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Business and Business Regulation - Title 11

REPUBLIC OF PALAU

TITLE 11
BUSINESS AND BUSINESS REGULATIONS

Chapter 1
Unfair Business Practices

§ 101. Definitions.
§ 102. Prohibited activities.
§ 103. Leases, sales, contracts, conditions, agreements or understandings to lessen competition.
§ 104. Contracts or agreements in violation of chapter.
§ 105. Competitive agreements.
§ 106. Criminal and civil liability of violators.

§ 101. Definitions.

In this chapter, "person or persons" includes an individual or individuals, corporations, firms, partnerships or any other association existing under or authorized by the law of the Republic.

Source
33 TTC § 301, modified.

§ 102. Prohibited activities.

It is illegal for one or more persons to create or use an existing combination of capital, skill or acts the effect of which is:

(a) to create or carry out restrictions in trade or commerce.

(b) to limit or reduce the production, or increase the price of, merchandise or of any commodity.

(c) to prevent competition in the manufacture, making, transportation, sale, or purchase of any merchandise, produce or commodity.

(d) to fix at any standard or figure whereby its price to the public or consumer shall be in any manner controlled or established, any article or commodity of merchandise, produce or commerce intended for sale, barter, use, or consumption.

(e) to discriminate in price between different purchasers of commodities of like grade and quality, where the effect of such discrimination may be to substantially lessen competition or tend to create a monopoly in any line of commerce; provided that nothing herein contained shall prevent differentials in price which only make allowance for differences in the cost of manufacture, sale or delivery resulting from the differing methods or quantities in which such commodities are to be purchased, sold and delivered.

(f) to make or enter into or carry out any contract, obligation or agreement by which the persons do any of the following:

(1) bind themselves not to sell, dispose of or transport any article or commodity below a common standard figure or fixed value.

(2) agree to keep the price of such article, commodity or transportation at a fixed or graduated figure.

(3) establish or set the price of any article, commodity or transportation between them or themselves and others, so as directly or indirectly to preclude free and unrestricted competition among themselves or any purchaser or consumer in the sale or transportation of any such article or commodity.

(4) agree to pool, combine or directly or indirectly unite any interest that they may have connected with the sale or transportation of any such article or commodity that might in any way affect its price.

Source
33 TTC § 302, modified.

§ 103. Leases, sales, contracts, conditions, agreements or understandings to lessen competition.

It shall be unlawful for any person to lease or make a sale or contract for the sale of goods, merchandise, machinery, supplies, or commodities for use within the Republic, or to fix a price charged therefor, or discount from, or rebate upon, such price, on condition, agreement or understanding that the lessee or purchaser thereof shall not use or deal in the goods, merchandise, machinery, supplies, commodities, or services of a competitor or competitors of the lessor or seller, where the effect of such lease, sale or contract for sale, or such condition, agreement or understanding may be to substantially lessen competition or tend to create a monopoly in any line of trade or commerce in the Republic.

Source
33 TTC § 303, modified.

§ 104. Contracts or agreements in violation of chapter.

Any contract or agreement in violation of this chapter is, to that extent, void and not enforceable at law or equity.

Source
33 TTC § 304.

§ 105. Competitive agreements.

It is not unlawful to enter into agreements or form an association or combination the purposes and effect of which is to promote, encourage or increase competition in any trade or industry.

Source
33 TTC § 305.

§ 106. Criminal and civil liability of violators.

(a) Any person who violates section 102 or 103 of this chapter is guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine of not less than fifty dollars ($50) nor more than five thousand dollars ($5,000).

(b) Any person who is injured in his business, personal property, or real property by reason of another's violation of sections 102 or 103 of this chapter may sue therefor in the Trial Division of the Supreme Court, and may recover three times the damages sustained by him together with a reasonable attorney's fee and the costs of suit; provided, that the Republic and any of its political subdivisions and public agencies shall be deemed a person within the meaning of this section, and may, through the Attorney General, bring an action on behalf of the Republic, its political subdivisions or public agencies to recover the damages provided by this section, including a reasonable attorney's fee together with the costs of the suit.

(c) Upon conviction under this chapter of a non-citizen business, as defined in chapter 1 of Title 28 of this Code, the President may revoke such non-citizen's business permit.

Source
33 TTC § 306, modified.

Chapter 2
Consumer Protection

§ 201. Short title.
§ 202. Definitions.
§ 203. Unlawful acts or practices.
§ 204. Exemptions.
§ 205. Restraint of prohibited acts.
§ 206. Private and class actions.
§ 207. Nonnegotiability of consumer paper.
§ 208. Assurances of voluntary compliance.
§ 209. Investigation authorized.
§ 210. Authority of Attorney General to issue subpoenas, administer oaths, conduct hearings, and promulgate rules and regulations.
§ 211. Service of notices, demands or subpoenas.
§ 212. Orders for enforcement of subpoenas or investigative demands.
§ 213. Civil and criminal penalties.
§ 214. Forfeiture of corporate franchise.

§ 201. Short title.

This chapter may be cited as the "Consumer Protection Act."

Source
33 TTC § 351.

§ 202. Definitions.

(a) "Person" means natural persons, corporations, trusts, partnerships, incorporated or unincorporated associations, and any other legal entity.

(b) "Trade" and "commerce" mean the advertising, offering for sale, sale, or distribution of any services and any property, tangible or intangible, real, personal or mixed, and any other article, commodity, or thing of value wherever situated, and shall include any trade or commerce directly or indirectly affecting the people of the Republic.

(c) "Retail establishment" means a shop, store, food market, convenience mart, department store, hardware store, liquor store, sporting goods store, or any other business operating within the Republic that offers retail items for sale to consumers.

Source
33 TTC § 352, modified. Subsection (c) added by RPPL 7-52 § 2.

§ 203. Unlawful acts or practices.

The following unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared to be unlawful:

(a) passing off goods or services as those of another.

(b) causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services.

(c) causing likelihood of confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another.

(d) using deceptive representations or designations of geographic origin in connection with goods or services.

(e) representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he does not have.

(f) representing that goods are original or new if they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand.

(g) representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another.

(h) disparaging the goods, services, or business of another by false or misleading representation of fact.

(i) advertising goods or services with intent not to sell them as advertised.

(j) advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity.

(k) offering items to consumers through a retail establishment without disclosing the unit price of items using one of the following methods:

(1) displaying a stamp, tag, label, or sign within close proximity to the retail item, with a clear indication of the retail item to which it refers;

(2) affixing the unit price on the retail item itself;

(3) displaying a stamp, tag, or label on the shelf or display space contiguous with the area where the retail item is displayed;

(4) if the retail item is not conspicuously visible to the consumer, then by a sign or list conspicuously placed near the point of procurement; or

(5) by providing clearly displayed bar code scanners at reasonable intervals throughout the retail establishment with which consumers may scan an item and retrieve its price.

(l) making false or misleading statements of fact concerning the reasons for, existence of, or amounts of price reductions.

(m) engaging in any other conduct which similarly creates a likelihood of confusion or of misunderstanding.

(n) engaging in any act or practice which is unfair or deceptive to the consumer.

Source
33 TTC § 353, modified. A new subsection (k) added and the former subsections (k), (l), and (m) re-lettered as (l), (m), and (n) by RPPL 7-52 § 2.

§ 204. Exemptions.

Nothing in this chapter shall apply to:

(a) actions or transactions carried out by the national government, any branch thereof or any other governmental agency; or

(b) acts done by the publisher, owner, agent, or employee of a newspaper, periodical or radio or television station in the publication or dissemination of an advertisement, when the owner, agent, or employee did not have knowledge of the false, misleading or deceptive character of the advertisement, did not prepare the advertisement, and did not have a direct financial interest in the sale or distribution of the advertised product or service.

Source
33 TTC § 354, modified.

§ 205. Restraint of prohibited acts.

(a) Whenever the Attorney General has reason to believe that any person is using, has used, or is about to use any method, act or practice declared in section 203 of this chapter to be unlawful, and that proceedings would be in the public interest, he may bring a civil action in the name of the Republic against such person to restrain by temporary or permanent injunction the use of such method, act or practice. The notice must state generally the relief sought and must be served at least three (3) days before the hearing of the action. The action may be brought in the Trial Division of the Supreme Court. The said court is authorized to issue temporary or permanent injunctions to restrain and prevent violations of this chapter, and such injunctions shall be issued without bond.

(b) The court may make such additional orders or judgments as may be necessary to restore to any person in interest any moneys or property, real or personal, which may have been acquired by means of any practice in this chapter declared to be unlawful.

Source
33 TTC § 355, modified.

§ 206. Private and class actions.

(a) Any person who purchases or leases goods or services primarily for personal, family or household purposes and thereby suffers any ascertainable loss of money or property, real or personal, as a result of the use or employment by another person of a method, act or practice declared unlawful by section 203 of this chapter, may bring an action under the Courts of Republic of Palau Rules of Civil Procedure in an appropriate court of the Republic, to recover actual damages or one hundred dollars ($100), whichever is greater. The court may, in its discretion, award punitive damages and may provide such equitable relief as it deems necessary or proper.

(b) Any person entitled to bring an action under subsection (a) of this section may, if the unlawful method, act or practice has caused similar injury to numerous other persons similarly situated and if they adequately represent such similarly situated persons, bring an action on behalf of themselves and other similarly injured and situated persons to recover damages as provided for in subsection (a) of this section. In any action brought under this section, the court may in its discretion order, in addition to damages, injunctive or other equitable relief.

(c) Upon commencement of any action brought under subsection (a) of this section, the Clerk of Courts shall mail a copy of the complaint or other initial pleading to the Attorney General and, upon entry of any judgment or decree in the action, shall mail a copy of such judgment or decree to the Attorney General.

(d) In any action brought by a person under this section, the court may award, in addition to the relief provided in this section, reasonable attorney's fees and costs.

(e) Any permanent injunction, judgment or order of the court made under section 205 of this chapter shall be prima facie evidence in an action brought under this section that the respondent used or employed a method, act or practice declared unlawful by section 203 of this title.

Source
33 TTC § 356, modified.

§ 207. Nonnegotiability of consumer paper.

(a) If any contract for sale or lease of consumer goods or services on credit entered into between a retail seller and a retail buyer requires or involves the execution of a promissory note or instrument or other evidence of indebtedness of the buyer, such note, instrument or evidence of indebtedness shall have printed on the face thereof the words "consumer paper," and such note, instrument or evidence of indebtedness with the words "consumer paper" printed thereon shall not be a negotiable instrument.

(b) Notwithstanding the absence of such notice on a note, instrument or evidence of indebtedness arising out of a consumer credit sale or consumer lease as described in this section, an assignee of the rights of the seller or lessor is subject to all claims and defenses of the buyer or lessee against the seller or lessor arising out of the sale or lease. Any agreement to the contrary shall be of no force or effect in limiting the rights of a consumer under this section. The assignee's liability under this section may not exceed the amount owing to the assignee at the time the claim or defense is asserted against the assignee. Failure to imprint the words "consumer paper" on such note, instrument or evidence of indebtedness shall subject the seller or other responsible person to appropriate civil and criminal sanctions as provided in this chapter.

Source
33 TTC § 357.

§ 208. Assurances of voluntary compliance.

In the administration of this chapter, the Attorney General may accept an assurance of voluntary compliance with respect to any method, act or practice deemed to be violative of the chapter from any person who has engaged in or is about to engage in such method, act or practice. Any such assurance shall be in writing and shall be filed with and subject to the approval of the Supreme Court. Such assurance of voluntary compliance shall not be considered an admission of violation for any purpose. Matters thus closed may at any time be reopened by the Attorney General for further proceedings in the public interest, pursuant to section 205 of this chapter.

Source
33 TTC § 358, modified.

§ 209. Investigation authorized.

(a) When it appears to the Attorney General that a person has engaged in, is engaging in, or is about to engage in any act or practice declared to be unlawful by this chapter, or when he believes it to be in the public interest that an investigation should be made to ascertain whether a person in fact has engaged in, is engaging in or is about to engage in such act or practice, he may execute in writing and cause to be served upon any person who is believed to have information, documentary material or physical evidence relevant to the alleged or suspected violation, an investigative demand requiring such person to furnish, under oath or otherwise, a report in writing setting forth the relevant facts and circumstances of which he has knowledge, or to appear and testify or to produce relevant documentary material or physical evidence for examination, at such reasonable time and place as may be stated in the investigative demand.

(b) At any time before the return date specified in an investigative demand, or within twenty (20) days after the demand has been served, whichever period is shorter, a petition to extend the return date, or to modify or set aside the demand, stating good cause, may be filed in the Trial Division of the Supreme Court.

Source
33 TTC § 359, modified.

§ 210. Authority of Attorney General to issue subpoenas, administer oaths, conduct hearings, and promulgate rules and regulations.

To accomplish the objectives and to carry out the duties prescribed by this chapter, the Attorney General, in addition to other powers conferred upon him by this chapter, may issue subpoenas to any person, administer an oath or affirmation to any person, conduct hearings in aid of any investigation or inquiry, prescribe such forms and promulgate such rules and regulations as may be necessary, which rules and regulations upon approval of the President shall have the force of law; provided, that none of the powers conferred by this chapter shall be used for the purpose of compelling any natural person to furnish testimony or evidence which might tend to incriminate him or subject him to a penalty or forfeiture; and provided further, that information obtained pursuant to the powers conferred by this chapter shall not be made public or disclosed by the Attorney General or his employees beyond the extent necessary for law enforcement purposes in the public interest.

Source
33 TTC § 360, modified.

§211. Service of notices, demands or subpoenas.

Service of any notice, demand or subpoena under this chapter shall be made personally within the Republic, but if such cannot be obtained, substituted service therefor may be made in the following manner:

(a) personal service thereof without the Republic; or

(b) the mailing thereof by registered or certified mail to the last known place of business, residence or abode within or without the Republic of such person for whom the same is intended; or

(c) as to any person other than a natural person, in the manner provided in the Courts of Republic of Palau Rules of Civil Procedure as if a complaint or other pleading which institutes a civil proceeding had been filed; or

(d) such service as the Supreme Court may direct in lieu of personal service within the Republic.

Source
33 TTC § 361, modified.

§ 212. Orders for enforcement of subpoenas or investigative demands.

(a) If any person fails or refuses to file any statement or report, [or to] obey any subpoena or investigative demand issued by the Attorney General, the Attorney General may, after notice, apply to the Trial Division of the Supreme Court, and, after hearing thereon, request an order:

(1) granting injunctive relief to restrain the person from engaging in the advertising or sale of any merchandise or the conduct of any trade or commerce that is involved in the alleged or suspected violation;

(2) vacating, annulling, or suspending the corporate charter of a corporation created by or under the laws of the Republic or revoking or suspending the business permit in the Republic of a foreign corporation or revoking or suspending any other licenses, permits or certificates issued pursuant to law to such person which are used to further the allegedly unlawful practice; and

(3) granting such other relief as may be required, until the person files the statement or report, or obeys the subpoena or investigative demand.

(b) Any disobedience of any final order entered under this section by any court shall be punished as a contempt thereof.

Source
33 TTC 362, modified.

§ 213. Civil and criminal penalties.

(a) Any person who violates the terms of an injunction issued under section 205 of this chapter shall forfeit and pay to the Republic a civil penalty of not more than ten thousand dollars ($10,000) per violation. For the purposes of this section, the Supreme Court issuing an injunction shall retain jurisdiction, and the cause shall be continued, and in such cases the Attorney General, acting in the name of the Republic, may petition for recovery of civil penalties.

(b) In any action brought under section 205 of this chapter, if the court finds that a person is wilfully using or has wilfully used a method, act or practice declared unlawful by section 203 of this chapter, the Attorney General, upon petition to the court, may recover, on behalf of the Republic, a civil penalty of not exceeding one thousand dollars ($1,000) per violation.

(c) For the purposes of this section, a wilful violation occurs when the party committing the violation knew or should have known that his conduct was a violation of section 203 of this chapter.

Source
33 TTC § 363, modified.

§ 214. Forfeiture of corporate franchise.

Upon petition by the Attorney General, the Supreme Court may, in its discretion, order the dissolution or suspension or forfeiture of franchise of any corporation which violates the terms of any injunction issued under section 205 of this chapter.

Source
33 TTC § 364, modified.

Chapter 3
Usurious Interest

§ 301. Short title.
§ 302. Legislative findings and purposes.
§ 303. Definitions.
§ 304. Applicability of the chapter.
§ 305. Maximum rate of interest.
§ 306. Usurious interest; penalty for taking; statute of limitations.

§ 301. Short title.

This chapter may be cited as the "Usurious Interest Act of 1991."

Source
RPPL 1-24 § 1(a), as amended by RPPL 3-63 § 1, modified.

§ 302. Legislative findings and purposes.

The Olbiil Era Kelulau hereby finds and declares the public policy of the nation to be, as follows:

(a) It is in the national interest that rates charged for the use of capital shall be within those levels commonly accepted throughout the world, and that any rate of interest exceeding those established by this chapter is violative of the national interest in promoting the economic development of the Republic and in safeguarding the health, welfare and safety of the people of the Republic.

(b) It is in the national interest to provide for both consumer and commercial rates of interest for the different financial transactions which occur in the Republic so as to promote the economic development, health, welfare and safety of the people of the Republic.

Source
RPPL 1-24 § 1(b), as amended by RPPL 3-63 § 1, modified.

§ 303. Definitions.

Unless the context clearly indicates otherwise, in this chapter:

(a) "Annual percentage rate" shall have the same meaning given that term in the U.S. Federal Truth-in-Lending Act (15 U.S.C. § 1601 et seq.), Regulation Z of the Board of Governors of the Federal Reserve System, and the Official Staff Commentary to Regulation Z prepared by the staff of the Federal Reserve Board, and amendments to this Act, Regulation Z and such commentary.

(b) "Commercial credit" shall mean credit extended other than consumer credit.

(c) "Consumer credit" shall mean credit extended to a natural person primarily for a personal, family, or household purpose.

(d) "Credit" means the right extended by the creditor to defer payment of a debt, to incur debt and defer its payment or to purchase property or services and defer payment thereof.

(e) "Credit card" means any card, plate, coupon book, or other single credit device that may be used from time to time to obtain credit.

(f) "Creditor" means a person who extends credit.

(g) "Debtor" means a person to whom credit is extended.

(h) "Finance charge" means the cost of consumer credit as a dollar amount, as defined in the U.S. Federal Truth-in -Lending Act.

(i) "Interest" includes interest, discount, points, loan fees and loan origination charges, if charged, contracted for, or received for the use of money but excludes other charges including but not limited to attorney's fees, commitment fees or documentation fees.

(j) "Person" means any natural person; partnership; corporation, foreign or domestic; clan; unincorporated entity or other entity cognizable under law.

(k) "Prime rate" means the base rate on corporate loans at large U.S. money center commercial banks, as published in the Money Rates section of the Wall Street Journal.

(l) "Truth-in-Lending Act" means the U.S. Federal Truth--in-Lending Act (15 U.S.C. § 1601 et seq.), Regulation Z of the Board of Governors of the Federal Reserve System, and the Official Staff Commentary to Regulation Z prepared by the staff of the Federal Reserve Board, and amendments to this Act, Regulation Z and such commentary.

Source
RPPL 1-24 § 2, as amended by RPPL 1-44 § 1(a) and RPPL 3-63 § 1, modified.

§ 304. Applicability of the chapter.

(a) This chapter shall apply to all creditors including but not limited to banks, savings and loan associations, credit unions and all other financial institutions doing business in the Republic.

(b) The provisions of this chapter shall apply only to credit extended after the effective date of this chapter.

Source
RPPL 1-24 § 3, as amended by RPPL 1-44 § 1(b), modified.

§ 305. Maximum rate of interest.

(a) Except as provided in this chapter, no creditor shall charge, take, receive, or reserve interest or finance charge at an annual percentage rate greater than prescribed herein. Such interest or finance charge may be computed utilizing the advance, simple, fixed, or variable manner.

(b) The maximum annual percentage rate of finance charged, taken, received or reserved on an extension of consumer credit shall be no greater than 18 percent per annum.

(c) The maximum annual percentage rate of interest charged, taken, received or reserved on an extension of commercial credit shall be no greater than four percentage points above the most recently announced prime rate. Notwithstanding any other provisions of this chapter, loans may be extended utilizing a variable interest rate. In that event the annual percentage rate may be increased or decreased during the life of the loan as adjustments in the prime rate occur, provided at no time shall the annual percentage rate be greater than four percentage points above the prime rate as it may change from time to time. In no event shall the annual percentage rate exceed 24 percent per annum. In no event shall the annual percentage rate on an extension of consumer credit be increased or decreased more than twice in any single year.

(d) Nothing in this chapter shall be construed as to prevent any person from charging, taking or receiving, in addition to lawful interest, a late charge on all or a portion of any payment due on an extension of credit which is unpaid after 15 days from the due date of such payment; provided that, such late charge does not exceed five percent of the amount overdue.

(e) Notwithstanding any other provisions of this section, an extension of credit arising from the use of a credit card shall be subject to the laws of the jurisdiction where the principal place of business of the credit card issuer is located, and not to the provisions of this chapter.

Source
RPPL 1-24 § 4, as amended by RPPL 1-44 § 1(c) and RPPL 3-63 § 1, modified.

§ 306. Usurious interest; penalty for taking; statute of limitations.

(a) The taking, receiving, reserving or charging of interest at an annual percentage rate greater than is allowed under section 305 of this chapter shall be deemed a forfeiture of the entire interest which has been agreed to be paid on the credit extended. If the greater rate of interest has been paid, the debtor, or his legal representatives, may recover back, from the creditor in an action in the nature of an action of debt twice the amount of the interest thus paid along with reasonable attorney's fees; provided that, such action is commenced within three years from the time the usurious transactions occurred.

(b) In any action pursuant to this chapter, parties may allege any matter which would entitle them to relief or defense in equity in whole or in part, and appropriate equitable principles shall be applied in accordance with the Courts of Republic of Palau Rules of Civil Procedure.

Source
RPPL 1-24 § 5, as amended by RPPL 1-44 § 1(d), modified.

Chapter 4
Debtor-Creditor Relations

Subchapter I
General Provisions

§ 401. Application of chapter.
§ 402. Definitions.
§ 403. Obligations of creditor and debtor in exercise of rights.
§ 404. Unauthorized destruction, removal or use of property.
§ 405. Procedure if creditor fails to comply with chapter.
§ 406. Waiver of provisions of chapter.
§ 407. Rights of creditor subject to foreclosure only by procedures of chapter.

§ 401. Application of chapter.

This chapter shall apply to any agreement, regardless of its form, which is intended to give rights in personal property, including houses on land not owned individually or entirely by the party or parties purporting to give an interest in the house, as security for the performance of any obligation. Such agreements include, among others, pledges, conditional sales agreements, chattel mortgages, and leases under which ownership of personal property is to pass upon completion of the terms of the lease.

Source
(Code 1966, § 279(a).) 57 TTC § 1.

§ 402. Definitions.

In this chapter:

(a) "Creditor" means any creditor, seller, lessor, or other person having rights in the property as security under an agreement subject to this chapter.

(b) "Debtor" means any debtor, buyer, lessee, or other person having an equity in the property under an agreement subject to this chapter.

Source
(Code 1966, § 279(b) and (c).) 57 TTC § 2, terms put into alphabetical order and section modified.

§ 403. Obligations of creditor and debtor in exercise of rights.

Both the debtor and the creditor have an obligation to exercise their rights in the property in good faith and with regard for the rights of the other. Each must use reasonable care in the custody and preservation of the property while in his possession.

Source
(Code 1966, § 279(d).) 57 TTC § 3.

§ 404. Unauthorized destruction, removal or use of property.

Prior to completion of performance of all the terms of the agreement to be performed by the debtor, whoever maliciously or with intent to defraud shall injure, destroy or conceal the property, or remove it without the consent of the creditor from the Republic, if any, where the agreement provides that it is to be used, or shall sell, mortgage, or otherwise dispose of the property under claim of full ownership, shall be guilty of a misdemeanor and upon conviction
thereof shall be imprisoned for a period of not more than six months, or fined not more than $100.00, or both.

Source
(Code 1966, § 279(e).) 57 TTC § 4.

§ 405. Procedure if creditor fails to comply with chapter.

If the creditor fails to comply with this chapter, disposition of the property may be ordered or restrained in a civil action in court on such terms and conditions as the court deems best. If the property has been taken or disposed of by the creditor other than in accordance with this chapter, the debtor may recover his actual damages, if any, and in no event less than one fourth of the sum of all payments which have been made under the agreement, with interest at six percent a year.

Source
(Code 1966, § 279(f).) 57 TTC § 5.

§ 406. Waiver of provisions of chapter.

No act or agreement of the debtor before or at the time of the making of the agreement, nor any provision or statement by the debtor in such agreement, shall constitute a valid waiver of the provisions of this chapter; except, that the agreement may stipulate that if the debtor is in
default for 20 days or more, the creditor may take the property without notice.

Source
(Code 1966, § 279(g).) 57 TTC § 6.

§ 407. Rights of creditor subject to foreclosure only by procedures of chapter.

The rights of the debtor under an agreement subject to this section may only be foreclosed after default by one of the methods set forth in this chapter.

Source
(Code 1966, § 279(h)(1).) 57 TTC § 7.

Subchapter II
Nonjudicial Foreclosure

§ 421. Property in possession of debtor.
§ 422. Property in possession of creditor.
§ 423. Procedures.

§ 421. Property in possession of debtor.

If the property is in the possession of the debtor:

(a) If the agreement provides that the creditor may take the property if the debtor is in default for 20 days or more and the debtor is so in default, the creditor may take possession of the property without notice if this can be done without breach of the peace. If the creditor does so, he shall retain the property for 20 days within the Republic where he took possession of it, during which period the debtor may redeem the property as provided below; thereafter, if the property has not been so redeemed, the creditor may hold the property as his own subject to the provisions of section 423 of this chapter.

(b) If the agreement does not contain the provision for taking without notice referred to in the preceding subsection, the creditor shall, not more than 40 nor less than 20 days prior to the taking, cause written notice to be given to the debtor of the property on account of default of the debtor. The notice shall state the default and the period at the end of which the property will be taken. This notice may be given personally to the debtor or by leaving it at his usual place of abode or of business with some person not less than 18 years of age and of sound mind then residing or employed there, and, if the person with whom the notice is left states he is unable to read it, by also orally explaining the substance of it to him, if practical, in a language understood by him, otherwise in a language generally understood in the locality.

(c) If after such notice the debtor does not perform the obligations in which he has made default before the day set in such notice for taking, the creditor may take possession of the property if this can be done without breach of the peace.

(d) Unless the property can be taken without a breach of the peace either under subsections (a) or (c) of this section, the foreclosure shall proceed thereafter only by a civil action in the court under the judicial foreclosure provisions of this chapter. Nothing herein shall be construed to authorize a violation of the criminal law.

(e) Nothing in this section shall affect the right of a creditor to proceed under sections 2101 and 2102, of Title 14 of this Code simultaneously with action in accordance with this section nor shall anything herein limit the discretion of the Trial Division of the Supreme Court to order a sale authorized by section 2102 of Title 14 of this Code on such terms or notice, if any, as it deems best.

Source
(Code 1966, § 279(h)(1)(A).) 57 TTC § 51, modified.

§ 422. Property in possession of creditor.

If the property is in the possession of the creditor:

(a) Not more than 40 nor less than 20 days prior to foreclosing on the property, the creditor shall cause written notice to be given to the debtor of the creditor's intention to foreclose. The notice shall state the default and the period at the end of which the property will be foreclosed. This notice may be given in the manner provided in subsection (b), section 421 of this subchapter.

(b) If after such notice the debtor does not perform the obligations in which he has made default before the day set in such notice for foreclosure, the creditor may hold the property as his own subject to the provisions of section 423 of this subchapter.

Source
(Code 1966, § 279(h)(1)(B).) 57 TTC § 52, modified.

§ 423. Procedures.

(a) If the debtor, at the time of the taking or of the foreclosure under this subchapter, has paid at least one half of the principal due under the agreement, the creditor shall sell the property at public auction, such sale to be held not more than 90 days after the taking or foreclosure. The creditor shall give to the debtor not less than 10 days written notice of the sale in the manner provided in subsection (b), section 421 of this subchapter, which notice shall not be given until the expiration of the 20 days retention period provided for in subsection (a), section 421 of this subchapter if the taking was made under such subsection. The creditor shall also give notice of the sale by posting in at least three conspicuous places within the Republic where the property is to be sold at least five days before the sale and shall make an honest attempt to obtain a fair value at the sale and, provided he does this, may himself bid for the property at the sale.

(b) The proceeds of the sale shall be applied:

(1) to the payment of the reasonable expenses thereof,

(2) to the payment of the reasonable expenses of taking, keeping and storing the property,

(3) to the satisfaction of the balance due under the agreement.

Any sum remaining after the satisfaction of such claims shall be paid to the debtor. If the proceeds of the sale are not sufficient to defray the reasonable expenses thereof and also the reasonable expenses of taking, keeping and storing the property and the balance due under the agreement, the creditor may recover the deficiency from the debtor or anyone who has succeeded to the obligations of the debtor.

(c) If the debtor, at the time of the taking or of the foreclosure mentioned above, has not paid at least half of the principal due under the agreement, the creditor shall have the option of:

(1) notifying the debtor in the manner provided in subsection (b), section 421 of this subchapter of his election to retain the property as his own without obligation to account to the debtor and the debtor shall then be discharged of all obligations under the agreement; or

(2) selling the property in the manner provided in subsection (a) and applying the proceeds as provided in subsection (b) of this section, with the same right to recover any deficiency as therein provided.

(d) During the 20 days retention period provided for in subsection (a), section 421 of this subchapter and at any other time before the creditor has disposed of the property or before the debtor's obligation has been discharged under subsection (c) of this section, the debtor may redeem the property by tendering fulfillment of all obligations due under the agreement up to the date of the tender as well as all the expenses reasonably incurred by the creditor in taking, keeping and storing the property and in arranging for the sale, and upon so doing shall become entitled to take possession of the property and to continue in the performance of the agreement as if no default has occurred. Upon written demand given by the debtor in the manner provided for notice in subsection (b), section 421 of this subchapter, the creditor shall furnish to the debtor a written statement of the sum due under the agreement and the expenses of taking, keeping and storing and in arranging for the sale. For failure to furnish such a statement within a reasonable time after demand the creditor shall forfeit to the debtor $5.00 and shall also be liable to him for all damages suffered because of such failure.

Source
(Code 1966, § 279(h)(1)(C) to (F).) 57 TTC § 53, modified.

Subchapter III
Judicial Foreclosure

§ 431. Civil action for foreclosure authorized.

§ 431. Civil action for foreclosure authorized.

The creditor may bring a civil action for foreclosure in such manner as the court may order. If the creditor starts foreclosure under the provisions of subchapter II of this chapter, he may abandon that at any point and proceed by a civil action. After proper service on the defendant or defendants, the court may order foreclosure in such manner as it deems will best protect the rights of the parties.

Source
(Code 1966, § 279(h)(2).) 57 TTC § 101.

Chapter 5
Sales Licenses

Subchapter I
General Wholesale License

§ 501. License required.
§ 502. Sale permitted under license and register requirement.
§ 503. License fee.
§ 504. Issuance of license.
§ 505. Penalties.

§ 501. License required.

No individual, corporation or other business enterprise may sell any merchandise, goods or other products to any retailer, wholesaler or other business consumer who intends either to resell such merchandise, goods or products or use them for business needs as supplies or equipment, unless he first obtains a General Wholesale License according to the provisions of this section; except that the provisions of this section shall not apply to persons engaged in the businesses of banking, insurance, sale of securities, and public utilities.

Source
PDC § 600(a), modified.

§ 502. Sale permitted under license and register requirement.

(a) The General Wholesale License issued pursuant to the provisions of this section shall permit the licensee to sell any merchandise, goods or products, except alcoholic beverages, to retailers, wholesalers or other business consumers who intend either to resell such merchandise, goods or products, or use them for business needs as supplies or equipment. Any licensee who desires to sell alcoholic beverages at wholesale must obtain a wholesale alcoholic beverage license according to the provisions of the Alcoholic Beverage Control Act of Chapter 10 of this Title, in addition to his or her General Wholesale License.

(b) All individuals, corporations, or other business enterprises issued a General Wholesale License or a Wholesale Alcoholic Beverage License in accordance with the provisions of the Alcoholic Beverage Control Act of Chapter 10 of this Title, or is licensed under 28 PNC, the Foreign Investment Act ("FIA"), shall be required to use a cash register or other machine for all sales, in order to tabulate the amount of all sales transactions making a permanent record for accounting and tax purposes. Any individual, corporation, or other business enterprise failing to comply with this provision shall be fined not more than five hundred dollars ($500) per violation.

(c) All licensed retailers shall be required to use a cash register or other machine for all sales, in order to tabulate the amount of all sales transactions making a permanent record for accounting and tax purposes. Any licensed retailer failing to comply with this provision shall be fined not more than five hundred dollars ($500) per violation.

Source
PDC § 600(b), modified. Amended by RPPL 7-34 § 2 in its entirety.

§ 503. License fee.

The fee for a General Wholesale Licensee shall be one hundred dollars ($100) per year, and such fee shall be paid in advance for each fiscal year; provided that license fees for newly established businesses in the fiscal year shall be prorated on a quarterly basis effective as of the quarter in which the license becomes effective.

Source
PDC § 600(c), modified.

§ 504. Issuance of license.

Applications for General Wholesale Licenses or renewal of such licenses shall be made to the President or his designated representative in such form as the President may prescribe. Payment of the license fee shall be made to the Director of the Bureau of National Treasury upon submission of the application, and such fees shall be deposited in the National Treasury. Applications for renewal and payment of the license fee shall be made at least fifteen (15) days prior to the beginning of the fiscal year. The license shall be issued by the President on such form as he may prescribe, and the licensee shall display his license in such manner as the President may prescribe.

Source
PDC § 600(d), modified.

§ 505. Penalties.

Whosoever violates any of the provisions of this subchapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than five hundred dollars ($500), or imprisoned for not more than thirty (30) days, or both.

Source
PDC § 600(e), modified.

Subchapter II
Solicitor's License

§ 521. Regulation of solicitors; license required.
§ 522. License fee.
§ 523. Application; procedure.
§ 524. Same; examination; revocation or suspension.
§ 525. Penalties.

§ 521. Regulation of solicitors; license required.

Every person engaged either regularly or periodically in the business of soliciting orders, options of sale, contracts or subscriptions requiring the delivery within the Republic of property or merchandise of any kind or description from places either within the Republic or outside the Republic, and not having a General Wholesale License, shall, in order to engage in business within the Republic, obtain and have in his possession a Solicitor's License permitting him to do so, issued by the President in accordance with the provisions of this subchapter.

Source
PDC § 601(a), modified.

§ 522. License fee.

The fee for a Solicitor's License in the Republic shall be six hundred dollars ($600) per annum, and shall expire three hundred and sixty-five (365) days after it is issued. The fee shall be paid to the Director of the Bureau of National Treasury in advance of the issuance of the license, and shall be deposited by the Director in the National Treasury.

Source
PDC § 601(b), modified. Amended by RPPL 7-19 § 2, modified.

§ 523. Application; procedure.

Applications for Solicitor's Licenses shall be made and filed with the President and shall include, in addition to any other information the President may require, the following information:

(a) the name and address of the applicant, length of residence in the Republic, citizenship, and, if a corporation, the name of the corporate officers and a certified copy of the charter and articles of incorporation;

(b) the name and addresses of all corporations, associations or persons for whom the applicant is acting or for whom the applicant is authorized to solicit orders, options of sale, contracts or subscriptions;

(c) the kind and nature of goods, chattels or property for the sale of which the applicant proposes to solicit orders, options of sale, contracts or subscriptions;

(d) a certified copy of the applicant's written authorization or power of attorney showing the extent of the applicant's authority to act on behalf of the corporation, association or person enumerated in subsection (b) of this section, together with proof that such authorization or power of attorney has been duly executed by the person proposing to execute the same.

Source
PDC § 601(c), modified.

§ 524. Same; examination; revocation or suspension.

The President shall examine the statements, information and documents filed with the application and any further information that may be presented to him by any person. If the President from such examination finds that the applicant and the vendors he represents are engaged in legitimate, lawful businesses, he shall issue the license; otherwise he shall refuse to issue the license and notify the applicant in writing of his decision. The license may be revoked or suspended by the President for good cause shown to him after notice to the issuee and a hearing.

Source
PDC § 601(c), last paragraph made into separate section and modified.

§ 525. Penalties.

Whosoever engages in soliciting orders, options of sale, contracts or subscriptions in violation of any provision of this subchapter or the conditions of any license issued pursuant to this subchapter, shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than one thousand dollars ($1,000), or imprisoned for not more than six (6) months, or both.

Source
PDC § 601(d), modified. Amended by RPPL 7-19 § 3, modified.

Subchapter III
Peddler's License

§ 531. Regulation of peddlers; license required.
§ 532. License fee.
§ 533. Exception.
§ 534. Application; procedure.
§ 535. Same; examination; revocation or suspension.
§ 536. Penalties.

§ 531. Regulation of peddlers; license required.

Any person either principal or agent, who engages in a temporary or transient business in the Republic, either in one locality or in traveling from place to place, selling goods, wares or merchandise which he carries with him or who otherwise acts as an itinerant vendor shall, in order to engage in such business within the Republic, obtain and have in his possession a Peddler's License permitting him to do so, issued by the President in accordance with the provisions of this subchapter.

Source
PDC § 602(a), modified.

§ 532. License fee.

The fee for a Peddler's License in the Republic shall be twenty dollars ($20) per day, and the license shall be good only for the number of days for which the license fee has been paid, and shall contain on its face a statement of its date of expiration. The fee shall be paid to the Director of the Bureau of National Treasury in advance of the issuance of the license, and shall be deposited by him in the National Treasury.

Source
PDC § 602(b), modified.

§ 533. Exception.

This subchapter shall not apply to persons selling fish, fresh fruit, flowers, vegetables, handicraft or any other goods, wares, merchandise or products grown, raised, produced or made in the Republic or indigenous to the Republic.

Source
PDC § 602(c), modified.

§ 534. Application; procedure.

Applications for Peddler's Licenses shall be made and filed with the President and shall include, in addition to any other information the President may require, the following information:

(a) the name and address of the applicant and his citizenship;

(b) the names and addresses of all corporations, associations or persons for whom the applicant is acting or in whose interest the applicant is acting;

(c) the kinds of goods, wares or merchandise the applicant wishes to sell.

Source
PDC § 602(d), modified.

§ 535. Same; examination; revocation or suspension.

The President shall examine the statements, information and documents filed with the application and any further information that may be presented to him by any person. If the President from such examination finds that the applicant and any persons he represents are engaged in legitimate, lawful businesses, he shall issue the license; otherwise he shall refuse to issue the license and notify the applicant in writing of his decision. The license may be revoked or suspended by the President for good cause shown to him after notice [to] the issuee and a hearing.

Source
PDC § 602(d), subsection (3) made into two sections and modified.

§ 536. Penalties.

Whosoever violates any of the provisions of this subchapter or the terms and conditions of any license issued pursuant to this subchapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than five hundred dollars ($500), or imprisoned for not more than six (6) months, or both.

Source
PDC § 602(e), modified.

Chapter 6
Land Surveyors

Subchapter I
General Provisions

§ 601. Short title.
§ 602. Reference to land surveyors.
§ 603. Practice of land surveying defined.
§ 604. Application of chapter.
§ 605. Duties of Minister of State.
§ 606. Disposition of fees.
§ 607. Trainees or apprentices.
§ 608. Prohibited practices; penalties.

§ 601. Short title.

This chapter may be cited as the "Land Surveyors Registration Act."

Source
RPPL 1-33 § 1, modified.

§ 602. Reference to land surveyors.

Where in any law of the Republic a reference is made to a surveyor as a registered surveyor, that reference shall be read as a reference to a registered land surveyor within the meaning of this chapter.

Source
RPPL 1-33 § 2, modified.

§ 603. Practice of land surveying defined.

The practice of land surveying means a person who practices surveying within the meaning of

this chapter, either in a public or private capacity, and who does or offers to do any of the following:

(a) locates, relocates, establishes, reestablishes, or retraces any property line or boundary of any parcel of land or any road, right-of-way, easement, reserve, etc.

(b) makes any survey for the subdivision or re-subdivision of any tract of land.

(c) by the use of the principles of land surveying, determines the position for any monument or reference point which marks a property line, boundary or corner, and sets, resets or replaces any such monument or reference point.

(d) determines the configuration or contour of the earth's surface or the position of fixed objects thereon or related thereto, by means of measuring lines and angles, and applying the principles of trigonometry.

(e) practices geodetic or cadastral surveying.

(f) determines the information shown or to be shown on any map or document prepared or furnished in connection with any one or more of the functions described in subsections (a) through (e) of this section.

(g) indicates, in any capacity or in any manner, by the use of the title "land surveyor," or by any other title or representation, that he practices or offers to practice land surveying in any of its branches.

(h) procures or offers to procure land surveying work for himself or others.

(i) manages, or conducts as manager, proprietor, or agent, any place of business from which land surveying work is solicited, performed or practiced.

Source
RPPL 1-33 § 3, modified.

§ 604. Application of chapter.

This chapter applies only to:

(a) surveys of the boundaries of land, or surveys for the purpose of the establishment, reestablishment or determination of titles to land; and

(b) any activity performed in relation to the practice of land surveying as defined in section 603 of this chapter.

Source
RPPL 1-33 § 4, modified.

§ 605. Duties of Minister of State.

The Minister of State is charged with the general administration and supervision of this chapter. Notwithstanding any other provision of law, using or allowing anyone else to use any government-owned survey equipment for private purposes shall be grounds for termination of any Ministry of State employee.

Source
RPPL 1-33 § 5, modified. Amended by RPPL 4-43 § 22(c).

§ 606. Disposition of fees.

All fees received pursuant to this chapter shall be deposited in the National Treasury for appropriation by the Olbiil Era Kelulau.

Source
RPPL 1-33 § 6, modified.

§ 607. Trainees or apprentices.

A registered land surveyor, who has a trainee, apprentice or cadet surveyor, shall permit the trainee, apprentice or cadet surveyor a reasonable time for the purpose of attending lectures or gaining practical experience which is included in the course of traineeship, apprenticeship or cadetship undertaken by the trainee, apprentice or cadet surveyor by arrangement with a registered land surveyor.

Source
RPPL 1-33 § 7.

§ 608. Prohibited practices; penalties.

(a) It shall be a misdemeanor punishable by a fine of not less than $25.00 nor more than $1,000.00, or imprisonment for not more than one year, or both, for any person to:

(1) practice, or offer to practice, or hold himself out as entitled to practice, land surveying except when authorized by this chapter;

(2) use or attempt to use a certificate of registration that has expired or has been suspended or revoked;

(3) present or use as his own the certificate of registration of another;

(4) stamp or seal any document with the seal of a registrant after the certificate of the registrant has expired or has been suspended or revoked; or

(5) otherwise violate any section of this chapter.

(b) It shall be a felony punishable by a fine of not more than $5,000.00, or imprisonment for not more than three years, or both, for any person to present any false or forged information or evidence in applying for registration under this chapter.

(c) In addition to any other remedy provided by law, upon request of the Board of Examiners, an action may be filed in the name of the national government in the Trial Division of the Supreme Court to restrain or enjoin the commission or continuance of any acts in violation of this chapter. In any such proceeding it shall be unnecessary to allege or prove that an adequate remedy at law does not exist or that irreparable damage would result if the relief requested were not granted.

Source
RPPL 1-33 § 8, modified.

Subchapter II
Board of Land Surveyor Examiners

§ 621. Creation; composition; qualifications of members.
§ 622. Removal of members; vacancies.
§ 623. Compensation of members.
§ 624. Clerical and logistic support by Division of Lands and Surveys.
§ 625. Promulgation of rules and regulations.
§ 626. Meetings.
§ 627. Quorum; vote required to arrive at decision.
§ 628. Records; list of registered surveyors.
§ 629. Annual report.

§ 621. Creation; composition; qualifications of members.

(a) There is hereby created a Board of Land Surveyor Examiners which shall consist of five members who are citizens of the Republic appointed by the President, with the advice and consent of the Senate. The President shall designate one member as chairman.

(b) The term of office for persons who are Board members as of the effective date of this Chapter shall be until June 1, 1996. Thereafter, Board members shall serve for the following staggered terms: two for a period of two years and three for a period of three years. All subsequent appointments shall be for a term of three years.

Source
RPPL 1-33 § 9, modified. Amended by RPPL 4-43 § 22(c). Subsection (b) added by RPPL 4-43 § 22(c).

§ 622. Removal of members; vacancies.

The President may remove any member of the Board for misconduct, incompetence, neglect of duty, or for any other sufficient cause. Vacancies in the membership of the Board shall be filled by appointment by the President as provided in section 621 of this chapter.

Source
RPPL 1-33 § 10, modified.

§ 623. Compensation of members.

Members of the Board shall be reimbursed for reasonable and necessary expenses incurred in the course of their official duties.

Source
RPPL 1-33 § 11.

§ 624. Clerical and logistic support by Division of Lands and Surveys.

The Division of Lands and Surveys shall provide the Board with necessary clerical personnel, office facilities and other logistic support.

Source
RPPL 1-33 § 12.

§ 625. Promulgation of rules and regulations.

The Board is hereby authorized to make rules and regulations needed in performing its duties consistent with law. Such rules and regulations shall be subject to approval by the President of the Republic and promulgated in accordance with applicable law.

Source
RPPL 1-33 § 13.

§ 626. Meetings.

The Board shall meet at such times and places as it may prescribe, but shall hold at least two regular meetings in each year. The chairman may call special meetings.

Source
RPPL 1-33 § 14, divided into two sections and modified.

§ 627. Quorum; vote required to arrive at decision.

At all meetings the presence of three members shall constitute a quorum, and the concurrence of three members shall be required in arriving at any decision.

Source
RPPL 1-33 § 14, divided into two sections and modified.

§ 628. Records; list of registered surveyors.

The Board shall keep a complete record of all applications for registration together with the Board's action thereon and shall annually, during the month of July, prepare a list showing the names, places of business and residences of all registered land surveyors for publication. A copy of the list shall be filed with the Chief of Lands and Surveys.

Source
RPPL 1-33 § 15.

§ 629. Annual report.

The Board shall prepare a printed annual report of its activities for the past fiscal year, which shall be submitted to the President not later than the first day of December of each year.

Source
RPPL 1-33 § 16, modified.

Subchapter III
Registration of Land Surveyors

§ 641. Registration required.
§ 642. Acts construed as practicing surveying.
§ 643. Qualifications; character; knowledge.
§ 644. Same; training; experience.
§ 645. Same; credits for experience.
§ 646. Reciprocity.
§ 647. Applications.
§ 648. Examinations.
§ 649. Certificate of registration; issuance; effect of issuance.
§ 650. Same; expiration and renewal.
§ 651. Same; failure to renew on time.
§ 652. Registered land surveyor's seal.
§ 653. Suspension or revocation.
§ 654. Reissuance of certificates of registration.
§ 655. Application of chapter to proprietorships, partnerships, and corporations.
§ 656. Exemptions.

§ 641. Registration required.

No person shall practice or offer to practice land surveying, or use in connection with his name, or otherwise use, assume, or advertise, any title or description to convey the impression that he is a land surveyor, unless such person has qualified as such by registration as a land surveyor or is otherwise exempt under this chapter.

Source
RPPL 1-33 § 17, modified.

§ 642. Acts construed as practicing surveying.

A person shall be construed to practice or offer to practice land surveying within the meaning and intent of this chapter who:

(a) practices land surveying; or

(b) by oral or written claim or sign, advertising, letterhead, card or in any other way represents himself to be a land surveyor, or through the use of some other title implies that he is such; or

(c) holds himself out as able to perform, or who does perform, any surveying, service or work or any other professional service designated by him as land surveying, or generally recognized as such.

Source
RPPL 1-33 § 18, modified.

§ 643. Qualifications; character; knowledge.

No person shall be eligible for registration as a land surveyor under this chapter unless he:

(a) is of good character and repute; and

(b) meets the professional qualifications prescribed in this chapter.

Source
RPPL 1-33 § 19, modified. Amended by RPPL 4-43 § 22(c).

§ 644. Same; training; experience.

The following shall be considered as evidence satisfactory to the Board that the applicant is qualified for registration as a land surveyor:

(a) graduation from a university, college, institute or school approved by the Board as being of satisfactory standing, including the completion of an approved course in surveying, and a specific record of an additional two years or more of experience in land surveying, indicating that the applicant is competent to practice land surveying, and passing the examination prescribed in section 648; or

(b) a specific record of six years or more of experience in land surveying work indicating that the applicant is competent to practice land surveying, and passing the examination prescribed in section 648; or

(c) certification as a land surveyor by a foreign jurisdiction, and passing the examination prescribed in section 648.

Source
RPPL 1-33 § 20. Amended by RPPL 4-43 § 22(c).

§ 645. Same; credits for experience.

In considering the qualifications of applicants as to experience under section 644 of this chapter:

(a) Teaching of land surveying in an approved curriculum in a university, college or school approved by the Board as of satisfactory standing may be credited as experience.

(b) Experience and training in the armed services of the United States in civil engineering or land surveying may be credited as experience.

(c) The satisfactory completion of each year of approved curriculum in a school or college approved by the Board as being of satisfactory standing, without graduation,

shall be considered as equivalent to a year of experience under subsection (b) or (c) of section 644 of this chapter. Graduation in a curriculum other than land surveying from a college or university of recognized standing may be considered equivalent to two years of experience under this chapter; provided, that no applicant shall receive credit for more than four years of experience because of undergraduate educational qualifications.

Source
RPPL 1-33 § 21, modified.

§ 646. Reciprocity.

(a) The Board may, upon application and payment of the fee required by section 647 of this chapter, issue a certificate of registration as a land surveyor, without oral or written examination, to any person who holds a current valid certificate of registration as a land surveyor, without oral or written examination, to any person who holds a current valid certificate of registration (or the equivalent thereof) issued as such by country or political subdivision thereof, provided that the applicant's qualifications meet the requirements of this chapter.

(b) The Board may, with the consent of the Chief of Lands and Surveys, enter into a reciprocal arrangement with surveyor's registration Boards or other competent authorities of any country or political subdivision thereof:

(1) for the recognition of the status of a person authorized by that Board or competent authority to practice as a land surveyor in the country or political subdivision thereof, and for the registering of any such person as a registered land surveyor under this chapter; and

(2) for the examination of a candidate who has served under a term of cadetship or apprenticeship to a licensed or registered land surveyor and whose articles have been registered with the Board.

(c) The Board shall issue or deny within 15 working days after receipt of the application or letter of request, a certificate of registration as a land surveyor to an individual who holds a current valid certificate of registration from a United States jurisdiction.

Source
RPPL 1-33 § 22, modified. Amended by RPPL 4-43 § 22(c). Subsection (c) is added by RPPL 6-31 § 4[646(c)].

§ 647. Applications.

(a) Application for registration shall be on forms prescribed and furnished by the Board and shall:

(1) designate the registration applied for;

(2) show the applicant's education and a detailed summary of his technical work;

(3) furnish not less than five references, at least three of which shall be with regard to his technical work; and

(4) set forth such other information as the Board may prescribe.

(b) Every application shall be accompanied by an application fee of $10.00. No refund shall be made in the event registration is denied.

Source
RPPL 1-33 § 23.

§ 648. Examinations.

(a) Within 60 days from the effective date of this section, the Board shall offer a written examination to all qualified applicants for registration as a land surveyor. Thereafter, the Board shall offer the examination to all qualified applicants at least once every 180 days.

(b) At least 45 days prior to an examination date, the Board shall announce the date and time of the examination in the local newspaper, on the radio, and by posting an announcement at the Post Office in Koror.

(c) The examination, in addition to other matters, shall cover the procedure and rules governing the survey of public lands as set forth in the "Manual of Surveying Instructions," published by the Bureau of Land Management, United States Department of the Interior, Washington D.C., and in the "Manual of Surveying Instructions" issued by the Division of Lands and Surveys, government of the Trust Territory.

(d) Applicants who score 70% or higher on the examination shall be deemed to have passed it and shall be deemed registered to perform surveys in Palau.

Source
RPPL 1-33 § 24, modified. Subsections (a) and (b) amended by RPPL 4-43 § 22(c). Subsection (d) added by RPPL 4-43 § 22(c).

§ 649. Certificate of registration; issuance; effect of issuance.

(a) The Board shall issue a certificate of registration to any applicant for registration as a land surveyor, who, having paid the application and registration fee, has satisfactorily met all the requirements of this chapter. Certificates shall show the full name of the applicant, shall have a serial number, and shall be signed by the chairman and the secretary of the Board under seal of the Board.

(b) The certificate for a registered land surveyor shall authorize the "practice of land surveying."

(c) The certificate of registration, as issued by the Board, shall be prima facie evidence that the person named thereon is a registered land surveyor entitled to all the rights and privileges of such while such certificate remains unrevoked or unexpired.

Source
RPPL 1-33 § 25, modified.

§ 650. Same; expiration and renewal.

(a) Certificates of registration shall expire on the last day of the month of December following their issuance or renewal and become invalid at the end of such day unless renewed.

(b) It shall be the duty of the Board to notify every person registered under this chapter of the date of expiration of his certificate of registration and the amount of the fee that shall be required for its renewal for one year. Such notice shall be mailed no later than the first of December. Renewal may be affected at any time during the month of December by payment of a renewal fee of $10.00.

Source
RPPL 1-33 § 26(a) and (b), modified.

§ 651. Same; failure to renew on time.

The failure on the part of any registrant to renew his certificate annually in the month of December shall not deprive such person of the right of renewal, but the renewal fee to be paid after the month of December shall be increased by $1.00 for each month or fraction of a month that payment of renewal is delayed; provided that the maximum fee for delayed renewal shall not exceed $15.00. The failure of the Board to notify a registrant of the date of the expiration of his certificate, or the amount of the renewal fee, shall not extend the duration of the certificate of registration.

Source
RPPL 1-33 § 26(c), modified.

§ 652. Registered land surveyor's seal.

(a) Every registrant may, upon being issued a certificate of registration, obtain a seal of a design authorized by the Board, which shall bear the registrant's name and the legend "registered land surveyor" and shall provide space for stating the serial number and date of expiration of the certificate of registration. Plans, specifications, plats and reports prepared by a registrant shall be stamped with such seal when filed with the national government during the term of the registrant's registration, and shall also show the serial number and date of expiration of such certificate of registration.

(b) It shall be a misdemeanor for anyone to stamp or seal any documents with such seal after the certificate of registration of the person named thereon has expired or has been revoked, unless such certificate shall have been renewed and reissued.

Source
RPPL 1-33 § 27, modified.

§ 653. Suspension or revocation.

The Board shall have the power, duty, and authority to investigate violations of this chapter and may suspend or revoke a certificate of registration on any of the following grounds:

(a) the registrant is practicing in violation of this chapter; or

(b) the certificate of registration has been obtained or that the registrant has obtained such certificate by fraud or misrepresentation; or

(c) the certificate of registration was obtained by bribery or payment of any money except fees prescribed by this chapter; or

(d) the registrant is falsely impersonating a practitioner or former practitioner or is practicing under an assumed or fictitious name; or

(e) the registrant has been convicted of an offense arising from or in connection with the practice of land surveying, or any offense involving moral turpitude, in which case a certified copy of the record of conviction shall be conclusive evidence thereof; or

(f) the registrant has violated any provision of this chapter; or

(g) the registrant has aided and abetted in the practice of land surveying by any person not duly authorized to practice land surveying except as provided under subsection (c) of section 656 of this chapter; or

(h) the registrant has been guilty of fraud or deceit, or of gross negligence, incompetence, or misconduct in the practice of land surveying; or

(i) the registrant has permitted his seal to be affixed to any plans, specifications or drawings that were not prepared by him or under his personal supervision, or by his employee or subordinate.

Proceedings under this section may be initiated upon complaint by any person or by the Board. All charges shall be in writing and sworn to by the person making them. All charges, unless dismissed by the Board as unfounded or trivial, shall be heard by the Board within three months after the date on which they have been proffered. The time and place for such hearing shall be fixed by the Board, and a copy of the charges together with a notice of the time and place of hearing, shall be personally served upon or mailed to the last known address of such registrant at least 30 days before the date fixed for the hearing. At any hearing, the registrant shall have the right to appear personally and have counsel, to cross-examine witnesses appearing against him and to produce evidence and witnesses in his own defense.

Source
RPPL 1-33 § 28, modified.

§ 654. Reissuance of certificates of registration.

(a) The Board for reasons it deems sufficient may reissue a certificate of registration to any person whose certificate has been revoked provided three or more members of the Board vote in favor of such reissuance.

(b) A new certificate of registration may be issued to any person whose certificate has been revoked, lost, destroyed, or mutilated, subject to the rules of the Board and upon payment of a fee of $20.00.

Source
RPPL 1-33 § 29.

§ 655. Application of chapter to proprietorships, partnerships, and corporations.

(a) The practice of land surveying may be performed by employees of a proprietorship, partnership, or corporation engaged in construction, manufacturing, transportation, distribution, or communications insofar as such land surveying is involved in its operations, provided that it is performed by, or under the supervision of, a land surveyor in responsible charge, registered under this chapter.

(b) The practice or offer to practice land surveying for the public, as defined in section 603 of this chapter, by individuals registered under this chapter through a corporation as officers, employees or agents, is permitted subject to the provisions of this chapter, and provided that all personnel who act in its behalf as land surveyors in responsible charge are registered under this chapter, or are persons lawfully practicing under section 656 of this chapter. In case this practice is done through a corporation organized after the effective date of this chapter, it shall be required at all times that the president of the corporation and a majority of the officers and directors are registered land surveyors, and further, that said corporation shall have been issued a certificate of authorization by the Board as provided in this chapter.

(c) A corporation desiring a certificate of authorization shall file with the Board an application, using a form provided by the Board, listing the names and addresses of all officers and board members of the corporation, and also, of the individual or individuals duly registered to practice land surveying who shall be in responsible charge, and other information required by the Board. The same form, giving the same information, must accompany the annual renewal fee. In the event there shall be a change in any of these persons during the year, such change shall be designated on the same form and filed with the Board within 30 days after the effective date of said change. If all of the requirements of this section are met, the Board may issue a certificate of authorization to such corporation.

(d) No corporation authorized to practice land surveying under this chapter shall be relieved of responsibility for the conduct or acts of its agents, employees, or officers by reason of its compliance with the provisions of this section, nor shall any individual practicing land surveying be relieved of responsibility for services performed by reason of his employment or relationship with such corporation. All final drawings, specifications, plans, reports or other papers or documents involving the practice of land surveying which shall have been prepared or approved for the use of such corporation, or for delivery by it to any person, or for public record, shall be dated and bear the signature and seal of the land surveyor who prepared or approved them.

Source
RPPL 1-33 § 30, modified.

§ 656. Exemptions.

This chapter shall not apply to:

(a) a person not a resident of and having no established place of business in the Republic, practicing or offering to practice land surveying in the Republic, when such practice does not extend in the aggregate more than 30 days in any calendar year;

provided, that such person is legally qualified by registration to practice such profession in the state or territory of his residence and in which the requirements and qualifications for obtaining a certificate of registration are not lower than those specified in this chapter;

(b) a person not a resident of and having no established place of business in the Republic, or who has recently become a resident thereof, practicing or offering to practice land surveying in the Republic for more than 30 days in any calendar year, if he has filed an application for a certificate of registration with the Board and has paid the required fee, such exemption to continue only for such time as the Board requires for the consideration of the application for registration; provided, that such person is legally qualified to practice such profession in the country, state or territory of his residence and in which the requirements or qualifications for obtaining a certificate are not lower than those specified in this chapter;

(c) an employee or subordinate of a person holding a certificate of registration under this chapter or an employee or a person exempted from registration by subsections (a) and (b) of this section; provided, that the work of such employee or subordinate does not include final designs or decisions and is under the direct responsibility and supervision of a person holding a certificate of registration under this chapter or a person exempted from registration by subsections (a) and (b) of this section;

(d) officers, employees or members of the armed forces of the United States, as long as their practice of land surveying is limited to that work specifically authorized by the armed forces;

(e) the practice of any legally recognized profession other than that of land surveyor.

Source
RPPL 1-33 § 31, modified.

Subchapter IV
Register of Land Surveyors

§ 671. Register required; contents; prima facie evidence of status.
§ 672. Public inspection.
§ 673. Alteration and amendment.

§ 671. Register required; contents; prima facie evidence of status.

The Board shall, record in a book to be kept for the purpose and to be known as the register of land surveyors, the names and addresses of all registered land surveyors, together with the detail and dates of the qualifications in respect of which they are registered by the Board of Land Surveyor Examiners. Every entry in the register shall be signed by the Chairman of the Board. A copy of an entry in the register, purporting to be certified by the Chairman of the Board as a true copy, is prima facie evidence that the person named therein is a registered land surveyor.

Source
RPPL 1-33 § 32. Amended by RPPL 4-43 § 22(c).

§ 672. Public inspection.

The register of land surveyors shall be opened to public inspection upon payment of a fee of $1.00.

Source
RPPL 1-33 § 33.

§ 673. Alteration and amendment.

The Board shall from time to time make such alterations and amendments in the register as are necessary for the purpose of making the register an accurate record of the names, addresses and qualifications of registered land surveyors.

Source
RPPL 1-33 § 34. Amended by RPPL 4-43 § 22(c).

Chapter 7
Notaries Public

Subchapter I
General Provisions

§ 701. Appointment.
§ 702. Term and removal.
§ 703. Reporting change of status.
§ 704. Rules and regulations.
§ 705. Application and qualification for commission as notary public.
§ 706. Oath required.
§ 707. Filing and certification of commission, seal and signature.
§ 708. Official bond.
§ 709. Agreement to accept service of process.
§ 710. Liabilities of notary and surety on bond.
§ 711. Compliance with chapter required; penalties.

§ 701. Appointment.

The President may in his discretion appoint and commission such numbers of notaries public for the Republic as he shall deem necessary for the public good and convenience.

Source
(Code 1966, § 1075.) 31 TTC § 201(1), modified.

§ 702. Term and removal.

The term of office of a notary public shall be two years from the date of his commission, unless sooner removed by the President on recommendation of the Attorney General made on findings of cause after due hearing; provided, that after due hearing the commission of a notary public may be revoked by the President in any case where any change shall occur in such notary's office, occupation or employment which in the judgment of the President renders the holding of such commission no longer necessary for the public good and convenience.

Source
(Code 1966, § 1075.) 31 TTC § 201(2), modified.

§ 703. Reporting change of status.

Each notary shall, upon any change in his office, occupation or employment, forthwith report the same to the Attorney General.

Source
(Code 1966, § 1075.) 31 TTC § 201(3), modified.

§ 704. Rules and regulations.

(a) The Attorney General, with the approval of the President, shall have power to prescribe such rules and regulations having the force and effect of law as he may deem advisable concerning the appointment and duties of notaries public and the administration of this chapter.

(b) The Attorney General shall file a copy of such rules and regulations with the Clerk of Courts.

Source
(Code 1966, § 1082.) 31 TTC § 202, modified.

§ 705. Application and qualification for commission as notary public.

Except as otherwise provided in this chapter, application for a commission as notary public for the Republic shall be submitted to the Attorney General and must be accompanied by two letters of recommendation. Every person appointed a notary public must be, at the time of his appointment, of good character, at least 25 years of age, and a permanent resident of the Republic, who has resided in the Republic for at least three years, or a United States citizen, resident in the Republic and employed by the United States government or by a contractor engaged in work for the United States government in the Republic.

Source
(Code 1966, § 1076.) 31 TTC § 203(1), modified.

§ 706. Oath required.

Every person appointed a notary public shall, before acting in that capacity, take and subscribe to an oath for the faithful discharge of his duties, which oath may be taken before a judge, a clerk of courts, or other official authorized to administer oaths. This oath shall be
executed in duplicate. The original shall be filed in the Office of the Attorney General and a duplicate original filed in the Office of the Clerk of Courts.

Source
(Code 1966, § 1076.) 31 TTC § 203(2), modified.

§ 707. Filing and certification of commission, seal and signature.

(a) It shall be the duty of each person appointed and commissioned a notary public under the provisions of this chapter to forthwith file a literal or photostatic copy of his commission, an impression of his seal and a specimen of his official signature with the Clerk of Courts. Thereafter, the Clerk of Courts, when so requested, shall certify to the official character and acts of any such notary public whose commission, impression of seal and specimen of official signature is filed in his office.

(b) The Clerk of Courts shall charge and receive a fee of $1.00 for filing a copy of a commission and a fee of $0.25 for filing each certificate of authentication.

Source
(Code 1966, §§ 1078 and 1083.) 31 TTC § 204, modified.

§ 708. Official bond.

Each notary public forthwith and before entering upon the duties of his office may, at the discretion of the President, be required to execute at his own expense, an official surety bond in a sum not exceeding $1,000.00.

Source
(Code 1966, § 1079.) 31 TTC § 205(1), modified.

§ 709. Agreement to accept service of process.

The obligee of each bond shall be the Republic and the condition contained therein shall be that the notary public will well, truly and faithfully perform all the duties of his office which are then and may thereafter be required, prescribed or defined by law or by any rule or regulation made under the express or implied authority of any law of the Republic, and all duties and acts are undertaken, assumed or performed by the notary public by virtue or color of his office. The surety on any such bond shall be a surety company approved by the President. The notary public by accepting his commission, and the surety company by issuing the bond, thereby agree to accept service of process for any purpose. After approval, the bond shall be deposited and kept in the Office of the Attorney General, who will certify to the Clerk of Courts that the bond has been accepted and filed in proper form.

Source
(Code 1966, § 1079.) 31 TTC § 205(2), modified.

§ 710. Liabilities of notary and surety on bond.

For the official misconduct of a notary public or breach of any of the conditions of his official bond, he and the surety on his official bond shall be liable to the party injured thereby for all damages sustained. Such party shall have a right of action in his own name upon such bond and may prosecute the same to final judgment and execution.

Source
(Code 1966, § 1080.) 31 TTC § 206.

§ 711. Compliance with chapter required; penalties.

(a) No person shall be qualified to act as a notary public or shall enter upon any of the duties of such office, or offer or assume to perform any such duties until he shall have fully complied with the requirements of this chapter.

(b) Any person wilfully violating any of the provisions of this chapter shall be guilty of a misdemeanor and, upon conviction, such person shall be punished by a fine of not more than $500.00, or by imprisonment for not more than one year, or both. Nothing in this section shall be construed to restrict or to do away with any liability for civil damages.

Source
(Code 1966, § 1081.) 31 TTC § 207.

Subchapter II
Powers and Duties

§ 751. Generally.
§ 752. Required seal.
§ 753. Required records; form and effect of granted copies or certificates.
§ 754. Disposition of records.

§ 751. Generally.

A notary public has the power and is authorized to administer oaths and affirmations, receive proof and acknowledgement of writings, and present and protest commercial paper. A notary public may act officially anywhere in the Republic but shall, before so acting in any district, comply with the provisions of section 707, subchapter I of this chapter.

Source
(Code 1966, § 1084; P. L. No. 4C-27, § 2.) 31 TTC § 251, modified.

§ 752. Required seal.

(a) Every notary public shall constantly keep a seal of office, which may be a rubber stamp or impression seal, whereon shall be engraved his name, and the words "Notary Public" and "Republic of Palau." He shall authenticate all of his official acts, attestations, certificates and instruments therewith.

(b) Upon resignation, death, expiration of term of office without reappointment, removal from or abandonment of office, or change in residence from the Republic, he shall immediately deliver his seal to the Attorney General, who shall deface or destroy the same. By failing for 60 days to comply with the above requirement, the notary public, his executor or administrator, shall forfeit to the Republic not more than $200.00, in the discretion of the court, to be recovered in an action to be brought by the Attorney General on behalf of the Republic.

Source
(Code 1966, § 1077.) 31 TTC § 252, modified.

§ 753. Required records; form and effect of granted copies or certificates.

Every notary public shall record at length in a book of records all acts, protests, depositions, and other things noted by him or done in his official capacity. All copies or certificates granted by him shall be under his hand and notarial seal, and shall be received as evidence of such transactions.

Source
(Code 1966, § 1085.) 31 TTC § 253, modified.

§ 754. Disposition of records.

(a) The records of each notary public shall each year on the thirtieth of June and upon the resignation, death, expiration of term of office, removal from or abandonment of office, or change of residence from the Republic be deposited with the Clerk of Courts.

(b) By a failure for 60 days to comply with the requirement of this section, the notary public, his executor or administrator shall forfeit to the Republic not less than $10.00
nor more than $100.00, in the discretion of the court, in an action brought therefor by the Attorney General on behalf of the Republic.

Source
(Code 1966, § 1086.) 31 TTC § 254, modified.

Subchapter III
Fees

§ 761. Fees; schedule.
§ 762. Same; notaries not entitled to fees.

§ 761. Fees; schedule.

Every notary public, except as provided in section 762 of this chapter, shall be entitled to demand and receive the following fees:

(a) noting the protest of mercantile paper, $1.00;

(b) each notice and certified copy of protest of mercantile paper, $1.00;

(c) noting any protest other than of mercantile paper, $2.00;

(d) each notice and certified copy of protest other than of mercantile paper, $2.00;

(e) each deposition, or official certificate, $2.00;

(f) administration of oath, including the certificate of such oath, $0.25;

(g) affixing the certificate of such oath to each duplicate original instrument beyond four, $0.15;

(h) taking any acknowledgment, $0.50 for each party signing; and

(i) affixing to each duplicate original, beyond one of any instrument acknowledged before him, his certificate of acknowledgement, $0.25 for each person making such acknowledgment.

Source
(Code 1966, § 1087.) 31 TTC § 255.

§ 762. Same; notaries not entitled to fees.

A notary public who is also a paid employee of the United States, or the government of the Republic, or of any state administration, and is permitted to perform services as notary public during the working hours for which he is paid by one of these governments, shall not be entitled to demand or receive any fees for services performed as notary public during such hours or for such services performed at any other time which are in connection with or in aid of his regular employment.

Source
(Code 1966, § 1088.) 31 TTC § 256, modified.

Chapter 8
Taxi Regulations

§ 801. Definitions.
§ 802. Requirements for taxi drivers.
§ 803. Taxi driver identification card; display.
§ 804. Signs.
§ 805. Notice of fares.
§ 806. Maps.
§ 807. Conduct of business.
§ 808. Health certificate.
§ 809. Driving record.
§ 810. Penalty.

§ 801. Definitions.

In this chapter, unless the context requires otherwise:

(a) "Taxi" means any motorized vehicle driven upon the public streets or roads for the purpose of transporting passengers in return for the payment of money or services, but does not include buses.

(b) "Treasurer" means the Director of the Bureau of National Treasury.

Source
PDC § 902(a), as amended by PL 5-2-44 § 1, modified.

§ 802. Requirements for taxi drivers.

No person shall drive or operate a taxi in the Republic unless he is a citizen of the Republic, at least 21 years of age, and has obtained a special taxi driver identification card from the Director of the Bureau of Public Safety. The issuance of such card shall also be approved in writing by the chief executive officer of the state in which the person intends to operate a taxi.

Source
PDC § 902, as amended by PL 5-2-44 § 1, modified.

§ 803. Taxi driver identification card; display.

Taxi driver identification cards shall contain the following information:

(a) name and address;

(b) date of birth;

(c) blood type;

(d) height and weight;

(e) distinguishing marks or scars;

(f) full-faced picture (two inch by two inch);

(g) signature of person and issuing officer;

(h) date of issuance;

(i) name of parent, guardian or next of kin; and

(j) identification card number.

In addition to the information listed above, such taxi driver identification card shall clearly state in letters not smaller than 3/4 inches in height that the holder thereof is registered as a taxi driver. Such taxi driver identification card shall be displayed upon the dashboard or in such conspicuous place in the taxi where it can be easily seen at all times the taxi is in operation.

Source
PDC § 902(c), as amended by PL 5-2-44 § 1, rewritten to incorporate the provisions of PDC § 709(b) and modified.

§ 804. Signs.

Every person who obtains retail license as may be required by applicable law to permit him to operate a vehicle as a taxi shall display said license beside his taxi identification card and shall, before such vehicle is operated as a taxi, display the word "taxi" with a lightable sign of such standard size and type as may be required by applicable state law upon the top of the vehicle.

Source
PDC § 902(b), as amended by PL 5-2-44 § 1, modified.

§ 805. Notice of fares.

No taxi shall be operated on the public streets or roads unless a printed schedule of fares for passengers is displayed beside the taxi identification card. No fare shall be charged to passengers except as established in accordance with law, or as may be established in accordance with law, or as may be established by the taxi driver in the absence of such law. Such schedule shall be in the Palauan, English and Japanese languages with the listed fares in American monetary units.

Source
PDC § 902, as amended by PL 5-2-44 § 1.

§806. Maps.

Every taxi operated on the public streets or roads of Palau shall conspicuously display a map showing the roads and streets upon which the taxi operates and showing the major centers for administration, recreation, hospitals, hotels, and such other facilities as the taxi driver may wish to display. Such maps shall be obtained from the Palau Tourist Commission and shall be printed in the Palauan, English and Japanese languages.

Source
PDC § 902, as amended by PL 5-2-44 § 1, modified.

§ 807. Conduct of business.

No taxi driver during the course of operating his taxi shall consume or permit to be consumed within his taxi alcoholic beverages. No taxi driver shall operate his taxi while in an intoxicated state.

Source
PDC § 902(d), as amended by PL 5-2-44 § 1.

§ 808. Health certificate.

Before a taxi driver shall obtain an identification card, he shall first obtain a statement or certificate of health by the public health officials that he is free from contagious disease. Such statement or certificate shall be attached to the application for the identification card by the Director of the Bureau of Public Safety. Any forgery or falsification of the statement or certificate shall be grounds for revocation of the taxi identification card. Such certificate or statement shall be renewed every six months and deposited with the Director of the Bureau of Public Safety.

Source
PDC § 902, as amended by PL 5-2-44 § 1, modified.

§ 809. Driving record.

Any person convicted within any two month period of any three moving violations of the motor traffic laws of the Republic shall be prohibited from operating a taxi for a period of one year following the date of the third conviction.

Source
PDC § 902, as amended by PL 5-2-44 § 1, modified.

§ 810. Penalty.

Any person who violates any provision of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not more than $100.00 and/or revocation of his taxi identification card for a period not to exceed three months. The Director of the Bureau of Public Safety shall maintain a record of all such revocations and shall not issue a new identification card to a person who has been four times convicted of violating a provision of this section.

Source
PDC § 902(e), as amended by PL 5-2-44 § 1, modified.

Chapter 9
Tour Operators

§ 901. Regulation of tour operators.
§ 902. License fee.
§ 903. Application; procedure.
§ 904. Same; examination; revocation or suspension.

§ 901. Regulation of tour operators.

Every person, natural or corporate, engaged either regularly or periodically in the business of providing tour services limited to and within the Republic must first obtain and have in his possession a Tour Operator's License permitting him to do so, issued by the President in accordance with the provisions of this section.

Source
PL 5-8-5 § 1(a), modified.

§ 902. License fee.

The fee for a Tour Operator's License in the Republic shall be $150.00 per annum, and shall expire on June 30 of each fiscal year. The Director of the Bureau of National Treasury may prorate the fee on a quarterly basis. The fee shall be paid to the Director of the Bureau of National Treasury in advance of the issuance of the license; such fee shall be deposited in the National Treasury.

Source
PL 5-8-5 § 1 (b), as amended by PL 6-7-9 § 1, modified.

§ 903. Application; procedure.

Applications for Tour Operator's Licenses shall be made and filed with the President and shall include, in addition to any other information the President may require, the following information:

(a) the name and address of the applicant, length of residence in the Republic, citizenship and if a corporation, the names of the corporate officers and a certified copy of the charter and articles of incorporation;

(b) the names and addresses of all corporations, associations or persons for whom the applicant is associated with; and

(c) the kind and nature of services which the applicant proposes to provide.

Source
PL 5-8-5 § 1(c), divided into two sections and modified.

§ 904. Same; examination; revocation or suspension.

The President shall in consultation with the Palau Tourist Commission examine the statements, information, and documents filed with the application and any other information by the applicant or any other person. If the President is satisfied that the applicant is qualified to publicly provide services as a tour agent, he shall issue the license; otherwise he shall refuse to issue the license and shall notify the applicant in writing of his decision. The license may be revoked or suspended by the President for good cause shown to him after notice to the licensee has been duly made and a hearing conducted wherein the licensee was afforded an opportunity to be heard.

Source
PL 5-8-5 § 1(c), divided into two sections and modified.

Chapter 10
Alcoholic Beverage and Tobacco Control

Subchapter I
General Provisions

§ 1001. Short title.
§ 1002. Definitions.
§ 1003. Religious exemption.
§ 1004. State option.
§ 1005. State law.

§ 1001. Short title.

This chapter may be cited as the "Alcoholic Beverage and Tobacco Products Control Act."

Source
PDC § 300, modified. Amended by RPPL 4-25 § 1(1).

§ 1002. Definitions.

Unless the context otherwise requires, in this chapter:

(a) "Alcoholic beverages" means beer and malt beverages, distilled spirits, wine and every liquid or solid which contains one-half of one percent (.05%) or more of alcohol by volume, and which is fit for drinking purposes, either alone or combined with other substances, but shall not include any liquid or solid which is prescribed by a medical officer or other medical personnel or is sold as medicine.

(b) "Beer and malt beverages" means any beverage containing not more than 15 percent alcohol by volume obtained by a process of alcoholic fermentation of grain, hops and malt in water.

(c) "Bureau" means the Bureau of Commercial Development of the Ministry of Public Infrastructure, Industries and Commerce.

(d) "Director" means the Director of the Bureau of Commercial Development.

(e) "Club" means any organization for objects of a social, fraternal, patriotic, political, recreational or athletic nature, or the like, but not for pecuniary gain, having a regular membership. "Club" also means the establishment so operated and the premises thereof.

(f) "Fiscal Year" means the year commencing on October 1 and ending on September 30.

(g) "Licensee" means any person to whom a license to sell alcoholic beverages or any tobacco products has been granted in accordance with the provisions of this chapter.

(h) "Minor" means any person under the age of twenty-one (21) years.

(i) "Person" means any single individual, partnership, corporation, or other association of individuals, or of any group or combination of the above acting together or as a unit.

(j) "Premises" means the place of business including the entire building and the area within its boundaries, or as defined by the Bureau on the license issued.

(k) "Public place" means any place, indoors or outdoors, within the Republic except a private dwelling.

(l) "Tobacco" means plants from the genus Nicotiana whose processed leaves are used for smoking, chewing, or as snuff.

Source
PDC §301. Amended by PL 7-3-32 § 1; § 301(h) omitted as unnecessary; terms put into alphabetical order and section modified. Amended by RPPL 4-25 § 1(2). Subsections (c), (d) and (j) amended to change "Board" to "Bureau" by RPPL 5-7 § 34(8)(a) on 10/3/97 effective 10/1/97.

§ 1003. Religious exemption.

Nothing in this chapter shall be construed to restrict or prohibit the use of wines or other alcoholic beverages as part of a recognized religious service.

Source
PDC § 302, modified.

§ 1004. State option.

By popular referendum conducted according to the standards of state law or constitution, a state may determine whether the importation and sale of alcoholic beverages in the state shall be permitted; provided that a state may designate the type of alcoholic beverages which may or may not be sold in the state. If the qualified voters of the state opt to make the sale and importation of alcoholic beverages illegal within that state, then it will be the responsibility of the state to enforce such an ordinance through its own police force or by such other legal means as are available.

Source
PDC § 303, modified.

§ 1005. State law.

Nothing in this chapter shall preclude any state from enacting any ordinance which is not in conflict with the provisions of this chapter or the regulations issued pursuant thereto.

Source
PDC § 304, modified.

Subchapter II
Bureau of Commercial Development

§ 1011. [Repealed]
§ 1012. [Repealed]
§ 1013. [Repealed]
§ 1014. [Repealed]
§ 1015. Powers and duties of Bureau of Commercial Development regarding alcoholic beverages and tobacco control.
§ 1016. Appointment of inspectors.
§ 1017. [Repealed]
§ 1018. Records and reports.
§ 1019. [Repealed]

§ 1011. [Repealed]

Source
PDC § 305(a) and (b), combined and modified. Amended by RPPL 4-25 § 2(1). Repealed by RPPL 5-7 § 34(8)(b) on 10/3/97 effective 10/1/97.

§ 1012. [Repealed]

Source
PDC § 305(c), modified. Amended by RPPL 4-25 § 2(2). Repealed by RPPL 5-7 § 34(8)(c) on 10/3/97 effective 10/1/97.

§ 1013. [Repealed]

Source
PDC § 305(d), modified. Repealed by RPPL 5-7 § 34(8)(d) on 10/3/97 effective 10/1/97.

§1014. [Repealed]

Source
PDC § 305(e), modified. Repealed by RPPL 5-7 § 34(8)(e) on 10/3/97 effective 10/1/97.

§ 1015. Powers and duties of Bureau of Commercial Development regarding alcoholic beverage and tobacco control.

In addition to any powers and duties prescribed by law, regulation, or lawful executive order, the Bureau shall have the following powers and duties:

(a) The Bureau shall have the power to license the sale of alcoholic beverages and any tobacco products in the Republic, and to suspend, revoke and reinstate such license;

(b) The Bureau shall issue regulations not inconsistent with the provisions of this chapter, and may amend or repeal them as it deems necessary to carry out the purpose and intent of this chapter and to enable it to exercise its duties and powers. Such regulations shall be promulgated pursuant to the provisions of the Administrative Procedures Act of Title 6, Chapter 1 of this Code and when issued shall have the force and effect of law;

(c) The Bureau shall have the power to prescribe the character and manner of keeping books and records by licensees, common and private carriers and such other persons as are necessary to enable the Bureau to exercise its powers and duties under this chapter;

(d) The Bureau shall prescribe the form of all applications for licenses or renewal of licenses and other papers it shall require, including, but not limited to, verification of the information contained in such applications. It shall also prescribe the place and manner for the posting and displaying of licenses by licensees;

(e) The Bureau shall fix the hours between which the licensed premises of any class or classes may regularly be open for business, provided that until such time as the Bureau shall exercise this power, no licensee shall sell, serve, or permit any person to consume any alcoholic beverage on the premises licensed except during the following hours every day of the week:

(1) wholesaler: 7:00 a.m. to 5:00 p.m.;

(2) package distributor: 7:00 a.m. to midnight;

(3) bar-restaurant: 7:00 a.m. to 2:00 a.m.;

(4) cabaret or club: 4:00 p.m. to 2:00 a.m;

(5) special events hours as specified by the license.

Unless a greater penalty is set by regulation, persons who serve, sell or permit any person to consume alcoholic beverages and persons who consume alcoholic beverages on any licensed premises outside the hours permitted by the license shall be charged with a misdemeanor and fined not less than one hundred dollars ($100) and not more than one thousand dollars ($1,000). Licensees from whose premises alcoholic beverages are served outside such hours shall also be subject to sanctions as set by regulation to be promulgated by the Bureau.

(f) The Bureau may limit the number of licensees of any class within the Republic or in any given locality, when in the judgment of the Bureau such limitations are in the public interest;

(g) The Bureau shall recommend to the Olbiil Era Kelulau such legislation as the Bureau believes is necessary to enable it to exercise its powers and duties, and such legislation related to the consumption and sale of alcoholic beverages and any tobacco products which the Bureau believes is in the public interest;

(h) The Bureau shall have the power to investigate violations, enforce fines, and bring license suspension, revocation and non-renewal actions pursuant to the provisions of this chapter.

Source
PDC § 305(f), § 305(f)(8) made into separate § 1016 and section modified. Amended by RPPL 4-25 § 2(3). "Board" amended to "Bureau" by RPPL 5-7 § 34(8)(f) on 10/3/97 effective 10/1/97. Subsection (e) amended by RPPL 6-41 § 1, modified. Subsection (e)(3), (e)(4) and the last paragraph is amended by RPPL 7-49 § 2.

§ 1016. Appointment of inspectors.

The Bureau shall have the power to appoint Alcoholic Beverage and Tobacco Products Control Inspectors and delegate to them the authority and powers of the Bureau under sections 1081 and 1082 of this chapter.

Source
PDC § 305(f)(8), modified. Amended by RPPL 4-25 § 2(4). "Board" amended to "Bureau" by RPPL 5-7 § 34(8)(g) on 10/3/97 effective 10/1/97.

§ 1017. [Repealed]

Source
PDC § 305(g), modified. Repealed by RPPL 5-7 § 34(8)(h) on 10/3/97 effective 10/1/97.

§ 1018. Records and reports.

The Bureau shall keep records of all its proceedings and business, including the number, class, and location of premises for all licenses issued, denied, suspended, or revoked. These records shall be open to public inspection. The Bureau shall render a report to the President and Olbiil Era Kelulau no later than thirty (30) days after the end of each fiscal year, setting forth its alcoholic beverage and tobacco control activities for the preceding fiscal year, based on such records. In addition, the Bureau shall provide the President and Olbiil Era Kelulau, at the end of each month, a list of all applications received, licenses issued or denied, and disciplinary actions taken.

Source
PDC § 305(h), modified. Amended by RPPL 5-7 § 34(8)(I) on 10/3/97 effective 10/1/97.

§ 1019. [Repealed]

Source
PDC § 305(I), modified. Repealed by RPPL 5-7 § 34(8)(j) on 10/3/97 effective 10/1/97.

Subchapter III
Licensing

§ 1031. License required.
§ 1032. Issuance of licenses.
§ 1033. Classes of licenses.
§ 1034. License fees.
§ 1035. Licenses for multiple activities; separate places of business.
§ 1036. License application form.
§ 1037. License application; deposit of fees.
§ 1038. Review of license application.
§ 1039. Period of issue.
§ 1040. Notification of issuance.
§ 1041. Distribution of license fees.
§ 1042. Prohibitions against licensing.
§ 1043. Restrictions on licenses.
§ 1044. Appeal of decision to deny license; public hearing.

§ 1031. License required.

No person shall sell alcoholic beverages or any tobacco products in the Republic without a valid license issued by the Bureau according to the provisions of this chapter. The license shall permit the licensee to engage only in such activities as the license shall explicitly permit.

Source
PDC § 306(a), modified. Amended by RPPL 4-25 § 3(1). Amended by RPPL 5-7 § 34(8)(k) on 10/3/97 effective 10/1/97.

§ 1032. Issuance of licenses.

Licenses to sell alcoholic beverages or any tobacco products, wholesale or retail, may be issued or reissued by the Board to any person residing in the Republic, provided that any person applying for a license meets the requirements as stated in this chapter.

Source
PDC § 306(b), modified. Amended by RPPL 4-25 § 3(2).

§ 1033. Classes of licenses.

Separate licenses shall be issued for each of the following types of activities:

(a) Wholesale alcoholic beverage license -- which license shall permit the licensee to sell such alcoholic beverages as are permitted by law to licensed retailers holding one or more of the classes of retail alcoholic beverage licenses described in this subsection for resale by such licensed retailers; provided that such a license shall be issued only to a person holding a valid wholesalers license as required under Chapter 15 of Title 40 of this Code.

(b) Retail alcoholic beverage licenses -- retail alcoholic beverage licenses shall be of the following types:

(1) Bar-restaurant license -- which license shall permit the licensee to sell alcoholic beverages to consumers for consumption only on the premises where sold; provided that such a license shall be issued only to a person holding a valid restaurant license or other retail license required under applicable national or state law.

(2) Package distributor license -- which license shall permit the licensee to sell alcoholic beverages to consumers for consumption off the premises where sold; provided that such license shall be issued only to a person holding a valid retail store license or other retail license as may be required by applicable national or state law.

(3) Cabaret license -- which license shall permit the licensee to sell alcoholic beverages to consumers for consumption only on the premises where sold, and where an orchestra, band, or other live entertainment, to include karaoke entertainment, is provided for the patrons provided that such a license shall be issued only to a person holding a valid restaurant license or other retail license as may be required by applicable national or state law.

(4) Club license -- which license shall permit the licensee to sell alcoholic beverages to members of the club and to guests thereof enjoying the privileges of membership, for consumption only on the premises kept and operated by such club; provided that such a license shall be issued only to a person holding such retail licenses as may be required by applicable national or state law.

(5) Special events license -- which license shall permit the licensee, who shall be either a nonprofit organization or the holder of a valid bar-restaurant, cabaret, or club license, to sell alcoholic beverages for consumption on the site of any special event for a period not exceeding seventy-two (72) hours. An organization or licensee can obtain a special events license only twice in one calendar year.

(c) Wholesale tobacco products license -- which license shall permit the licensee to sell such tobacco products as are permitted by law to licensed retailers holding a retail tobacco products license described in this subsection for resale by such licensed retailers; provided that such a license shall be issued only to a person holding a valid wholesalers license as required under Chapter 15 of Title 40 of this Code.

(d) Retail tobacco products license -- which license shall permit the licensee to sell such tobacco products as are permitted by law to consumers; provided that such license shall only be issued to a person holding other valid and necessary license(s) required under applicable national or state law.

Source
PDC § 306(c), modified. Amended by RPPL 4-25 § 3(3). Subsection (b)(3) amended by RPPL 5-9 § 1(a).

§ 1034. License fees.

The fees for licenses of the several classes shall be as follows, the same being per annum except as otherwise indicated:

(a) wholesale alcoholic beverage license: $250.00;

(b) bar-restaurant license: $125.00;

(c) package distributor license: $62.50;

(d) cabaret license: $250.00;

(e) club license: $125.00;

(f) special events license: $25.00 per issue;

(g) wholesale tobacco products license: $150.00; and

(h) retail tobacco products license: $50.00.

Source
PDC § 306(d), as amended by PL 7-3-32 § 2 and RPPL 4-25 § 3(4), modified.

§ 1035. Licenses for multiple activities; separate places of business.

(a) A person engaged in two or more of the activities set forth in section 1033 must obtain a license for each activity in which he is engaged, except that a person who has a valid cabaret license need not acquire a bar-restaurant license.

(b) A separate and appropriate license must be obtained for each separate place of business.

Source
PDC § 306(e) and (f), modified.

§ 1036. License application form.

Applications for license or renewals thereof shall be submitted in a form prescribed by the Bureau and shall include, but not be limited to, the following information:

(a) the applicant's name;

(b) the name of the business;

(c) the location of the business premises;

(d) the name and citizenship of all persons owning an interest in the business;

(e) the applicant's age; and

(f) the class of license desired.

Source
PDC § 306(g), modified. "Board" amended to "Bureau" by RPPL 5-7 § 34(8)(l) on 10/3/97 effective 10/1/97.

§ 1037. License application; deposit of fees.

The license application or application for renewal shall not be processed by the Bureau unless the applicant has deposited the full amount due for his license with the National Treasury.

Source
PDC § 306(h), modified. Amended by RPPL 5-7 § 34(8)(m) on 10/3/97 effective 10/1/97.

§ 1038. Review of license application.

Upon receipt of an application for an original license or renewal license and certification from the National Treasury that a deposit of fees has been made and from the Bureau of Revenue, Customs and Taxation that the applicant is not delinquent in the payment of any taxes on the sale of alcoholic beverages and any tobacco products, the Bureau shall schedule a public hearing to review the applicant's application. Public announcement of such hearing shall be made at least five days in advance, stating the time, place and purpose of the hearing, the name of the applicant, the location of the premises, the class of license requested, and any other information the Bureau may deem pertinent. At such hearing the applicant shall attend to answer questions from the Director or his designee and members of the public concerning the application, and any interested persons may attend and present comments and questions. If more than one application has been received, the Bureau may in its discretion review several applications at the same hearing. In reviewing an application for a license, the Bureau shall thoroughly investigate to determine whether the applicant and the premises qualify for the class of license for which the application is made, and whether all the terms and conditions of this chapter and the regulations issued pursuant thereto are met. Upon completion of the review of the application, the Bureau shall consider the application, and if it is found that the applicant and the premises meet the qualifications for issuance of the license, a license shall be issued by the Bureau. A decision by the Bureau to disapprove any application for an original or renewal license shall be made in writing setting forth the reason for disapproval. This report shall be submitted to the President and to the applicant within five days of the time when such decision was made.

Source
PDC § 306(i), modified. Amended by RPPL 4-25 § 3(5). Amended by RPPL 5-7 § 34(8)(n) on 10/3/97 effective 10/1/97.

§ 1039. Period of issue.

Licenses shall be issued for a period not to exceed one year. Each license shall expire on the last day of the fiscal year in which issued; it shall be renewable thereafter unless suspended or revoked according to law. Applications for renewal of a license shall be received, approved, and duly issued prior to the first day of the fiscal year. Any sale of alcoholic beverages after the first day of the new fiscal year without a proper license shall constitute a violation of this chapter.

Source
PDC § 306(j), modified.

§ 1040. Notification of issuance.

Upon approval of an application for a license and issuance of such license by the Bureau, the Bureau shall notify the President, the Director of the Bureau of Public Safety, and the chief executive officer of the state in which the premises is located, of the name of the licensee, the class of license issued, and the location of the license issued.

Source
PDC § 306(k), modified. "Board" amended to "Bureau" by RPPL 5-7 § 34(8)(o) on 10/3/97 effective 10/1/97.

§ 1041. Distribution of license fees.

The wholesale alcoholic beverage license and the wholesale tobacco products license fees collected pursuant to this chapter shall be deposited in the National Treasury. The fees collected from the classes of retail alcoholic beverage licenses and retail tobacco licenses issued pursuant to this chapter shall be deposited in the treasury of the state in which the premises are located within 30 days after their collection. In any case in which the Bureau disapproves an application for an original license or renewal license, the Director of the Bureau of National Treasury shall return the license fee deposited with him to the applicant. The Director of the Bureau of National Treasury shall keep a record of all fees collected pursuant to this chapter and shall submit a report to the Olbiil Era Kelulau each year during its October regular session summarizing such collections and payments.

Source
PDC § 306(l), modified. RPPL 4-25 § 3(6), modified. Amended by RPPL 5-7 § 34(8)(p) on 10/3/97 effective 10/1/97.

§ 1042. Prohibitions against licensing.

The following prohibitions against licensing shall exist in the Republic:

(a) No license shall be issued or reissued to a person whose license has previously been revoked until one year has elapsed from the date of revocation, nor shall a license be reissued to a person whose license is suspended at that time;

(b) No license shall be issued for premises in any state or part thereof where the Board has determined that the granting of an additional license of that class in that area will not be in the public interest;

(c) No establishments with a cabaret license may operate within 100 meters of any elementary school, church, or area where such business activities are prohibited by state or national law, except establishments with a cabaret license, including karaoke bars and restaurants, that were in operation prior to January 1, 2006, and had a valid liquor license, may continue to operate within 100 meters of any elementary school or church after 6:00 p.m. in accordance with law.

(d) No license shall be renewed or reissued for any person who is delinquent in the payment of taxes on the sale of alcoholic beverages or any tobacco products that are payable by him under the provisions of Division 2 of Title 40 of this Code.

Source
PDC § 306(m), as amended by PL 6-8-37 § 1, modified. Amended by RPPL 4-25 § 3(7). Subsection (c) amended by RPPL 5-9 § 1(b). Subsection (c) amended by RPPL 7-13 § 29. Subsection (c) amended by RPPL 7-18 § 2.

§ 1043. Restrictions on licenses.

Licenses shall be obtained only as prescribed in this chapter and shall not be transferrable from the licensee to any other person. A licensee is limited only to the privileges conferred by the license as stated in this chapter. The license is valid only for the conduct of business on the premises as specified in the application for the license.

Source
PDC § 306(n), modified.

§ 1044. Appeal of decision to deny license; public hearing.

Any applicant whose application for an original license or renewal of a license has been disapproved by the Bureau may appeal such decision by notifying the Bureau in writing within 15 days after receiving notice of such decision by the Bureau. Upon receipt of such notice by an applicant, the Bureau within 15 days shall schedule a public hearing to consider the matter, and shall notify the applicant of such hearing at least 10 days in advance of such hearing. The applicant shall have the right to appear before the Bureau, may present witnesses, and may be represented by counsel. At such hearing the Bureau Director or his designee shall have the power to subpoena witnesses and documents and administer oaths. The Bureau shall notify the applicant of its findings and decision within five days of the hearing.

Source
PDC § 306(o), modified. Amended by RPPL 5-7 § 34(8)(q) on 10/3/97 effective 10/1/97.

Subchapter IV
Conduct and Standard of Business

§ 1061. Sale by wholesaler.
§ 1062. Records from importers.
§ 1063. Safe premises.
§ 1064. Employment of minors.
§ 1065. Keeping unauthorized beverages.
§ 1066. Bringing unauthorized beverages in premises.
§ 1067. Intoxicated persons.
§ 1068. Sale or distribution to minors; purchase, possession, or consumption by minors.
§ 1069. Minor on premises.
§ 1070. Use by employees.
§ 1071. Prohibitions applicable to tobacco products license holders and their employees, managers and agents.
§ 1072. Prohibition on unlicensed sale or distribution of tobacco products.
§ 1073. Signs.
§ 1074. Vending machines.

§ 1061. Sale by wholesaler.

No person may sell any alcoholic beverages to any licensed wholesaler or to any licensed retailer holding one or more of the classes of retail alcoholic beverage license described in section 1033(b) of this chapter without first obtaining a wholesale alcoholic beverage license according to the provisions of this chapter. Any wholesaler so licensed shall not sell or transfer any alcoholic beverages to any licensed retailer or other licensed wholesaler without invoicing the licensee's name, license number, the quantity of beverages sold, and the signature of the licensee or his agent acknowledging receipt of the goods. One copy of such invoice shall be retained by the licensee seller, and another copy shall be given to the licensee purchaser. All such invoices shall be retained by both parties for a period of three years, and shall be available at all times for inspection by the Bureau.

Source
PDC § 307(a), modified. Amended by RPPL 5-7 § 34(8)(r) on 10/3/97 effective 10/1/97.

§ 1062. Records from importers.

Any importer duly licensed under the provisions of this Code who imports alcoholic beverages into the Republic shall furnish the Bureau and the Director of the Bureau of National Treasury with copies of bills of lading, invoices, survey reports, and any other information the Bureau or the National Treasury may require for all alcoholic beverages imported into the Republic. Said copies shall be provided monthly, and shall be submitted by the tenth of the following month.

Source
PDC § 307(b), modified. Amended by RPPL 5-7 § 34(8)(s) on 10/3/97 effective 10/1/97.

§ 1063. Safe premises.

The Bureau may prescribe by regulation the arrangement, construction, equipping, lighting, and sanitary facilities of licensed premises which will make safe and sanitary premises, if not otherwise prescribed by law.

Source
PDC § 307(c), modified. Amended by RPPL 5-7 § 34(8)(t) on 10/3/97 effective 10/1/97.

§ 1064. Employment of minors.

A licensee shall not employ any person under the age of 21 years in or about that portion of the premises which is used for the serving and consumption of alcoholic beverages.

Source
PDC § 307(d), modified.

§ 1065. Keeping unauthorized beverages.

A licensee shall not sell or keep upon the licensed premises or permit to be consumed on the licensed premises any alcoholic beverages other than those in which he is authorized to deal by his license.

Source
PDC § 307(e), modified.

§ 1066. Bringing unauthorized beverages in premises.

Any person bringing alcoholic beverages upon the premises operated by a licensee, including locally manufactured alcoholic beverages, or who consumes them thereon so as to cause a violation of section 1065 shall be guilty of violating this chapter.

Source
PDC § 307(f), modified.

§ 1067. Intoxicated persons.

A licensee, or any of his employees, shall not sell or give or permit to be sold or given away any alcoholic beverages to any obviously intoxicated person.

Source
PDC § 307(g), modified.

§ 1068. Sale or distribution to minors; purchase, possession, or consumption by minors.

No person in or about, or from a licensed premises shall offer to sell, give or otherwise distribute alcoholic beverages to minors. The following persons shall be liable to all penalties provided by law for violation of this section:

(a) any person, including the minor, who actually participates in, or aids and abets in a violation of this section.

(b) the licensee(s) of the establishment from which the alcoholic beverages are offered to be sold, given or in which the alcoholic beverages are consumed, irrespective of said licensee's knowledge or lack of knowledge of the violation and irrespective of said licensee's presence or absence from the premises at the time of the violation.

(c) the manager or employee in charge of the premises at the time of the violation, irrespective of said person's knowledge or lack of knowledge of the violations.

A reasonable belief on the part of the violator that the person in question is 21 years of age, based on the production of an identification card which shows the person to be at least 21 years of age, may be considered in mitigation of penalty but shall not be considered a defense to liability under this section.

Source
PDC § 307(h), as amended by PL 7-3-32 § 3, modified.

§ 1069. Minor on premises.

(a) No minor shall enter or remain upon the premises of any licensed cabaret or club unless accompanied by a parent or a legal guardian.

(b) The licensee, manager, or employee in charge of any cabaret or club shall, in the event that a person violates the above section, immediately order and require that person to leave the premises, and upon the failure or refusal of said person to leave the premises shall immediately notify the police.

(c) The licensee shall be responsible for any violation of subsection (b) of this section irrespective of his knowledge or lack thereof of the violation and irrespective of his presence at or absence from the premises at the time the violation occurs.

(d) The manager or employee in charge of the premises at the time of the violation shall be responsible for any violation of subsection (b) of this section irrespective of his knowledge or lack thereof of the violation.

(e) A reasonable belief on the part of the violator that the person in question is over 21 years of age, based on the production of an identification card which shows the person to be at least 21 years of age, may be considered in mitigation of penalty but shall not be considered a defense to liability under this section.

Source
PDC § 307(i), as amended by PL 7-3-32 § 4, modified.

§ 1070. Use by employees.

No employee, owner, manager or agent of any licensee shall consume or be permitted to consume any alcoholic beverages while on duty on such licensed premises, nor shall any such person be on or be permitted to be on such premises while intoxicated.

Source
PDC § 307(l), modified.

§ 1071. Prohibitions applicable to tobacco products license holders and their employees, managers and agents.

(a) No tobacco products license holder or any employee, manager or agent of any tobacco products license holder shall sell or distribute any tobacco products to any individual (other than an individual who the tobacco products license holder, employee, manager, or agent knows to be nineteen (19) years of age or older) who does not present a driver's license or other generally accepted means of identification that describes the individual as nineteen (19) years of age or older, contains a likeness of the individual, and appears on its face to be valid.

(b) No tobacco products license holder or any employee, manager or agent of any tobacco products license holder shall sell or distribute any tobacco products other than at an outlet for which a current tobacco products license has been issued.

(c) No person shall be liable under the preceding subsections for more than one violation on any one day.

Source
RPPL 4-25 § 4(1), modified.

§ 1072. Prohibition on unlicensed sale or distribution of tobacco products.

No person, other than a person who holds a current and valid tobacco products license, or an employee, manager or agent of that person, may sell or distribute a tobacco product.

Source
RPPL 4-25 § 4(2).

§ 1073. Signs.

All tobacco products license holders shall prepare and post signs which provide continuing notice to the public that tobacco products will not be sold to persons under 19 years of age. The Minister of Health shall promulgate regulations regarding the dimensions, characteristics, and wording of the signs.

Source
RPPL 4-25 § 4(3).

§ 1074. Vending machines.

It shall be unlawful to use a vending machine to distribute or attempt to distribute any tobacco products.

Source
RPPL 4-25 § 4(3).

Subchapter V
Violation, Enforcement and Penalties

§ 1081. Enforcement authority of Bureau of Public Safety.
§ 1082. Inspection by Bureau of Commercial Development and the Bureau of Public Safety.
§ 1083. Grounds for revocation and suspension of licenses.
§ 1084. Procedure for the revocation or suspension of licenses; public hearing.
§ 1085. Criminal and civil penalties.
§ 1086. Miscellaneous prohibited acts involving alcoholic beverages.
§ 1087. Disposition of revenues collected from fines imposed for distribution and consumption of intoxicating beverages in public places.
§ 1088. Penalties for tobacco products control violations.
§ 1089. Suspension, revocation, and non-renewal of tobacco products licenses.

§ 1081. Enforcement authority of Bureau of Public Safety.

The Bureau of Public Safety shall have the power to issue citations and make arrests for violations of this chapter or regulations issued pursuant thereto. The Bureau of Public Safety shall promptly notify the Bureau of Commercial Development of any citation issued or arrest made for violation(s) of this chapter or regulations issued pursuant thereto.

Source
PDC § 308(a), modified. Amended by RPPL 5-7 § 34(8)(u) on 10/3/97 effective 10/1/97.

§ 1082. Inspection by the Bureau of Commercial Development and the Bureau of Public Safety.

The Bureau of Commercial Development and the Bureau of Public Safety shall have the right at all times and without notice and without legal process to visit and have immediate access to every part of the premises of every licensee for the purpose of making an examination and inspection of the licensee's books and records and manner of conducting business during the hours in which business is being conducted.

Source
PDC § 308(b), modified. Amended by RPPL 5-7 § 34(8)(v) on 10/3/97 effective 10/1/97.

§ 1083. Grounds for revocation and suspension of licenses.

The Bureau may suspend or revoke a license of any class on any of the following grounds:

(a) the continuation of a license would be contrary to the public interest;

(b) the violation of, or causing or permitting a violation of, or a failure or refusal by a licensee to comply with any provision of this chapter or regulations issued pursuant thereto;

(c) the misrepresentation of a material fact by the applicant in obtaining or renewing a license; or

(d) the plea or judgment of "guilty" by the licensee to any public offense involving moral turpitude.

Source
PDC § 308(c), modified. "Board" amended to "Bureau" by RPPL 5-7 § 34(8)(w) on 10/3/97 effective 10/1/97.

§ 1084. Procedure for the revocation or suspension of licenses; public hearing.

When the Bureau of Public Safety or the Bureau of Commercial Development finds, learns, believes or receives information which indicates that any of the grounds for suspension or revocation of a license listed in section 1083 exists in the case of any licensee, the Bureau of Public Safety shall conduct an investigation and shall report the findings and conclusions of such investigation to the Bureau of Commercial Development in writing within seven days after the completion of such investigation. If such investigation indicates that there is reasonable cause to believe that one or more of the grounds for revocation or suspension may exist, the Bureau shall, within 15 days after the receipt of the report of the investigation, schedule a public hearing on the matter. The Bureau shall notify the licensee under investigation of the alleged violation or offense and the time and place of the hearing at least 10 days in advance of such hearing. The licensee under investigation shall have the right to appear before the Bureau, may present witnesses and may be represented by counsel. At such hearing the Director or his designee shall have the power to subpoena witnesses and documents and to administer oaths. The Bureau shall notify the licensee, the President, and the chief executive officer of the state in which the premises are located of its findings and decision in writing within five days of the hearing, and such decision shall take effect immediately upon such notification and shall remain in effect until its expiration.

Source
PDC § 308(d), modified. Amended by RPPL 5-7 § 34(8)(x) on 10/3/97 effective 10/1/97.

§ 1085. Criminal and civil penalties.

(a) Whoever violates, causes, or permits to be violated, or fails to or refuses to comply with any provisions of sections 1031, sections 1061 to 1070 or 1082 or 1083(b) shall be fined not more than $500.00, nor less than $100.00, or imprisoned not more than one year, or both.

(b) Any person who violates a regulation promulgated by the Bureau pursuant to this chapter shall be liable for such criminal and/or civil penalty as is specified in the regulation; provided no such criminal penalty shall exceed $500.00 or six months in jail.

(c) Any person who violates other sections of this chapter or other public laws involving alcoholic beverages shall be liable for such civil or criminal penalties as are provided therein.

(d) Criminal penalties for any violation shall be in addition to, and not as a substitute for civil penalties provided by law.

(e) Within 60 days of the effective date of RPPL 4-25, the Minister of Justice or his designee shall promulgate regulations regarding sections 1071(b), 1072, 1073, 1074, 1082, and 1083(b) of Title 11 of the PNC; no person shall be prosecuted under these sections until 90 days after the Minister of Justice promulgates the regulations.

Source
PDC § 310, as amended by PL 7-3-32 § 6, modified. Amended by RPPL 4-25 §§ 4(4) and 5(1), modified. Subsection (b) amended by RPPL 5-7 § 34(8)(y) on 10/3/97 effective 10/1/97.

§ 1086. Miscellaneous prohibited acts involving alcoholic beverages.

(a) Furnishing alcoholic beverages to minors -- no person shall offer to sell, give, or otherwise distribute to or procure for a minor any alcoholic beverage, at any place. Any person who violates this subsection shall be imprisoned for not less than 24 hours nor more than one year and shall be fined not less than $100.00 nor more than $500.00. This penalty shall be in addition to any penalty imposed pursuant to section 1085 of this Code.

(b) Purchase, possession or consumption of alcoholic beverages by minors -- no minor shall purchase, possess, receive or consume any alcoholic beverage. Any person who violates this subsection shall be imprisoned for not less than 24 hours nor more than one year and shall be fined not less than $100.00 nor more than $500.00. This penalty shall be in addition to any penalty imposed pursuant to section 1085 of this Code.

(c) Distribution and consumption of intoxicating beverages in public place -- no person may distribute or consume any alcoholic beverages in any public place in the Republic other than:

(1) places licensed by the Bureau, to serve liquor on the premises;

(2) the rock islands; and

(3) places designated pursuant to regulation of the Bureau.

Any person who violates this subsection shall be fined not less than $100.00 nor more than $500.00 or shall be imprisoned for not more than 30 days, or both.

Source
PL 7-3-32 § 7, modified. Amended by RPPL 5-7 § 34(8)(z) on 10/3/97 effective 10/1/97.

§ 1087. Disposition of revenues collected from fines imposed for distribution and consumption of intoxicating beverages in public places.

One half of the revenues of each fine collected as a result of a violation of 11 PNC 1086(c) shall, after deposit in the National Treasury, be paid out to the government of the state in which the violation occurred.

Source
RPPL 2-37 § 16, modified.

§ 1088. Penalties for tobacco products control violations.

(a) Any tobacco products license holder or his employee, manager or agent who violates a prohibition of section 1071 shall be subject to:

(1) a fine of $100.00, for the first violation within a two year period;

(2) a fine of $250.00, for the second violation within a two year period;

(3) a fine of $500.00, for the third violation within a two year period; or

(4) a fine of $1,000.00, for each violation in excess of three violations within a two year period.

(b) Any person who violates a prohibition of sections 1072, 1073 or 1074 shall be subject to a fine of not more than $500.00, or imprisonment of not more than 30 days, or both.

Source
RPPL 4-25 § 5(2), modified.

§ 1089. Suspension, revocation, and non-renewal of tobacco products licenses.

(a) A tobacco products license for a particular outlet shall be suspended or revoked, and not renewed for a period of:

(1) seven days, if a fine has been imposed under subsection 1088(a) for the second violation at that outlet within two years;

(2) one to six months, if a fine has been imposed under subsection 1088(a) for the third violation at that outlet within two years; or

(3) 9 to 18 months, if a fine has been imposed under subsection 1088(a) for any violation in excess of three violations at that outlet within two years.

(b) All tobacco products licenses issued for outlets that are under common ownership or control shall be suspended or revoked, and not renewed, for a period of 9 to 18 months, if each outlet out of three or more outlets has been assessed fines under subsection 1088(a) for three or more violations within a two year period, for a total of nine or more fines during that two year period.

(c) A violation committed by an employee, manager or agent, and attributed to a license holder, shall be counted only once for purposes of the preceding subsections.

Source
RPPL 4-25 § 5(3), modified.

Subchapter VI
Locally Manufactured Alcoholic Beverages

§ 1091. Restrictions on sale.
§ 1092. Restrictions on manufacturing.
§ 1093. Applicable sales tax.

§ 1091. Restrictions on sale.

No person shall sell locally manufactured alcoholic beverages in the Republic either at wholesale or retail unless he complies with the licensing requirements and other provisions of this chapter, and no person who is a manufacturer of alcoholic beverages shall also sell locally manufactured alcoholic beverages at retail.

Source
PDC § 309(a), modified.

§ 1092. Restrictions on manufacturing.

No person may manufacture, distill, make or otherwise produce alcoholic beverages in the Republic without a valid Alcoholic Beverage Manufacturing License issued by the Bureau in accordance with the provisions of this chapter. The Bureau, after consultation with the Bureau of Public Health, shall establish and promulgate regulations governing the local manufacture of alcoholic beverages, including but not limited to, standards and requirements as to sanitation, health, facilities and equipment, ingredients, manufacturing process, alcoholic content, and labeling. In addition, the Bureau shall require that periodic inspections and tests be conducted by the Bureau of Public Health to insure compliance with the provisions of this section and the regulations issued pursuant to this chapter. The fee for such license shall be one hundred dollars ($100) per annum, and it shall be credited to the National Treasury. The application procedure for such license and other licensing requirements is outlined in subchapter III of this chapter.

Source
PDC § 309(b), modified. Amended by RPPL 5-7 § 34(8)(aa) on 10/3/97 effective 10/1/97.

§ 1093. Applicable sales tax.

Locally manufactured alcoholic beverages which are manufactured and sold in accordance with the provisions of this chapter shall be subjected to any taxes on the sale of alcoholic beverages under Division 2 of Title 40 of this Code.

Source
PDC § 309(c), modified.

Chapter 11
Export Incentive Act

§ 1101. Short title.
§ 1102. Declaration of policy.
§ 1103. Definitions.
§ 1104. Tax incentives.
§ 1105. Application for tax exemption.
§ 1106. Obligation of exporters; record keeping; entry and inspection.

§ 1101. Short title.

This chapter shall be known and may be cited as the "Export Incentive Act."

Source
RPPL 2-20 § 1, modified.

§ 1102. Declaration of policy.

It is the policy of the Republic to actively encourage, promote, and diversify exports of services, products and materials to the fullest extent possible, and to develop new markets for Palauan products in order to attain a rising standard of living and employment, increase foreign exchange earnings, hasten the economic development of Palau, and to make the nation economically self-sufficient.

Source
RPPL 2-20 § 2, modified.

§ 1103. Definitions.

For purposes of this chapter:

(a) "Copra" means dried coconut meat;

(b) "Copra products" refers to and includes, but is not limited to, copra, copra oil and any products manufactured or produced which contain copra or copra oil or any of its derivatives;

(c) "Export broker" means any person, corporation, partnership, or other business entity engaged in the purchasing of export copra or copra products, and fishery products from export copra or copra producers, or fishery product producers, and the selling of these products to purchasers abroad, to other export brokers or to foreign markets, businesses, tourists and foreign travelers;

(d) "Export producer" means any person, corporation, partnership, or other business entity engaged in the manufacture or processing of export copra or copra products and fishery products and the selling abroad of its export copra or copra products, and fishery products, or the selling of such products to an export broker who subsequently exports such products, or the selling of such products to another export producer who utilizes such products as direct inputs in products subsequently manufactured and exported, or the selling of such products to foreign markets, businesses, tourists, and foreign travelers;

(e) "Export sales" means revenues from copra and fishery products sold and exported directly by an export producer, or export broker, or revenues from export copra and fishery products sold by an export producer to another export producer or export broker who subsequently exports the same, or revenues from export copra and fishery products sold by an export producer or export broker to foreign tourists, markets, businesses, and foreign travelers; provided, however, that sales of export copra or fishery products to an export producer or export broker shall only be deemed export sales when actually exported by the latter. Exportation of products on consignment shall not be deemed export sales until the export products consigned are in fact sold by the consignee;

(f) "Fishery products" means migratory fish and products derived from migratory fish and does not include fish that inhabit reef areas and waters landward of reef areas.

Source
RPPL 2-20 § 3, terms put into alphabetical order and section modified.

§ 1104. Tax incentives.

Revenues of export producers, export brokers, and service exporters derived from export sales and otherwise subject to payment of gross revenue tax under chapter 12 of Title 40 of this Code shall be exempt from such gross revenue tax and from any successor sales or profits tax which hereafter may be imposed unless otherwise provided by law. Salaries, or any portion thereof, attributable to export sales shall not be attributed to revenues otherwise derived in determining the amount of taxes otherwise payable. This section shall apply to revenue earned from export sales for a period of five (5) years, from the date that this chapter became law.

Source
RPPL 2-20 § 4, modified.

Cross-reference
Division 2 of Title 40 of this Code is the Unified Tax Act. "Gross revenue" is defined in § 1002(o) of chapter 10 of Title 40.

§ 1105. Application for tax exemption.

All export copra and fishery products producers, or export copra and fishery products brokers who wish to avail themselves of the tax incentive set forth in section 1104 of this chapter must make an application to the Chief of the Division of Revenue and Taxation explaining in detail the nature of the business to be conducted and the volume of business expected or projected.

Source
RPPL 2-20 § 6, modified.

§1106. Obligation of exporters; record keeping; entry and inspection.

(a) Every export copra and fishery producer, export copra and fishery broker shall keep full records and inventories, satisfactory to the Minister of Finance of the Republic, of all:

(1) its financial transactions, assets, liabilities, and funds related to the conduct of exporting copra and fishery products;

(2) copra and fishery products exported by it;

(3) copra and fishery products, manufactured, or processed by it in the Republic; and

(4) copra and fishery products held by it in the Republic.

(b) The Minister of Finance or any authorized representative of the Minister, shall be entitled at all reasonable times to enter and inspect the premises and records of export copra and fishery products producers and export copra and fishery brokers for the purpose of ascertaining whether the provisions of this chapter are being complied with.

Source
RPPL 2-20 § 5, modified.

Notes
"Minister of Finance" in subsections (a), (b) read "Minister of Administration" and was amended by RPPL 6-26 § 33, see 2 PNC § 102.

Chapter 12
Off-Shore Banking Act
[Repealed]

§ 1201 - § 1212. [Repealed]

Source
RPPL 1-32 §§ 1, 3, 4, 6, 7, 9 and 10, modified. RPPL 1-32 § 2; § 2(a) and § 2(e) deleted as unnecessary; terms put into alphabetical order; and section modified. RPPL 4-28 § 2(b). Repealed by RPPL 4-54 § 1 effective 9/13/97.

Chapter 13
Public Accountants

§ 1301. Legislative findings and purposes.
§ 1302. Definitions.
§ 1303. Board of Accounting established.
§ 1304. Members.
§ 1305. Terms of Office.
§ 1306. Appointments to fill vacancies, vacancies not to impair power.
§ 1307. Disclosure of interest, disqualifications.
§ 1308. Board duties and power.
§ 1309. Suspension and revocation of licenses.
§ 1310. Saving clauses.
§ 1311. Penalties.
§ 1312. Enforcement.

§ 1301. Legislative findings and purposes.

The Olbiil Era Kelulau hereby finds and declares the policy of the Republic to be as follows:

(a) It is in the national interest, to protect the Republic and the Republic's citizens, that individuals and firms be licensed to practice public accounting and hold themselves out to the public to practice as Certified Public Accountants.

(b) The purpose of this chapter is to establish licensing procedures for public accountants and to require all persons practicing accounting in the Republic of Palau to be licensed.

Source
RPPL 3-71 § 1, modified.

§ 1302. Definitions.

As used in this chapter:

(a) "Board" means a Board of Accounting in the Republic of Palau created by this chapter.

(b) "Certified Public Accountant" means a person licensed by the Board (as hereinafter defined) or licensed or recognized as a certified public accountant by any Board of Accountancy in the United States or any of its jurisdictions.

(c) "Public Auditor" means Public Auditor of the Republic of Palau.

Source
RPPL 3-71 § 2, terms put into alphabetical order and section modified.

§ 1303. Board of Accounting established.

There is hereby established a Board of Accounting consisting of five members, four members to be appointed by the President with the advice and consent of the Senate and the Public Auditor who shall serve as Chairman. The Board may meet regularly as it deems necessary. The Board shall establish its own rules of procedures for the conduct of its business.

Source
RPPL 3-71 § 3.

§ 1304. Members.

The President of the Republic shall make appointments to all vacancies on the Board within 60 days of the effective date of this chapter, and all subsequent appointments shall be made within 45 days should a vacancy occur for any reason or should the preceding appointments be rejected by the Senate. Members of the Board shall not serve beyond the expiration of their term unless reappointed and reconfirmed by the Senate. The President of the Republic shall have the power to remove any Board member for cause.

Source
RPPL 3-71 § 4, modified.

§ 1305. Terms of Office.

The terms of office of members of the Board appointed by the President of the Republic shall be three years for two members and two years for two members.

Source
RPPL 3-71 § 5.

§ 1306. Appointments to fill vacancies; vacancies not to impair power.

(a) Any vacancy on the Board shall be filled for the unexpired term of said vacancy in the same manner as originally filled.

(b) Vacancies on the Board, so long as there shall be three members in office, shall not impair the powers of the Board to execute the functions of the Board, and three of the members in office shall constitute a quorum for the transaction of the business of the Board.

Source
RPPL 3-71 § 6, modified.

§ 1307. Disclosure of interest; disqualification.

Any Board member who has any financial or personal interest, direct or indirect, in any matter pending before the Board shall disclose such interest to the Board and shall take no part in the discussion of any such matter nor vote thereon.

Source
RPPL 3-71 § 7, modified.

§ 1308. Board duties and power.

The Board shall be empowered to license persons to be Certified Public Accountants in the Republic of Palau, and to establish reasonable fees for examination, admission, and annual licenses to practice. All fees received shall be deposited in the National Treasury. Examinations shall be offered at least annually if requested and if Palau receives approval as a testing site by the American Institute of Certified Public Accountants. The Board shall, to the maximum extent it considers practical considering the circumstances of Palau, adopt the policies and procedures incorporated in the Model Accountancy Act published by the American Institute of Certified Public Accountants.

Source
RPPL 3-71 § 8, modified.

§ 1309. Suspension and revocation of licenses.

The Board, for good cause consisting of violation of this statute, or of other laws of the
Republic of Palau during a Certified Public Accountant's professional work, or of rules, standards, or ethics adopted pursuant to section 1308 of this chapter, may suspend or revoke the license of a Certified Public Accountant; provided, however, that the Board shall afford the Certified Public Accountant written notice of the charges and opportunity to answer them. The vote of a majority of the Board then in the office shall be required for any decision to suspend or revoke a license. Any Certified Public Accountant whose license has been revoked, or suspended for more than thirty (30) days, may appeal to the Trial Division of the Supreme Court of the Republic of Palau, claiming that the action of the Board was not supported by substantial evidence.

Source
RPPL 3-71 § 9, modified.

§ 1310. Saving clause.

Any person who is certified by any Board of Accountancy in the United States or its jurisdictions may practice public accounting in the Republic provided that such person pays admission fees and obtains a public accounting license.

Source
RPPL 3-71 § 10.

§ 1311. Penalties.

Any person who willfully violates the provisions of this chapter shall be guilty of a misdemeanor and, upon conviction thereof, shall be subject to imprisonment for a period not exceeding one (1) year or a fine not to exceed five thousand dollars ($5,000.00) or both.

Source
RPPL 3-71 § 11, modified.

§ 1312. Enforcement.

The Attorney General of the Republic of Palau shall be responsible for enforcement of this chapter.

Source
RPPL 3-71 § 12, modified.

Chapter 14
Gaming Businesses

§ 1401. Definitions.
§ 1402. Authority of President to grant exclusive concession.
§ 1403. Mandatory terms of Concession Agreements.

§ 1401. Definitions.

(a) "Internet Digits Lottery Game Business" means a business which maintains and operates a lottery game in which players pay money via a credit card, enter a wager amount, and choose numbers in sequence through the internet or other interactive computer service.

(b) "Virtual Pachinko Business" means a business which maintains and operates on a computer software program that simulates a pachinko game and that may be accessed by multiple users through the internet or other interactive computer service.

Source
RPPL 5-45 § 1(a).

§ 1402. Authority to grant concessions.

Upon promulgation of rules and regulations implementing this section, Minister of Finance, at the direction and with the approval of the President, shall be authorized to grant up to two Virtual Pachinko Concessions ("Pachinko Concessions") to, and execute Pachinko Concession Agreements with, any person or entity ("Operator") to organize and operate a Virtual Pachinko Business, and to grant up to two Internet Digits Lottery Game Concession ("Internet Digits Concessions") for the operation of internet digits lottery games within the Republic, provided that:

(a) The term of each Concession Agreement shall not exceed ten years, provided the term may be extended for up to an additional five years upon agreement by the Minister of Finance, at the direction and with the approval of the President, and Operator;

(b) Each Concession Agreement shall provide for a minimum annual Concession fee of four percent (4%) of the gross revenue realized from the operation of each Virtual Pachinko Business or Internet Digits Lottery Game Business in Palau, which fee shall be due quarterly, on or before the thirtieth day following the close of each quarter, plus an annual license fee of two hundred fifty thousand dollars ($250,000) per year payable in advance of each fiscal year, provided that the first payment of this annual license fee shall be paid upon the execution of a Concession Agreement;

(c) For the purposes of this section 1402, gross revenue means the total amount of money received by the Operators from the Pachinko Concessions and from the Internet Digits Concessions, less any payouts to pachinko or internet digits lottery winners and less the entire amount paid in salaries to citizen employees who are residents of the Republic. The Operators from the Pachinko Concessions and from the Internet Digits Concessions agree to provide the Republic with statements on a monthly basis certified under penalty of perjury attesting to the gross revenues and payout amounts for each concession and amounts of salaries paid out to citizen employees who are residents of the Republic;

(d) The Operators shall maintain the financial capability to pay their obligations. The Operators shall submit to the Minister of Finance on an annual basis a financial audit demonstrating the financial capability of the Concessions, and shall, at the discretion of the Minister of Finance, at the direction and with the approval of the President, be subject to an outside audit to determine financial capability. Financial capability shall be determined by establishing whether the business' assets are able to cover its liabilities.

(e) There shall be established by each Concession Agreement a limit on the amount of money (expressed in U.S. Dollars) each player may spend during each session of play;

(f) The Operator or Paragon shall comply with all licensing and permitting requirements;

(g) The Operator or Paragon shall offer no games other than Pachinko or Internet Digits Lottery Game respectively;

(h) The Operator and Paragon must agree to implement appropriate controls to make it impossible for a computer located in Palau to access the internet site or sites of the Virtual Pachinko Business and the Internet Digits Lottery Game Business. Palau National Communication Corporation is required to block the internet site or sites of the Virtual Pachinko Business and the Internet Digits Lottery Game Business from access from any computer located in Palau.

(i) Should any Concession fail to meet the requirements set out by this Chapter or any express requirement contained in the individual Concession Agreement, the Minister of Finance shall notify such Concession of impending revocation. If the failure on the part of the Concession is not remedied within the amount of time deemed appropriate by the Minister of Finance, the Minister of Finance may revoke the Concession Agreement at the direction and with the approval of the President.

(j) The Operator of any concession under this section shall, within one year after the effective date of the Concession Agreement, commence operations of the concession. Should any Operator fail to meet this requirement, the Concession agreement shall become null and void.

(k) Once Pachinko concessions have been granted and operation is imminent or ongoing, the Minister, at the direction and with the approval of the President, may create a virtual Pachinko control office in Palau, if such an office becomes necessary to manage the Pachinko concessions and their compliance with rules and regulations promulgated pursuant to this Section.

Source
RPPL 5-45 § 1(a), modified. Amended by RPPL 5-46 § 3. Amended by RPPL 8-21 § 2, modified.

§ 1403. Mandatory terms of Concession Agreements.

In negotiating the terms of a Concession Agreement pursuant to this chapter, the Minister of Finance, at the direction and with the approval of the President, shall obtain substantially the following terms:

(a) Each Concession shall be nontransferable, except that a Concession may be transferred with the prior written consent of the Minister of Finance, after a determination by the Minister, with the approval of the President, that it is in the best interest of the Republic. Payments of gross revenue due to the Republic under the Agreement shall be made quarterly, on or before the thirtieth day following the close of each quarter, and payments of the two hundred fifty thousand dollars ($250,000) annual license fee due to the Republic under the Agreement shall be made in advance of each fiscal year, provided that the first payment of the annual license fee shall be paid upon the execution of the Concession Agreement. The Minister of Finance shall negotiate reasonable terms regarding default. When a payment to the Republic is made, the operator of the Concession shall provide a full written accounting of revenues and expenses relating to the Concession for the period for which payment is made.

(b) The courts of the Republic of Palau shall have exclusive jurisdiction of all claims arising under the Concession Agreement and all claims made by players of internet pachinko or the internet digits lottery game.

(c) The Republic of Palau shall be immune from liability for any claim made by a player of any gambling game authorized pursuant to a Concession Agreement under this chapter or by any government within the jurisdiction of which the gambling games authorized pursuant to this chapter are prohibited. The operator of a Concession shall provide a legal defense of the Republic and hold the Republic harmless regarding all claims made by players against the operator of a Concession under this chapter or by any government. The Republic shall have the right to retain legal counsel of its own choosing to defend any claims.

(d) The operator of a Concession granted under this chapter shall provide annual reports to the President regarding all details of operations, revenues, payouts, and pending and potential legal claims against the operator. The operator shall further provide complete annual financial statements on the game authorized under a Concession Agreement, and such financial statements shall be audited by an independent auditor who is a certified public accountant licensed in the United States or the Republic. Reports under this subsection shall be delivered to the President not later than the beginning of the Republic's fiscal year.

(e) The President shall report to the Olbiil Era Kelulau in writing at least every two years regarding all details of operations, revenues, payouts, and pending and potential legal claims against the operator. The President's report shall further include an evaluation of the benefits to the Republic of the games authorized pursuant to a Concession Agreement and an assessment of whether the restrictions against participation by Palauan citizens are effective.

(f) After granting a Concession under this chapter, the President shall submit complete copies of the Concession Agreement to the presiding officers of the Olbiil Era Kelulau, and such copies are deemed to be public documents.

(g) Each Concession Agreement extended for an additional term beyond the original a term shall be subject to unilateral termination by law upon sixty (60) days' notice if the Olbiil Era Kelulau finds on the basis of substantial evidence that termination would be in the best interest of the Republic.

(h) If, after a Concession is granted pursuant to this chapter, it is determined on the basis of evidence admissible in the Courts of the Republic that any officer or director of the operator of the Concession has been convicted of a felony in any jurisdiction, or that any officer or director is under indictment for a felony in any jurisdiction, the Concession Agreement shall be deemed to be null and void ab initio. The Republic may waive the operation of this subsection if the felony conviction or indictment is for a charge unrelated to the business authorized under the Concession Agreement.

Source
RPPL 5-45 § 1(a). Amended by RPPL 8-21 § 3, modified.

Chapter 15
Anti-Price Gouging

§ 1501. Purpose; prohibited acts.
§ 1502. Definitions.
§ 1503. Determination of excessive price.
§ 1504. Penalties.
§ 1505. Civil action.

§ 1501. Purpose; prohibited acts.

During any abnormal disruption of the market for consumer goods and services vital and necessary for the health, safety, and welfare of consumers, no party within the chain of distribution of such consumer goods or services shall sell or offer to sell any such goods or services for an unconscionably excessive price.

Source
RPPL 6-22 § 3, modified.

§ 1502. Definitions.

In this Chapter:

(a) "Abnormal disruption of the market" means any change in the market, whether actual or imminently threatened, resulting from stress of weather, convulsion of nature, failure or shortage of electric power or other source of energy, strike, civil disorder, war, military action, national or local emergency, or a change in the market associated with a state of emergency declared by the President of the Republic;

(b) "Consumer goods and services" means those goods and services used, bought, or rendered primarily for personal, family, or household purposes. Consumer goods and services shall also include repairs made by a party within the chain of distribution of consumer goods on an emergency basis as a result of an abnormal disruption of the market.

(c) "Reasonable business justification" means evidence of increased costs that are beyond the control of a person who becomes a defendant under this chapter.

Source
RPPL 6-22 § 4, modified.

§ 1503. Determination of excessive price.

Whether a price is unconscionably excessive is a question of law for the court.

(a) The court's determination that a violation of this chapter has occurred shall be based on whether:

(1) the price increase of specific goods or a specific service occurring within thirty (30) days after an abnormal disruption of the market is more than twenty five percent (25%) over the price immediately before the disruption; or

(2) a price increase of less than twenty five percent (25%), in circumstances described in subsection (a)(1), lacks reasonable business justification.

(b) In any proceeding commenced pursuant to this chapter, prima facie proof that a violation has occurred shall include evidence that the amount charged is more than twenty five percent (25%) over the price of the goods or services which were the subject of the transaction and their value measured by the price at which such consumer goods or services were sold or offered for sale by the defendant in the usual course of business immediately prior to the onset of the abnormal disruption of the market; or

(c) A defendant may rebut a prima facie case with evidence that additional costs not within the control of the defendant were imposed on the defendant for the goods or services.

(d) Claims under this chapter may be made against all parties within the chain of distribution, including any manufacturer, supplier, wholesaler, distributor, or retail seller of consumer goods or services or both sold by one party to another when the product sold was located in the Republic prior to the sale.

Source
RPPL 6-22 § 5, modified.

§ 1504. Penalties.

Where a violation of this chapter is alleged to have occurred, the attorney general may apply, on notice of five days, for an order enjoining or restraining commission or continuance of the alleged unlawful acts. In any such proceeding, upon conviction of the defendant, the court shall impose a civil penalty not to exceed ten thousand dollars ($10,000) on each defendant and order restitution to aggrieved consumers. In determining the amount of restitution to be paid by a convicted party, the court may consider economic factors that would reasonably justify the defendant's charging a price less than twenty five percent (25%) greater than the price charged immediately prior to the abnormal disruption of the market.

Source
RPPL 6-22 § 6, modified.

§ 1505. Civil action.

Any person may bring a suit in the Supreme Court, on his behalf and on behalf of all others similarly situated, for the recovery of the difference between the prevailing retail price before the abnormal disruption of the market and the amount paid in excess of such price, plus five hundred dollars ($500), and shall be entitled to reasonable attorneys' fees.

Source
RPPL 6-22 § 7, modified.

Chapter 16
Recycling Program

§ 1601. Definitions.
§ 1602. Recycling Program.
§ 1603. Declaration of authority.
§ 1604. Recycling Fund.
§ 1605. Deposit fee.
§ 1606. Deposit beverage refund.
§ 1607. Redemption centers.
§ 1608. Deposit beverage distributors, registration and record keeping requirements.
§ 1609. Rules and regulations.
§ 1610. Appropriation.
§ 1611. Payment.
§ 1612. Procedure.
§ 1613. Presumption.
§ 1614. Prepayment.
§ 1615. Lien on property.
§ 1616. Civil penalty.
§ 1617. Criminal penalty.

§ 1601. Definitions.

Unless the context clearly indicates otherwise, the following meanings shall apply to this chapter:

(a) "Deposit Beverage" means beer, ale, or other drink produced by fermenting malt, mixed spirits, mixed wine, tea and coffee drinks, regardless of dairy-derived product content, soda, or non-carbonated water, and all nonalcoholic drinks in liquid form and water intended for internal human consumption that is contained in a deposit beverage container. The term "deposit beverage" does not include the following:

(1) A liquid, which is:

(i) a syrup;

(ii) in a concentrated form; or

(iii) typically added as a minor flavoring ingredient in food or drink, such as extracts, cooking additives, sauces, or condiments.

(2) A liquid which is ingested for medicinal purposes only;

(3) A liquid that is designed and consumed only as a nutritional supplement and not as a beverage;

(4) Products frozen at the time of sale to the consumer, or in the case of institutional uses such as hospital, at the time of sale to the users;

(5) Products designed to be consumed in a frozen state;

(6) Instant drink powders;

(7) Seafood, meat, or vegetable broths, or soups, but not juices; and

(8) Milk and all other dairy-derived products, except tea and coffee drinks with trace amounts of these products.

(b) "Deposit Beverage Container" means the individual, separate, sealed, glass, polyethylene terephthalte, high density polyethylene, or metal container less than or equal to thirty-two fluid ounces, used for containing, at the time of sale to the consumer, a deposit beverage intended for use or consumption in the Republic.

(c) "Deposit Beverage Distributor" means a person who is a manufacturer of beverages in deposit beverage containers in the Republic, or who imports and engages in the sale of filled deposit beverage containers to a dealer or consumer. The term does not include airlines and shipping companies that merely transport deposit beverage containers, unless said containers are deposited in Palau.

(d) "Import" means to buy, bring, or accept delivery of deposit beverage containers from an address, supplier, or any entity outside of the Republic.

(e) "Importer" means any person who buys, brings, or accepts deliver of deposit containers from outside the Republic for sale or use within the Republic.

(f) "Minister" means the Minister of Public Infrastructure, Industries and Commerce.

(g) "Ministry" means the Ministry of Public Infrastructure, Industries and Commerce.

(h) "Redeemer" means a person, other than a dealer or distributor, who demands the refund value in exchange for the empty deposit beverage container.

Source
RPPL 7-24 § 2, modified.

§ 1602. Recycling Program.

There is hereby established a Recycling Program in the Republic of Palau. The purpose and aim of the Recycling Program is to create a self-supported, safe and efficient system of disposal of beverage containers throughout Palau.

Source
RPPL 7-24 § 3, modified.

§ 1603. Declaration of authority.

(a) The Ministry shall have the duty and authority to administer the Recycling Program. Such authority includes, but is not limited to, the administration of the Recycling Fund, the hiring of employees and contractors and consultants, the purchasing and selling of property and services, the leasing or obtaining interests in land on behalf of the national government, the receipt of donations and contributions, and the entering into agreements to further the purposes of the Recycling Program.

(b) As the responsible agency for the Republic of Palau, the Ministry may, from time to time, delegate or contract out the administration of the Recycling Program to other governmental agencies of the national government, state governments or private companies; PROVIDED that the ultimate responsibility and authority for the Recycling Program shall rest with the Minister of Public Infrastructure, Industries and Commerce.

Source
RPPL 7-24 § 4, modified.

§ 1604. Recycling Fund.

(a) There is hereby established a revolving fund within the National Treasury that shall be known as the "Recycling Fund," to be maintained by the Ministry of Finance, separate and apart from other funds of the National Treasury. Independent records and accounts shall be maintained in connection therewith.

(b) All revenue received from deposit fees received pursuant to this chapter, or the sale of beverage containers under the provisions of this chapter, appropriations by the Palau legislature, any grants, donations and contributions to the Recycling Program, and any interest or income earned on the money in the Recycling Fund shall be deposited into the Recycling Fund.

(c) Except when specific requirements are imposed by law or by the grantor or donor, the Recycling Fund shall be first applied to the expenses attributable to the administration of the Recycling Program, then to the payments required under § 1605 of this chapter, then to a reserve to cover anticipated and unanticipated future expenses of the program. The Ministry may also use the money to:

(1) Fund administrative, audit, and compliance activities associated with collection and payment of the deposits and handling fees of the deposit beverage container fee and deposit program;

(2) Conduct recycling education and demonstration projects; and

(3) Promote recyclable market development activities.

(d) Money in the fund is hereby authorized and is hereby appropriated and may be obligated or expended without further legislative action for the purposes stated in this
chapter.

(e) The Minister shall, not later than 90 days after the close of each fiscal year, submit to the President and Olbiil Era Kelulau (OEK) a complete report showing its activities under the Recycling Program and the use and condition of the Recycling Fund, and such other matters that the Ministry deems appropriate. The activities concerning the Recycling Fund shall be examined by the Public Auditor at least annually, and the report of such examination shall be supplied to the President and the OEK.

Source
RPPL 7-24 § 5, modified.

§ 1605. Deposit fee.

A beverage distributor shall pay to the Ministry a deposit beverage container fee on each deposit beverage container manufactured in or imported to the Republic. The fee shall be imposed only once on the same beverage container. The fee shall be $0.10 per beverage container. The Ministry shall evaluate the amount of deposit beverage containers recovered during the first six months of the fully implemented deposit beverage container deposit program and recommend to the OEK any modification in the fee structure necessary to meet the deposit beverage container deposit program funding requirements. This section shall become effective four months after the effective date of this chapter.

Source
RPPL 7-24 § 6, modified.

§ 1606. Deposit beverage refund.

Using the monies in the Recycling Fund, the Minister shall purchase beverage containers for $0.05 per container. Beverage containers may only be purchased through redemption centers established pursuant to § 1607 of this chapter. The Minister shall sell beverage containers for recycling at market prices. This section shall become effective four months after the effective date of this chapter.

Source
RPPL 7-24 § 7, modified.

§ 1607. Redemption centers.

(a) To facilitate the return of empty beverage containers, the Ministry shall establish one or more redemption centers at which empty beverage containers may be returned and payment received. Any person may operate a redemption center subject to the approval of the Minister.

(b) The application for approval of a redemption center shall be filed with the Ministry and contain such information as the Ministry may require.

(c) The approval of a redemption center may contain such terms and conditions as the Ministry deems appropriate. Such terms and conditions may differ among redemption centers and may be altered or amended from time to time as the situation warrants. Using the money in the Recycling Fund, the Minister may provide compensation not to exceed $0.025 per container to the redemption centers for their services.

(d) The Minister may withdraw the right to serve as a redemption center at any time for noncompliance with the terms and conditions of this chapter, or the rules and regulations adopted pursuant to § 1609 of this chapter.

Source
RPPL 7-24 § 8, modified.

§ 1608. Deposit beverage distributors, registration and record keeping requirements.

Four months after the effective date of this chapter, all deposit beverage distributors operating within the Republic shall register with the Ministry, using forms prescribed by the Ministry, and shall notify the Ministry of any changes in address or other information previously submitted.

(a) After this chapter is enacted, any person who desires to conduct business in the Republic as a new deposit beverage distributor shall register with the Ministry no later than one month prior to the commencement of the business.

(b) All deposit beverage distributors shall maintain records reflecting the manufacture of their beverages in deposit beverage containers as well as the importation of deposit beverage containers. The records shall be made available, upon request, for inspection by the Ministry; provided that any proprietary information obtained by the Ministry shall be kept confidential and shall not be disclosed to any other person, except:

(1) As may be reasonably required in an administrative or judicial proceeding to enforce any provision herein, or

(2) Under an order issued by a court.

Source
RPPL 7-24 § 9, modified.

§ 1609. Rules and regulations.

(a) The Minister may promulgate, amend and enforce appropriate rules and regulations to carry out the duties and powers set forth herein, which may include, but are not limited to, provisions governing:

(1) The collection, purchase, sale or other disposal of beverage containers;

(2) The type and condition of the beverage containers that may be redeemed;

(3) The methods and requirements for the redemption of the beverage containers;

(4) All matters concerning the operation of redemption centers;

(5) The prohibition of importing empty beverage containers for the purpose of redeeming them in Palau; and

(6) Other matters necessary for the administration of this chapter.

The power of the Minister to establish such rules and regulations is subject to the powers of the Minister of Finance to establish rules and regulations regarding the collection of the deposit fee and the establishment and operation of the Recycling Fund as set forth in § 1614 of this chapter.

(b) The Minister of Finance shall promulgate, amend and enforce appropriate rules and regulations regarding the collection of the deposit fee and the establishment and operation of the Recycling Fund. All rules and regulations established under this chapter shall be adopted pursuant to the Administrative Procedures Act.

Source
RPPL 7-24 § 10, modified.

§ 1610. Appropriation.

The sum of $100,000 is hereby authorized to be appropriated for expenditure and obligation for Fiscal Year 2007 for the purpose of providing start-up funds for the Palau Recycling Program, for the collection of deposit containers already on the island and for the exercise of the powers and duties set forth herein. Such sums shall be deposited into the Recycling Fund and shall be administered in accordance with this chapter. Any unexpended or unobligated balance of this appropriation shall not lapse at the end of the fiscal year.

Source
RPPL 7-24 § 11, modified.

§ 1611. Payment.

The deposit fee levied under § 1605 of this chapter shall attach as follows:

(a) If intended for resale, at the time of the first retail sale in Palau; and

(b) If intended for personal use, at the point of import.

All deposits that have attached during a calendar month shall be paid to National Treasury on or before the fifteenth day of the succeeding month and shall be administered by the Minister of Finance. Deposit fee revenues not paid within the time specified shall be considered delinquent.

Source
RPPL 7-24 § 12, modified.

§ 1612. Procedure.

The first seller of beverages subject to the deposit fee under this chapter shall keep accurate records of all sales of the beverages subject to this chapter, and shall provide the Ministry of Finance with supporting documents to substantiate the accuracy of all reports filed.

Source
RPPL 7-24 § 13, modified.

§ 1613. Presumption.

It shall be presumed that all beverage containers are subject to the deposit fee imposed by this chapter until the contrary is proved, and the burden of proving that a beverage container is not subject to the deposit fee shall be upon the seller.

Source
RPPL 7-24 § 14, modified.

§ 1614. Prepayment.

The first seller of beverage containers shall have the option of prepaying all deposit fees due under this chapter in accordance with regulations issued by the Minister of Finance.

Source
RPPL 7-24 § 15, modified.

§ 1615. Lien on property.

All deposit fees imposed under this chapter shall be a lien upon any property of the person obligated to pay the deposit fees and may be collected by levy upon such property in the same manner as the levy of an execution.

Source
RPPL 7-24 § 16, modified.

§ 1616. Civil penalty.

All deposit fees due under this chapter shall be subject to a penalty of five percent (5%) of the unpaid fees due per month or portion thereof that such fees remain unpaid.

Source
RPPL 7-24 § 17, modified.

§ 1617. Criminal penalty.

Any person who knowingly, willfully and unlawfully violates or refuses to comply with any provision of this chapter, or with any regulation duly issued by the Minister of Finance or the Minister of Public Infrastructure, Industries and Commerce for the enforcement of this chapter shall, upon conviction thereof, be imprisoned for not more than ninety (90) days and/or fined not more than five hundred dollars ($500). The criminal penalties are in addition to the civil penalties that may be due under this chapter.

Source
RPPL 7-24 § 18, modified.