PRIOR PRINTER'S NO. 2422 PRINTER'S NO. 2675
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. 20050H1820B2675 - 16 -
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. F6L51AJM/20050H1820B2675 - 21 -