AFFAIRS	300,000	
Capacity Building	300,000	
		
TOTAL COMPACT DESIGNATED	28,201,507	
		
COMPACT CAPITAL FUND	11,855,212	
College of the Marshall Islands	5,000,000	
Majuro Hospital	779,900	
Ministry of Education Elementary Schools	4,695,676	
Marshall Islands Airports Authority(FAA Matching)	786,875	
Infrastructure Maintenance Fund	592,761	
		
OTHER COMPACT DESIGNATED	28,169,730	
Kwajalein Landowners	16,189,500	
Kwajalein Development Fund	1,700,670	
Kwajalein Development Fund - KAJUR	350,000	
Compact Disaster Grant	215,860	
Compact Trust Fund	9,713,700	
		
TOTAL COMPACT EXPENDITURE	68,226,451	
		
	SCHEDULE3	
SPECIAL REVENUE EXPENDITURE	7,296,462	
Health Care Fund	6,596,110	
Ministry of Internal Affairs	40,432	
Ministry of Justice	150,000	
Ministry of Education (National Training Council)	174,631	
Ministry of Finance (Postal Service)	252,754	
Sea Patrol	82,534	
		
	SCHEDULE4	
U.S. FEDERAL GRANTS EXPENDITURE	7,310,129	
Auditor General	55,955	
MoH Federal and Other Grants	3,802,607	
MoE Federal Grants	2,230,139	
CMI Federal Grant	1,100,820	
4-Atoll Feeding Program	54,173	
MIA Fedeal Grants	66,435	
		
	SCHEDULE 5	
OTHER DONOR		
		
ROC PROJECTS EXPENDITURE	5,500,000	
Majuro Solid Waste Management	325,000	
International Subscriptions & Fees	24,000	
Disaster Matching	215,860	
Tobolar Processing Plant	107,815	
Outer-Island Runway Renovation	500,000	
MIDB Rural Development Programs (MOU w/ MIDB)	250,000	
Outer Island Solar Projects	1,000,000	
Uliga Elementary School Land Reclamation (Phase 1)	350,000	
Infrastructure Capital Maintenance Fund (Compact Matching)	592,761	
Ship Repairs	200,000	
Outer-Islands Development Fund	240,305	
RMI -USP MoU	40,000	
KAJUR	350,000	
MIVA	100,749	
Micronesia Legal Services	100,000	
MEC Outer Islands Power Plant (Wotje)	195,000	
MEC Outer Islands Power Plant (Jaluit)	100,000	
Government/Lease Housing	100,000	
ADB Loan Repayment (capital projects)	660,510	
Women's Conference	30,000	
Nitijela Vehicle	18,000	
		
TOTAL ALL EXPENDITURES	123,332,933	
		
REVENUES	SCHEDULE 6	
		
GENERAL FUND	34,999,891	
Marshallese Income Tax	7,099,427	
Expat Income Tax	4,755,974	
Business Gross Revenue Tax	4,737,307	
Non-resident Business Gross Income Tax	132,875	
CMI Tax	1,415,455	
Import Tax	7,039,954	
Hotel & Resort Tax	56,832	
Fuel Tax	883,898	
Immovable Property Tax	484,095	
Penalties and Interest Charges	137,701	
Fishing Rights	1,500,000	
Fees and Charges	370,079	
Other Sales, Charges and Service fees	107,088	
Interest Income	28,302	
Dividend Income	100,903	
Ship Registry	2,000,000	
Other Grants	4,000,000	
Tax Auidt Adjustments	150,000	
		
	SCHEDULE 7	
SPECIAL REVENUE FUNDS	7,296,462	
Health Care Fund	6,596,110	
Ministry of Internal Affairs	40,432	
Ministry of Justice	150,000	
National Training Council	174,631	
Ministry of Finance (Postal Service)	252,754	
Sea Patrol	82,534	
		
	SCHEDULE 8	
U.S. COMPACT REVENUE	68,226,451	
Compact Base Grants	17,343,828	
Compact Base Grants - Ebeye Special Needs	3,345,830	
Compact Special Education Grant (SEG)	5,990,490	
Compact Disaster Assistance Matching	215,860	
Compact Single Audit	500,000	
Compact Capital Funds	12,027,677	
Infrastructure Maintenance Fund (IMF)	633,036	
Kwajalein Environmental Impact Assessment	215,860	
Kwajalein Development Fund	2,050,670	
Kwajalein Landowners	16,189,500	
Trust Fund (Compact Contribution)	9,713,700	
		
	SCHEDULE 9	
OTHER REVENUE	12,810,129	
U.S. Federal Grants	7,310,129	
Overseas Grants	5,500,000	
		
TOTAL ALL REVENUES	123,332,933