PRINTER'S NO. 1276
No. 1126 Session of 1991
INTRODUCED BY KENNEY, JOHNSON, MRKONIC, GEIST, ARMSTRONG,
DeLUCA, BELFANTI, BELARDI, STABACK, BARLEY, CLARK, ANGSTADT,
MAYERNIK, SAURMAN, PETRARCA, BUNT, LUCYK, DEMPSEY, HARPER,
O'BRIEN AND DONATUCCI, APRIL 10, 1991
REFERRED TO COMMITTEE ON MILITARY AND VETERANS AFFAIRS,
APRIL 10, 1991
AN ACT
1 Authorizing the issuance of bonds to fund programs of
2 compensation for veterans and prisoners of war of the Persian
3 Gulf Conflict.
4 TABLE OF CONTENTS
5 Section 1. Short title.
6 Section 2. Authority to borrow.
7 Section 3. Issuance of bonds.
8 Section 4. Sale of bonds.
9 Section 5. Refunding bonds.
10 Section 6. Disposition and use of proceeds.
11 Section 7. Registration of bonds.
12 Section 8. Information to General Assembly.
13 Section 9. Sinking fund.
14 Section 10. Retirement of bonds.
15 Section 11. Interest computations.
16 Section 12. Quorum.
17 Section 13. Referendum.
1 Section 14. Expenses of preparation, issue and sale of bonds.
2 Section 15. Administration.
3 Section 16. Effective date.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Short title.
7 This act shall be known and may be cited as the Persian Gulf
8 Conflict Veterans' Compensation Bond Act.
9 Section 2. Authority to borrow.
10 The Governor, the Auditor General and the State Treasurer are
11 hereby authorized and directed to borrow, on the credit of the
12 Commonwealth of Pennsylvania, the sum or sums of money not
13 exceeding in the aggregate, at any one time, the sum found
14 necessary by the Adjutant General and the Department of Military
15 Affairs to carry out the purposes of the act of
16 , (P.L. , No. ), known as the Persian Gulf
17 War Veterans' Compensation Act, and as further provided in the
18 act of , (P.L. , No. ), known as the Persian
19 Gulf Prisoner-of-War Veterans' Compensation Act.
20 Section 3. Issuance of bonds.
21 (a) Authorization.--As evidence of the indebtedness
22 authorized by this act, bonds of the Commonwealth of
23 Pennsylvania shall be issued from time to time for such total
24 amounts, in such form, in such denominations, and subject to
25 such terms and conditions of issue, redemption and maturity,
26 rate of interest, not to exceed 6% per annum, and time of
27 payment of interest, as the Governor, the Auditor General and
28 the State Treasurer shall direct.
29 (b) Signatures.--All bonds issued under the authority of
30 this act shall bear facsimile signatures of the Governor, the
19910H1126B1276 - 2 -
1 Auditor General and the State Treasurer, and a facsimile of the
2 seal of the Commonwealth of Pennsylvania, and shall
3 countersigned by two duly authorized officers of the duly
4 authorized loan and transfer agents of the Commonwealth.
5 (c) Payment of principle and interest.--The principle and
6 interest of such bonds shall be payable in lawful money of the
7 Unites States.
8 (d) Exemption from taxation.--All bonds issued under the
9 provisions of this act shall be exempt from taxation for State
10 and local purposes.
11 (e) Interest coupons.--The bonds may be issued with or
12 without interest coupons attached. In case interest coupons are
13 attached, they shall contain facsimile signatures of the State
14 Treasurer and the Auditor General.
15 (f) Preparation of bonds.--The Governor, the Auditor General
16 and the State Treasurer shall proceed to have the necessary
17 bonds prepared and printed. The bonds, as soon as they are
18 prepared and printed, shall be forthwith deposited with the duly
19 authorized loan and transfer agent of the Commonwealth, there to
20 remain until sold in accordance with the provisions of this act.
21 Section 4. Sale of bonds.
22 (a) Advertisement and competitive bidding.--Whenever bonds
23 are so issued, they shall be offered for sale at not less than
24 98% of the principle amount and accrued interest and shall be
25 sold by the Governor, the Auditor General and State Treasurer to
26 the highest and best bidder or bidders after due public
27 advertisement, on such terms and conditions and upon such open
28 competitive bidding as the Governor, the Auditor general and the
29 State Treasurer shall direct. The manner and character of such
30 advertisement and the times of advertising shall be prescribed
19910H1126B1276 - 3 -
1 by the Governor, the Auditor General and the State Treasurer.
2 (b) Private sale of portion of bond issue.--Any portion of
3 any bond issue so offered and not sold or subscribed for may be
4 disposed of by private sale by the Governor, the Auditor general
5 and the State Treasurer, in such manner and at such prices, not
6 less than 98% of the principle amount and accrued interest, as
7 the Governor shall direct. No commission shall be allowed or
8 paid for the sale of any bonds issued under the authority of
9 this act.
10 (c) Separate or combination sale.--When bonds are issued
11 from time to time, the bonds of each issue shall constitute a
12 separate series to be designated by the issuing officials or may
13 be combined for sale as one series with other general obligation
14 bonds of the Commonwealth.
15 Section 5. Refunding bonds.
16 The Governor, the Auditor General and the State Treasurer are
17 hereby authorized to provide, by resolution, for the issuance of
18 refunding bonds for the purpose of refunding any bonds issued
19 under the provisions of this act and then outstanding, either by
20 voluntary exchange with the holders of the outstanding bonds, or
21 to provide funds to redeem and retire the outstanding bonds with
22 accrued interest and any premium payable on the bonds, at
23 maturity or at any called date. The issuance of refunding bonds,
24 the maturities and other details of the refunding bonds, the
25 rights of the holders thereof, and the duties of the Governor,
26 the Auditor General and the State Treasurer in respect to the
27 refunding bonds, shall be governed by sections 3 and 4.
28 Refunding bonds may be issued by the Governor, the Auditor
29 General and the State Treasurer to refund bonds orginally issued
30 or to refund bonds previously issued for refunding purposes.
19910H1126B1276 - 4 -
1 Section 6. Disposition and use of proceeds.
2 The proceeds realized from the sale of bonds under the
3 provisions of this act shall be paid into a special fund in the
4 State Treasury, hereby created, to be known as the Persian Gulf
5 War Veterans' Compensation Fund, and shall be used for the
6 payment of compensation to certain veterans as provided for in
7 the act of , (P.L. , No. ), known as the
8 Persian Gulf War Veterans' Compensation Act, and as further
9 provided in the act of , (P.L. , No. ),
10 known as the Persian Gulf Prisoner-of-War Veterans' Compensation
11 Act.
12 Section 7. Registration of bonds.
13 The Auditor General shall prepare the necessary registry book
14 to be kept in the office of the duly authorized loan and
15 transfer agency of the Commonwealth for the registration of any
16 bonds, at the request of bond owners, according to the terms and
17 conditions of issue directed by the Governor, the Auditor
18 General and the State Treasurer under section 3. All bonds which
19 are issued without interest coupons attached shall be registered
20 in the registry books kept by the duly authorized loan and
21 transfer agent of the Commonwealth.
22 Section 8. Information to General Assembly.
23 It shall be the duty of the Governor to include, in every
24 budget submitted to the General Assembly, full information
25 relating to the issuance of bonds under this act, and the status
26 of the sinking fund of the Commonwealth for the payment of the
27 interest on bonds and principle of the bonds at maturity.
28 Section 9. Sinking fund.
29 All bonds issued under the authority of this act shall be
30 redeemed at maturity and all interest due from time to time on
19910H1126B1276 - 5 -
1 such bonds shall be paid from the Persian Gulf War Veterans'
2 Compensation Sinking Fund. For the specific purpose of redeeming
3 the bonds at maturity and paying all interest on the bonds in
4 accordance with the information received from the Governor, the
5 General Assembly shall appropriate moneys to the Persian Gulf
6 War Veterans' Compensation Sinking Fund for the payment of
7 interest on bonds and the principle of bonds at maturity. All
8 moneys appropriated for these purposes shall be paid into the
9 Persian Gulf War Veterans' Compensation Sinking Fund by the
10 State Treasurer, and all moneys not necessary to pay accruing
11 interest shall be invested by the Board of Finance and Revenue
12 in such securities as are provided by law for the investment of
13 the sinking funds of the Commonwealth.
14 Section 10. Retirement of bonds.
15 The Board of Finance and Revenue is authorized at any time to
16 use any of the moneys in the Persian Gulf War Veterans'
17 Compensation Fund not necessary for the payment of compensation
18 to veterans in accordance with the provisions of the act of
19 , (P.L. , No. ), known as the Persian Gulf
20 War Veterans' Compensation Act, and further provided in the act
21 of , (P.L. , No. ), known as the Persian Gulf
22 Prisoner-of-War Veterans' Compensation Act, for the purchase and
23 retirement of all or any part of the bonds issued under the
24 authority of this act. In the event that all or any part of the
25 bonds shall be purchased by the Board of Finance and Revenue,
26 they shall be canceled and returned to the State Treasurer as
27 canceled and paid bonds, and thereafter, all payments of
28 interest on the bonds shall cease, and the canceled bonds and
29 coupons shall be destroyed within two years after cancellation
30 in the presence of the Governor, the Auditor General and the
19910H1126B1276 - 6 -
1 State Treasurer, and a certificate evidencing the destruction,
2 satisfactory to the duly authorized loans and transfer agent of
3 the Commonwealth shall be furnished to it. All canceled bonds
4 and coupons shall be so marked as to make the canceled bonds and
5 coupons nonnegotiable.
6 Section 11. Interest computations.
7 The Governor, the Auditor General and the State Treasurer
8 shall determine the amount of money necessary for the payment of
9 interest on the bonds and the principle of the bonds, if any,
10 and the times of such payments.
11 Section 12. Quorum.
12 Whenever in this act any action is to be taken or decisions
13 made by the Governor, the Auditor General and the State
14 Treasurer, and the three officers shall not be able unanimously
15 to agree, the action or decision of the Governor and either the
16 Auditor General or the State Treasurer shall be binding and
17 final, except it shall be the mandatory duty of the governor,
18 the Auditor General and the State Treasurer to issue bonds in
19 accordance with law in such time that timely payment of
20 compensation to veterans, as provided for in the act of
21 , (P.L. , No. ), known as the Persian Gulf
22 War Veterans' Compensation Act, and further provided in the act
23 of , (P.L. , No.), known as the Persian Gulf
24 Prisoner-of-War Veterans' Compensation Act, may be made.
25 Section 13. Referendum.
26 The question whether the debt shall be increased shall be
27 submitted to the electors at the next Statewide primary or
28 municipal election held in this Commonwealth after the question
29 has been published by the Secretary of the Commonwealth in at
30 least two newspapers in every country where two newspapers are
19910H1126B1276 - 7 -
1 published.
2 Section 14. Expenses of preparation, issue and sale of bonds.
3 There is hereby transferred from the General Fund to the
4 Persian Gulf War Veterans' Compensation Fund the sum of $
5 . The State Treasurer is hereby authorized to expend
6 such amounts as are approved by the Governor, the Auditor
7 General and the State Treasurer for the purpose of providing the
8 bonds and for the payment of costs of advertising the bonds and
9 for payment of the compensation of the loan and transfer agent
10 and for all other costs and expenses in connection with the
11 issue of and sale and registration of bonds in connection with
12 the act of , (P.L. , No. ), known as the
13 Persian Gulf War Veterans' Compensation Act, and further
14 provided for in the Persian Gulf Prisoner-of-War Veterans'
15 Compensation Act. The amount transferred from the General Fund
16 shall be paid from the Persian Gulf War Veterans' Compensation
17 Fund into the General Fund from the receipts of the sale of the
18 bonds. As much of the money in the Persian Gulf War Veterans'
19 Compensation Fund as may be necessary is hereby appropriated for
20 this purpose.
21 Section 15. Administration.
22 There is hereby transferred from the General Fund to the
23 Persian Gulf War Veterans' Compensation Fund the sum of $
24 . The Adjutant General is hereby authorized to expend
25 such amounts as are approved by the Governor, the Auditor
26 General and the State Treasurer for the purpose of the payment
27 of salaries and expenses necessary for the proper administration
28 of the act of , (P.L. , No. ), known as the
29 Persian Gulf War Veterans' Compensation Act, and for the further
30 administration of the act of , (P.L. , No. ),
19910H1126B1276 - 8 -
1 known as the Persian Gulf Prisoner-of-War Veterans' Compensation
2 Act. The amount transferred from the General Fund shall be
3 repaid from the Persian Gulf War Veterans' Compensation Fund
4 into the General Fund from the receipts of the sale of the
5 bonds. As much of the money in the Persian Gulf War Veterans'
6 Compensation Fund as may be necessary is hereby appropriated for
7 this purpose.
8 Section 16. Effective date.
9 This act shall take effect immediately.
C15L51JS/19910H1126B1276 - 9 -