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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 2422, 2675               PRINTER'S NO. 3820

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1820 Session of 2005


        INTRODUCED BY GOODMAN, NAILOR, SEMMEL, TIGUE, ADOLPH, ALLEN,
           ARGALL, ARMSTRONG, BAKER, BALDWIN, BARRAR, BASTIAN, BEBKO-
           JONES, BELARDI, BELFANTI, BENNINGHOFF, BIANCUCCI, BIRMELIN,
           BISHOP, BLACKWELL, BLAUM, BOYD, BUNT, BUXTON, CALTAGIRONE,
           CAPPELLI, CASORIO, CAUSER, CAWLEY, CIVERA, CLYMER, COHEN,
           CORNELL, CORRIGAN, COSTA, CRAHALLA, CREIGHTON, CRUZ, CURRY,
           DALEY, DALLY, DeLUCA, DENLINGER, DERMODY, DeWEESE,
           DiGIROLAMO, DIVEN, DONATUCCI, EACHUS, ELLIS, D. EVANS,
           J. EVANS, FABRIZIO, FAIRCHILD, FEESE, FICHTER, FLEAGLE,
           FLICK, FORCIER, FRANKEL, FREEMAN, GABIG, GANNON, GEIST,
           GEORGE, GERBER, GERGELY, GILLESPIE, GINGRICH, GODSHALL, GOOD,
           GRELL, GRUCELA, GRUITZA, HABAY, HALUSKA, HANNA, HARHAI,
           HARHART, HARPER, HARRIS, HASAY, HENNESSEY, HERMAN, HERSHEY,
           HESS, HICKERNELL, HUTCHINSON, JAMES, JOSEPHS, KAUFFMAN,
           M. KELLER, W. KELLER, KENNEY, KILLION, KIRKLAND, KOTIK,
           LaGROTTA, LEACH, LEDERER, LEH, LESCOVITZ, LEVDANSKY,
           MACKERETH, MAHER, MAITLAND, MAJOR, MANDERINO, MANN, MARKOSEK,
           MARSICO, McCALL, McGEEHAN, McGILL, McILHATTAN, McILHINNEY,
           MELIO, METCALFE, MICOZZIE, MILLARD, R. MILLER, S. MILLER,
           MUNDY, MUSTIO, MYERS, NICKOL, O'BRIEN, OLIVER, O'NEILL,
           PALLONE, PAYNE, PERZEL, PETRARCA, PETRI, PETRONE, PHILLIPS,
           PICKETT, PISTELLA, PRESTON, PYLE, QUIGLEY, RAMALEY, RAPP,
           RAYMOND, READSHAW, REED, REICHLEY, RIEGER, ROBERTS, ROHRER,
           ROONEY, ROSS, RUBLEY, RUFFING, SAINATO, SAMUELSON, SANTONI,
           SATHER, SAYLOR, SCAVELLO, SCHRODER, SIPTROTH, SHANER,
           SHAPIRO, B. SMITH, S. H. SMITH, SOLOBAY, SONNEY, STABACK,
           STAIRS, STEIL, STERN, STETLER, R. STEVENSON, T. STEVENSON,
           STURLA, SURRA, TANGRETTI, E. Z. TAYLOR, J. TAYLOR, THOMAS,
           TRUE, TURZAI, VEON, VITALI, WALKO, WANSACZ, WATERS, WATSON,
           WHEATLEY, WILLIAMS, WILT, WOJNAROSKI, WRIGHT, YEWCIC,
           YOUNGBLOOD, YUDICHAK, ZUG, ROEBUCK AND BEYER, JUNE 30, 2005

        SENATOR WENGER, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, APRIL 3, 2006

                                     AN ACT

     1  Providing compensation to persons in active service in
     2     connection with the Persian Gulf Conflict or their
     3     beneficiaries; authorizing the incurring of indebtedness and


     1     the issue and sale of bonds by the Commonwealth for the
     2     payment of compensation contingent upon electorate approval;
     3     creating a special fund in the State Treasury to be known as
     4     the Persian Gulf Conflict Veterans' Compensation Bond Fund;
     5     imposing powers and duties on the Department of General
     6     Services; making appropriations; and making a related repeal.

     7                         TABLE OF CONTENTS
     8  Section 1.  Short title
     9  Section 2.  Definitions.
    10  Section 3.  Computation of compensation.
    11  Section 4.  Application for compensation.
    12  Section 5.  Persons to whom payments shall be made in case of
    13                 incompetence or death.
    14  Section 6.  Applicant to designate beneficiaries.
    15  Section 7.  Exemption from attachment.
    16  Section 8.  Penalty for charging fees for assisting veterans.
    17  Section 9.  Administration of compensation program.
    18  Section 10.  Payment of compensation.
    19  Section 11.  Persian Gulf Conflict Veterans' Compensation Bond
    20                 Fund.
    21  Section 12.  Commonwealth indebtedness.
    22  Section 13.  Question.
    23  Section 14.  Appropriations.
    24  Section 15.  Repeal.
    25  Section 16.  Effective date.
    26     The General Assembly of the Commonwealth of Pennsylvania
    27  hereby enacts as follows:
    28  Section 1.  Short title.
    29     This act shall be known and may be cited as the Persian Gulf
    30  Conflict Veterans' Benefit Act.
    31  Section 2.  Definitions.
    32     The following words and phrases when used in this act shall

    20050H1820B3820                  - 2 -     

     1  have the meanings given to them in this section unless the
     2  context clearly indicates otherwise:
     3     "Active service."  For a member of a component of the armed
     4  forces of the United States, the time served on active duty for
     5  which the member has received or is eligible to receive the
     6  Southwest Asia Service Medal for service related to the Persian
     7  Gulf Conflict Theater; for a member of the Pennsylvania National
     8  Guard or a reserve component of the armed forces of the United
     9  States, time served on active duty for the support of operations
    10  in the Persian Gulf Conflict Theater whether or not that service
    11  was in the theater. The term includes time spent in hospitals as
    12  a result of service-connected wounds, diseases or injuries
    13  sustained on active service. Proof of such service shall be the
    14  official military records of the United States or such other
    15  evidence as is deemed sufficient by the Adjutant General. The
    16  term does not include time served on active duty for annual
    17  training or schooling, except for training and schooling in
    18  preparation for active duty in the Persian Gulf Conflict
    19  Theater.
    20     "Fund."  The Persian Gulf Conflict Veterans' Compensation
    21  Bond Fund.
    22     "Issuing officials."  The Governor, the Auditor General and
    23  the State Treasurer.
    24     "Legal resident of this Commonwealth."  A member of the
    25  United States Armed Forces, the reserve component of the United
    26  States Armed Forces or the Pennsylvania National Guard whose
    27  home of record at the time of the Persian Gulf Conflict was this
    28  Commonwealth or any specific place in this Commonwealth without
    29  regard to the place of enlistment, commission or induction. The
    30  proof of such residence shall be the official records of the
    20050H1820B3820                  - 3 -     

     1  United States or such other evidence as is deemed sufficient by
     2  the Adjutant General.
     3     "Persian Gulf Conflict Theater."  The area defined as the
     4  Persian Gulf Conflict Theater of Operations as established by
     5  the United States Department of Defense for the awarding of the
     6  Southwest Asia Service Medal for the period of time from August
     7  2, 1990, through August 31, 1991.
     8     "Veteran."  A member of the armed forces of the United
     9  States, including a member of the Army National Guard of the
    10  United States, the Air National Guard of the United States or a
    11  reserve component of the armed forces, who was ordered into or
    12  volunteered to serve on active duty in the Persian Gulf Theater
    13  of operations during the period from August 2, 1990, to August
    14  31, 1991, and has received the Southwest Asia Service Medal
    15  (SWASM) established by executive order 12754, 12 March 1991.
    16  This term shall not include:
    17         (1)  any individual who, at any time during the Persian
    18     Gulf Conflicts or thereafter, was separated from the armed
    19     forces under other than honorable conditions; and
    20         (2)  any individual who has renounced his United States
    21     citizenship.
    22  Section 3.  Computation of compensation.
    23     (a)  Eligibility.--Compensation shall be payable under this
    24  act only to each veteran who was a legal resident of this
    25  Commonwealth.
    26     (b)  Compensation for service in the Persian Gulf.--
    27  Compensation shall be payable on the basis of $75 for the first
    28  month of eligibility with a minimum of one day of active
    29  service; thereafter, it shall be computed on the basis of $75
    30  for each month or major fraction thereof.
    20050H1820B3820                  - 4 -     

     1     (c)  Compensation on behalf of deceased veteran.--In addition
     2  to any other compensation authorized under this section, the
     3  compensation on behalf of a veteran who died in active service
     4  or as a result of service-connected wounds, diseases or injuries
     5  sustained during active service shall be $5,000.
     6     (d)  Compensation of prisoner of war.--In addition to any
     7  compensation under the other provisions of this section, the
     8  compensation of a veteran who was declared a prisoner of war,
     9  regardless of the length of time spent as a prisoner of war,
    10  shall, upon return, be $5,000.
    11     (e)  Total amount of compensation.--The compensation provided
    12  for active service under subsection (b) shall be not less than
    13  $75 and not more than $525.
    14     (f)  Exclusion from compensation.--Any individual who has
    15  received a bonus, gratuity or compensation of a nature similar
    16  to that provided for by this act from any other state in the
    17  United States is ineligible for compensation. This exclusion
    18  does not apply to a similar bonus, gratuity or compensation from
    19  the Federal Government.
    20  Section 4.  Application for compensation.
    21     (a)  Application to Adjutant General.--Applications shall be
    22  made by a veteran, the facility entitled under section 5(a) or
    23  the beneficiaries designated under section 5(b). The Adjutant
    24  General shall ascertain the applicants who are veterans and, as
    25  to each veteran, the number of months of service for which the
    26  veteran is entitled to receive compensation.
    27     (b)  Time for filing application.--The Adjutant General shall
    28  not accept or consider any application filed after August 31,
    29  2015.
    30  Section 5.  Persons to whom payments shall be made in case of
    20050H1820B3820                  - 5 -     

     1                 incompetence or death.
     2     (a)  Incompetence.--In a case where the veteran is
     3  incompetent, if no guardian has been appointed, payment shall be
     4  made for the benefit of the veteran to the person who is
     5  entitled to payment under subsection (b) or, in the absence of
     6  any such person and if the veteran is in a facility, to the
     7  person in charge of the facility to be expended for the clothing
     8  and incidental needs of the veteran. No part of the compensation
     9  paid to any facility shall be used for the maintenance of the
    10  veteran. A statement from the person in charge of the facility
    11  in which the veteran resides shall be evidence to determine the
    12  competence of the veteran.
    13     (b)  Death.--In the case of the death of a veteran, payment
    14  shall be made, in the order named, to the:
    15         (1)  surviving spouse unless the spouse was living
    16     separate and apart from the veteran at the time of departure
    17     for active service;
    18         (2)  surviving children, share and share alike; or
    19         (3)  surviving parents.
    20     (c)  Definitions.--As used in this section, the following
    21  words and phrases shall have the meanings given to them in this
    22  subsection:
    23     "Facility."  Any mental health establishment, hospital,
    24  clinic, institution, center, day-care center, base service unit,
    25  community mental health center or other organizational unit, or
    26  part thereof, which is devoted primarily to the diagnosis,
    27  treatment, care, rehabilitation or detention of mentally
    28  disabled persons.
    29     "Parents."  Includes persons who, for a period of not less
    30  than one year, acted in the capacity of a foster parent to the
    20050H1820B3820                  - 6 -     

     1  veteran immediately prior to the veteran having attained 18
     2  years of age.
     3  Section 6.  Applicant to designate beneficiaries.
     4     Every person making application for compensation shall set
     5  forth in the application the names and addresses of all persons
     6  who, under this act, would be entitled to receive compensation
     7  in the event of the death of the applicant. If the applicant
     8  dies before the payment of the compensation, the application
     9  shall be deemed to inure to the benefit of the person next
    10  entitled to compensation, and payment shall be made to the
    11  person upon proof of identity satisfactory to the Adjutant
    12  General. If no person designated in this act as being entitled
    13  to compensation survives the veteran, the right to the
    14  compensation shall cease.
    15  Section 7.  Exemption from attachment.
    16     No sum payable under this act to a veteran or to any other
    17  person under this act shall be subject to attachment, levy or
    18  seizure under any legal or equitable process and shall be exempt
    19  from all State taxation. No right to compensation under this act
    20  shall be assignable, except as otherwise provided in this act,
    21  or shall serve as a security for any loan. Any assignment or
    22  loan made in violation of this section shall be void.
    23  Assignments to any incorporated or unincorporated organization
    24  of veterans, any nonprofit corporation formed solely for the
    25  purpose of aiding disabled or incapacitated veterans and the
    26  State Veterans' Commission shall be valid.
    27  Section 8.  Penalty for charging fees for assisting veterans.
    28     A person who charges or collects or attempts to charge or
    29  collect, either directly or indirectly, any fee or other
    30  compensation for assisting, in any manner, a veteran in
    20050H1820B3820                  - 7 -     

     1  obtaining any of the benefits provided under this act commits a
     2  misdemeanor of the second degree.
     3  Section 9.  Administration of compensation program.
     4     The Adjutant General shall administer the compensation
     5  program. For that purpose application forms shall be prepared
     6  and distributed, applications shall be investigated, and, if
     7  satisfied of the proof of an application, compensation shall be
     8  approved and payment of compensation shall be made. The Adjutant
     9  General shall promulgate rules and regulations to implement,
    10  administer and enforce this act. The Adjutant General shall, as
    11  soon as practicable after the effective date of this act,
    12  prepare and distribute a digest explaining the provisions of
    13  this act to assist veterans in filing their applications and
    14  shall from time to time prepare and distribute additional or
    15  supplementary information as may be found necessary. The
    16  Adjutant General shall enlist, as far as possible, the services
    17  of veteran organizations in this Commonwealth in the
    18  dissemination of the information.
    19  Section 10.  Payment of compensation.
    20     The compensation payable under this act shall, upon
    21  requisition by the Adjutant General, be paid by the State
    22  Treasurer from the fund to be created with funds realized from a
    23  proposed bond issue. Payments shall be made as soon as possible
    24  after funds are available.
    25  Section 11.  Persian Gulf Conflict Veterans' Compensation Bond
    26                 Fund.
    27     (a)  Purpose of fund.--The Persian Gulf Conflict Veterans'
    28  Compensation Bond Fund, which is hereby created in the State
    29  Treasury, shall be the source from which all payments are
    30  authorized with the approval of the Governor to carry out the
    20050H1820B3820                  - 8 -     

     1  purposes of this act. The moneys in the fund shall only be
     2  utilized:
     3         (1)  For the purpose of providing compensation to
     4     veterans in accordance with the provisions of this act.
     5         (2)  For the administrative costs incurred in any of the
     6     purposes in paragraph (1) including the costs incurred in
     7     connection with the issuance of the bonds.
     8     (b)  Interfund transfers authorized.--
     9         (1)  Whenever the cash balance and the current estimated
    10     receipts of the fund shall be insufficient at any time during
    11     any State fiscal year to meet promptly the obligations of the
    12     Commonwealth from such fund, the State Treasurer is hereby
    13     authorized and directed, from time to time during such fiscal
    14     year, to transfer from the General Fund to the fund such sums
    15     as the Governor directs, but in no case less than the amount
    16     necessary to meet promptly the obligations to be paid from
    17     the fund nor more than an amount which is the smallest of:
    18             (i)  the difference between the amount of debt
    19         authorized to be issued under the authority of this act
    20         and the aggregate principal amount of bonds and notes
    21         issued, not including refunding bonds and replacement
    22         notes; and
    23             (ii)  the difference between the aggregate principal
    24         amount of bonds and notes to be issued during a State
    25         fiscal year and the aggregate principal amount of bonds
    26         and notes, not including refunding bonds and replacement
    27         notes, issued during such State fiscal year.
    28     Any sums so transferred shall be available only for the
    29     purposes for which funds are appropriated from the fund. The
    30     transfers shall be made under this section upon warrant of
    20050H1820B3820                  - 9 -     

     1     the State Treasurer upon requisition of the Governor.
     2         (2)  In order to reimburse the General Fund for moneys
     3     transferred from such funds under paragraph (1), there shall
     4     be transferred to the General Fund from the fund moneys from
     5     the proceeds obtained from bonds and notes issued under the
     6     authority of this act or from other available funds in such
     7     amounts and at such times as the Governor shall direct. The
     8     retransfers shall be made upon warrant of the State Treasurer
     9     upon requisition of the Governor.
    10  Section 12.  Commonwealth indebtedness.
    11     (a)  Borrowing authorized.--
    12         (1)  If and when the electorate approves a referendum
    13     question for the incurring of indebtedness in the amount and
    14     for the purposes prescribed in this act, the issuing
    15     officials, pursuant to the provisions of section 7(a)(3) of
    16     Article VIII of the Constitution of Pennsylvania, are
    17     authorized and directed to borrow, on the credit of the
    18     Commonwealth, money not exceeding in the aggregate the sum of
    19     $20,000,000, not including money borrowed to refund
    20     outstanding bonds, notes or replacement notes, as may be
    21     found necessary to carry out the purposes of this act.
    22         (2)  As evidence of the indebtedness, general obligation
    23     bonds of the Commonwealth shall be issued from time to time
    24     to provide moneys necessary to carry out the purposes of this
    25     act for such total amounts, in such form, in such
    26     denominations and subject to such terms and conditions of
    27     issue, redemption and maturity, rate of interest and time of
    28     payment of interest as the issuing officials direct, except
    29     that the latest stated maturity date shall not exceed 20
    30     years from the date of the first obligation issued to
    20050H1820B3820                 - 10 -     

     1     evidence the debt.
     2         (3)  All bonds and notes issued under the authority of
     3     this act shall bear facsimile signatures of the issuing
     4     officials and a facsimile of the Great Seal of the
     5     Commonwealth and shall be countersigned by a duly authorized
     6     officer of a duly authorized loan and transfer agent of the
     7     Commonwealth.
     8         (4)  All bonds and notes issued in accordance with the
     9     provisions of this section shall be direct obligations of the
    10     Commonwealth, and the full faith and credit of the
    11     Commonwealth is hereby pledged for the payment of the
    12     interest thereon, as it becomes due, and the payment of the
    13     principal at maturity. The principal of and interest on the
    14     bonds and notes shall be payable in lawful money of the
    15     United States.
    16         (5)  All bonds and notes issued under the provisions of
    17     this section shall be exempt from taxation for State and
    18     local purposes.
    19         (6)  The bonds may be issued as coupon bonds or
    20     registered as to both principal and interest as the issuing
    21     officials may determine. If interest coupons are attached,
    22     they shall contain the facsimile signature of the State
    23     Treasurer.
    24         (7)  The issuing officials shall provide for the
    25     amortization of the bonds in substantial and regular amounts
    26     over the term of the debt so that the bonds of each issue
    27     allocated to the programs to be funded from the bond issue
    28     shall mature within a period not to exceed the appropriate
    29     amortization period for each program as specified by the
    30     issuing officials but in no case in excess of 20 years. The
    20050H1820B3820                 - 11 -     

     1     first retirement of principal shall be stated to mature prior
     2     to the expiration of a period of time equal to one-tenth of
     3     the time from the date of the first obligation issued to
     4     evidence the debt to the date of the expiration of the term
     5     of the debt. Retirements of principal shall be regular and
     6     substantial if made in annual or semiannual amounts whether
     7     by stated serial maturities or by mandatory sinking fund
     8     retirements.
     9         (8)  The issuing officials are authorized to provide by
    10     resolution for the issuance of refunding bonds for the
    11     purpose of refunding any debt issued under the provisions of
    12     this act and then outstanding, either by voluntary exchange
    13     with the holders of the outstanding debt or providing funds
    14     to redeem and retire the outstanding debt with accrued
    15     interest, any premium payable thereon and the costs of
    16     issuance and retirement of the debt, at maturity or at any
    17     call date. The issuance of the refunding bonds, the
    18     maturities and other details thereof, the rights of the
    19     holders thereof and the duties of the issuing official in
    20     respect thereto shall be governed by the provisions of this
    21     section, insofar as they may be applicable. Refunding bonds,
    22     which are not subject to the aggregate limitation of
    23     $20,000,000 of debt to be issued under this act, may be
    24     issued by the issuing officials to refund debt originally
    25     issued or to refund bonds previously issued for refunding
    26     purposes.
    27         (9)  Whenever any action is to be taken or decision made
    28     by the Governor, the Auditor General and the State Treasurer
    29     acting as issuing officials and the three officers are not
    30     able unanimously to agree, the action or decision of the
    20050H1820B3820                 - 12 -     

     1     Governor and either the Auditor General or the State
     2     Treasurer shall be binding and final.
     3     (b)  Sale of bonds.--
     4         (1)  Whenever bonds are issued, they shall be offered for
     5     sale at not less than 98% of the principal amount and accrued
     6     interest and shall be sold by the issuing officials to the
     7     highest and best bidder or bidders after due public
     8     advertisement on the terms and conditions and upon such open
     9     competitive bidding as the issuing officials shall direct.
    10     The manner and character of the advertisement and the time of
    11     advertising shall be prescribed by the issuing officials. No
    12     commission shall be allowed or paid for the sale of any bonds
    13     issued under the authority of this act.
    14         (2)  Any portion of any bond issue so offered and not
    15     sold or subscribed for at public sale may be disposed of by
    16     private sale by the issuing officials in such manner and at
    17     such prices, not less than 98% of the principal amount and
    18     accrued interest, as the Governor shall direct. No commission
    19     shall be allowed or paid for the sale of any bonds issued
    20     under the authority of this act.
    21         (3)  When bonds are issued from time to time, the bonds
    22     of each issue shall constitute a separate series to be
    23     designated by the issuing officials or may be combined for
    24     sale as one series with other general obligation bonds of the
    25     Commonwealth.
    26         (4)  Until permanent bonds can be prepared, the issuing
    27     officials may in their discretion issue, in lieu of permanent
    28     bonds, temporary bonds in such form and with such privileges
    29     as to registration and exchange for permanent bonds as may be
    30     determined by the issuing officials.
    20050H1820B3820                 - 13 -     

     1         (5)  The proceeds realized from the sale of bonds and
     2     notes, except refunding bonds and replacement notes, under
     3     the provisions of this act shall be paid into the fund. The
     4     proceeds shall be paid by the State Treasurer periodically to
     5     those Commonwealth officers and Commonwealth agencies
     6     authorized to expend them at such times and in such amounts
     7     as may be necessary to satisfy the funding needs thereof. The
     8     proceeds of the sale of refunding bonds and replacement notes
     9     shall be paid to the State Treasurer and applied to the
    10     payment of principal, the accrued interest and premium, if
    11     any, and cost of redemption of the bonds and notes for which
    12     the obligations shall have been issued.
    13         (6)  Pending their application for the purposes
    14     authorized, moneys held or deposited by the State Treasurer
    15     may be invested or reinvested as are other funds in the
    16     custody of the State Treasurer in the manner provided by law.
    17     All earnings received from the investment or deposit of the
    18     funds shall be paid into the State Treasury to the credit of
    19     the fund. The earnings in excess of bond discounts allowed,
    20     expenses paid for the issuance of bonds and notes and
    21     interest arbitrage rebates due to the Federal Government
    22     shall be transferred annually to the fund. Any interest or
    23     investment income shall be applied to assist in the payment
    24     of the debt service incurred in connection with this act.
    25         (7)  The Auditor General shall prepare the necessary
    26     registry book to be kept in the office of the duly authorized
    27     loan and transfer agent of the Commonwealth for the
    28     registration of any bonds, at the request of owners thereof,
    29     according to the terms and conditions of issue directed by
    30     the issuing officials.
    20050H1820B3820                 - 14 -     

     1         (8)  There is hereby appropriated to the State Treasurer
     2     from the fund as much money as may be necessary for all costs
     3     and expenses in connection with the issue of and sale and
     4     registration of the bonds and notes in connection with this
     5     act and the payment of interest arbitrage rebates or proceeds
     6     of such bonds and notes.
     7     (c)  Temporary financing authorization.--
     8         (1)  Pending the issuance of bonds of the Commonwealth as
     9     authorized, the issuing officials are hereby authorized, in
    10     accordance with the provisions of this act and on the credit
    11     of the Commonwealth, to make temporary borrowings not to
    12     exceed three years in anticipation of the issue of bonds in
    13     order to provide funds in such amounts as may from time to
    14     time be deemed advisable prior to the issue of bonds. In
    15     order to provide for and in connection with the temporary
    16     borrowings, the issuing officials are hereby authorized in
    17     the name and on behalf of the Commonwealth to enter into any
    18     purchase, loan or credit agreement or agreements, or other
    19     agreement or agreements with any banks or trust companies or
    20     other lending institutions, investment banking firms or
    21     persons in the United States having power to enter into the
    22     same, which agreements may contain provisions not
    23     inconsistent with the provisions of this act as may be
    24     authorized by the issuing officials.
    25         (2)  All temporary borrowings made under the
    26     authorization of this section shall be evidenced by notes of
    27     the Commonwealth which shall be issued from time to time for
    28     amounts not exceeding in the aggregate the applicable
    29     statutory and constitutional debt limitation in the form and
    30     in the denominations and subject to terms and conditions of
    20050H1820B3820                 - 15 -     

     1     sale and issue, prepayment or redemption and maturity, rate
     2     or rates of interest and time of payment of interest as the
     3     issuing officials shall authorize and direct and in
     4     accordance with this act. The authorization and direction may
     5     provide for the subsequent issuance of replacement notes to
     6     refund outstanding notes or replacement notes, which
     7     replacement notes shall, upon issuance thereof, evidence the
     8     borrowing and may specify other terms and conditions with
     9     respect to the notes and replacement notes thereby authorized
    10     for issuance as the issuing officials may determine and
    11     direct.
    12         (3)  When the authorization and direction of the issuing
    13     officials provide for the issuance of replacement notes, the
    14     issuing officials are hereby authorized in the name and on
    15     behalf of the Commonwealth to issue, enter into or authorize
    16     and direct the State Treasurer to enter into agreements with
    17     any banks, trust companies, investment banking firms or other
    18     institutions or persons in the United States having the power
    19     to enter the same:
    20             (i)  To purchase or underwrite an issue or series of
    21         issues or notes.
    22             (ii)  To credit, to enter into any purchase, loan or
    23         credit agreements, to draw moneys pursuant to any such
    24         agreements on the terms and conditions set forth therein
    25         and to issue notes as evidence of borrowings made under
    26         any such agreements.
    27             (iii)  To appoint as issuing and payment agent or
    28         agents with respect to notes.
    29             (iv)  To do such other acts as may be necessary or
    30         appropriate to provide for the payment, when due, of the
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     1         interest on and the principal of such notes. Such
     2         agreements may provide for the compensation of any
     3         purchasers or underwriters of notes or replacement notes
     4         by discounting the purchase price of the notes or by
     5         payment of a fixed fee or commission at the time of
     6         issuance thereof, and all other costs and expenses,
     7         including fees for agreements related to the notes,
     8         issuing and paying agent costs and costs and expenses of
     9         issuance, may be paid from the proceeds of the notes.
    10         (4)  When the authorization and direction of the issuing
    11     officials provide for the issuance of replacement notes, the
    12     State Treasurer shall, at or prior to the time of delivery of
    13     these notes or replacement notes, determine the principal
    14     amounts, dates of issue, interest rate or rates, or
    15     procedures for establishing such rates from time to time,
    16     rates of discount, denominations and all other terms and
    17     conditions relating to the issuance and shall perform all
    18     acts and things necessary to pay or cause to be paid, when
    19     due, all principal of and interest on the notes being
    20     refunded by replacement notes and to assure that the same may
    21     draw upon any moneys available for that purpose pursuant to
    22     any purchase, loan or credit agreements established with
    23     respect thereto, all subject to the authorization and
    24     direction of the issuing officials.
    25         (5)  Outstanding notes evidencing such borrowings may be
    26     funded and retired by the issuance and sale of the bonds of
    27     the Commonwealth as hereinafter authorized. The refunding
    28     bonds must be issued and sold not later than a date three
    29     years after the date of issuance of the first notes
    30     evidencing the borrowings to the extent that payment of such
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     1     notes has not otherwise been made or provided for by sources
     2     other than proceeds of replacement notes.
     3         (6)  The proceeds of all such temporary borrowing shall
     4     be paid to the State Treasurer to be held and disposed of in
     5     accordance with the provisions of this act.
     6     (d)  Debt retirement.--
     7         (1)  All bonds issued under the authority of this act
     8     shall be redeemed at maturity, together with all interest due
     9     from time to time on the bonds, and these principal and
    10     interest payments shall be paid from the Persian Gulf
    11     Conflict Veterans' Compensation Bond Sinking Fund, which is
    12     hereby created. For the specific purpose of redeeming the
    13     bonds at maturity and paying all interest thereon in
    14     accordance with the information received from the Governor,
    15     the General Assembly shall appropriate moneys to the Persian
    16     Gulf Conflict Veterans' Compensation Bond Sinking Fund for
    17     the payment of interest on the bonds and notes and the
    18     principal thereof at maturity. All moneys paid into the
    19     Persian Gulf Conflict Veterans' Compensation Bond Sinking
    20     Fund and all of the moneys not necessary to pay accruing
    21     interest shall be invested by the State Treasurer in such
    22     securities as are provided by law for the investment of the
    23     sinking funds of the Commonwealth.
    24         (2)  The State Treasurer, with the approval of the
    25     Governor, is authorized at any time to use any of the moneys
    26     in the fund not necessary for the purposes of the referendum
    27     authorizing the indebtedness necessary to carry out this act,
    28     for the purchase and retirement of all or any part of the
    29     bonds and notes issued pursuant to the authorization of this
    30     act. In the event that all or any part of the bonds and notes
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     1     are purchased, they shall be canceled and returned to the
     2     loan and transfer agent as canceled and paid bonds and notes,
     3     and, thereafter, all payments of interest thereon shall
     4     cease. The canceled bonds, notes and coupons, together with
     5     any other canceled bonds, notes and coupons, shall be
     6     destroyed as promptly as possible after cancellation but not
     7     later than two years after cancellation. A certification
     8     evidencing the destruction of the canceled bonds, notes and
     9     coupons shall be provided by the loan and transfer agent to
    10     the issuing officials. All canceled bonds, notes and coupons
    11     shall be so marked as to make the canceled bonds, notes and
    12     coupons nonnegotiable.
    13         (3)  The State Treasurer shall determine and report to
    14     the Secretary of the Budget by November 1 of each year the
    15     amount of money necessary for the payment of interest on
    16     outstanding obligations and the principal of the obligations,
    17     if any, for the following fiscal year and the times and
    18     amounts of the payments. It shall be the duty of the Governor
    19     to include in every budget submitted to the General Assembly
    20     full information relating to the issuance of bonds and notes
    21     under the provisions of this act and the status of the
    22     Persian Gulf Conflict Veterans' Compensation Bond Sinking
    23     Fund of the Commonwealth for the payment of interest on the
    24     bonds and notes and the principal thereof at maturity.
    25         (4)  The General Assembly shall appropriate an amount
    26     equal to the sums as may be necessary to meet repayment
    27     obligations for principal and interest for deposit into the
    28     Persian Gulf Conflict Veterans' Compensation Bond Sinking
    29     Fund.
    30     (e)  Expiration.--Authorization to issue bonds and notes, not
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     1  including refunding bonds and replacement notes, for the purpose
     2  of this act shall expire ten years from the effective date of
     3  this section.
     4  Section 13.  Question.
     5     (a)  Submission of question to electorate.--The question of
     6  incurring indebtedness of up to $20,000,000 for the purposes set
     7  forth in this act shall be submitted to the electors at the next
     8  primary, municipal or general election following enactment of     <--
     9  this act.
    10     (b)  Certification.--The Secretary of the Commonwealth shall
    11  certify the question to the county boards of elections.
    12     (c)  Form of question.--The question shall be in
    13  substantially the following form:
    14         Do you favor indebtedness by the Commonwealth of up to
    15         $20,000,000 for the payment of compensation for service
    16         in the Persian Gulf Conflict?
    17     (d)  Election.--The election shall be conducted in accordance
    18  with the act of June 3, 1937 (P.L.1333, No.320), known as the
    19  Pennsylvania Election Code, except that the time limits for
    20  advertisement of notice of the election may be waived as to the
    21  question.
    22     (e)  Proceeds.--Proceeds of the borrowing shall be used for
    23  the payment of compensation for service in or in support of the
    24  Persian Gulf Conflict.
    25  Section 14.  Appropriations.
    26     (a)  Compensation appropriation.--For the purpose of payment
    27  for the compensation to eligible veterans, staff services,
    28  postage and other necessary expenses incurred by the Adjutant
    29  General in the administration of this compensation program, such
    30  sums, or as much thereof as may be necessary, are specifically
    20050H1820B3820                 - 20 -     

     1  appropriated to the Adjutant General out of any moneys which
     2  have been deposited in the Persian Gulf Conflict Veterans'
     3  Compensation Bond Fund.
     4     (b)  Continuing appropriations.--The appropriation under
     5  subsection (a) shall be a continuing appropriation and shall not
     6  lapse.
     7  Section 15.  Repeal.
     8     The act of November 24, 1992 (P.L.703, No.106), known as the
     9  Persian Gulf Conflict Veterans' Compensation and Bond Act, is
    10  repealed.
    11  Section 16.  Effective date.
    12     This act shall take effect as follows:
    13         (1)  Section 13(a), (b), (c) and (d) shall take effect
    14     immediately.
    15         (2)  The remainder of this act shall take effect upon the
    16     certification of the approval by the electorate to incur the
    17     indebtedness necessary to carry out the provisions of this
    18     act.








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