PRINTER'S NO. 31
No. 48 Session of 2003
INTRODUCED BY GREENLEAF, LEMMOND, KITCHEN, TOMLINSON, WAGNER,
WENGER, COSTA, LOGAN, RHOADES, TARTAGLIONE AND KUKOVICH,
JANUARY 22, 2003
REFERRED TO VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS,
JANUARY 22, 2003
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
4 the issue and sale of bonds by the Commonwealth for the
5 payment of compensation, contingent upon electorate approval;
6 establishing the Persian Gulf Conflict Veterans' Compensation
7 Bond Fund; imposing powers and duties on the Department of
8 General Services; and making appropriations.
9 TABLE OF CONTENTS
10 Section 1. Short title.
11 Section 2. Definitions.
12 Section 3. Computation of compensation.
13 Section 4. Application for compensation.
14 Section 5. Persons to whom payments shall be made in case of
15 incompetence or death.
16 Section 6. Applicant to designate beneficiaries.
17 Section 7. Exemption from attachment, etc.
18 Section 8. Penalty for charging fees for assisting veterans.
19 Section 9. Administration of compensation program.
20 Section 10. Payment of compensation.
1 Section 11. Persian Gulf Conflict Veterans' Compensation Bond
2 Fund.
3 Section 12. Commonwealth indebtedness.
4 Section 13. Question.
5 Section 14. Appropriations.
6 Section 15. Effective date.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title.
10 This act shall be known and may be cited as the Persian Gulf
11 Conflict Veterans' Compensation and Bond Act.
12 Section 2. Definitions.
13 The following words and phrases when used in this act shall
14 have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Active service." For a member of a component of the armed
17 forces of the United States, the time served on active duty for
18 which the member has received or is eligible to receive the
19 Southwest Asia Service Medal for service related to the Persian
20 Gulf Conflict Theater, for a member of the Pennsylvania National
21 Guard or a reserve component of the armed forces of the United
22 States, time served on active duty for the support of operations
23 in the Persian Gulf Conflict Theater whether or not that service
24 was in the theater. The term includes time spent in hospitals as
25 a result of service-connected wounds, diseases or injuries
26 sustained on active service. Proof of such service shall be the
27 official military records of the United States or such other
28 evidence as is deemed sufficient by the Adjutant General. The
29 term does not include time served on active duty for annual
30 training or schooling, except for training and schooling in
20030S0048B0031 - 2 -
1 preparation for active duty in the Persian Gulf Conflict
2 Theater.
3 "Fund." The Persian Gulf Conflict Veterans' Compensation
4 Bond Fund established in section 11.
5 "Issuing officials." The Governor, the Auditor General and
6 the State Treasurer.
7 "Legal resident of this Commonwealth." A member of the
8 United States Armed Forces, the reserve component of the United
9 States Armed Forces or the Pennsylvania National Guard whose
10 home of record at the time of the Persian Gulf Conflict was this
11 Commonwealth or any specific place in this Commonwealth without
12 regard to the place of enlistment, commission or induction. The
13 proof of such residence shall be the official records of the
14 United States or such other evidence as is deemed sufficient by
15 the Adjutant General.
16 "Persian Gulf Conflict Theater." The area defined as the
17 Persian Gulf Conflict Theater of Operations as established by
18 the United States Department of Defense for the awarding of the
19 Southwest Asia Service Medal for the period of time from August
20 2, 1990, through August 31, 1991.
21 "Veteran." A member of a component of the armed forces of
22 the United States who had active service in the Persian Gulf
23 Conflict Theater or a member of the Pennsylvania National Guard
24 or a reserve component of the armed forces who had active
25 service for the support of operations in the Persian Gulf
26 Conflict Theater and who was a legal resident of this
27 Commonwealth from August 2, 1990, through August 31, 1991. The
28 term does not include an individual who was separated from the
29 armed forces under other than honorable conditions, had
30 renounced United States citizenship or was called to active duty
20030S0048B0031 - 3 -
1 for the purpose of annual training or schooling.
2 Section 3. Computation of compensation.
3 (a) Compensation for service in the Persian Gulf.--
4 Compensation shall be payable on the basis of $75 for the first
5 month of eligibility with a minimum of one day of active
6 service; thereafter, it shall be computed on the basis of $75
7 for each month or major fraction thereof.
8 (b) Compensation on behalf of deceased veteran.--In addition
9 to any other compensation authorized under this section, the
10 compensation on behalf of a veteran who died in active service
11 or as a result of service-connected wounds, diseases or injuries
12 sustained during active service shall be $4,000.
13 (c) Compensation of prisoner of war.--In addition to any
14 compensation under the other provisions of this section, the
15 compensation of a veteran who was declared a prisoner of war,
16 regardless of the length of time spent as a prisoner of war,
17 shall, upon return, be $4,000.
18 (d) Total amount of compensation.--The compensation provided
19 for active service under subsection (a) shall be not less than
20 $75 and not more than $525.
21 (e) Exclusion from compensation.--A person who has received
22 a bonus, gratuity or compensation of a nature similar to that
23 provided for by this act from any other state is ineligible for
24 compensation under this act. This subsection does not apply to a
25 bonus, gratuity or compensation of a nature similar to that
26 provided by this act from the Federal Government.
27 Section 4. Application for compensation.
28 (a) Application to Adjutant General.--Applications shall be
29 made by a veteran, the facility entitled under section 5(a) or
30 the beneficiaries designated under section 5(b). The Adjutant
20030S0048B0031 - 4 -
1 General shall ascertain the applicants who are veterans and, as
2 to each veteran, the number of months of service for which the
3 veteran is entitled to receive compensation.
4 (b) Time for filing application.--The Adjutant General shall
5 not accept or consider any application filed after August 31,
6 2005.
7 Section 5. Persons to whom payments shall be made in case of
8 incompetence or death.
9 (a) Incompetence.--In a case where a veteran is incompetent,
10 if no guardian has been appointed, payment shall be made for the
11 benefit of the veteran to the person who is entitled to payment
12 under subsection (b), or, in the absence of any such person and
13 if the veteran is in a facility, to the person in charge of the
14 facility to be expended for the clothing and incidental needs of
15 the veteran. No part of the compensation paid to a facility
16 shall be used for the maintenance of the veteran. A statement
17 from the person in charge of the facility in which the veteran
18 resides shall be evidence to determine the competence of the
19 veteran.
20 (b) Death.--In the case of the death of a veteran, payment
21 shall be made, in the order named, to the:
22 (1) surviving spouse, unless the spouse was living
23 separate and apart from the veteran at the time of departure
24 for active service;
25 (2) surviving children, in equal amounts; or
26 (3) surviving parents, in equal amounts.
27 (c) Definitions.--As used in this section, the following
28 words and phrases shall have the meanings given to them in this
29 subsection:
30 "Facility." A mental health establishment, hospital, clinic,
20030S0048B0031 - 5 -
1 institution, center, day-care center, base service unit,
2 community mental health center or other organizational unit, or
3 part thereof, which is devoted primarily to the diagnosis,
4 treatment, care, rehabilitation or detention of mentally
5 disabled persons.
6 "Parent." This term includes a person who, for a period of
7 not less than one year, acted in the capacity of a foster parent
8 to a veteran immediately prior to the veteran having attained 18
9 years of age.
10 Section 6. Applicant to designate beneficiaries.
11 A person making application for compensation must set forth
12 in the application the names and addresses of all persons who,
13 under this act, would be entitled to receive compensation in the
14 event of the death of the applicant. If the applicant dies
15 before the payment of the compensation, the application shall be
16 deemed to inure to the benefit of the person next entitled to
17 compensation and payment shall be made to the person upon proof
18 of identity satisfactory to the Adjutant General. If no person
19 designated in this act as being entitled to compensation
20 survives the veteran, the veteran's right to the compensation
21 shall cease.
22 Section 7. Exemption from attachment and taxation.
23 (a) General rule.--No sum payable under this act to a
24 veteran or to any other person under this act shall be subject
25 to attachment, levy or seizure under any legal or equitable
26 process and shall be exempt from all State taxation.
27 (b) Assignment.--
28 (1) No right to compensation under this act shall be
29 assignable, except as otherwise provided in paragraph (2), or
30 shall serve as a security for any loan. Any assignment or
20030S0048B0031 - 6 -
1 loan made in violation of this subsection shall be void.
2 (2) An assignment to an incorporated or unincorporated
3 organization of veterans, a nonprofit corporation formed
4 solely for the purpose of aiding disabled or incapacitated
5 veterans and the State Veterans' Commission shall be valid.
6 Section 8. Penalty for charging fees for assisting veterans.
7 A person who charges or collects or attempts to charge or
8 collect, either directly or indirectly, a fee or other
9 compensation for assisting, in any manner, a veteran in
10 obtaining any of the benefits provided under this act commits a
11 misdemeanor of the second degree.
12 Section 9. Administration of compensation program.
13 The Adjutant General shall:
14 (1) Administer the compensation program.
15 (2) Prepare, distribute and investigate applications
16 and, if satisfied of the proof of an application, approve
17 payment of compensation.
18 (3) Promulgate rules and regulations to implement,
19 administer and enforce this act.
20 (4) As soon as practicable after the effective date of
21 this act, prepare and distribute a digest explaining the
22 provisions of this act to assist veterans in filing their
23 applications and shall, from time to time, prepare and
24 distribute additional or supplementary information as may be
25 found necessary.
26 (5) Enlist, as far as possible, the services of veteran
27 organizations in this Commonwealth in the dissemination of
28 the information.
29 Section 10. Payment of compensation.
30 The compensation payable under this act shall, upon
20030S0048B0031 - 7 -
1 requisition by the Adjutant General, be paid by the State
2 Treasurer from the fund. Payments shall be made as soon as
3 possible after moneys are available in the fund.
4 Section 11. Persian Gulf Conflict Veterans' Compensation Bond
5 Fund.
6 (a) Purpose of fund.--The Persian Gulf Conflict Veterans'
7 Compensation Bond Fund, which is hereby established in the State
8 Treasury, shall be the source from which all payments are
9 authorized with the approval of the Governor to carry out the
10 purposes of this act. The moneys in the fund shall only be
11 utilized:
12 (1) For the purpose of providing compensation in
13 accordance with the provisions of this act.
14 (2) For the administrative costs incurred for the
15 purpose in paragraph (1), including the costs incurred in
16 connection with the issuance of the bonds.
17 (b) Interfund transfers authorized.--
18 (1) Whenever the cash balance and the current estimated
19 receipts of the fund shall be insufficient at any time during
20 any State fiscal year to meet promptly the obligations of the
21 Commonwealth from such fund, the State Treasurer is hereby
22 authorized and directed, from time to time during such fiscal
23 year, to transfer from the General Fund to the fund such sums
24 as the Governor directs, but in no case less than the amount
25 necessary to meet promptly the obligations to be paid from
26 the fund nor more than an amount which is the smallest of:
27 (i) the difference between the amount of debt
28 authorized to be issued under the authority of this act
29 and the aggregate principal amount of bonds and notes
30 issued, not including refunding bonds and replacement
20030S0048B0031 - 8 -
1 notes; and
2 (ii) the difference between the aggregate principal
3 amount of bonds and notes to be issued during a State
4 fiscal year and the aggregate principal amount of bonds
5 and notes, not including refunding bonds and replacement
6 notes, issued during such State fiscal year.
7 (2) Any sums transferred under paragraph (1) shall be
8 available only for the purposes for which funds are
9 appropriated from the fund. The transfers shall be made under
10 this section upon warrant of the State Treasurer upon
11 requisition of the Governor.
12 (3) In order to reimburse the General Fund for moneys
13 transferred from such funds under paragraph (1), there shall
14 be transferred to the General Fund from the fund moneys from
15 the proceeds obtained from bonds and notes issued under the
16 authority of this act or from other available funds in such
17 amounts and at such times as the Governor shall direct. The
18 reimbursement transfers shall be made upon warrant of the
19 State Treasurer upon requisition of the Governor.
20 Section 12. Commonwealth indebtedness.
21 (a) Borrowing authorized.--
22 (1) If and when the electorate approves a referendum
23 question for the incurring of indebtedness in the amount and
24 for the purposes prescribed in this act, the issuing
25 officials, pursuant to the provisions of section 7(a)(3) of
26 Article VIII of the Constitution of Pennsylvania, are
27 authorized and directed to borrow, on the credit of the
28 Commonwealth, money not exceeding in the aggregate the sum of
29 $16,000,000, not including money borrowed to refund
30 outstanding bonds, notes or replacement notes, as may be
20030S0048B0031 - 9 -
1 found necessary to carry out the purposes of this act.
2 (2) As evidence of the indebtedness, general obligation
3 bonds of the Commonwealth shall be issued, from time to time,
4 to provide moneys necessary to carry out the purposes of this
5 act for such total amounts, in such form, in such
6 denominations and subject to such terms and conditions of
7 issue, redemption and maturity, rate of interest and time of
8 payment of interest as the issuing officials direct, except
9 that the latest stated maturity date shall not exceed 20
10 years from the date of the first obligation issued to
11 evidence the debt.
12 (3) All bonds and notes issued under the authority of
13 this act shall bear facsimile signatures of the issuing
14 officials and a facsimile of the Great Seal of the
15 Commonwealth and shall be countersigned by a duly authorized
16 officer of a duly authorized loan and transfer agent of the
17 Commonwealth.
18 (4) All bonds and notes issued in accordance with the
19 provisions of this section shall be direct obligations of the
20 Commonwealth, and the full faith and credit of the
21 Commonwealth is hereby pledged for the payment of the
22 interest thereon, as it becomes due, and the payment of the
23 principal at maturity. The principal of and interest on the
24 bonds and notes shall be payable in lawful money of the
25 United States.
26 (5) All bonds and notes issued under the provisions of
27 this section shall be exempt from taxation for State and
28 local purposes.
29 (6) The bonds may be issued as coupon bonds or
30 registered as to both principal and interest as the issuing
20030S0048B0031 - 10 -
1 officials may determine. If interest coupons are attached,
2 they shall contain the facsimile signature of the State
3 Treasurer.
4 (7) The issuing officials shall provide for the
5 amortization of the bonds in substantial and regular amounts
6 over the term of the debt so that the bonds of each issue
7 allocated to the programs to be funded from the bond issue
8 shall mature within a period not to exceed the appropriate
9 amortization period for each program as specified by the
10 issuing officials but in no case in excess of 20 years. The
11 first retirement of principal shall be stated to mature prior
12 to the expiration of a period of time equal to one-tenth of
13 the time from the date of the first obligation issued to
14 evidence the debt to the date of the expiration of the term
15 of the debt. Retirements of principal shall be regular and
16 substantial if made in annual or semiannual amounts whether
17 by stated serial maturities or by mandatory sinking fund
18 retirements.
19 (8) The issuing officials are authorized to provide by
20 resolution for the issuance of refunding bonds for the
21 purpose of refunding any debt issued under the provisions of
22 this act and then outstanding, either by voluntary exchange
23 with the holders of the outstanding debt or providing funds
24 to redeem and retire the outstanding debt with accrued
25 interest, any premium payable thereon and the costs of
26 issuance and retirement of the debt, at maturity or at any
27 call date. The issuance of the refunding bonds, the
28 maturities and other details thereof, the rights of the
29 holders thereof and the duties of the issuing official in
30 respect thereto shall be governed by the provisions of this
20030S0048B0031 - 11 -
1 section, insofar as they may be applicable. Refunding bonds,
2 which are not subject to the aggregate limitation of
3 $16,000,000 of debt to be issued under this act, may be
4 issued by the issuing officials to refund debt originally
5 issued or to refund bonds previously issued for refunding
6 purposes.
7 (9) Whenever any action is to be taken or decision made
8 by the Governor, the Auditor General and the State Treasurer
9 acting as issuing officials and the three officers are not
10 able unanimously to agree, the action or decision of the
11 Governor and either the Auditor General or the State
12 Treasurer shall be binding and final.
13 (b) Sale of bonds.--
14 (1) Whenever bonds are issued, they shall be offered for
15 sale at not less than 98% of the principal amount and accrued
16 interest and shall be sold by the issuing officials to the
17 highest and best bidder or bidders after due public
18 advertisement on the terms and conditions and upon such open
19 competitive bidding as the issuing officials shall direct.
20 The manner and character of the advertisement and the time of
21 advertising shall be prescribed by the issuing officials. No
22 commission shall be allowed or paid for the sale of any bonds
23 issued under the authority of this act.
24 (2) Any portion of any bond issue so offered and not
25 sold or subscribed for at public sale may be disposed of by
26 private sale by the issuing officials in such manner and at
27 such prices, not less than 98% of the principal amount and
28 accrued interest, as the Governor shall direct. No commission
29 shall be allowed or paid for the sale of any bonds issued
30 under the authority of this act.
20030S0048B0031 - 12 -
1 (3) When bonds are issued from time to time, the bonds
2 of each issue shall constitute a separate series to be
3 designated by the issuing officials or may be combined for
4 sale as one series with other general obligation bonds of the
5 Commonwealth.
6 (4) Until permanent bonds can be prepared, the issuing
7 officials may in their discretion issue, in lieu of permanent
8 bonds, temporary bonds in such form and with such privileges
9 as to registration and exchange for permanent bonds as may be
10 determined by the issuing officials.
11 (5) The proceeds realized from the sale of bonds and
12 notes, except refunding bonds and replacement notes, under
13 the provisions of this act shall be paid into the fund. The
14 proceeds shall be paid by the State Treasurer periodically to
15 those Commonwealth officers and Commonwealth agencies
16 authorized to expend them at such times and in such amounts
17 as may be necessary to satisfy the funding needs thereof. The
18 proceeds of the sale of refunding bonds and replacement notes
19 shall be paid to the State Treasurer and applied to the
20 payment of principal, the accrued interest and premium, if
21 any, and cost of redemption of the bonds and notes for which
22 the obligations shall have been issued.
23 (6) Pending their application for the purposes
24 authorized, moneys held or deposited by the State Treasurer
25 may be invested or reinvested as are other funds in the
26 custody of the State Treasurer in the manner provided by law.
27 All earnings received from the investment or deposit of the
28 funds shall be paid into the State Treasury to the credit of
29 the fund. The earnings in excess of bond discounts allowed,
30 expenses paid for the issuance of bonds and notes and
20030S0048B0031 - 13 -
1 interest arbitrage rebates due to the Federal Government
2 shall be transferred annually to the fund. Any interest or
3 investment income shall be applied to assist in the payment
4 of the debt service incurred in connection with this act.
5 (7) The Auditor General shall prepare the necessary
6 registry book to be kept in the office of the duly authorized
7 loan and transfer agent of the Commonwealth for the
8 registration of any bonds, at the request of owners thereof,
9 according to the terms and conditions of issue directed by
10 the issuing officials.
11 (8) There is hereby appropriated to the State Treasurer
12 from the fund as much money as may be necessary for all costs
13 and expenses in connection with the issue of and sale and
14 registration of the bonds and notes in connection with this
15 act and the payment of interest arbitrage rebates or proceeds
16 of such bonds and notes.
17 (c) Temporary financing authorization.--
18 (1) Pending the issuance of bonds of the Commonwealth as
19 authorized, the issuing officials are hereby authorized, in
20 accordance with the provisions of this act and on the credit
21 of the Commonwealth, to make temporary borrowings not to
22 exceed three years in anticipation of the issue of bonds in
23 order to provide funds in such amounts as may, from time to
24 time, be deemed advisable prior to the issue of bonds. In
25 order to provide for and in connection with the temporary
26 borrowings, the issuing officials are hereby authorized in
27 the name and on behalf of the Commonwealth to enter into any
28 purchase, loan or credit agreement or agreements, or other
29 agreement or agreements with any banks or trust companies or
30 other lending institutions, investment banking firms or
20030S0048B0031 - 14 -
1 persons in the United States having power to enter into the
2 same, which agreements may contain provisions not
3 inconsistent with the provisions of this act as may be
4 authorized by the issuing officials.
5 (2) All temporary borrowings made under the
6 authorization of this section shall be evidenced by notes of
7 the Commonwealth, which shall be issued, from time to time,
8 for amounts not exceeding in the aggregate the applicable
9 statutory and constitutional debt limitation, in the form and
10 in the denominations and subject to terms and conditions of
11 sale and issue, prepayment or redemption and maturity, rate
12 or rates of interest and time of payment of interest as the
13 issuing officials shall authorize and direct and in
14 accordance with this act. The authorization and direction may
15 provide for the subsequent issuance of replacement notes to
16 refund outstanding notes or replacement notes, which
17 replacement notes shall, upon issuance thereof, evidence the
18 borrowing, and may specify other terms and conditions with
19 respect to the notes and replacement notes thereby authorized
20 for issuance as the issuing officials may determine and
21 direct.
22 (3) When the authorization and direction of the issuing
23 officials provide for the issuance of replacement notes, the
24 issuing officials are hereby authorized in the name and on
25 behalf of the Commonwealth to issue, enter into or authorize
26 and direct the State Treasurer to enter into agreements with
27 any banks, trust companies, investment banking firms or other
28 institutions or persons in the United States having the power
29 to enter the same:
30 (i) To purchase or underwrite an issue or series of
20030S0048B0031 - 15 -
1 issues or notes.
2 (ii) To credit, to enter into any purchase, loan or
3 credit agreements, to draw moneys pursuant to any such
4 agreements on the terms and conditions set forth therein
5 and to issue notes as evidence of borrowings made under
6 any such agreements.
7 (iii) To appoint as issuing and payment agent or
8 agents with respect to notes.
9 (iv) To do such other acts as may be necessary or
10 appropriate to provide for the payment, when due, of the
11 interest on and the principal of such notes. Such
12 agreements may provide for the compensation of any
13 purchasers or underwriters of notes or replacement notes
14 by discounting the purchase price of the notes or by
15 payment of a fixed fee or commission at the time of
16 issuance thereof, and all other costs and expenses,
17 including fees for agreements related to the notes,
18 issuing and paying agent costs and costs and expenses of
19 issuance, may be paid from the proceeds of the notes.
20 (4) When the authorization and direction of the issuing
21 officials provide for the issuance of replacement notes, the
22 State Treasurer shall, at or prior to the time of delivery of
23 these notes or replacement notes, determine the principal
24 amounts, dates of issue, interest rate or rates, or
25 procedures for establishing such rates from time to time,
26 rates of discount, denominations and all other terms and
27 conditions relating to the issuance and shall perform all
28 acts and things necessary to pay or cause to be paid, when
29 due, all principal of and interest on the notes being
30 refunded by replacement notes and to assure that the same may
20030S0048B0031 - 16 -
1 draw upon any moneys available for that purpose pursuant to
2 any purchase, loan or credit agreements established with
3 respect thereto, all subject to the authorization and
4 direction of the issuing officials.
5 (5) Outstanding notes evidencing such borrowings may be
6 funded and retired by the issuance and sale of the bonds of
7 the Commonwealth as hereinafter authorized. The refunding
8 bonds must be issued and sold not later than a date three
9 years after the date of issuance of the first notes
10 evidencing the borrowings to the extent that payment of such
11 notes has not otherwise been made or provided for by sources
12 other than proceeds of replacement notes.
13 (6) The proceeds of all such temporary borrowing shall
14 be paid to the State Treasurer to be held and disposed of in
15 accordance with the provisions of this act.
16 (d) Debt retirement.--
17 (1) All bonds issued under the authority of this act
18 shall be redeemed at maturity, together with all interest
19 due, from time to time, on the bonds, and these principal and
20 interest payments shall be paid from the Persian Gulf
21 Conflict Veterans' Compensation Bond Sinking Fund, which is
22 hereby created. For the specific purpose of redeeming the
23 bonds at maturity and paying all interest thereon in
24 accordance with the information received from the Governor,
25 the General Assembly shall appropriate moneys to the Persian
26 Gulf Conflict Veterans' Compensation Bond Sinking Fund for
27 the payment of interest on the bonds and notes and the
28 principal thereof at maturity. All moneys paid into the
29 Persian Gulf Conflict Veterans' Compensation Bond Sinking
30 Fund and all of the moneys not necessary to pay accruing
20030S0048B0031 - 17 -
1 interest shall be invested by the State Treasurer in such
2 securities as are provided by law for the investment of the
3 sinking funds of the Commonwealth.
4 (2) The State Treasurer, with the approval of the
5 Governor, is authorized at any time to use any of the moneys
6 in the fund not necessary for the purposes of the referendum
7 authorizing the indebtedness necessary to carry out this act,
8 for the purchase and retirement of all or any part of the
9 bonds and notes issued pursuant to the authorization of this
10 act. In the event that all or any part of the bonds and notes
11 are purchased, they shall be canceled and returned to the
12 loan and transfer agent as canceled and paid bonds and notes,
13 and thereafter all payments of interest thereon shall cease.
14 The canceled bonds, notes and coupons, together with any
15 other canceled bonds, notes and coupons, shall be destroyed
16 as promptly as possible after cancellation but not later than
17 two years after cancellation. A certification evidencing the
18 destruction of the canceled bonds, notes and coupons shall be
19 provided by the loan and transfer agent to the issuing
20 officials. All canceled bonds, notes and coupons shall be so
21 marked as to make the canceled bonds, notes and coupons
22 nonnegotiable.
23 (3) The State Treasurer shall determine and report to
24 the Secretary of the Budget by November 1 of each year the
25 amount of money necessary for the payment of interest on
26 outstanding obligations and the principal of the obligations,
27 if any, for the following fiscal year and the times and
28 amounts of the payments. It shall be the duty of the Governor
29 to include in every budget submitted to the General Assembly
30 full information relating to the issuance of bonds and notes
20030S0048B0031 - 18 -
1 under the provisions of this act and the status of the
2 Persian Gulf Conflict Veterans' Compensation Bond Sinking
3 Fund of the Commonwealth for the payment of interest on the
4 bonds and notes and the principal thereof at maturity.
5 (4) The General Assembly shall appropriate an amount
6 equal to the sums as may be necessary to meet repayment
7 obligations for principal and interest for deposit into the
8 Persian Gulf Conflict Veterans' Compensation Bond Sinking
9 Fund.
10 (e) Expiration.--Authorization to issue bonds and notes, not
11 including refunding bonds and replacement notes, for the purpose
12 of this act shall expire ten years from the effective date of
13 this section.
14 Section 13. Question.
15 (a) Submission of question to electorate.--The question of
16 incurring indebtedness of up to $16,000,000 for the purposes set
17 forth in this act shall be submitted to the electors at the next
18 primary, municipal or general election following enactment of
19 this act.
20 (b) Certification.--The Secretary of the Commonwealth shall
21 certify the question to the county boards of elections.
22 (c) Form of question.--The question shall be in
23 substantially the following form:
24 Do you favor indebtedness by the Commonwealth of up to
25 $16,000,000 for the payment of compensation for service
26 in the Persian Gulf Conflict?
27 (d) Election.--The election shall be conducted in accordance
28 with the act of June 3, 1937 (P.L.1333, No.320), known as the
29 Pennsylvania Election Code, except that the time limits for
30 advertisement of notice of the election may be waived as to the
20030S0048B0031 - 19 -
1 question.
2 (e) Proceeds.--Proceeds of the borrowing shall be used for
3 the payment of compensation for service in or in support of the
4 Persian Gulf Conflict.
5 Section 14. Appropriations.
6 (a) Compensation appropriation.--For the purpose of payment
7 for the compensation to eligible veterans, staff services,
8 postage and other necessary expenses incurred by the Adjutant
9 General in the administration of this compensation program, such
10 sums, or as much thereof as may be necessary, are specifically
11 appropriated to the Adjutant General out of any moneys which
12 have been deposited in the Persian Gulf Conflict Veterans'
13 Compensation Bond Fund.
14 (b) Continuing appropriations.--The appropriation under
15 subsection (a) shall be a continuing appropriation and shall not
16 lapse.
17 Section 15. Effective date.
18 This act shall take effect as follows:
19 (1) Section 13(a), (b), (c) and (d) shall take effect
20 immediately.
21 (2) The remainder of this act shall take effect upon the
22 certification of the approval by the electorate to incur the
23 indebtedness necessary to carry out the provisions of this
24 act.
L17L51DMS/20030S0048B0031 - 20 -