Regular Session 2015-2016 House Bill 0496 P.N. 0554

PRINTER'S NO. 554

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

496

Session of

2015

INTRODUCED BY GOODMAN, BIZZARRO, COHEN, D. COSTA, DEASY, DeLUCA,

DONATUCCI, DUSH, ELLIS, FARINA, FRANKEL, FREEMAN, GIBBONS,

GILLEN, GINGRICH, HARHAI, A. HARRIS, JAMES, LONGIETTI,

MAHONEY, MATZIE, McNEILL, MILLARD, MURT, O'BRIEN, C. PARKER,

READSHAW, SAINATO, SAMUELSON, SCHWEYER, TALLMAN, THOMAS,

WATSON AND WHEATLEY, FEBRUARY 17, 2015

REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY

PREPAREDNESS, FEBRUARY 17, 2015

AN ACT

Providing compensation to persons in active service in

connection with the Iraq War or their beneficiaries;

authorizing the incurring of indebtedness and the issue and

sale of bonds by the Commonwealth for the payment of

compensation contingent upon electorate approval; creating a

special fund in the State Treasury to be known as the Iraq

War Veterans' Compensation Bond Sinking Fund; imposing powers

and duties on the Department of Military and Veterans

Affairs; and making appropriations.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

TABLE OF CONTENTS

Section 1. Short title.

Section 2. Definitions.

Section 3. Computation of compensation.

Section 4. Application for compensation.

Section 5. Persons to whom payments shall be made in case of

incompetence or death.

Section 6. Applicant to designate beneficiaries.

Section 7. Exemption from attachment.

Section 8. Penalty for charging fees for assisting veterans.

Section 9. Administration of compensation program.

Section 10. Payment of compensation.

Section 11. Iraq War Veterans' Compensation Bond Sinking Fund.

Section 12. Commonwealth indebtedness.

Section 13. Question.

Section 14. Appropriations.

Section 15. Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Iraq War

Veterans' Benefit Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Active service." For a member of a component of the armed

forces of the United States, the time served on active duty for

which the member has received or is eligible to receive the Iraq

Campaign Medal. For a member of the Pennsylvania National Guard

or a reserve component of the armed forces of the United States,

time served on active duty for the support of operations in the

Iraq Conflict Theater, whether or not that service was in the

theater. The term includes time spent in hospitals as a result

of service-connected wounds, diseases or injuries sustained on

active service. Proof of the service shall be the official

military records of the United States or other evidence as is

deemed sufficient by the Adjutant General. The term does not

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include time served on active duty for annual training or

schooling, except for training and schooling in preparation for

active duty in the Iraq Conflict Theater.

"Fund." The Iraq War Veterans' Compensation Bond Sinking

Fund.

"Iraq Conflict Theater." The area established by the United

States Department of Defense for the awarding of the Iraq

Campaign Medal for the period of time from March 19, 2003,

through December 31, 2011.

"Issuing officials." The Governor, the Auditor General and

the State Treasurer of the Commonwealth.

"Legal resident of this Commonwealth." A member of the

United States Armed Forces, the reserve component of the United

States Armed Forces or the Pennsylvania National Guard whose

home of record at the time of the Iraq War was this Commonwealth

or any specific place in this Commonwealth without regard to the

place of enlistment, commission or induction. The proof of

residence shall be the official records of the United States or

other evidence that is deemed sufficient by the Adjutant

General.

"Veteran." A member of the armed forces of the United

States, including a member of the Army National Guard of the

United States, the Air National Guard of the United States or a

reserve component of the armed forces, who was ordered into or

volunteered to serve on active duty in Iraq during the period

from March 19, 2003, to December 31, 2011, and has received the

Iraq Campaign Medal established by executive order 13363,

November 29, 2004. This term does not include an individual who

has renounced his or her United States citizenship.

Section 3. Computation of compensation.

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(a) Eligibility.--Compensation shall be payable under this

act only to each veteran who was a legal resident of this

Commonwealth and who served under honorable conditions.

(b) Compensation for service in the Iraq War.--Compensation

shall be payable on the basis of $75 for the first month of

eligibility with a minimum of one day of active service. After

the first month, it shall be computed on the basis of $75 for

each month or major fraction of a month.

to any other compensation authorized under this section, the

compensation on behalf of a veteran who died in active service

or as a result of service-connected wounds, diseases or injuries

sustained during active service shall be $5,000.

(d) Compensation of prisoner of war.--In addition to any

compensation under this section, the compensation of a veteran

who was declared a prisoner of war, regardless of the length of

time spent as a prisoner of war, shall, upon return, be $5,000.

(e) Total amount of compensation.--The compensation provided

for active service under subsection (b) shall be not less than

$75 and not more than $600.

(f) Exclusion from compensation.--An individual who has

received a bonus, gratuity or compensation of a nature similar

to that provided for by this act from any other state in the

United States is ineligible for compensation. This exclusion

does not apply to a similar bonus, gratuity or compensation from

the Federal Government.

Section 4. Application for compensation.

(a) Application to Adjutant General.--Applications shall be

made by a veteran, the facility entitled under section 5(a) or

the beneficiaries designated under section 5(b). The Adjutant

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General shall ascertain the applicants who are veterans and, as

to each veteran, the number of months of service for which the

veteran is entitled to receive compensation.

(b) Time for filing application.--The Adjutant General shall

not accept or consider an application filed after December 31,

2024.

Section 5. Persons to whom payments shall be made in case of

incompetence or death.

(a) Incompetence.--In a case where the veteran is

incompetent, if no guardian has been appointed, payment shall be

made for the benefit of the veteran to the person who is

entitled to payment under subsection (b) or, in the absence of

that person and if the veteran is in a facility, to the person

in charge of the facility to be expended for the clothing and

incidental needs of the veteran. No part of the compensation

paid to a facility may be used for the maintenance of the

veteran. A statement from the person in charge of the facility

in which the veteran resides shall be evidence to determine the

competence of the veteran.

(b) Death.--In the case of the death of a veteran, payment

shall be made, in the order named, to the:

(1) surviving spouse unless the spouse was living

separate and apart from the veteran at the time of departure

for active service;

(2) surviving children, share and share alike; or

(3) surviving parents.

words and phrases shall have the meanings given to them in this

subsection:

"Facility." A mental health establishment, hospital, clinic,

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institution, center, day-care center, base service unit,

community mental health center or other organizational unit, or

part thereof, that is devoted primarily to the diagnosis,

treatment, care, rehabilitation or detention of mentally

disabled persons.

"Parents." Persons who, for a period of not less than one

year, acted in the capacity of a foster parent to the veteran

immediately prior to the veteran's having attained 18 years of

age.

Section 6. Applicant to designate beneficiaries.

A person making application for compensation shall set forth

in the application the names and addresses of each person who,

under this act, would be entitled to receive compensation in the

event of the death of the applicant. If the applicant dies

before the payment of the compensation, the application shall be

deemed to inure to the benefit of the person next entitled to

compensation, and payment shall be made to the person upon proof

of identity satisfactory to the Adjutant General. If no person

designated in this act as being entitled to compensation

survives the veteran, the right to the compensation shall cease.

Section 7. Exemption from attachment.

No sum payable under this act to a veteran or to any other

person under this act may be subject to attachment, levy or

seizure under any legal or equitable process and shall be exempt

from all State taxation. No right to compensation under this act

may be assignable, except as otherwise provided in this act, or

shall serve as a security for any loan. An assignment or loan

made in violation of this section shall be void. Assignments to

an incorporated or unincorporated organization of veterans, a

nonprofit corporation formed solely for the purpose of aiding

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disabled or incapacitated veterans and the State Veterans'

Commission shall be valid.

Section 8. Penalty for charging fees for assisting veterans.

A person who charges or collects or attempts to charge or

collect, either directly or indirectly, a fee or other

compensation for assisting, in any manner, a veteran in

obtaining a benefit provided under this act commits a

misdemeanor of the second degree.

Section 9. Administration of compensation program.

The Adjutant General shall administer the compensation

program. For that purpose, application forms shall be prepared

and distributed, applications shall be investigated, and, if

satisfied of the proof of an application, compensation shall be

approved and payment of compensation shall be made. The Adjutant

General shall promulgate rules and regulations to implement,

administer and enforce this act. The Adjutant General shall, as

soon as practicable after the effective date of this act,

prepare and distribute a digest explaining the provisions of

this act to assist veterans in filing their applications and

shall from time to time prepare and distribute additional or

supplementary information as may be found necessary. The

Adjutant General shall enlist, as far as possible, the services

of veteran organizations in this Commonwealth in the

dissemination of the information.

Section 10. Payment of compensation.

The compensation payable under this act shall, upon

requisition by the Adjutant General, be paid by the State

Treasurer from the fund to be created with funds realized from a

proposed bond issue. Payments shall be made as soon as possible

after funds are available.

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Section 11. Iraq War Veterans' Compensation Bond Sinking Fund.

(a) Purpose of fund.--The Iraq War Veterans' Compensation

Bond Sinking Fund is established in the State Treasury and shall

be the source from which all payments are authorized with the

approval of the Governor to carry out this act. The moneys in

the fund shall only be utilized:

(1) For the purpose of providing compensation to

veterans in accordance with the provisions of this act.

(2) For the administrative costs incurred in any of the

purposes in paragraph (1), including the costs incurred in

connection with the issuance of the bonds.

(b) Interfund transfers authorized.--

(1) Whenever the cash balance and the current estimated

receipts of the fund shall be insufficient during a State

fiscal year to promptly meet the obligations of the

Commonwealth from the fund, the State Treasurer shall, from

time to time during the fiscal year, transfer from the

General Fund to the fund the sums as the Governor directs,

but in no case less than the amount necessary to promptly

meet the obligations to be paid from the fund nor more than

an amount that is the smallest of:

(i) the difference between the amount of debt

authorized to be issued under the authority of this act

and the aggregate principal amount of bonds and notes

issued, not including refunding bonds and replacement

notes; and

(ii) the difference between the aggregate principal

amount of bonds and notes to be issued during a State

fiscal year and the aggregate principal amount of bonds

and notes, not including refunding bonds and replacement

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notes, issued during that State fiscal year.

Any sum transferred shall be available only for the purposes

for which funds are appropriated from the fund. The transfers

shall be made under this section upon warrant of the State

Treasurer upon requisition of the Governor.

(2) In order to reimburse the General Fund for money

transferred from the funds under paragraph (1), there shall

be transferred to the General Fund from the fund money from

the proceeds obtained from bonds and notes issued under the

authority of this act or from other available funds in

amounts and at the times as the Governor shall direct. The

retransfers shall be made upon warrant of the State Treasurer

upon requisition of the Governor.

Section 12. Commonwealth indebtedness.

(a) Borrowing authorized.--

(1) If and when the electorate approves a referendum

question for the incurring of indebtedness in the amount and

for the purposes prescribed in this act, the issuing

officials, under section 7(a)(3) of Article VIII of the

Constitution of Pennsylvania, are authorized and directed to

borrow, on the credit of the Commonwealth, money not

exceeding in the aggregate the sum of $20,000,000, not

including money borrowed to refund outstanding bonds, notes

or replacement notes, as may be necessary to carry out the

purpose of this act.

(2) As evidence of the indebtedness, general obligation

bonds of the Commonwealth shall be issued from time to time

to provide moneys necessary to carry out this act for the

total amounts, in the form, in the denominations and subject

to the terms and conditions of issue, redemption and

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maturity, rate of interest and time of payment of interest

that the issuing officials direct, except that the latest

stated maturity date shall not exceed 20 years from the date

of the first obligation issued to evidence the debt.

(3) Each bond and note issued under this act shall bear

facsimile signatures of the issuing officials and a facsimile

of the Great Seal of the Commonwealth and shall be

countersigned by a duly authorized officer of a duly

authorized loan and transfer agent of the Commonwealth.

(4) Each bond and note issued in accordance with this

section shall be a direct obligation of the Commonwealth, and

the full faith and credit of the Commonwealth is hereby

pledged for the payment of the interest on the bonds and

notes as it becomes due, and the payment of the principal at

maturity. The principal of and interest on the bonds and

notes shall be payable in lawful money of the United States.

(5) Each bond and note issued under this section shall

be exempt from taxation for State and local purposes.

(6) The bonds may be issued as coupon bonds or

registered as to both principal and interest as the issuing

officials may determine. If interest coupons are attached,

they shall contain the facsimile signature of the State

Treasurer.

(7) The issuing officials shall provide for the

amortization of the bonds in substantial and regular amounts

over the term of the debt so that the bonds of each issue

allocated to the programs to be funded from the bond issue

shall mature within a period not to exceed the appropriate

amortization period for each program as specified by the

issuing officials but in no case in excess of 20 years. The

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first retirement of principal shall be stated to mature prior

to the expiration of a period of time equal to one-tenth of

the time from the date of the first obligation issued to

evidence the debt to the date of the expiration of the term

of the debt. Retirements of principal shall be regular and

substantial if made in annual or semiannual amounts whether

by stated serial maturities or by mandatory sinking fund

retirements.

(8) The issuing officials are authorized to provide by

resolution for the issuance of refunding bonds for the

purpose of refunding debt issued under the provisions of this

act and then outstanding, either by voluntary exchange with

the holders of the outstanding debt or providing funds to

redeem and retire the outstanding debt with accrued interest,

any premium payable on the debt and the costs of issuance and

retirement of the debt, at maturity or at a call date. The

issuance of the refunding bonds, the maturities and other

details of the bonds, the rights of the holders of the bonds

and the duties of the issuing official in respect to the

bonds shall be governed by this section insofar as they may

be applicable. Refunding bonds, which are not subject to the

aggregate limitation of $20,000,000 of debt to be issued

under this act, may be issued by the issuing officials to

refund debt originally issued or to refund bonds previously

issued for refunding purposes.

(9) If an action is to be taken or decision made by the

Governor, the Auditor General and the State Treasurer acting

as issuing officials and the three officers are not able

unanimously to agree, the action or decision of the Governor

and either the Auditor General or the State Treasurer shall

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be binding and final.

(b) Sale of bonds.--

(1) If bonds are issued, they shall be offered for sale

at not less than 98% of the principal amount and accrued

interest and shall be sold by the issuing officials to the

highest and best bidder or bidders after due public

advertisement on the terms and conditions and upon open

competitive bidding as the issuing officials shall direct.

The manner and character of the advertisement and the time of

advertising shall be prescribed by the issuing officials. No

commission may be allowed or paid for the sale of any bonds

issued under this act.

(2) Any portion of a bond issue offered and not sold or

subscribed for at public sale may be disposed of by private

sale by the issuing officials in the manner and at the

prices, not less than 98% of the principal amount and accrued

interest, that the Governor may direct. No commission may be

allowed or paid for the sale of a bond issued under this act.

(3) When bonds are issued from time to time, the bonds

of each issue shall constitute a separate series to be

designated by the issuing officials or may be combined for

sale as one series with other general obligation bonds of the

Commonwealth.

(4) Until permanent bonds can be prepared, the issuing

officials may in their discretion issue, in lieu of permanent

bonds, temporary bonds in the form and with the privileges as

to registration and exchange for permanent bonds that may be

determined by the issuing officials.

(5) The proceeds realized from the sale of bonds and

notes, except refunding bonds and replacement notes, under

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the provisions of this act shall be paid into the fund. The

proceeds shall be paid by the State Treasurer periodically to

those Commonwealth officers and Commonwealth agencies

authorized to expend them at the times and in the amounts

that may be necessary to satisfy the funding needs of the

agencies. The proceeds of the sale of refunding bonds and

replacement notes shall be paid to the State Treasurer and

applied to the payment of principal, the accrued interest and

premium, if any, and cost of redemption of the bonds and

notes for which the obligations shall have been issued.

(6) Pending their application for the purposes

authorized, money held or deposited by the State Treasurer

may be invested or reinvested as are other funds in the

custody of the State Treasurer in the manner provided by law.

All earnings received from the investment or deposit of the

funds shall be paid into the State Treasury to the credit of

the fund. The earnings in excess of bond discounts allowed,

expenses paid for the issuance of bonds and notes and

interest arbitrage rebates due to the Federal Government

shall be transferred annually to the fund. Interest or

investment income shall be applied to assist in the payment

of the debt service incurred in connection with this act.

(7) The Auditor General shall prepare the necessary

registry book to be kept in the office of the duly authorized

loan and transfer agent of the Commonwealth for the

registration of any bonds, at the request of owners of the

bonds, according to the terms and conditions of issue

directed by the issuing officials.

(8) There is hereby appropriated to the State Treasurer

from the fund as much money as may be necessary for all costs

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and expenses in connection with the issue of and sale and

registration of the bonds and notes in connection with this

act and the payment of interest arbitrage rebates or proceeds

of the bonds and notes.

(1) Pending the issuance of bonds of the Commonwealth as

authorized, the issuing officials are authorized, in

accordance with this act and on the credit of the

Commonwealth, to make temporary borrowings not to exceed

three years in anticipation of the issue of bonds in order to

provide funds in amounts as may from time to time be deemed

advisable prior to the issue of bonds. In order to provide

for and in connection with the temporary borrowings, the

issuing officials are hereby authorized in the name and on

behalf of the Commonwealth to enter into a purchase, loan or

credit agreement or agreements or other agreement or

agreements with any banks or trust companies or other lending

institutions, investment banking firms or persons in the

United States having power to enter into the same, which

agreements may contain provisions not inconsistent with the

provisions of this act as may be authorized by the issuing

officials.

(2) All temporary borrowings made under the

authorization of this section shall be evidenced by notes of

the Commonwealth. The notes shall be issued from time to

time, for amounts not exceeding in the aggregate the

applicable statutory and constitutional debt limitation, in

the form, in the denominations and subject to terms and

conditions of sale and issue, prepayment or redemption and

maturity, rate or rates of interest and time of payment of

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interest as the issuing officials shall authorize and in

accordance with this act. The authorization may provide for

the subsequent issuance of replacement notes to refund

outstanding notes or replacement notes, which replacement

notes shall, upon issuance thereof, evidence the borrowing

and may specify other terms and conditions with respect to

the notes and replacement notes thereby authorized for

issuance as the issuing officials may determine and direct.

(3) When the authorization of the issuing officials

provides for the issuance of replacement notes, the issuing

officials may in the name and on behalf of the Commonwealth

issue, enter into or authorize the State Treasurer to enter

into agreements with any banks, trust companies, investment

banking firms or other institutions or persons in the United

States having the power to enter the same:

(i) To purchase or underwrite an issue or series of

issues or notes.

(ii) To credit, to enter into a purchase, loan or

credit agreement, to draw moneys under the agreements on

the terms and conditions of the agreements and to issue

notes as evidence of borrowings made under the

agreements.

(iii) To appoint an issuing and payment agent with

respect to notes.

(iv) To do other acts that are necessary or

appropriate to provide for the payment, when due, of the

interest on and the principal of the notes. The

agreements may provide for the compensation of a

purchaser or underwriter of notes or replacement notes by

discounting the purchase price of the notes or by payment

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of a fixed fee or commission at the time of issuance of

the notes. The costs and expenses, including fees for

agreements related to the notes, issuing and paying agent

costs and costs and expenses of issuance, may be paid

from the proceeds of the notes.

(4) When the authorization of the issuing officials

provides for the issuance of replacement notes, the State

Treasurer shall, at or before the time of delivery of these

notes or replacement notes, determine the principal amounts,

dates of issue, interest rates or procedures for establishing

the rates from time to time, rates of discount, denominations

and all other terms and conditions relating to the issuance.

The State Treasurer shall perform all acts and things

necessary to pay or cause to be paid, when due, all principal

of and interest on the notes being refunded by replacement

notes and to assure that the State Treasurer may draw upon

any moneys available for that purpose under a purchase, loan

or credit agreement established with respect to the notes

subject to the authorization of the issuing officials.

(5) Outstanding notes evidencing the borrowings may be

funded and retired by the issuance and sale of the bonds of

the Commonwealth as provided in this section. The refunding

bonds must be issued and sold not later than three years

after the date of issuance of the first notes evidencing the

borrowings to the extent that payment of the notes has not

otherwise been made or provided for by sources other than

proceeds of replacement notes.

(6) The proceeds of the temporary borrowing shall be

paid to the State Treasurer to be held and disposed of in

accordance with the provisions of this act.

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(d) Debt retirement.--

(1) Bonds issued under this act shall be redeemed at

maturity, together with all interest due from time to time on

the bonds. The principal and interest payments shall be paid

from the Iraq War Veterans' Compensation Bond Sinking Fund,

which is hereby established. For the specific purpose of

redeeming the bonds at maturity and paying all interest on

the bonds in accordance with the information received from

the Governor, the General Assembly shall appropriate money to

the Iraq War Veterans' Compensation Bond Sinking Fund for the

payment of interest on the bonds and notes and the principal

of the bonds and notes at maturity. The money paid into the

Iraq War Veterans' Compensation Bond Sinking Fund and the

money not necessary to pay accruing interest shall be

invested by the State Treasurer in securities provided by law

for the investment of the sinking funds of the Commonwealth.

(2) The State Treasurer, with the approval of the

Governor, is authorized to use the money in the fund not

necessary for the purposes of the referendum authorizing the

indebtedness necessary to carry out this act, for the

purchase and retirement of all or part of the bonds and notes

issued under the authorization of this act. In the event that

all or part of the bonds and notes are purchased, they shall

be canceled and returned to the loan and transfer agent as

canceled and paid bonds and notes, and after cancellation,

all payments of interest on the bonds and notes shall cease.

The canceled bonds, notes and coupons, together with any

other canceled bonds, notes and coupons, shall be destroyed

as promptly as possible after cancellation but no later than

two years after cancellation. A certification evidencing the

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destruction of the canceled bonds, notes and coupons shall be

provided by the loan and transfer agent to the issuing

officials. Each canceled bond, note and coupon shall be so

marked as to make the canceled bond, note and coupon

nonnegotiable.

(3) The State Treasurer shall determine and report to

the Secretary of the Budget by November 1 of each year the

amount of money necessary for the payment of interest on

outstanding obligations and the principal of the obligations,

if any, for the following fiscal year and the times and

amounts of the payments. It shall be the duty of the Governor

to include in each budget submitted to the General Assembly

full information relating to the issuance of bonds and notes

under this act and the status of the Iraq War Veterans'

Compensation Bond Sinking Fund of the Commonwealth for the

payment of interest on the bonds and notes and the principal

of the bonds and notes at maturity.

(4) The General Assembly shall appropriate an amount

equal to the sums as may be necessary to meet repayment

obligations for principal and interest for deposit into the

Iraq War Veterans' Compensation Bond Sinking Fund.

(e) Expiration.--Authorization to issue bonds and notes, not

including refunding bonds and replacement notes, under this act

shall expire 10 years from the effective date of this section.

Section 13. Question.

(a) Submission of question to electorate.--The question of

incurring indebtedness of up to $20,000,000 for the purposes set

forth in this act shall be submitted to the electors at the next

general election following enactment of this act.

(b) Certification.--The Secretary of the Commonwealth shall

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certify the question to the county boards of elections.

substantially the following form:

Do you favor indebtedness by the Commonwealth of up to

$20,000,000 for the payment of compensation for service

in the Iraq War?

(d) Election.--The election shall be conducted in accordance

with the act of June 3, 1937 (P.L.1333, No.320), known as the

Pennsylvania Election Code, except that the time limits for

advertisement of notice of the election may be waived as to the

question.

(e) Proceeds.--Proceeds of the borrowing shall be used for

the payment of compensation for service in or in support of the

Iraq War.

Section 14. Appropriations.

(a) Compensation appropriation.--For the purpose of payment

for the compensation to eligible veterans, staff services,

postage and other necessary expenses incurred by the Adjutant

General in the administration of this compensation program, the

sums, or as much thereof as may be necessary, are specifically

appropriated to the Adjutant General out of any money which has

been deposited in the fund.

(b) Continuing appropriation.--The appropriation under

subsection (a) shall be a continuing appropriation and shall not

lapse.

Section 15. Effective date.

This act shall take effect as follows:

(1) Section 13(a), (b), (c) and (d) shall take effect

immediately.

(2) The remainder of this act shall take effect upon the

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certification of the approval by the electorate to incur the

indebtedness necessary to carry out the provisions of this

act.

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