Regular Session 2015-2016 House Bill 0684 P.N. 0799

PRINTER'S NO. 799

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

684

Session of

2015

INTRODUCED BY KORTZ, READSHAW, GOODMAN, KOTIK, McNEILL,

RAVENSTAHL, LONGIETTI, COHEN, MATZIE, DeLUCA, BARRAR,

SCHWEYER, MURT, C. PARKER, MAHONEY, GIBBONS, KINSEY, DEASY,

ROZZI, THOMAS, SAINATO, FARINA AND McCARTER, MARCH 3, 2015

REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY

PREPAREDNESS, MARCH 3, 2015

AN ACT

Providing for bonus payments to persons in active service in

connection with the Global War on Terrorism or their

beneficiaries; authorizing the incurring of indebtedness and

the issue and sale of bonds by the Commonwealth for the

payment of the benefits contingent upon electorate approval;

establishing a special fund in the State Treasury to be known

as the Global War on Terrorism Bonus Payment Bond Fund; and

imposing powers and duties on the Department of General

Services.

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 the as the Global

War on Terrorism Veterans' Bonus Payment 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 duty." 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 the Global War on Terrorism

Expeditionary Medal, the Iraq Campaign Medal or the Afghanistan

Campaign Medal for service related to the Global War on

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

of service-connected wounds, diseases or injuries sustained on

active service. Proof of such service shall be the official

military records of the United States or such other evidence as

is deemed sufficient by the Adjutant General. The term does not

include time served on active duty for annual training or

schooling.

"Fund." The Global War on Terrorism Veterans' Bonus Payment

Bond Fund established in this act.

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

the State Treasurer.

"Global War on Terrorism." Military efforts in the United

States and abroad directly resulting from the terrorist attacks

on the Pentagon, the World Trade Center and the airplane that

went down in Somerset County on September 11, 2001. For the

purposes of this act, the Global War on Terrorism shall be

deemed to have ended when military efforts cease as ordered by

the Commander-in-Chief of the United States Armed Forces.

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

United States Armed Forces, a reserve component of the United

States Armed Forces or the Pennsylvania National Guard whose

place of enlistment was Pennsylvania, whose home of record upon

discharge was Pennsylvania or whose current primary residence is

Pennsylvania. The proof of such residence shall be the official

records of the United States or such other evidence as is deemed

sufficient by the Adjutant General.

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

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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 and was deployed overseas in

direct service to the Global War on Terrorism operations. This

term shall not include:

(1) any individual who, at any time during the Global

War on Terrorism or thereafter, was separated from the armed

forces under other than honorable conditions; and

(2) any individual who has renounced his United States

citizenship.

Section 3. Bonus payment.

(a) Eligibility.--A bonus payment of $500 shall be made to

each veteran who was or is a legal resident of this Commonwealth

and is determined to be eligible under this act.

(b) Exclusion from bonus payment.--Any individual who has

received a bonus, gratuity or bonus payment of a nature similar

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

United States is ineligible for payment under this act. This

exclusion does not apply to a similar bonus, gratuity or bonus

payment from the Federal Government.

Section 4. Application for bonus payment.

(a) Application to Adjutant General.--Applications for bonus

payments under this act shall be made by a veteran, the facility

entitled under section 5(a) or the beneficiaries designated

under section 5(b) on a form provided by the Adjutant General.

The Adjutant General shall ascertain the applicants who are

eligible to receive a bonus payment under this act.

(b) Time for filing application.--Applications may be filed

by a veteran who was discharged or released from service under

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honorable conditions or by a veteran who completed an initial

term of enlistment or qualifying period of service. The Adjutant

General shall not accept or consider any application filed five

years after the cessation of the Global War on Terrorism.

application the person or entity to whom payment under this act

shall be made.

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

any such 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 payment to

any facility shall 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 unless the context clearly indicates otherwise:

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

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

community mental health center or other organizational unit or

part thereof which is devoted primarily to the diagnosis,

treatment, care, rehabilitation or detention of mentally

disabled persons.

"Parents." The term includes persons who, for a period of

not less than one year, acted in the capacity of a foster parent

to a veteran immediately prior to the veteran having attained 18

years of age.

Section 6. Applicant to designate beneficiaries.

Every person making application for payment under this act

shall state in the application the names and addresses of all

persons who, under this act, would be entitled to receive

payment in the event of the death of the applicant. If the

applicant dies before the payment, the application shall be

deemed to inure to the benefit of the person next entitled 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 payment survives the veteran, the

right to the payment shall cease.

Section 7. Exemption from attachment.

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

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

seizure under any legal or equitable process and shall be exempt

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

shall be assignable, except as otherwise provided in this act,

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

loan made in violation of this section shall be void.

Assignments to any incorporated or unincorporated organization

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of veterans, any nonprofit corporation formed solely for the

purpose of aiding 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, any fee or other

compensation for assisting, in any manner, a veteran in

obtaining any of the benefits provided under this act commits a

misdemeanor of the second degree.

Section 9. Administration of program.

The Adjutant General shall:

(1) Administer the program authorized by this act. For

that purpose, application forms shall be prepared and

distributed, applications shall be investigated, and, if

satisfied of the proof of an application, shall be approved

and payment shall be made.

(2) As soon as practicable after the effective date of

this section, 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.

(3) Enlist, as far as possible, the services of veteran

organizations in this Commonwealth in the dissemination of

the information specified in paragraph (2).

(4) Promulgate rules and regulations to implement,

administer and enforce this act.

Section 10. Funding source of bonus payments.

The amounts payable under this act shall, upon requisition by

the Adjutant General, be paid by the State Treasurer from the

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fund to be created with funds realized from a proposed bond

issue. Payments shall be made as soon as possible after funds

are available.

Section 11. The Global War on Terrorism Veterans' Bonus Payment

Bond Fund.

(a) Purpose of fund.--The Global War on Terrorism Veterans'

Bonus Payment Bond Fund is established in the State Treasury.

The fund shall be the source from which all payments are

authorized with the approval of the Governor to carry out the

purposes of this act. The money in the fund shall only be

utilized:

(1) For the purpose of providing bonus payments 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 at any time during

any State fiscal year to meet promptly the obligations of the

Commonwealth from such fund, the State Treasurer is

authorized and directed, from time to time during such fiscal

year, to transfer from the General Fund to the fund such sums

as the Governor directs, but in no case less than the amount

necessary to meet promptly the obligations to be paid from

the fund nor more than an amount which 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

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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

notes, issued during such State fiscal year.

Any sums so 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 such 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 such

amounts and at such 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 the provisions of 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 $30,000,000, not

including money borrowed to refund outstanding bonds, notes

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

the purposes of this act.

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(2) As evidence of the indebtedness, general obligation

bonds of the Commonwealth shall be issued from time to time

to provide money necessary to carry out the purposes of this

act for such total amounts, in such form, in such

denominations and subject to such terms and conditions of

issue, redemption and maturity, rate of interest and time of

payment of interest as 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) All bonds and notes issued under the authority of

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) All bonds and notes issued in accordance with the

provisions of this section shall be direct obligations of the

Commonwealth, and the full faith and credit of the

Commonwealth is pledged for the payment of the interest

thereon, 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) All bonds and notes issued under the provisions of

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

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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

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 any 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 thereon and the costs of

issuance and retirement of the debt, at maturity or at any

call date. The issuance of the refunding bonds, the

maturities and other details thereof, the rights of the

holders thereof and the duties of the issuing official in

respect thereto shall be governed by the provisions of this

section insofar as they may be applicable. Refunding bonds,

which are not subject to the aggregate limitation of

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$30,000,000 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) Whenever any 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 be binding and final.

(b) Sale of bonds.--

(1) Whenever 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 such 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 shall be allowed or paid for the sale of any bonds

issued under the authority of this act.

(2) Any portion of any bond issue so offered and not

sold or subscribed for at public sale may be disposed of by

private sale by the issuing officials in such manner and at

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

accrued interest, as the Governor shall direct. No commission

shall be allowed or paid for the sale of any bonds issued

under the authority of this act.

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

of each issue shall constitute a separate series to be

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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 such form and with such

privileges as to registration and exchange for permanent

bonds as 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

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 such times and in such amounts

as may be necessary to satisfy the funding needs thereof. 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. Any interest or

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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 thereof,

according to the terms and conditions of issue directed by

the issuing officials.

(8) There is appropriated to the State Treasurer from

the fund as much money as may be necessary for all costs 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 such bonds and notes.

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

authorized, the issuing officials are authorized, in

accordance with the provisions of 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 such 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 authorized in the name

and on behalf of the Commonwealth to enter into any purchase,

loan, credit 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

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authorized by the issuing officials.

(2) All temporary borrowings made under the

authorization of this section shall be evidenced by notes of

the Commonwealth which shall be issued from time to time for

amounts not exceeding in the aggregate the applicable

statutory and constitutional debt limitation in the form and

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 interest as the

issuing officials shall authorize and direct and in

accordance with this act. The authorization and direction 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 and direction of the issuing

officials provide for the issuance of replacement notes, the

issuing officials are authorized in the name and on behalf of

the Commonwealth to issue, enter into or authorize and direct

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 any purchase, loan or

credit agreements, to draw money pursuant to any such

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agreements on the terms and conditions set forth therein

and to issue notes as evidence of borrowings made under

any such agreements.

(iii) To appoint as issuing and payment agent or

agents with respect to notes.

(iv) To do such other acts as may be necessary or

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

interest on and the principal of such notes. Such

agreements may provide for the compensation of any

purchasers or underwriters of notes or replacement notes

by discounting the purchase price of the notes or by

payment of a fixed fee or commission at the time of

issuance thereof, and all other 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 and direction of the issuing

officials provide for the issuance of replacement notes, the

State Treasurer shall, at or prior to the time of delivery of

these notes or replacement notes, determine the principal

amounts, dates of issue, interest rate or rates or procedures

for establishing such rates from time to time, rates of

discount, denominations and all other terms and conditions

relating to the issuance and 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 same may draw upon

any money available for that purpose pursuant to any

purchase, loan or credit agreements established with respect

thereto, all subject to the authorization and direction of

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the issuing officials.

(5) Outstanding notes evidencing such borrowings may be

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

the Commonwealth as hereinafter authorized. The refunding

bonds must be issued and sold not later than a date three

years after the date of issuance of the first notes

evidencing the borrowings to the extent that payment of such

notes has not otherwise been made or provided for by sources

other than proceeds of replacement notes.

(6) The proceeds of all such temporary borrowing shall

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

accordance with the provisions of this act.

(d) Debt retirement.--

(1) All bonds issued under the authority of this act

shall be redeemed at maturity, together with all interest due

from time to time on the bonds, and these principal and

interest payments shall be paid from the Global War on

Terrorism Veterans' Bonus Payment Bond Sinking Fund, which is

established. For the specific purpose of redeeming the bonds

at maturity and paying all interest thereon in accordance

with the information received from the Governor, the General

Assembly shall appropriate money to the Global War on

Terrorism Veterans' Bonus Payment Bond Sinking Fund for the

payment of interest on the bonds and notes and the principal

thereof at maturity. All money paid into the Global War on

Terrorism Veterans' Bonus Payment Bond Sinking Fund and all

of the money not necessary to pay accruing interest shall be

invested by the State Treasurer in such securities as are

provided by law for the investment of the sinking funds of

the Commonwealth.

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

Governor, is authorized at any time to use any of 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 any part of the

bonds and notes issued under the authorization of this act.

In the event that all or any 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,

thereafter, all payments of interest thereon 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 not later than

two years after cancellation. A certification evidencing the

destruction of the canceled bonds, notes and coupons shall be

provided by the loan and transfer agent to the issuing

officials. All canceled bonds, notes and coupons shall be so

marked as to make the canceled bonds, notes and coupons

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 every budget submitted to the General Assembly

full information relating to the issuance of bonds and notes

under the provisions of this act and the status of the Global

War on Terrorism Veterans' Bonus Payment Bond Sinking Fund of

the Commonwealth for the payment of interest on the bonds and

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notes and the principal thereof 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

Global War on Terrorism Veterans' Bonus Payment Bond Sinking

Fund.

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

including refunding bonds and replacement notes, for the purpose

of 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 $30,000,000 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

certify the question to the county boards of elections.

substantially the following form:

Do you favor indebtedness by the Commonwealth of up to

$30,000,000 for the payment of a bonus for service in the

Global War on Terrorism?

(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

Global War on Terrorism.

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Section 14. Appropriations.

(a) General rule.--For the purpose of payments to eligible

veterans, staff services, postage and other necessary expenses

incurred by the Adjutant General in the administration of this

act, such sums, or as much thereof as may be necessary, are

specifically appropriated to the Adjutant General out of any

money which have 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 of this act and this section shall take

effect in 60 days.

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

certification of the approval by the electorate to incur the

indebtedness necessary to carry out the provisions of this

act.

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