Act to encourage the local production of fresh, local meat and seafood products (RPPL No. 10-37 of 2018)

. Gl)ofTHEl'q' ;s;,o. ...... "' 'l. -~ . \ . "" ' .t-/1>( \k."\ll'l.\~- t-"'t' •1.,r·o'ft' ,;, Tommy E Remengesau, Jr. .!ZJ~ June 12, 2019 Serial No. 19-1102 Republic of Palau Office oi t:ne 'C:PresiiJen'I. The Honorable Hokkons Baules President of the Senate Tenth Olbiil Era Kelulau Ngerulmud, Palau National Capitol Republic of Palau 96939 Subject: Signing Statement for SB 10-112, SD2, HD4, CDl Dear President Baules: P.O. Box 6051, Palau, PW 96940 Tel. (680) 767-2403/2828 Fax. (680) 767-2424/1662 Email: rop.president@palaunet.com Thank you for allowing me the opportunity to sign SB 10-112, SD2, HD4, CD1, a bill to support local production of meat and seafood products, into law. As Palau continues to grow, it is important that its ability to provide more of its own food also grows; by providing funds and mechanisms to foster the growth of domestic agriculture and aquaculture, as well as lowering the cost of domestically produced meat and seafood, this new law will help Palau increase its food security. Additionally, by growing more of our own food, thereby importing less, we also help the environment by reducing the pollution and use of resources required to transport food to our country. I applaud your decision to include both an opportunity and flexibility for the Minister of Natural Resources, Environment, and Tourism to establish a new program to incentivize the local production of pork and poultry products, as well as to promulgate necessary rules and regulations so that all farmers can benefit fairly. I know that one of the most significant impediments to the growth of our domestic livestock industry is the cost of feed. I recognize your effort to lower this hurdle by directing the Minister to utilize subsidies for the cost of feed, an effort that will also have the beneficial effect of lowering the final cost to consumers. I also recognize that the bill requires the Bureau of Agriculture to create positions for a Livestock Sales Broker and Veterinarian. Additionally, this law will create a new Palau Livestock Fund that will help strengthen industry trade associations such as the Palau Livestock Association. Through its requirements, this new law appropriately requires the Palau Livestock Association not only to account for and ultimately repay the money it receives from the Fund, but also to develop and implement a six year strategic plan that will benefit all farmers in the industry in a fair manner. Finally, I appreciate your grant of broad authority to the Minister of Natural Resources, Environment, and Tourism for the establishment of a new program to incentivize local aquaculture, and thank you for the inclusion of a funding mechanism for this new program. However, 1 % of the annual revenues derived from the tax imposed on alcoholic beverages is likely to total less than $35,000 a year (for the 12 pe1iod between October 1, 2017 and September 30, 2018, total sales of alcoholic beverages was $3,306,805.58). This amount is insufficient to make a meaningful impact, and I recommend that the Olbiil Era Kelulau consider identifying an additional source of funding for this program in another appropriations bill. Before closing I must briefly echo a procedural concern I raised with House Bill 10-108, HD2, SD5, PDl. The appropriation to the Palau Livestock Fund would be better made as an amendment to an annual appropriations bill. I know you understand the ramifications of this point so I will not belabor it. But let us work together to achieve a more uniform appropriation process moving forward. This new law will be a meaningful step in the development of our domestic agricultural and aquacultural capabilities, increasing our food security, strengthening our economy, reducing costs for consumers, and helping the environment. Thank you for the opportunity to sign it. Sincerely, Presiden o the public 2 Tommy E. Remengesau, Jr. !ZJ~ June 12, 2019 Serial No. 19-11 02 Republic of Palau Office o/ die ~resiiJen'I The Honorable Sabino Anastacio Speaker of the House of Delegates Tenth Olbiil Era Kelulau Ngerulmud, Palau National Capitol Republic of Palau 9693 9 Subject: Signing Statement for SB 10-112, S02, HD4, CDl Dear Speaker Anastacio: P.O. Box 6051, Palau, PW 96940 Tel. (680) 767-2403/2828 Fax. (680) 767-2424/1662 Email: rop.prellident/a.'palaunet.com Thank you for allowing me the opportunity to sign SB 10-112, SD2, HD4, CD 1, a bill to support local production of meat and seafood products, into law. As Palau continues to grow, it is important that its ability to provide more of its own food also grows; by providing funds and mechanisms to foster the growth of domestic agriculture and aquaculture, as well as lowering the cost of domestically produced meat and seafood, this new law will help Palau increase its food security. Additionally, by growing more of our own food, thereby importing less, we also help the environment by reducing the pollution and use of resources required to transport food to our country. I applaud your decision to include both an opportunity and flexibility for the Minister of Natural Resources, Environment, and Tourism to establish a new program to incentivize the local production of pork and poultry products, as well as to promulgate necessary rules and regulations so that all farmers can benefit fairly. I know that one of the most significant impediments to the growth of our domestic livestock industry is the cost of feed. I recognize your effort to lower this hurdle by directing the Minister to utilize subsidies for the cost of feed, an effort that will also have the beneficial effect of lowering the final cost to consumers. I also recognize that the bill requires the Bureau of Agriculture to create positions for a Livestock Sales Broker and Veterinarian. Additionally, this law will create a new Palau Livestock Fund that will help strengthen industry trade associations such as the Palau Livestock Association. Through its requirements, this new law appropriately requires the Palau Livestock Association not only to account for and ultimately repay the money it receives from the Fund, but also to develop and implement a six year strategic plan that will benefit all farmers in the industry in a fair manner. 1 Finally, I appreciate your grant of broad authority to the Minister of Natural Resources, Environment, and Tourism for the establishment of a new program to incentivize local aquaculture, and thank you for the inclusion of a funding mechanism for this new program. However, 1 % of the annual revenues derived from the tax imposed on alcoholic beverages is likely to total less than $35,000 a year (for the 12 period between October 1, 2017 and September 30, 2018, total sales of alcoholic beverages was $3,306,805.58). This amount is insufficient to make a meaningful impact, and I recommend that the Olbiil Era Kelulau consider identifying an additional source of funding for this program in another appropriations bill. Before closing I must briefly echo a procedural concern I raised with House Bill 10-108, HD2, SD5, PDI. The appropriation to the Palau Livestock Fund would be better made as an amendment to an annual appropriations bill. I know you understand the ramifications of this point so I will not belabor it. But let us work together to achieve a more uniform appropriation process moving forward. This new law will be a meaningful step in the development of our domestic agricultural and aquacultural capabilities, increasing our food security, strengthening our economy, reducing costs for consumers, and helping the environment. Thank you for the opportunity to sign it. Sincerely, Presiden o the public 2 RPPL NO. 10 - 37 .-------------1>:m. -------------------------. The Senate TENTH OLBIIL ERA KELULAU P.O. Box 8, Ngerulmud Republic of Palau 96939 E le1l e n J: b..:::J'-Sil=-- e c j a l Session INTRODUCED AS SENATE BILL NO. 1 0- 1 1 2~,---=S:..::D:.=2~,---=HD=...;4..:.., CD=-=l AN ACT SEE TITLE INSIDE INTRODUCED BY iiUUl'Olt .. His Excellency Tommy E. Remengesau, Jr. - - - -------------------------- -~@,xn., DATE INTRODUCED March 14, 2018 --- - - -=------ - ---------- SENATE ACTION FIRST READING: March 14, 2018 REFERRED TO: STANDING COMMITTEE REPORT NO.: Resources, Commerce, Trade & Development Committee 10-151 DATE ADOPTED: SECOND READING: LEGAL FORMAT: REVIEW: THIRD READING: FINAL READING: FIRST READING: REFERRED TO: October 30, 2018 October 30, 2018 Proper November 5\ ~2018 November 20, 2018 May 28, 2019 HOUSE ACTION December 10, 2018 Natural Resources and Environment STANDING COMMITTEE REPORT NO.: 10-78 DATE ADOPTED: SECOND READING: LEGAL FORMAT: REVIEW: THIRD READING: FINAL READING: April 11, 2019 April 11, 2019 Proper April 12, 2019 April 12, 2019 June 3, 2019 CONFERENCE COMMITTEE ACTION DATE : COMMITTEE REPORT NO.: DATE PASSED: FINAL READING: ~~ CLERK OF THE SENATE May 28, 2019 10-5 May 28, 2019 June 3,2019 CLERK, HOUSE OF DELEGATES 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 TENTH OLBIIL ERA KELULAU Sixth Regular Session, April 2018 RPPL No. l 0 - 3 7 Passed as Senate Bill No.10-112, S02, HD4, CDI AN ACT To encourage the local production of fresh, local meat and seafood products through incentive programs and funds directed to the Palau Livestock Association through the Bureau of Agriculture; and for other purposes. THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS: Section 1. Legislative Findings. The Republic of Palau must set the stage for increased local production of food products like pork, poultry, and seafood. The construction of a National Slaughterhouse and provision of necessary financing for agriculture and aquaculture loans through the Palau National Development Bank have made local meat production technically possible - but legislative action must now be taken to make it economically viable. The Olbiil Era Kelulau finds that such action should serve two purposes: to encourage local production through ince.'.ltive programs, and to discourage the import of factory-farmed foreign products. Further, the Olbiil Era Kelulau finds that partnering with civil society will help to address the Republic's food security and need for locally produced foods provided at an affordable price for the members of our community. More specifically, the Bureau of Agriculture has the institutional knowledge and skills needed to initiate and maintain sustainable local food production, and the Palau Livestock Association, representing the local farmers, has the desire to develop the marketing and production infrastructure needed to meet the Republic's food supply demands and ultimately,, lower the cost of goods for the public as a whole. The Olbiil Era Kelulau finds that the Bureau of Agriculture should impart the necessary knowledge and skills in the Palau Livestock Association to allow them to develop and maintain the infrastructure needed to produce at a sustainable level and meet the local demand. Along with funding, the Palau Livestock Association will be placed in a position to increase food security and produce at sustainable levels for the Republic. Section 2. Amendment. To amend Title 9 of the Palau National Code by adding a new chapter, to read as follows: Page 1 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 "Chapter 4 Subchapter I RPPL No. ---=-10-=----- 3~-'-- Passed as Senate Bill No.10-112, SD2. HD4, CDI Local Production Incentive Programs § 401. Incentive program for local pork and poultry production. The Ministry of Natural Resources, Environment, and Tourism shall establish1 by regulation1 a program to incentivize the local production of pork and poultry products, through subsidies for the purchase of feed for pigs, chickens, and other poultry raised for domestic sale and consumption, or through other incentives. The Ministry shall promulgate rules and regulations regarding the governance of this incentive program. § 402. Incentive program for local seafood production. The Ministry of Natural Resources, Environment, and Tourism shall establish1 by regulation1 a program to incentivize the local production of seafood for domestic sale and consumption. The Ministry shall promulgate rules and regulations regarding the governance of this incentive program. Subchapter II Bureau of Agriculture § 411. Duties. The Bureau of Agriculture, or other national agency furthering similar objectives, ("BOA") shall: (a) create a position within its agency with the title of Livestock Sales Broker, as provided for in Section 412; (b) create a position within its agency with the title of Veterinarian, as provided for in Section 413; (c) provide workshops, programs, or other methods of training to the Palau Livestock Association, as needed to further the plans as provided by the Palau Livestock Association to the BOA pursuant to Chapter 5 of this Title, for a period of Page 2 of9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 RPPL No. l 0 - 37 Passed as Senate Bill No.10-112. SD2, HD4. CDI six (6) years beginning on the date of establishment of the Palau Livestock Fund, or longer, as the BOA deems necessary; (d) assist the Palau Livestock Association in any other manner as needed to further the plans as provided by the Palau Livestock Association to the BOA pursuant to Chapter 5 of this Title, for a period of six (6) years beginning on the date of establishment of the Palau Livestock Fund, or longer, as the BOA deems necessary; and (e) develop and implement an inspection and grading system for meats and poultry produced in the Republic of Palau, including grading and processing standards, within six (6) months of the effective date of this Act. The BOA shall utilize the United States Department of Agriculture's inspection and grading system and standards as guidance for the development and implementation of this system. § 412. Livestock Sales Broker (a) The BOA shall, at a minimum, task the Livestock Sales Broker with the development and operation of a database and farm registry and facilitation of the s~le of meat and poultry from the farm to the local market. The database and farm registry shall serve as a reference for buyers and shall include information related to all producing farms within the Republic of Palau. (b) The BOA shall ensure the Livestock Sales Broker consults with the Palau Livestock Association in the creation and operation of the database and farm registry, and in the performance of other duties, as the BOA deems necessary. ( c) This position of Livestock Sales Broker shall be for a period of six ( 6) years from the date of the establishment of the Palau Livestock Fund, or longer, as the BOA deems necessary. § 413. Veterinarian (a) The BOA shall, at a minimum, task the Veterinarian with the development and implementation of the inspection and grading system for meats and poultry Page 3 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 RPPL No. 1 0 - 3 7 Passed as Senate Bill No.10-112, SD2, HD4, CDl produced in the Republic of Palau, as provided for in Section 411. (b) This position of Veterinarian shall be for a period of six (6) years from the date of the establishment of the Palau Livestock Fund, or longer, as the BOA deems necessary." Section 3. Amendment. Title 9 is amended by adding a new Chapter 5 as follows: § 501. Fund established. "Chapter 5 Palau Livestock Fund § 502. Administration of Fund. § 503. Start-up Funds. § 504. Operational Funds; reimbursement. § 505. Records and reporting. § 501. Fund established. (a) There is hereby established within the National Treasury a Palau Livestock Fund ("Fund") to be administered by the Bureau of Agriculture, or other national agency furthering similar objectives, ("BOA") with the Fund to be held separate and apart from other funds of the National Treasury. (b) The Fund shall exist for a period of six (6) years beginning on the date of establishment. In the event the Palau Livestock Association ("PLA") winds-up, ceases to be in existence, becomes ineligible to receive money, or upon the expiration of six (6) years, the monies remaining in the Fund shall be deposited into the general fund as defined in Section 303 of Title 40 of the Palau National Code, and the Fund shall close. (c) The BOA shall account for and maintain the monies received from appropriation for the purpose provided under Section 503 and separateand apart from the account and maintenance of monies received under Section 1307 of Title 40 Page 4 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 RPPLNo. 10 - 37 Passed as Senate Bill No.10-U2, SD2, HD4, CDI of the Palau National Code used for the purpose as provided for under Section 504. § 502. Administration of the Fund. (a) The BOA shall be responsible for the general administration of the Fund. (b) In the administration of the Fund, the BOA shall: (1) require the PLA to submit annual budget proposals for Operational Funds subject to the review and approval of the BOA, prior to the disbursement of such money to the PLA; (2) require the PLA to submit a budget proposal for Start-up Funds subject to the review and approval of the BOA, prior to the di8bursement of such money to the PLA; (3) require the PLA to submit a comprehensive six (6) year strategic plan for agriculture and aquaculture infrastructure development, prior to the disbursement of money to the PLA; (4) require the PLA to submit an annual performance report to the BOA; (5) approve any plans of the PLA that are in accordance with the rules and regulations as promulgated pursuant to this Section, or provide recommendations as needed for compliance with the rules and regulations and approval of the plans; (6) require the PLA to maintain records and submit semi-annu'll expenditure reports that account for, in detail, the expenditure of all Start-up Funds and Operational Funds received and review such reports; and (7) require the PLA to maintain and submit records that account for, in detail, the sale of goods and review such records semi-annually. (c) The BOA shall promulgate rules and regulations governing the use and procedures for use of the Funds within sixty (60) days of the establishment of the Fund. Page 5 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 RPPL No. ,1~0!. - ,~:....:7 Passed as Senate Bill No.10-112, SD2, HD4, COi §503. Start-up Funds. (a) The BOA shall administer the $25,000 appropriated amount ("Start-up Funds") as provided in this Section. (b) The purpose of the Start-up Funds is to fund start-up costs of the PLA as approved by the BOA, including the purchase of materials and tools needed to begin operations. § 504. Operational Funds; reimbursement. (a) The Fund shall receive monies as provided for in Section 1307 of Title 40 of the Palau National Code ("Operation Funds"). (b) The purpose of the Operational Funds are for the financing of the PLA's operational costs, such as the purchase of livestock, feed, tools, or to fund employee training. (c) The BOA shall require, as a condition for receipt of Operation Funds from the Fund, the PLA to earmark and deposit five percent (5%) of total revenue generated annually from the sale of goods until such time the PLA has reimbursed the total amount of Operation Funds received from the ·Fund or the Fund closes. Nothing in this Subsection shall be interpreted as a limitation to the provision of Operational Funds to the PLA as provided for in this Chapter. § 505. Records and reporting. The BOA shall maintain the records received from the PLA and submit to the President of the Republic of Palau and the Olbiil Era Kelulau an annual report summarizing the expenditures and sales of the PLA within sixty (60) days of the close of each fiscal year." Section 4. Appropriation. The amount of $25,000 is hereby authorized to be appropriated and is hereby appropriated to the Palau Livestock Fund, established under Chapter 5 of Title 9 of the Palau National Code, and be administered as provided for therein. This amount shall come from local revenues and shall be nou Page 6 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 RPPL No. 10 - 37 Passed as Senate Bill No.10-112, S02, 1-1D4. COi lapsing. Section 5. Amendment. Section 1307, Chapter 13 of Title 40 of the Palau National Code is amended to add a new subsection as follows: "§ 1307. Allocation of alcoholic beverage tax revenues. (a) .. . (b) .. . (c) One percent (1 %) of the annual revenues derived from the tax imposed on alcoholic beverages under this chapter will be allocated to the Palau Livestock Fund established by Chapter 5 of Title 9 for a period of six (6) years beginning on the date of establishment of the Palau L ivestock Fund." Section 6. Amendment. Section 2607 of Title 40 of the Palau National Code is amended to add a new subsection as follows: "§ 2607. Allocation of tax revenues. (a) .. . (b) .. . (c) One percent (1 %) of the annual revenues derived from the tax imposed under this chapter will be allocated to the Ministry of Natural Resources, Environment, and Tourism for the purpose of funding the incentive programs, including administration costs, established in Sections 401 and 402 of Chapter 4 of Title 9." Section 7. Regulations. The Ministry of Natural Resources, Environment, and Tourism and Bureau of Agriculture, or other national agency with similar objectives, shall promulgate all rules and regulations, as required under this Act, within ninety (90) days of the effective date of this Act. Section 8. Amendment. RPPL 10-33, Section 2 is hereby amended as follows: "Section 2. Amendment. Chapter 2, Subchapter II of Title 22 of the Palau Page 7 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 RPPLNo. 10 37 Passed as Senate Bill No.J0-112, SO2, HD4, CDI National Code is hereby amended as follows: "§ 223. Definitions. (a) ... § 227. Powers and duties. It shall be the duty and responsibility of the Board to: (a) Implement the policy declared by this subchapter. (g) ... " Section 9. Amendment. Section 61 of RPPL 4-36 is hereby amended as follows: "Section 61. State Capital Improvement Projects. The sum of $1,639,800 is hereby authorized to be appropriated and is appropriated for fiscal year 1995 for the purposes of State Projects as prescribed in Volume II, Chapters 1 and 10 of the Economic Development Plan. The President shall amend the EDP to include those state CIP projects set forth below that are not in the EDP. The total appropriation shall be made up of the following available funds: the amount of $50,000 shall come from local revenues; and the amount of $1,589,800 shall be allocated from Compact Section 215 funds which were derived from the inflation adjustment to Compact Section 212(b ). (1) Aimeliik $100,000 (9) Ngarchelong $115,000 Of the sum appropriated hereunder, $20,000 shall be used to improve the dock facilities; $20,000 shall be used to construct and install biological compost to~lets; $25,000 shall be used for improvements to the fishing facilities; $40,000 shall be used for sports facilities or a youth center; and Sl0,000 shall be used to pave Ngarbau Dock. Page 8 of 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 TENTH OLBIIL ERA KELULAU Tenth Regular Session, April 2019 RPPLNo. 10 - .37 ------ Passed as Senate Bill No.10-112, SD2, HD4, CDl Any unexpended or unobligated balance of the appropriation of this section remaining at fiscal year end shall not lapse; any such balance shall carry forward into the next fiscal year." Section 10. Amendment. Section 28 of RPPL 9-46, as amended by Section 16 of RPPL 9-62, is hereby amended as follows: "Section 28. Ngarchelong State Government. The sum of $75,000 is authorized for appropriation and is hereby appropriated for expenditure or obligation for Fiscal Year 2016 to the Ngarchelong State Government to construct and improve the access road to Todai. Additionally, the sum of $50,000 is authorized and appropriated to the Ngarchelong State Government for the water supply system, including infrastructure for collection, transmission, treatment, storage, and distribution of water into homes, commercial establishments, irrigation, and other public needs. The entire amouat of the funds authorized and 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." Section 11. Effective Date. This Act shall take effect upon approval by the President of the Republic of Palau or upon becoming law without such approval. Passed on: June 03, 2019 Approved this Page 9 of9