NITIJELA OF THE REPUBLIC OF THE MARSHALL ISLANDS

29TH CONSTITUTIONAL REGULAR SESSION, 2008
BILL NO: 12ND1
P.L.2008-4
_________________

APPROPRIATIONS (FINANCIAL YEAR 2009) ACT, 2008.
_________________

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 $124,505,579 to meet the expenditures of the Government for the Financial Year 2009, 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 REPUBLIC OF THE 
MARSHALL ISLANDS:

Section 1. Short Title.

This Act may be cited as the Appropriations (Financial Year 2009) Act, 2008 and shall be deemed to have come into effect on 1 October, 2008.

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 2009 as provided in the FY 2009 Budget Statement 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The sum of $33,249,896 is hereby appropriated, and may be withdrawn from the Marshall Islands General Fund and expended pursuant to Article VIII of the Constitution for program areas as set out in Schedule 1.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 $71,895,516 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.

Fund 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 $19,360,168 (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 and the Office of the Project Management Unit (PMU)

(1) 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 maybe 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.

(2) The Secretary of Finance shall withhold and deposit in a special account that is part of the Compact Capital Funds, 8.0 percent or $400,000 (whichever amount is less) of any amounts specified under the Compact Capital Funds appropriated in Schedule 2, and the sum so withheld and deposited may be withdrawn and expended by the Project Management Unit (Ministry of Public Works) in accordance with the budget approved by the Cabinet, for the operations and activities of the Project Management Unit.

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 Section7 (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 of Funds.

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: 12 N.D.1 was passed by the Nitijela of the Republic of the Marshall Islands on the 17th day of September, 2008; and

(2) That I am satisfied that Nitijela Bill No.: 12 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 29th day of September, 2008.

Attest:

________________________
Hon. Jurlang Zedkaia
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 2009 Expenditure Budget		
For the Twelve Month Period Ending September 30, 2009		
		
	FY 2009	
	SCHEDULE1	
		
RECURRENT GENERAL APPROPRIATIONS		
		
10 - PRESIDENT & CABINET	1,878,719	
Office of the President	392,098	
President & Ministers	589,985	
Cabinet Operations	437,051	
Customary Law Commission	175,399	
RMI/USP Joint Secondary Education Project	224,000	
National Training Council	60,186	
		
11 - CHIEF SECRETARY	669,963	
Administration	210,448	
Deputy Chief Secretary-Ebeye	92,526	
EPPSO	229,338	
OEPPC	94,001	
Disaster Office	43,650	
		
12 - SPECIAL APPROPRIATION	6,147,614	
Land Leases	578,000	
Lease Housing	233,000	
Marshall Islands Visitors Authority	150,000	
Centralized Water Bills	100,000	
International Subscriptions/Membership Fees	351,463	
Copra Price Stabilization Subsidy (Tobolar)	500,000	
ADB Loan Repayment	1,005,097	
Constitution Day	50,000	
Marshall Islands Shipping Corporation	1,000,000	
Alele Corporation	64,817	
Nuclear Claims Tribunal	100,000	
Ebeye Public Works	250,000	
Outer Island Development Projects	240,305	
National Energy Support Account	1,524,932	
		
13 - COUNCIL OF IROIJ	407,337	
Council of Iroij - Administration	81,793	
Council of Iroij Members	325,544	
		
31- NITIJELA	1,684,932	
Nitijela Operation	549,394	
General Membership	965,710	

Speaker's Contingency	54,400	
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	2,572,184	
Administration	631,219	
Compact Office	382,954	
Washington DC Embassy	367,041	
USAKA LNO	85,384	
Honolulu Office	142,531	
RMI UN Mission - New York	205,594	
Tokyo Embassy	280,274	
Taipei Embassy	186,124	
Fiji Office	137,913	
Arkansas Consulate	153,150	
		
17 - PUBLIC SERVICE COMMISSION	467,062	
Public Service Commission	93,385	
PSC Administration	373,677	
		
18 - JUDICIARY	957,229	
General Courts	690,975	
Traditional Rights Court	135,293	
Community Court	79,956	
Judicial Service Commission	1,005	
Judicial Fund	50,000	
		
19 - ATTORNEY GENERAL	827,961	
Attorney General Office	623,330	
Immigration-Majuro	150,862	
Immigration-Ebeye	53,769	
		
20 - HEALTH	3,059,851	
Majuro Administration	432,439	
Health Planning & Statistics	145,549	
Majuro Hospital Operation	1,109,834	
		
	FY 2009	

Primary Health Care Admin	121,281	
Youth Adolescent Health	16,632	
Population Activities & Family Planning	52,341	
Human Services	9,547	
Outer Island Dispensaries	371,068	
Dental Services - Majuro	301,160	
Ebeye Hospital Services	500,000	
		
ENVIRONMENTAL PROTECTION AUTHORITY	202,480	
EPA Administration	202,480	
		
21 - EDUCATION	4,148,459	
College of the Marshall Islands	2,000,000	
Scholarship Board	173,223	
MOE Administration	630,895	
National Standards Office/Policy & Planning	238,492	
Elementary Instructional & Support Services	109,373	
Vocational Education	84,538	
Property Maintenance	330,668	
National Band	96,927	
MOE Curriculum, Instructions, & Assessment	484,343	
		
22 - TRANSPORTATION & COMMUNICATION	689,238	
Office of the Secretary	310,081	
Communication	152,837	
Directorate of Civil Aviation	226,320	
		
23 - RESOURCES & DEVELOPMENT	705,996	
R & D Administration	181,618	
Agro-Forestry	235,723	
Trade & Investment	160,295	
Renewable Energy Office	75,280	
RMI Commercial Office (Hawaii)	53,080	
		
24 - INTERNAL AFFAIRS	2,385,447	
Administration Office	448,827	
Historic Preservation Act	46,524	
Land & Surveys	115,704	
Local Government Affairs	139,171	
Local Government Fund	396,620	
Grant in Aid	242,000	
Community Development	101,958	

Youth Bureau	77,190	
Women in Development	75,356	
Sports & Recreation	190,911	
Volunteer Program	29,139	
Electoral Administration	103,091	
National Elections	33,846	
V7AB Radio Station	207,306	
Identification Division/ID Cards	41,243	
Registrar's Office	46,285	
Print Shop	37,352	
Central Adoption Administration	52,924	
		
25-JUSTICE	2,899,954	
Public Defender - Majuro	274,504	
Public Safety - Majuro	1,566,497	
Public Safety - Ebeye	468,791	
Sea Patrol	505,513	
Land Registration	84,649	
		
26 - FINANCE	1,946,939	
Secretary's Office	67,824	
Accounting & Administration	321,819	
EDP/Information Technology	114,015	
Revenue Division Majuro	258,272	
Custom Division	252,728	
Treasury Division	117,042	
Budget and Office of International Development and Assistance	230,783	
Single State Agency	64,141	
Procurement & Supply Division	196,676	
Ebeye - Finance	108,276	
Ebeye Revenue/Custom Office	90,138	
Banking Commissioner	125,225	
		
28 - PUBLIC WORKS	1,142,787	
Operation & Maintenance - Majuro	383,077	
CGMA	463,726	
Outer Islands Projects	132,552	
YFU 82	163,432	
		
TOTAL GENERAL FUND RECURRENT EXPENDITURES	33,249,897	
		
COMPACT SECTORAL GRANTS	SCHEDULE 2	

15 - AUDITOR GENERAL	500,000	
Single Audit	500,000	
		
20 - HEALTH	7,040,240	
Majuro Atoll Waste Company	325,000	
MOH Utility	982,891	
Lease Housing	804,542	
Majuro Hospital	3,014,918	
OIHCS	777,455	
Ebeye Health Administration	35,235	
Ebeye Preventive Services	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)	1,743,289	
		
21- EDUCATION	11,728,557	
College of the Marshall Islands (Compact Designated)	1,125,000	
MOE Lease Housing	300,000	
MOE Administration	1,343,936	
Scholarship Board	600,000	
National Standard Office/Policy Planning	97,500	
MOE Curriculum Instructions and Assessment	45,750	
Elementary Support Services	20,000	
Middle School	437,857	
Elementary Education - Uliga Elementary School	262,354	
Elementary Education - Rita	335,801	
Elementary Education - Dela	305,855	
Elementary Education - Ajeltake	126,898	
Elementary Education - Woja	104,971	
Elementary Education - Laura	178,430	
Elementary Education - Rairok	260,972	
Elementary Education - Ejit	29,842	
Elementary Education - Ebeye	487,745	
Elementary Education - Outer Islands	2,376,720	
Vocational Education Secondary	13,600	
Secondary Education - MIHS	1,048,740	
Laura High School	268,467	
Secondary Education - JHS	482,966	

Northern Island High School	414,232	
Kwajalein Atoll High School	328,599	
Aid to Private School	400,000	
MOE Property & Maintenance	332,322	
		
EBEYE SPECIAL NEEDS	1,792,845	
Ebeye Special Needs (MOE)	1,692,845	
Ebeye Special Needs (Scholarship)	100,000	
		
SUPPLEMENTAL EDUCATION GRANT (SEG)	6,100,000	
Elementary Text books	335,000	
Elementary Supplies, Materials and Instructional Aids	56,831	
Secondary textbooks	150,000	
Secondary Supplies, Materials and Instructional Aids	121,084	
Instructional Service Center	80,000	
Early Childhood Education	1,784,375	
Music and Art Program	40,000	
Close-up program	40,000	
School enrichment program	121,018	
Food program	368,325	
High School Practicum Program	30,000	
National Training Program	476,004	
National Vocational Technical Institute	423,651	
Adult Education and Literacy (CMI)	100,000	
National Scholarship Board	679,000	
Substitute teachers	99,367	
Contractual services for program development	60,000	
World teach and Dartmouth	410,000	
Professional Development	391,286	
School accreditation	6,726	
Transportation	184,607	
		
ENVIRONMENTAL SECTOR	228,138	
Kwajalein Environmental Impact Assessment	228,138	
		
PUBLIC SECTOR CAPACITY BUILDING	425,000	
Office of Compact Implementation	300,000	
Ministry of Finance FMIS Upgrade	100,000	
ECO Update/Stats	25,000	
		
TOTAL COMPACT DESIGNATED	29,558,069	

COMPACT CAPITAL FUND	12,047,382	
College of the Marshall Islands	5,000,000	
Majuro Hospital	1,000,000	
Elementary and High School Projects	4,325,013	
Majuro Atoll Waste Company	120,000	
National Energy Capital Projects	1,000,000	
Infrastructure Maintenance Fund	602,369	
		
OTHER COMPACT DESIGNATED	30,290,065	
Kwajalein Landowners	17,110,328	
Kwajalein Development Fund	1,817,308	
Kwajalein Development Fund - KAJUR	350,000	
Compact Disaster Grant	228,138	
Compact Trust Fund	10,784,291	
		
TOTAL COMPACT EXPENDITURE	71,895,516	
		
	SCHEDULE 3	
SPECIAL REVENUE EXPENDITURE	6,784,090	
Health Care Fund	5,977,000	
Ministry of Internal Affairs	40,432	
Ministry of Justice	150,000	
National Training Council	174,631	
Marshall Islands Postal Service Authority	359,492	
Sea Patrol	82,534	
		
	SCHEDULE 4	
U.S. FEDERAL GRANTS EXPENDITURE	7,326,078	
MoH Federal and Other Grants	4,427,464	
MoE Federal Grants	1,677,186	
CMI Federal Grant	1,100,820	
4-Atoll Feeding Program	54,173	
MIA Federal Grants	66,435	
		
	SCHEDULE 5	
OTHER DONOR		
		
ROC PROJECTS EXPENDITURE	5,250,000	
Disaster Matching	228,138	
Outer-Island Runway Renovation	349,000	
MIDB Rural Development Programs (MOU w/ MIDB)	250,000	
Infrastructure Capital Maintenance Fund (Compact Matching)	602,369	
RMI - USP MoU	50,000	
MIVA	100,000	
Micronesia Legal Services	100,000	
ADB Loan Repayment (capital projects)	1,279,153	
Prior Year Liabilities	487,024	
Nitijela Renovation Projects	50,000	
Marshall Shipping Corporation Ship Repairs	75,000	
Air Marshall Islands Subsidy	100,000	
National Energy Support Account	1,399,316	
Majuro Court House Renovation Projects	80,000	
RMI Overseas Renovation Projects	100,000	
		
TOTAL ALL EXPENDITURES	124,505,579	
		
REVENUES	SCHEDULE 6	
		
GENERAL FUND	33,249,896	
Marshallese Income Tax	6,049,432	
Expat Income Tax	4,505,974	
Business Gross Revenue Tax	4,662,307	
Non-resident Business Gross Income Tax	132,875	
CMI Tax	1,340,455	
Import Tax	6,639,954	
Hotel & Resort Tax	56,832	
Fuel Tax	483,898	
Immovable Property Tax	484,095	
Penalties and Interest Charges	137,701	
Fishing Rights	2,000,000	
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	6,784,089	
Health Care Fund	5,977,000	
Ministry of Internal Affairs	40,432	
Ministry of Justice	150,000	
National Training Council	174,631	
Marshall Islands Postal Service Authority	359,491	
Sea Patrol	82,534	
		
	SCHEDULE 8	
U.S. COMPACT REVENUE	71,895,516	
Compact Base Grants	19,193,797	
Compact Base Grants -Ebeye Special Needs	3,536,134	
Compact Special Education Grant (SEG)	6,100,000	
Compact Disaster Assistance Matching	228,138	
Compact Single Audit	500,000	
Compact Capital Funds	11,445,013	
Infrastructure Maintenance Fund (IMF)	602,369	
Kwajalein Environmental Impact Assessment	228,138	
Kwajalein Development Fund	2,167,308	
Kwajalein Landowners	17,110,328	
Trust Fund (Compact Contribution)	10,784,291	
		
	SCHEDULE 9	
OTHER REVENUE	12,576,078	
U.S. Federal Grants	7,326,078	
Overseas Grants	5,250,000	
		
TOTAL ALL REVENUES	124,505,579