Guam § 6404 - Budgeting for Claims.

§ 6404. Budgeting for Claims.

(a) The annual budget recommendations for governmental

operations transmitted from the Governor to the Legislature, or

the annual budget of each autonomous agency, shall include an

amount for each agency, line or autonomous, as the case may be,

for payment of claims made pursuant to this Chapter and

generated by the activities of such agency. The amount shall be

at least equal to the arithmetic average of amounts paid out of the

Government Claims Fund, or operating fund, as the case may be,

on behalf of such line or autonomous agency, as determined and

recorded by the Department of Administration, or by the

autonomous agency, for the three fiscal years immediately

preceding the year in which the recommendation is being made.

The amounts requested may be decreased by the amount of

insurance coverage purchased and in force.

(b) The first such budget request shall be made for the fiscal

year following passage of this Chapter. [FY 1985]

(c) Between the passage of this Chapter [Dec. 8, 1983] and

Fiscal Year 1985, the budget recommendation required by this

Section shall be based upon the amounts paid in claim

settlements or judgments on behalf of each line agency during

the preceding fiscal year.

(d) Certificates Authorized for COLA Settlement.

(1) The Government of Guam shall finally and

permanently implement the settlement agreement entered

into between the Government of Guam and the COLA Class

as ordered by the Judgment in Rios v. Camacho, Superior

Court Case No. SP0206-93. I Liheslatura acknowledges,

adopts, and affirms the government’s obligation to

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immediately pay all monies due and ordered by said

Judgment and the Stipulation and Order of November 21,

2006.

(2) To expedite payment to COLA claimants in Rios v.

Camacho, and in addition to any other available remedies,

the Director of Administration shall issue to each COLA

Awardee, within thirty (30) calendar days after enactment

hereof, a serial Certificate of Claim stating the amount due

the awardee, excluding attorney’s fees and costs, but

including such terms as would affect the redeemable value

of the Certificate, such as the rate of interest on undisputed

unpaid government claims of seven percent (7%) per annum

calculated from date of settlement, that the Certificate is

renewable, and confirmation that the entire amount paid

upon redemption shall be exempt from any and all Guam

taxes. Plaintiffs’ Attorneys in the Rios case may request

and receive a Certificate for no more than fifty percent

(50%) of the amount owed them pursuant to the Judgment.

The Director of Administration shall inscribe on the

Certificates only those names of awardees and

corresponding amounts provided by the Guam Retirement

Fund, minus attorney’s fees and costs, and shall create and

retain a list of Certificates issued. The Director of

Administration may request that the Guam Retirement Fund

assist in the disbursement of Certificates to claimants, their

successors and assignees.

(3) Any person who willfully fails to perform a

ministerial duty to prepare or issue Certificates of Claim in

a timely manner as directed herein, shall be personally

liable for the reasonable attorney’s fees and costs incurred

by claimants to legally compel performance.

(4) Said Certificates are evidence of amounts payable

by the government of Guam, and are valid until redeemed

or replaced by a Certificate issued to a registered successor

as subsequently provided in this Section. Certificates may

be sold, transferred or assigned to a third party. Any

transferee or of a claimant shall have the same rights as said

claimant when the government disburses payments pursuant

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to the judgment in Superior Court Case No. SP0206-93.

The holder must surrender the Certificate to receive

payment of the award it represents. If a Certificate is not

redeemed by the end of a fiscal year, it shall be reissued to

the owner upon demand. Upon the sale, assignment or

transfer of a Certificate of Claim, the purchaser, assignee or

transferee may register said sale, assignment or transfer

with the Department of Administration. The first person to

register a sale, assignment or transfer shall have a superior

right against all subsequently registered claims to the

Certificate and shall be substituted by the Superior Court in

place of the claimant in Rios v. Camacho, Superior Court

Case No. SP0206-93.

(5) Nothing in this Subsection restricts or eliminates

any legal remedies available to COLA claimants as obligees

of the Rios Judgment, including the remedies provided by

Title 5 GCA § 22415.

(e) Sale of Certificates of Claim in whole or part as General

Obligation Promissory Notes.

(1) Authorization to Borrow. I Maga’låhen Guåhan

is authorized to issue General Obligation Promissory Notes

(the “Notes”) not to exceed the total amount of all

outstanding and unredeemed Certificates of Claim issued to

“COLA” Awardees in reference to Superior Court Case No.

SP0206-93 and as authorized in Title 5 GCA § 6404(d).

The Notes shall be general obligations of the government of

Guam secured by the full faith and credit of the government

of Guam. I Maga’låhen Guåhan shall within sixty (60)

days after the enactment of this Act issue a Request for

Proposal for the sale of the general obligation promissory

notes authorized herein.

(2) Terms and Conditions. The terms and conditions

of the Notes shall be as determined by I Maga’låhen

Guåhan; provided that the notes:

(A) shall not be secured by a pledge of Section 30

revenues;

(B) shall be redeemed in full, including accrued

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interest within twenty (20) years or thereafter

automatically convert to Certificates of Claim subject

to the terms and conditions defined in 5 GCA §

6404(d);

(C) shall bear interest at such fixed or variable

rate or rates as may be negotiated by I Maga’låhen

Guåhan in the best interests of the government, such

interest rate shall not exceed eight percent (8%) and

shall be computed on a three-hundred sixty-five (365)

day calendar year upon the actual amount issued by the

government of Guam.

(3) Sale of Promissory Notes.

(A) Sale of the Notes shall be in denominations

no less than Five Thousand Dollars ($5,000.00);

(B) Investor purchase quantity shall not be

limited;

(C) Investor access to purchase of the Notes shall

be in the following order of priority:

(i) the Government of Guam Retirement

Fund;

(ii) residents of Guam;

(iii) banks or other financial institutions

licensed to conduct business on Guam;

(iv) other entities licensed to conduct

business on Guam;

(v) all other interested institutions as

determined by I Maga’låhen Guåhan.

(4) Use of Proceeds From the Sale of the Notes. The

proceeds from the sale of the Notes shall only be used and

are hereby appropriated to redeem and pay outstanding

Certificates of Claims issued to COLA awardees in Superior

Court Case No. SP0206-93.

(5) Approval by the Guam Economic Development

Authority. Notes authorized in this section shall not be sold

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until the Board of Directors of the Guam Economic

Development Authority approves the terms and conditions

of the Note sale.

(6) Approval of Voters Not Required. The Notes

shall not be subject to the approval of voters of Guam.

(7) Continuing Annual Appropriation of Principal and

Interest. Effective October 1, 2011 and each October 1

thereafter, there is hereby appropriated sums from the

General Fund required for all payments of principal and

interest based on a maturity schedule to repay any general

obligation promissory notes authorized in § 6404(e)(1).

This annual appropriation shall be a continuing

appropriation and shall not lapse at the end of the fiscal

year. In addition to any funds specifically appropriated by

this Act, all moneys received from any other source as

contributions or supplements for repayment of the notes

established in this Act, and any interest or income earned,

shall be paid into a Fund established for repayment and

shall be a continuing appropriation.