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        PRIOR PRINTER'S NO. 2422                      PRINTER'S NO. 2675

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1820 Session of 2005


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

        AS REPORTED FROM COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY
           PREPAREDNESS, HOUSE OF REPRESENTATIVES, AS AMENDED,
           SEPTEMBER 26, 2005

                                     AN ACT

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


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

     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.
    18  Section 8.  Penalty for charging fees for assisting veterans.
    19  Section 9.  Administration of compensation program.
    20  Section 10.  Payment of compensation.
    21  Section 11.  Persian Gulf Conflict Veterans' Compensation Bond
    22                 Fund.
    23  Section 12.  Commonwealth indebtedness.
    24  Section 13.  Question.
    25  Section 14.  Appropriations.
    26  Section 15.  Repeal.
    27  Section 16.  Effective date.
    28     The General Assembly of the Commonwealth of Pennsylvania
    29  hereby enacts as follows:
    30  Section 1.  Short title.
    31     This act shall be known and may be cited as the Persian Gulf
    32  Conflict Veterans' Benefit Act.
    33  Section 2.  Definitions.

    20050H1820B2675                  - 2 -     

     1     The following words and phrases when used in this act shall
     2  have the meanings given to them in this section unless the
     3  context clearly indicates otherwise:
     4     "Active service."  For a member of a component of the armed
     5  forces of the United States, the time served on active duty for
     6  which the member has received or is eligible to receive the
     7  Southwest Asia Service Medal for service related to the Persian
     8  Gulf Conflict Theater; for a member of the Pennsylvania National
     9  Guard or a reserve component of the armed forces of the United
    10  States, time served on active duty for the support of operations
    11  in the Persian Gulf Conflict Theater whether or not that service
    12  was in the theater. The term includes time spent in hospitals as
    13  a result of service-connected wounds, diseases or injuries
    14  sustained on active service. Proof of such service shall be the
    15  official military records of the United States or such other
    16  evidence as is deemed sufficient by the Adjutant General. The
    17  term does not include time served on active duty for annual
    18  training or schooling, except for training and schooling in
    19  preparation for active duty in the Persian Gulf Conflict
    20  Theater.
    21     "Fund."  The Persian Gulf Conflict Veterans' Compensation
    22  Bond Fund.
    23     "Issuing officials."  The Governor, the Auditor General and
    24  the State Treasurer.
    25     "Legal resident of this Commonwealth."  A member of the
    26  United States Armed Forces, the reserve component of the United
    27  States Armed Forces or the Pennsylvania National Guard whose
    28  home of record at the time of the Persian Gulf Conflict was this
    29  Commonwealth or any specific place in this Commonwealth without
    30  regard to the place of enlistment, commission or induction. The
    20050H1820B2675                  - 3 -     

     1  proof of such residence shall be the official records of the
     2  United States or such other evidence as is deemed sufficient by
     3  the Adjutant General.
     4     "Persian Gulf Conflict Theater."  The area defined as the
     5  Persian Gulf Conflict Theater of Operations as established by
     6  the United States Department of Defense for the awarding of the
     7  Southwest Asia Service Medal for the period of time from August
     8  2, 1990, through August 31, 1991.
     9     "Veteran."  A member of the armed forces of the United
    10  States, including a member of the Army National Guard of the
    11  United States, the Air National Guard of the United States or a
    12  reserve component of the armed forces, who was ordered into or
    13  volunteered to serve on active duty in the Persian Gulf Theater
    14  of operations during the period from August 2, 1990, to August
    15  31, 1991, and has received the Southwest Asia Service Medal
    16  (SWASM) established by executive order 12754, 12 March 1991.
    17  This term shall not include:
    18         (1)  any individual who, at any time during the Persian
    19     Gulf Conflicts or thereafter, was separated from the armed
    20     forces under other than honorable conditions; and
    21         (2)  any individual who has renounced his United States
    22     citizenship.
    23  Section 3.  Computation of compensation.
    24     (a)  Eligibility.--Compensation shall be payable under this
    25  act only to each veteran who was a legal resident of this
    26  Commonwealth.
    27     (b)  Compensation for service in the Persian Gulf.--
    28  Compensation shall be payable on the basis of $75 for the first
    29  month of eligibility with a minimum of one day of active
    30  service; thereafter, it shall be computed on the basis of $75
    20050H1820B2675                  - 4 -     

     1  for each month or major fraction thereof.
     2     (c)  Compensation on behalf of deceased veteran.--In addition
     3  to any other compensation authorized under this section, the
     4  compensation on behalf of a veteran who died in active service
     5  or as a result of service-connected wounds, diseases or injuries
     6  sustained during active service shall be $5,000.
     7     (d)  Compensation of prisoner of war.--In addition to any
     8  compensation under the other provisions of this section, the
     9  compensation of a veteran who was declared a prisoner of war,
    10  regardless of the length of time spent as a prisoner of war,
    11  shall, upon return, be $5,000.
    12     (e)  Total amount of compensation.--The compensation provided
    13  for active service under subsection (b) shall be not less than
    14  $75 and not more than $525.
    15     (f)  Exclusion from compensation.--Any individual who has
    16  received a bonus, gratuity or compensation of a nature similar
    17  to that provided for by this act from any other state in the
    18  United States is ineligible for compensation. This exclusion
    19  does not apply to a similar bonus, gratuity or compensation from
    20  the Federal Government.
    21  Section 4.  Application for compensation.
    22     (a)  Application to Adjutant General.--Applications shall be
    23  made by a veteran, the facility entitled under section 5(a) or
    24  the beneficiaries designated under section 5(b). The Adjutant
    25  General shall ascertain the applicants who are veterans and, as
    26  to each veteran, the number of months of service for which the
    27  veteran is entitled to receive compensation.
    28     (b)  Time for filing application.--The Adjutant General shall
    29  not accept or consider any application filed after August 31,
    30  2015.
    20050H1820B2675                  - 5 -     

     1  Section 5.  Persons to whom payments shall be made in case of
     2                 incompetence or death.
     3     (a)  Incompetence.--In a case where the veteran is
     4  incompetent, if no guardian has been appointed, payment shall be
     5  made for the benefit of the veteran to the person who is
     6  entitled to payment under subsection (b) or, in the absence of
     7  any such person and if the veteran is in a facility, to the
     8  person in charge of the facility to be expended for the clothing
     9  and incidental needs of the veteran. No part of the compensation
    10  paid to any facility shall be used for the maintenance of the
    11  veteran. A statement from the person in charge of the facility
    12  in which the veteran resides shall be evidence to determine the
    13  competence of the veteran.
    14     (b)  Death.--In the case of the death of a veteran, payment
    15  shall be made, in the order named, to the:
    16         (1)  surviving spouse unless the spouse was living
    17     separate and apart from the veteran at the time of departure
    18     for active service;
    19         (2)  surviving children, share and share alike; or
    20         (3)  surviving parents.
    21     (c)  Definitions.--As used in this section, the following
    22  words and phrases shall have the meanings given to them in this
    23  subsection:
    24     "Facility."  Any mental health establishment, hospital,
    25  clinic, institution, center, day-care center, base service unit,
    26  community mental health center or other organizational unit, or
    27  part thereof, which is devoted primarily to the diagnosis,
    28  treatment, care, rehabilitation or detention of mentally
    29  disabled persons.
    30     "Parents."  Includes persons who, for a period of not less
    20050H1820B2675                  - 6 -     

     1  than one year, acted in the capacity of a foster parent to the
     2  veteran immediately prior to the veteran having attained 18
     3  years of age.
     4  Section 6.  Applicant to designate beneficiaries.
     5     Every person making application for compensation shall set
     6  forth in the application the names and addresses of all persons
     7  who, under this act, would be entitled to receive compensation
     8  in the event of the death of the applicant. If the applicant
     9  dies before the payment of the compensation, the application
    10  shall be deemed to inure to the benefit of the person next
    11  entitled to compensation, and payment shall be made to the
    12  person upon proof of identity satisfactory to the Adjutant
    13  General. If no person designated in this act as being entitled
    14  to compensation survives the veteran, the right to the
    15  compensation shall cease.
    16  Section 7.  Exemption from attachment.
    17     No sum payable under this act to a veteran or to any other
    18  person under this act shall be subject to attachment, levy or
    19  seizure under any legal or equitable process and shall be exempt
    20  from all State taxation. No right to compensation under this act
    21  shall be assignable, except as otherwise provided in this act,
    22  or shall serve as a security for any loan. Any assignment or
    23  loan made in violation of this section shall be void.
    24  Assignments to any incorporated or unincorporated organization
    25  of veterans, any nonprofit corporation formed solely for the
    26  purpose of aiding disabled or incapacitated veterans and the
    27  State Veterans' Commission shall be valid.
    28  Section 8.  Penalty for charging fees for assisting veterans.
    29     A person who charges or collects or attempts to charge or
    30  collect, either directly or indirectly, any fee or other
    20050H1820B2675                  - 7 -     

     1  compensation for assisting, in any manner, a veteran in
     2  obtaining any of the benefits provided under this act commits a
     3  misdemeanor of the second degree.
     4  Section 9.  Administration of compensation program.
     5     The Adjutant General shall administer the compensation
     6  program. For that purpose application forms shall be prepared
     7  and distributed, applications shall be investigated, and, if
     8  satisfied of the proof of an application, compensation shall be
     9  approved and payment of compensation shall be made. The Adjutant
    10  General shall promulgate rules and regulations to implement,
    11  administer and enforce this act. The Adjutant General shall, as
    12  soon as practicable after the effective date of this act,
    13  prepare and distribute a digest explaining the provisions of
    14  this act to assist veterans in filing their applications and
    15  shall from time to time prepare and distribute additional or
    16  supplementary information as may be found necessary. The
    17  Adjutant General shall enlist, as far as possible, the services
    18  of veteran organizations in this Commonwealth in the
    19  dissemination of the information.
    20  Section 10.  Payment of compensation.
    21     The compensation payable under this act shall, upon
    22  requisition by the Adjutant General, be paid by the State
    23  Treasurer from the fund to be created with funds realized from a
    24  proposed bond issue. Payments shall be made as soon as possible
    25  after funds are available.
    26  Section 11.  Persian Gulf Conflict Veterans' Compensation Bond
    27                 Fund.
    28     (a)  Purpose of fund.--The Persian Gulf Conflict Veterans'
    29  Compensation Bond Fund, which is hereby created in the State
    30  Treasury, shall be the source from which all payments are
    20050H1820B2675                  - 8 -     

     1  authorized with the approval of the Governor to carry out the
     2  purposes of this act. The moneys in the fund shall only be
     3  utilized:
     4         (1)  For the purpose of providing compensation to
     5     veterans in accordance with the provisions of this act.
     6         (2)  For payment of the cost of designing and              <--
     7     constructing a patriotic monument or memorial in appreciation
     8     of veterans of this Commonwealth.
     9         (3)  (2)  For the administrative costs incurred in any of  <--
    10     the purposes in paragraph (1) or (2), including the costs      <--
    11     incurred in connection with the issuance of the bonds.
    12     (b)  Interfund transfers authorized.--
    13         (1)  Whenever the cash balance and the current estimated
    14     receipts of the fund shall be insufficient at any time during
    15     any State fiscal year to meet promptly the obligations of the
    16     Commonwealth from such fund, the State Treasurer is hereby
    17     authorized and directed, from time to time during such fiscal
    18     year, to transfer from the General Fund to the fund such sums
    19     as the Governor directs, but in no case less than the amount
    20     necessary to meet promptly the obligations to be paid from
    21     the fund nor more than an amount which is the smallest of:
    22             (i)  the difference between the amount of debt
    23         authorized to be issued under the authority of this act
    24         and the aggregate principal amount of bonds and notes
    25         issued, not including refunding bonds and replacement
    26         notes; and
    27             (ii)  the difference between the aggregate principal
    28         amount of bonds and notes to be issued during a State
    29         fiscal year and the aggregate principal amount of bonds
    30         and notes, not including refunding bonds and replacement
    20050H1820B2675                  - 9 -     

     1         notes, issued during such State fiscal year.
     2     Any sums so transferred shall be available only for the
     3     purposes for which funds are appropriated from the fund. The
     4     transfers shall be made under this section upon warrant of
     5     the State Treasurer upon requisition of the Governor.
     6         (2)  In order to reimburse the General Fund for moneys
     7     transferred from such funds under paragraph (1), there shall
     8     be transferred to the General Fund from the fund moneys from
     9     the proceeds obtained from bonds and notes issued under the
    10     authority of this act or from other available funds in such
    11     amounts and at such times as the Governor shall direct. The
    12     retransfers shall be made upon warrant of the State Treasurer
    13     upon requisition of the Governor.
    14  Section 12.  Commonwealth indebtedness.
    15     (a)  Borrowing authorized.--
    16         (1)  If and when the electorate approves a referendum
    17     question for the incurring of indebtedness in the amount and
    18     for the purposes prescribed in this act, the issuing
    19     officials, pursuant to the provisions of section 7(a)(3) of
    20     Article VIII of the Constitution of Pennsylvania, are
    21     authorized and directed to borrow, on the credit of the
    22     Commonwealth, money not exceeding in the aggregate the sum of
    23     $20,000,000, not including money borrowed to refund
    24     outstanding bonds, notes or replacement notes, as may be
    25     found necessary to carry out the purposes of this act.
    26         (2)  As evidence of the indebtedness, general obligation
    27     bonds of the Commonwealth shall be issued from time to time
    28     to provide moneys necessary to carry out the purposes of this
    29     act for such total amounts, in such form, in such
    30     denominations and subject to such terms and conditions of
    20050H1820B2675                 - 10 -     

     1     issue, redemption and maturity, rate of interest and time of
     2     payment of interest as the issuing officials direct, except
     3     that the latest stated maturity date shall not exceed 20
     4     years from the date of the first obligation issued to
     5     evidence the debt.
     6         (3)  All bonds and notes issued under the authority of
     7     this act shall bear facsimile signatures of the issuing
     8     officials and a facsimile of the Great Seal of the
     9     Commonwealth and shall be countersigned by a duly authorized
    10     officer of a duly authorized loan and transfer agent of the
    11     Commonwealth.
    12         (4)  All bonds and notes issued in accordance with the
    13     provisions of this section shall be direct obligations of the
    14     Commonwealth, and the full faith and credit of the
    15     Commonwealth is hereby pledged for the payment of the
    16     interest thereon, as it becomes due, and the payment of the
    17     principal at maturity. The principal of and interest on the
    18     bonds and notes shall be payable in lawful money of the
    19     United States.
    20         (5)  All bonds and notes issued under the provisions of
    21     this section shall be exempt from taxation for State and
    22     local purposes.
    23         (6)  The bonds may be issued as coupon bonds or
    24     registered as to both principal and interest as the issuing
    25     officials may determine. If interest coupons are attached,
    26     they shall contain the facsimile signature of the State
    27     Treasurer.
    28         (7)  The issuing officials shall provide for the
    29     amortization of the bonds in substantial and regular amounts
    30     over the term of the debt so that the bonds of each issue
    20050H1820B2675                 - 11 -     

     1     allocated to the programs to be funded from the bond issue
     2     shall mature within a period not to exceed the appropriate
     3     amortization period for each program as specified by the
     4     issuing officials but in no case in excess of 20 years. The
     5     first retirement of principal shall be stated to mature prior
     6     to the expiration of a period of time equal to one-tenth of
     7     the time from the date of the first obligation issued to
     8     evidence the debt to the date of the expiration of the term
     9     of the debt. Retirements of principal shall be regular and
    10     substantial if made in annual or semiannual amounts whether
    11     by stated serial maturities or by mandatory sinking fund
    12     retirements.
    13         (8)  The issuing officials are authorized to provide by
    14     resolution for the issuance of refunding bonds for the
    15     purpose of refunding any debt issued under the provisions of
    16     this act and then outstanding, either by voluntary exchange
    17     with the holders of the outstanding debt or providing funds
    18     to redeem and retire the outstanding debt with accrued
    19     interest, any premium payable thereon and the costs of
    20     issuance and retirement of the debt, at maturity or at any
    21     call date. The issuance of the refunding bonds, the
    22     maturities and other details thereof, the rights of the
    23     holders thereof and the duties of the issuing official in
    24     respect thereto shall be governed by the provisions of this
    25     section, insofar as they may be applicable. Refunding bonds,
    26     which are not subject to the aggregate limitation of
    27     $20,000,000 of debt to be issued under this act, may be
    28     issued by the issuing officials to refund debt originally
    29     issued or to refund bonds previously issued for refunding
    30     purposes.
    20050H1820B2675                 - 12 -     

     1         (9)  Whenever any action is to be taken or decision made
     2     by the Governor, the Auditor General and the State Treasurer
     3     acting as issuing officials and the three officers are not
     4     able unanimously to agree, the action or decision of the
     5     Governor and either the Auditor General or the State
     6     Treasurer shall be binding and final.
     7     (b)  Sale of bonds.--
     8         (1)  Whenever bonds are issued, they shall be offered for
     9     sale at not less than 98% of the principal amount and accrued
    10     interest and shall be sold by the issuing officials to the
    11     highest and best bidder or bidders after due public
    12     advertisement on the terms and conditions and upon such open
    13     competitive bidding as the issuing officials shall direct.
    14     The manner and character of the advertisement and the time of
    15     advertising shall be prescribed by the issuing officials. No
    16     commission shall be allowed or paid for the sale of any bonds
    17     issued under the authority of this act.
    18         (2)  Any portion of any bond issue so offered and not
    19     sold or subscribed for at public sale may be disposed of by
    20     private sale by the issuing officials in such manner and at
    21     such prices, not less than 98% of the principal amount and
    22     accrued interest, as the Governor shall direct. No commission
    23     shall be allowed or paid for the sale of any bonds issued
    24     under the authority of this act.
    25         (3)  When bonds are issued from time to time, the bonds
    26     of each issue shall constitute a separate series to be
    27     designated by the issuing officials or may be combined for
    28     sale as one series with other general obligation bonds of the
    29     Commonwealth.
    30         (4)  Until permanent bonds can be prepared, the issuing
    20050H1820B2675                 - 13 -     

     1     officials may in their discretion issue, in lieu of permanent
     2     bonds, temporary bonds in such form and with such privileges
     3     as to registration and exchange for permanent bonds as may be
     4     determined by the issuing officials.
     5         (5)  The proceeds realized from the sale of bonds and
     6     notes, except refunding bonds and replacement notes, under
     7     the provisions of this act shall be paid into the fund. The
     8     proceeds shall be paid by the State Treasurer periodically to
     9     those Commonwealth officers and Commonwealth agencies
    10     authorized to expend them at such times and in such amounts
    11     as may be necessary to satisfy the funding needs thereof. The
    12     proceeds of the sale of refunding bonds and replacement notes
    13     shall be paid to the State Treasurer and applied to the
    14     payment of principal, the accrued interest and premium, if
    15     any, and cost of redemption of the bonds and notes for which
    16     the obligations shall have been issued.
    17         (6)  Pending their application for the purposes
    18     authorized, moneys held or deposited by the State Treasurer
    19     may be invested or reinvested as are other funds in the
    20     custody of the State Treasurer in the manner provided by law.
    21     All earnings received from the investment or deposit of the
    22     funds shall be paid into the State Treasury to the credit of
    23     the fund. The earnings in excess of bond discounts allowed,
    24     expenses paid for the issuance of bonds and notes and
    25     interest arbitrage rebates due to the Federal Government
    26     shall be transferred annually to the fund. Any interest or
    27     investment income shall be applied to assist in the payment
    28     of the debt service incurred in connection with this act.
    29         (7)  The Auditor General shall prepare the necessary
    30     registry book to be kept in the office of the duly authorized
    20050H1820B2675                 - 14 -     

     1     loan and transfer agent of the Commonwealth for the
     2     registration of any bonds, at the request of owners thereof,
     3     according to the terms and conditions of issue directed by
     4     the issuing officials.
     5         (8)  There is hereby appropriated to the State Treasurer
     6     from the fund as much money as may be necessary for all costs
     7     and expenses in connection with the issue of and sale and
     8     registration of the bonds and notes in connection with this
     9     act and the payment of interest arbitrage rebates or proceeds
    10     of such bonds and notes.
    11     (c)  Temporary financing authorization.--
    12         (1)  Pending the issuance of bonds of the Commonwealth as
    13     authorized, the issuing officials are hereby authorized, in
    14     accordance with the provisions of this act and on the credit
    15     of the Commonwealth, to make temporary borrowings not to
    16     exceed three years in anticipation of the issue of bonds in
    17     order to provide funds in such amounts as may from time to
    18     time be deemed advisable prior to the issue of bonds. In
    19     order to provide for and in connection with the temporary
    20     borrowings, the issuing officials are hereby authorized in
    21     the name and on behalf of the Commonwealth to enter into any
    22     purchase, loan or credit agreement or agreements, or other
    23     agreement or agreements with any banks or trust companies or
    24     other lending institutions, investment banking firms or
    25     persons in the United States having power to enter into the
    26     same, which agreements may contain provisions not
    27     inconsistent with the provisions of this act as may be
    28     authorized by the issuing officials.
    29         (2)  All temporary borrowings made under the
    30     authorization of this section shall be evidenced by notes of
    20050H1820B2675                 - 15 -     

     1     the Commonwealth which shall be issued from time to time for
     2     amounts not exceeding in the aggregate the applicable
     3     statutory and constitutional debt limitation in the form and
     4     in the denominations and subject to terms and conditions of
     5     sale and issue, prepayment or redemption and maturity, rate
     6     or rates of interest and time of payment of interest as the
     7     issuing officials shall authorize and direct and in
     8     accordance with this act. The authorization and direction may
     9     provide for the subsequent issuance of replacement notes to
    10     refund outstanding notes or replacement notes, which
    11     replacement notes shall, upon issuance thereof, evidence the
    12     borrowing and may specify other terms and conditions with
    13     respect to the notes and replacement notes thereby authorized
    14     for issuance as the issuing officials may determine and
    15     direct.
    16         (3)  When the authorization and direction of the issuing
    17     officials provide for the issuance of replacement notes, the
    18     issuing officials are hereby authorized in the name and on
    19     behalf of the Commonwealth to issue, enter into or authorize
    20     and direct the State Treasurer to enter into agreements with
    21     any banks, trust companies, investment banking firms or other
    22     institutions or persons in the United States having the power
    23     to enter the same:
    24             (i)  To purchase or underwrite an issue or series of
    25         issues or notes.
    26             (ii)  To credit, to enter into any purchase, loan or
    27         credit agreements, to draw moneys pursuant to any such
    28         agreements on the terms and conditions set forth therein
    29         and to issue notes as evidence of borrowings made under
    30         any such agreements.
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     1             (iii)  To appoint as issuing and payment agent or
     2         agents with respect to notes.
     3             (iv)  To do such other acts as may be necessary or
     4         appropriate to provide for the payment, when due, of the
     5         interest on and the principal of such notes. Such
     6         agreements may provide for the compensation of any
     7         purchasers or underwriters of notes or replacement notes
     8         by discounting the purchase price of the notes or by
     9         payment of a fixed fee or commission at the time of
    10         issuance thereof, and all other costs and expenses,
    11         including fees for agreements related to the notes,
    12         issuing and paying agent costs and costs and expenses of
    13         issuance, may be paid from the proceeds of the notes.
    14         (4)  When the authorization and direction of the issuing
    15     officials provide for the issuance of replacement notes, the
    16     State Treasurer shall, at or prior to the time of delivery of
    17     these notes or replacement notes, determine the principal
    18     amounts, dates of issue, interest rate or rates, or
    19     procedures for establishing such rates from time to time,
    20     rates of discount, denominations and all other terms and
    21     conditions relating to the issuance and shall perform all
    22     acts and things necessary to pay or cause to be paid, when
    23     due, all principal of and interest on the notes being
    24     refunded by replacement notes and to assure that the same may
    25     draw upon any moneys available for that purpose pursuant to
    26     any purchase, loan or credit agreements established with
    27     respect thereto, all subject to the authorization and
    28     direction of the issuing officials.
    29         (5)  Outstanding notes evidencing such borrowings may be
    30     funded and retired by the issuance and sale of the bonds of
    20050H1820B2675                 - 17 -     

     1     the Commonwealth as hereinafter authorized. The refunding
     2     bonds must be issued and sold not later than a date three
     3     years after the date of issuance of the first notes
     4     evidencing the borrowings to the extent that payment of such
     5     notes has not otherwise been made or provided for by sources
     6     other than proceeds of replacement notes.
     7         (6)  The proceeds of all such temporary borrowing shall
     8     be paid to the State Treasurer to be held and disposed of in
     9     accordance with the provisions of this act.
    10     (d)  Debt retirement.--
    11         (1)  All bonds issued under the authority of this act
    12     shall be redeemed at maturity, together with all interest due
    13     from time to time on the bonds, and these principal and
    14     interest payments shall be paid from the Persian Gulf
    15     Conflict Veterans' Compensation Bond Sinking Fund, which is
    16     hereby created. For the specific purpose of redeeming the
    17     bonds at maturity and paying all interest thereon in
    18     accordance with the information received from the Governor,
    19     the General Assembly shall appropriate moneys to the Persian
    20     Gulf Conflict Veterans' Compensation Bond Sinking Fund for
    21     the payment of interest on the bonds and notes and the
    22     principal thereof at maturity. All moneys paid into the
    23     Persian Gulf Conflict Veterans' Compensation Bond Sinking
    24     Fund and all of the moneys not necessary to pay accruing
    25     interest shall be invested by the State Treasurer in such
    26     securities as are provided by law for the investment of the
    27     sinking funds of the Commonwealth.
    28         (2)  The State Treasurer, with the approval of the
    29     Governor, is authorized at any time to use any of the moneys
    30     in the fund not necessary for the purposes of the referendum
    20050H1820B2675                 - 18 -     

     1     authorizing the indebtedness necessary to carry out this act,
     2     for the purchase and retirement of all or any part of the
     3     bonds and notes issued pursuant to the authorization of this
     4     act. In the event that all or any part of the bonds and notes
     5     are purchased, they shall be canceled and returned to the
     6     loan and transfer agent as canceled and paid bonds and notes,
     7     and, thereafter, all payments of interest thereon shall
     8     cease. The canceled bonds, notes and coupons, together with
     9     any other canceled bonds, notes and coupons, shall be
    10     destroyed as promptly as possible after cancellation but not
    11     later than two years after cancellation. A certification
    12     evidencing the destruction of the canceled bonds, notes and
    13     coupons shall be provided by the loan and transfer agent to
    14     the issuing officials. All canceled bonds, notes and coupons
    15     shall be so marked as to make the canceled bonds, notes and
    16     coupons nonnegotiable.
    17         (3)  The State Treasurer shall determine and report to
    18     the Secretary of the Budget by November 1 of each year the
    19     amount of money necessary for the payment of interest on
    20     outstanding obligations and the principal of the obligations,
    21     if any, for the following fiscal year and the times and
    22     amounts of the payments. It shall be the duty of the Governor
    23     to include in every budget submitted to the General Assembly
    24     full information relating to the issuance of bonds and notes
    25     under the provisions of this act and the status of the
    26     Persian Gulf Conflict Veterans' Compensation Bond Sinking
    27     Fund of the Commonwealth for the payment of interest on the
    28     bonds and notes and the principal thereof at maturity.
    29         (4)  The General Assembly shall appropriate an amount
    30     equal to the sums as may be necessary to meet repayment
    20050H1820B2675                 - 19 -     

     1     obligations for principal and interest for deposit into the
     2     Persian Gulf Conflict Veterans' Compensation Bond Sinking
     3     Fund.
     4     (e)  Expiration.--Authorization to issue bonds and notes, not
     5  including refunding bonds and replacement notes, for the purpose
     6  of this act shall expire ten years from the effective date of
     7  this section.
     8  Section 13.  Question.
     9     (a)  Submission of question to electorate.--The question of
    10  incurring indebtedness of up to $20,000,000 for the purposes set
    11  forth in this act shall be submitted to the electors at the next
    12  primary, municipal or general election following enactment of
    13  this act.
    14     (b)  Certification.--The Secretary of the Commonwealth shall
    15  certify the question to the county boards of elections.
    16     (c)  Form of question.--The question shall be in
    17  substantially the following form:
    18         Do you favor indebtedness by the Commonwealth of up to
    19         $20,000,000 for the payment of compensation for service
    20         in the Persian Gulf Conflict?
    21     (d)  Election.--The election shall be conducted in accordance
    22  with the act of June 3, 1937 (P.L.1333, No.320), known as the
    23  Pennsylvania Election Code, except that the time limits for
    24  advertisement of notice of the election may be waived as to the
    25  question.
    26     (e)  Proceeds.--Proceeds of the borrowing shall be used for
    27  the payment of compensation for service in or in support of the
    28  Persian Gulf Conflict.
    29  Section 14.  Appropriations.
    30     (a)  Compensation appropriation.--For the purpose of payment
    20050H1820B2675                 - 20 -     

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






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