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RPPL NO.         8‑49           
	(Introduced as House Bill No. 8‑90‑7,HD2, SD1,CD1)

AN ACT

To provide discounts for senior citizens at the stores, restaurants and hotels in the Republic and to amend RPPL No. 8‑40, as amended by RPPL No. 8‑46, to authorize and appropriate the additional sum of $1,958,800 from the National Treasury to supplement the general operations of the National Government of the Republic of Palau for the fiscal year ending September 30, 2012, and for other 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 Palau=s senior citizens struggle with the restrictions of a limited, fixed budget in the face of rising prices of food and other necessities. After a lifetime of service to their communities, families and the Republic, senior citizens deserve respect and a quality of life which enables them to live comfortably. For this reason, the Olbiil Era Kelulau finds that senior citizens who are registered with the Bureau of Aging and Gender should be entitled to a discount at all retail stores, restaurants and hotels in the Republic. Additionally, this discount will encourage senior citizens to maintain an active social life and stay involved in the larger community, improving both their emotional and physical health as they age.

Section 2. Senior Citizen Discount.
(a) Any senior citizen over the age of sixty (60) who is registered with the Bureau of Aging and Gender shall receive a ten percent (10%) discount on goods over five dollars ($5) purchased at a retail store and a twenty five percent (25%) discount on goods, food, or services over five dollars ($5) at any restaurant or hotel in the Republic. The discount will be taken off the pre‑tax total of the senior citizen=s bill, upon presentation of proper identification by the senior citizen.

(b) The following restrictions shall apply to the discounts stated in Section 2(a) of this Act:

(I) In stores or hotels, the goods, food or services must be purchased by the senior citizen to qualify for the discount. In restaurants, including restaurants located within a hotel, the bill need not be paid by the senior citizen for the discount to apply but only the senior citizen=s meal is eligible for a discount.

(ii) Tobacco products, including cigarettes, will not be eligible for this discount.

(iii) Alcohol beverages, will not be eligible for this discount.

(c) The retail store, restaurant, or hotel applying the senior citizen discount in Section 2(a) of this Act may claim the cost of the discounts granted under Section 2(a) as a deduction from the gross income for the same taxable year that the discount is granted.

Section 3. Amendment. Section 1002 of Title 40 of the Palau National Code is hereby amended as follows:

A' 1002. Definitions.
In this division:
(a) . . .
. . .
(o) AGross revenue@ means the total sums of all receipts from sources within the Republic whether in the form of cash or property derived from business, from the exploitation of capital whether in the form of receipts from the disposition of capital assets, interest, dividends, royalties, rentals, fees or otherwise, however, such receipts may be labeled without deduction or offset of any kind or nature. Every taxpayer shall be presumed to be dealing on a cash basis. AGross revenue@ does not include:

(1) refunds, rebates, and returns;

(2) monies held in a fiduciary capacity;

(3) gross receipts from the sale of bonds or other evidence of indebtedness or stocks, or from the sale of land;

(4) income in the form of wages and salaries; and

(5) the cost of senior citizen discounts.

. . .@

Section 4. Regulations. The Minister of Finance, with the Ministry of Community and Cultural Affairs, shall, within 90 days of enactment of this Act and in accordance with 6 PNC Chapter 1, the Administrative Procedure Act, promulgate rules and regulations to implement this Act, including but not limited to:

 (a) establishing a system for claiming the tax deductions established by this Act; and

 (b) establishing a system and method of identification to be used to claim the Senior Citizen Discount established by this Act.

Section 5. Amendment. RPPL No. 8‑40 as amended by RPPL No. 8‑46 is hereby amended to state as follows:

A. . .
Section 3. Estimated Revenues and Other Available Resources. Pursuant to 40 PNC '323(a), the annual budget . . . the following estimated revenues and available resources:
. . .
Estimated Local Revenue (not including Green Fee): $44,086,800
. . .
Total Funds Available for Expenditure: $65,883,800
Budgetary Expenditures: $65,883,800
. . .

Section 5. Legislative Branch. The sum of $3,933,800 is hereby authorized to be appropriated and is hereby appropriated for expenditure or obligation for Fiscal Year 2012 . . . according to the following schedule:

(1) Senate $1,564,000
(2) . . .
(3) House of Delegates $1,830,000
(4) . . .
(5) Joint Staff $229,800
Section 5 Total $3,933,800

Section 6. Executive Branch Operations. The sum of $37,168,228 is authorized for appropriation and is hereby appropriated for expenditure and obligation for Fiscal Year 2012 for the purpose of covering the operational and contingent expenses of the Executive Branch. The total amount authorized to be appropriated and that is hereby appropriated in this section shall be made up of the following available revenues: The amount of $18,771,228 shall come from local revenues; the amount of $250,000 shall come from the ROP UMDA dividend; and the amount of $18,147,000 shall come from the Compact Section 211(f) Trust Fund Investment Earnings, from the direct assistance provided to Palau pursuant to the Compact Review Agreement, from another appropriation by the United States Congress, or from a combination of the above. The total authorization and total appropriation shall be allocated according to the following schedule, respectively:

. . .
(6) Ministry of Education
. . .
(b) Sch, Books, Supp., & Inst. Equipment $241,000 . . .
(e) Food Service Program $700,000
Ministry of Education Sub‑Total $6,954,235
(7) Ministry of Public Infrastructure, Industries and Commerce
. . .
(g) Bureau of Aviation $1,469,120 . . .
(j) Water and Sewer Operations $3,475,398
. . .
(m) National Capitol Electricity $1,246,000
. . .
Ministry of PIIC Sub‑Total $9,545,890
(8) Ministry of Justice
. . .
(d) Bureau of Public Safety $2,475,000
(e) Div. of Marine Law Enforcement $650,965
Ministry of Justice Sub‑Total $3,940,965
(9) Ministry of Health
. . .
(c) Health Administration $2,495,000
. . .
(f) Medical Referrals $600,000
Of this amount, $300,000 is hereby earmarked for the payment of medical referral bills that are reimbursable by the Healthcare Fund.
. . .
Ministry of Health Sub‑Total $8,287,339
. . .
Section 6 Total $37,168,228

Section 7. Boards, Commissions, and Authorities. The sum of $737,183 is authorized for appropriation and is hereby appropriated for expenditure and obligation for Fiscal Year 2012 for the purpose of funding the operational and contingent expenses of Boards, Commissions and Authority. The entire amount of funds authorized and appropriated shall come from local revenues. The total authorization and appropriation shall be allocated according to the following schedule respectively:

. . .
(2) Palau Election Commission $256,085
Of this sum, $104,000 is hereby earmarked as a one time appropriation for expenditure and obligation for Fiscal Year 2012 for the sole purpose of funding the operational and contingent expenses of the National Government=s 2012 Primary and General Elections. The funds authorized and appropriated in this section shall come from local revenue and shall not be subject to reprogramming.
. . .
Section 7 Total $737,183
. . .
Section 18. Low‑Income Assistance. The sum of $75,000.00 is hereby authorized for appropriation and hereby is appropriated for a one time expenditure in Fiscal Year 2012 for the purpose of providing subsidies to households by way of paying a stipend of $100.00 per month to each of the families identified in the 2009 household income survey conducted by the Ministry of Finance as having no income. The Minister of Finance shall provide a monthly report to the Olbiil Era Kelulau and the Public Auditor on each $100.00 stipend provided to low income families. The entire amount authorized to be appropriated in this section shall come from local revenues and apportioned and paid at the direction of the Minister of Finance in accordance with the procedures established by regulation. The entire funding authorized and appropriated under this section shall not lapse at the end of the fiscal year.@

Section 6. Effective Date.
a) Sections 1 to 4 of this Act shall take effect 180 days from its approval by the President of the Republic of Palau or from its becoming law without such approval, except as otherwise provided by law; and

b) Section 5 of this Act shall take effect upon its approval by the President of the Republic or upon its becoming law without such approval, except as otherwise provided by law.

PASSED: September 19, 2012

Approved this 20th day of September , 2012.

 /s/ 
 His Excellency Johnson Toribiong
 President, Republic of Palau