SENATE AMENDED
PRIOR PRINTER'S NOS. 2422, 2675, 3820 PRINTER'S NO. 3867
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 AMENDED ON THIRD CONSIDERATION, IN SENATE, APRIL 5, 2006
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
1 payment of compensation contingent upon electorate approval;
2 creating a special fund in the State Treasury to be known as
3 the Persian Gulf Conflict Veterans' Compensation Bond Fund;
4 imposing powers and duties on the Department of General
5 Services; making appropriations; and making a related repeal.
6 TABLE OF CONTENTS
7 Section 1. Short title
8 Section 2. Definitions.
9 Section 3. Computation of compensation.
10 Section 4. Application for compensation.
11 Section 5. Persons to whom payments shall be made in case of
12 incompetence or death.
13 Section 6. Applicant to designate beneficiaries.
14 Section 7. Exemption from attachment.
15 Section 8. Penalty for charging fees for assisting veterans.
16 Section 9. Administration of compensation program.
17 Section 10. Payment of compensation.
18 Section 11. Persian Gulf Conflict Veterans' Compensation Bond
19 Fund.
20 Section 12. Commonwealth indebtedness.
21 Section 13. Question.
22 Section 14. Appropriations.
23 Section 15. Repeal.
24 Section 16. Effective date.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. Short title.
28 This act shall be known and may be cited as the Persian Gulf
29 Conflict Veterans' Benefit Act.
30 Section 2. Definitions.
31 The following words and phrases when used in this act shall
32 have the meanings given to them in this section unless the
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1 context clearly indicates otherwise:
2 "Active service." For a member of a component of the armed
3 forces of the United States, the time served on active duty for
4 which the member has received or is eligible to receive the
5 Southwest Asia Service Medal for service related to the Persian
6 Gulf Conflict Theater; for a member of the Pennsylvania National
7 Guard or a reserve component of the armed forces of the United
8 States, time served on active duty for the support of operations
9 in the Persian Gulf Conflict Theater whether or not that service
10 was in the theater. The term includes time spent in hospitals as
11 a result of service-connected wounds, diseases or injuries
12 sustained on active service. Proof of such service shall be the
13 official military records of the United States or such other
14 evidence as is deemed sufficient by the Adjutant General. The
15 term does not include time served on active duty for annual
16 training or schooling, except for training and schooling in
17 preparation for active duty in the Persian Gulf Conflict
18 Theater.
19 "Fund." The Persian Gulf Conflict Veterans' Compensation
20 Bond Fund.
21 "Issuing officials." The Governor, the Auditor General and
22 the State Treasurer.
23 "Legal resident of this Commonwealth." A member of the
24 United States Armed Forces, the reserve component of the United
25 States Armed Forces or the Pennsylvania National Guard whose
26 home of record at the time of the Persian Gulf Conflict was this
27 Commonwealth or any specific place in this Commonwealth without
28 regard to the place of enlistment, commission or induction. The
29 proof of such residence shall be the official records of the
30 United States or such other evidence as is deemed sufficient by
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1 the Adjutant General.
2 "Persian Gulf Conflict Theater." The area defined as the
3 Persian Gulf Conflict Theater of Operations as established by
4 the United States Department of Defense for the awarding of the
5 Southwest Asia Service Medal for the period of time from August
6 2, 1990, through August 31, 1991.
7 "Veteran." A member of the armed forces of the United
8 States, including a member of the Army National Guard of the
9 United States, the Air National Guard of the United States or a
10 reserve component of the armed forces, who was ordered into or
11 volunteered to serve on active duty in the Persian Gulf Theater
12 of operations during the period from August 2, 1990, to August
13 31, 1991, and has received the Southwest Asia Service Medal
14 (SWASM) established by executive order 12754, 12 March 1991.
15 This term shall not include:
16 (1) any individual who, at any time during the Persian
17 Gulf Conflicts or thereafter, was separated from the armed
18 forces under other than honorable conditions; and
19 (2) any individual who has renounced his United States
20 citizenship.
21 Section 3. Computation of compensation.
22 (a) Eligibility.--Compensation shall be payable under this
23 act only to each veteran who was a legal resident of this
24 Commonwealth.
25 (b) Compensation for service in the Persian Gulf.--
26 Compensation shall be payable on the basis of $75 for the first
27 month of eligibility with a minimum of one day of active
28 service; thereafter, it shall be computed on the basis of $75
29 for each month or major fraction thereof.
30 (c) Compensation on behalf of deceased veteran.--In addition
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1 to any other compensation authorized under this section, the
2 compensation on behalf of a veteran who died in active service
3 or as a result of service-connected wounds, diseases or injuries
4 sustained during active service shall be $5,000.
5 (d) Compensation of prisoner of war.--In addition to any
6 compensation under the other provisions of this section, the
7 compensation of a veteran who was declared a prisoner of war,
8 regardless of the length of time spent as a prisoner of war,
9 shall, upon return, be $5,000.
10 (e) Total amount of compensation.--The compensation provided
11 for active service under subsection (b) shall be not less than
12 $75 and not more than $525.
13 (f) Exclusion from compensation.--Any individual who has
14 received a bonus, gratuity or compensation of a nature similar
15 to that provided for by this act from any other state in the
16 United States is ineligible for compensation. This exclusion
17 does not apply to a similar bonus, gratuity or compensation from
18 the Federal Government.
19 Section 4. Application for compensation.
20 (a) Application to Adjutant General.--Applications shall be
21 made by a veteran, the facility entitled under section 5(a) or
22 the beneficiaries designated under section 5(b). The Adjutant
23 General shall ascertain the applicants who are veterans and, as
24 to each veteran, the number of months of service for which the
25 veteran is entitled to receive compensation.
26 (b) Time for filing application.--The Adjutant General shall
27 not accept or consider any application filed after August 31,
28 2015.
29 Section 5. Persons to whom payments shall be made in case of
30 incompetence or death.
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1 (a) Incompetence.--In a case where the veteran is
2 incompetent, if no guardian has been appointed, payment shall be
3 made for the benefit of the veteran to the person who is
4 entitled to payment under subsection (b) or, in the absence of
5 any such person and if the veteran is in a facility, to the
6 person in charge of the facility to be expended for the clothing
7 and incidental needs of the veteran. No part of the compensation
8 paid to any facility shall be used for the maintenance of the
9 veteran. A statement from the person in charge of the facility
10 in which the veteran resides shall be evidence to determine the
11 competence of the veteran.
12 (b) Death.--In the case of the death of a veteran, payment
13 shall be made, in the order named, to the:
14 (1) surviving spouse unless the spouse was living
15 separate and apart from the veteran at the time of departure
16 for active service;
17 (2) surviving children, share and share alike; or
18 (3) surviving parents.
19 (c) Definitions.--As used in this section, the following
20 words and phrases shall have the meanings given to them in this
21 subsection:
22 "Facility." Any mental health establishment, hospital,
23 clinic, institution, center, day-care center, base service unit,
24 community mental health center or other organizational unit, or
25 part thereof, which is devoted primarily to the diagnosis,
26 treatment, care, rehabilitation or detention of mentally
27 disabled persons.
28 "Parents." Includes persons who, for a period of not less
29 than one year, acted in the capacity of a foster parent to the
30 veteran immediately prior to the veteran having attained 18
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1 years of age.
2 Section 6. Applicant to designate beneficiaries.
3 Every person making application for compensation shall set
4 forth in the application the names and addresses of all persons
5 who, under this act, would be entitled to receive compensation
6 in the event of the death of the applicant. If the applicant
7 dies before the payment of the compensation, the application
8 shall be deemed to inure to the benefit of the person next
9 entitled to compensation, and payment shall be made to the
10 person upon proof of identity satisfactory to the Adjutant
11 General. If no person designated in this act as being entitled
12 to compensation survives the veteran, the right to the
13 compensation shall cease.
14 Section 7. Exemption from attachment.
15 No sum payable under this act to a veteran or to any other
16 person under this act shall be subject to attachment, levy or
17 seizure under any legal or equitable process and shall be exempt
18 from all State taxation. No right to compensation under this act
19 shall be assignable, except as otherwise provided in this act,
20 or shall serve as a security for any loan. Any assignment or
21 loan made in violation of this section shall be void.
22 Assignments to any incorporated or unincorporated organization
23 of veterans, any nonprofit corporation formed solely for the
24 purpose of aiding disabled or incapacitated veterans and the
25 State Veterans' Commission shall be valid.
26 Section 8. Penalty for charging fees for assisting veterans.
27 A person who charges or collects or attempts to charge or
28 collect, either directly or indirectly, any fee or other
29 compensation for assisting, in any manner, a veteran in
30 obtaining any of the benefits provided under this act commits a
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1 misdemeanor of the second degree.
2 Section 9. Administration of compensation program.
3 The Adjutant General shall administer the compensation
4 program. For that purpose application forms shall be prepared
5 and distributed, applications shall be investigated, and, if
6 satisfied of the proof of an application, compensation shall be
7 approved and payment of compensation shall be made. The Adjutant
8 General shall promulgate rules and regulations to implement,
9 administer and enforce this act. The Adjutant General shall, as
10 soon as practicable after the effective date of this act,
11 prepare and distribute a digest explaining the provisions of
12 this act to assist veterans in filing their applications and
13 shall from time to time prepare and distribute additional or
14 supplementary information as may be found necessary. The
15 Adjutant General shall enlist, as far as possible, the services
16 of veteran organizations in this Commonwealth in the
17 dissemination of the information.
18 Section 10. Payment of compensation.
19 The compensation payable under this act shall, upon
20 requisition by the Adjutant General, be paid by the State
21 Treasurer from the fund to be created with funds realized from a
22 proposed bond issue. Payments shall be made as soon as possible
23 after funds are available.
24 Section 11. Persian Gulf Conflict Veterans' Compensation Bond
25 Fund.
26 (a) Purpose of fund.--The Persian Gulf Conflict Veterans'
27 Compensation Bond Fund, which is hereby created in the State
28 Treasury, shall be the source from which all payments are
29 authorized with the approval of the Governor to carry out the
30 purposes of this act. The moneys in the fund shall only be
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1 utilized:
2 (1) For the purpose of providing compensation to
3 veterans in accordance with the provisions of this act.
4 (2) For the administrative costs incurred in any of the
5 purposes in paragraph (1) including the costs incurred in
6 connection with the issuance of the bonds.
7 (b) Interfund transfers authorized.--
8 (1) Whenever the cash balance and the current estimated
9 receipts of the fund shall be insufficient at any time during
10 any State fiscal year to meet promptly the obligations of the
11 Commonwealth from such fund, the State Treasurer is hereby
12 authorized and directed, from time to time during such fiscal
13 year, to transfer from the General Fund to the fund such sums
14 as the Governor directs, but in no case less than the amount
15 necessary to meet promptly the obligations to be paid from
16 the fund nor more than an amount which is the smallest of:
17 (i) the difference between the amount of debt
18 authorized to be issued under the authority of this act
19 and the aggregate principal amount of bonds and notes
20 issued, not including refunding bonds and replacement
21 notes; and
22 (ii) the difference between the aggregate principal
23 amount of bonds and notes to be issued during a State
24 fiscal year and the aggregate principal amount of bonds
25 and notes, not including refunding bonds and replacement
26 notes, issued during such State fiscal year.
27 Any sums so transferred shall be available only for the
28 purposes for which funds are appropriated from the fund. The
29 transfers shall be made under this section upon warrant of
30 the State Treasurer upon requisition of the Governor.
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1 (2) In order to reimburse the General Fund for moneys
2 transferred from such funds under paragraph (1), there shall
3 be transferred to the General Fund from the fund moneys from
4 the proceeds obtained from bonds and notes issued under the
5 authority of this act or from other available funds in such
6 amounts and at such times as the Governor shall direct. The
7 retransfers shall be made upon warrant of the State Treasurer
8 upon requisition of the Governor.
9 Section 12. Commonwealth indebtedness.
10 (a) Borrowing authorized.--
11 (1) If and when the electorate approves a referendum
12 question for the incurring of indebtedness in the amount and
13 for the purposes prescribed in this act, the issuing
14 officials, pursuant to the provisions of section 7(a)(3) of
15 Article VIII of the Constitution of Pennsylvania, are
16 authorized and directed to borrow, on the credit of the
17 Commonwealth, money not exceeding in the aggregate the sum of
18 $20,000,000, not including money borrowed to refund
19 outstanding bonds, notes or replacement notes, as may be
20 found necessary to carry out the purposes of this act.
21 (2) As evidence of the indebtedness, general obligation
22 bonds of the Commonwealth shall be issued from time to time
23 to provide moneys necessary to carry out the purposes of this
24 act for such total amounts, in such form, in such
25 denominations and subject to such terms and conditions of
26 issue, redemption and maturity, rate of interest and time of
27 payment of interest as the issuing officials direct, except
28 that the latest stated maturity date shall not exceed 20
29 years from the date of the first obligation issued to
30 evidence the debt.
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1 (3) All bonds and notes issued under the authority of
2 this act shall bear facsimile signatures of the issuing
3 officials and a facsimile of the Great Seal of the
4 Commonwealth and shall be countersigned by a duly authorized
5 officer of a duly authorized loan and transfer agent of the
6 Commonwealth.
7 (4) All bonds and notes issued in accordance with the
8 provisions of this section shall be direct obligations of the
9 Commonwealth, and the full faith and credit of the
10 Commonwealth is hereby pledged for the payment of the
11 interest thereon, as it becomes due, and the payment of the
12 principal at maturity. The principal of and interest on the
13 bonds and notes shall be payable in lawful money of the
14 United States.
15 (5) All bonds and notes issued under the provisions of
16 this section shall be exempt from taxation for State and
17 local purposes.
18 (6) The bonds may be issued as coupon bonds or
19 registered as to both principal and interest as the issuing
20 officials may determine. If interest coupons are attached,
21 they shall contain the facsimile signature of the State
22 Treasurer.
23 (7) The issuing officials shall provide for the
24 amortization of the bonds in substantial and regular amounts
25 over the term of the debt so that the bonds of each issue
26 allocated to the programs to be funded from the bond issue
27 shall mature within a period not to exceed the appropriate
28 amortization period for each program as specified by the
29 issuing officials but in no case in excess of 20 years. The
30 first retirement of principal shall be stated to mature prior
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1 to the expiration of a period of time equal to one-tenth of
2 the time from the date of the first obligation issued to
3 evidence the debt to the date of the expiration of the term
4 of the debt. Retirements of principal shall be regular and
5 substantial if made in annual or semiannual amounts whether
6 by stated serial maturities or by mandatory sinking fund
7 retirements.
8 (8) The issuing officials are authorized to provide by
9 resolution for the issuance of refunding bonds for the
10 purpose of refunding any debt issued under the provisions of
11 this act and then outstanding, either by voluntary exchange
12 with the holders of the outstanding debt or providing funds
13 to redeem and retire the outstanding debt with accrued
14 interest, any premium payable thereon and the costs of
15 issuance and retirement of the debt, at maturity or at any
16 call date. The issuance of the refunding bonds, the
17 maturities and other details thereof, the rights of the
18 holders thereof and the duties of the issuing official in
19 respect thereto shall be governed by the provisions of this
20 section, insofar as they may be applicable. Refunding bonds,
21 which are not subject to the aggregate limitation of
22 $20,000,000 of debt to be issued under this act, may be
23 issued by the issuing officials to refund debt originally
24 issued or to refund bonds previously issued for refunding
25 purposes.
26 (9) Whenever any action is to be taken or decision made
27 by the Governor, the Auditor General and the State Treasurer
28 acting as issuing officials and the three officers are not
29 able unanimously to agree, the action or decision of the
30 Governor and either the Auditor General or the State
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1 Treasurer shall be binding and final.
2 (b) Sale of bonds.--
3 (1) Whenever bonds are issued, they shall be offered for
4 sale at not less than 98% of the principal amount and accrued
5 interest and shall be sold by the issuing officials to the
6 highest and best bidder or bidders after due public
7 advertisement on the terms and conditions and upon such open
8 competitive bidding as the issuing officials shall direct.
9 The manner and character of the advertisement and the time of
10 advertising shall be prescribed by the issuing officials. No
11 commission shall be allowed or paid for the sale of any bonds
12 issued under the authority of this act.
13 (2) Any portion of any bond issue so offered and not
14 sold or subscribed for at public sale may be disposed of by
15 private sale by the issuing officials in such manner and at
16 such prices, not less than 98% of the principal amount and
17 accrued interest, as the Governor shall direct. No commission
18 shall be allowed or paid for the sale of any bonds issued
19 under the authority of this act.
20 (3) When bonds are issued from time to time, the bonds
21 of each issue shall constitute a separate series to be
22 designated by the issuing officials or may be combined for
23 sale as one series with other general obligation bonds of the
24 Commonwealth.
25 (4) Until permanent bonds can be prepared, the issuing
26 officials may in their discretion issue, in lieu of permanent
27 bonds, temporary bonds in such form and with such privileges
28 as to registration and exchange for permanent bonds as may be
29 determined by the issuing officials.
30 (5) The proceeds realized from the sale of bonds and
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1 notes, except refunding bonds and replacement notes, under
2 the provisions of this act shall be paid into the fund. The
3 proceeds shall be paid by the State Treasurer periodically to
4 those Commonwealth officers and Commonwealth agencies
5 authorized to expend them at such times and in such amounts
6 as may be necessary to satisfy the funding needs thereof. The
7 proceeds of the sale of refunding bonds and replacement notes
8 shall be paid to the State Treasurer and applied to the
9 payment of principal, the accrued interest and premium, if
10 any, and cost of redemption of the bonds and notes for which
11 the obligations shall have been issued.
12 (6) Pending their application for the purposes
13 authorized, moneys held or deposited by the State Treasurer
14 may be invested or reinvested as are other funds in the
15 custody of the State Treasurer in the manner provided by law.
16 All earnings received from the investment or deposit of the
17 funds shall be paid into the State Treasury to the credit of
18 the fund. The earnings in excess of bond discounts allowed,
19 expenses paid for the issuance of bonds and notes and
20 interest arbitrage rebates due to the Federal Government
21 shall be transferred annually to the fund. Any interest or
22 investment income shall be applied to assist in the payment
23 of the debt service incurred in connection with this act.
24 (7) The Auditor General shall prepare the necessary
25 registry book to be kept in the office of the duly authorized
26 loan and transfer agent of the Commonwealth for the
27 registration of any bonds, at the request of owners thereof,
28 according to the terms and conditions of issue directed by
29 the issuing officials.
30 (8) There is hereby appropriated to the State Treasurer
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1 from the fund as much money as may be necessary for all costs
2 and expenses in connection with the issue of and sale and
3 registration of the bonds and notes in connection with this
4 act and the payment of interest arbitrage rebates or proceeds
5 of such bonds and notes.
6 (c) Temporary financing authorization.--
7 (1) Pending the issuance of bonds of the Commonwealth as
8 authorized, the issuing officials are hereby authorized, in
9 accordance with the provisions of this act and on the credit
10 of the Commonwealth, to make temporary borrowings not to
11 exceed three years in anticipation of the issue of bonds in
12 order to provide funds in such amounts as may from time to
13 time be deemed advisable prior to the issue of bonds. In
14 order to provide for and in connection with the temporary
15 borrowings, the issuing officials are hereby authorized in
16 the name and on behalf of the Commonwealth to enter into any
17 purchase, loan or credit agreement or agreements, or other
18 agreement or agreements with any banks or trust companies or
19 other lending institutions, investment banking firms or
20 persons in the United States having power to enter into the
21 same, which agreements may contain provisions not
22 inconsistent with the provisions of this act as may be
23 authorized by the issuing officials.
24 (2) All temporary borrowings made under the
25 authorization of this section shall be evidenced by notes of
26 the Commonwealth which shall be issued from time to time for
27 amounts not exceeding in the aggregate the applicable
28 statutory and constitutional debt limitation in the form and
29 in the denominations and subject to terms and conditions of
30 sale and issue, prepayment or redemption and maturity, rate
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1 or rates of interest and time of payment of interest as the
2 issuing officials shall authorize and direct and in
3 accordance with this act. The authorization and direction may
4 provide for the subsequent issuance of replacement notes to
5 refund outstanding notes or replacement notes, which
6 replacement notes shall, upon issuance thereof, evidence the
7 borrowing and may specify other terms and conditions with
8 respect to the notes and replacement notes thereby authorized
9 for issuance as the issuing officials may determine and
10 direct.
11 (3) When the authorization and direction of the issuing
12 officials provide for the issuance of replacement notes, the
13 issuing officials are hereby authorized in the name and on
14 behalf of the Commonwealth to issue, enter into or authorize
15 and direct the State Treasurer to enter into agreements with
16 any banks, trust companies, investment banking firms or other
17 institutions or persons in the United States having the power
18 to enter the same:
19 (i) To purchase or underwrite an issue or series of
20 issues or notes.
21 (ii) To credit, to enter into any purchase, loan or
22 credit agreements, to draw moneys pursuant to any such
23 agreements on the terms and conditions set forth therein
24 and to issue notes as evidence of borrowings made under
25 any such agreements.
26 (iii) To appoint as issuing and payment agent or
27 agents with respect to notes.
28 (iv) To do such other acts as may be necessary or
29 appropriate to provide for the payment, when due, of the
30 interest on and the principal of such notes. Such
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1 agreements may provide for the compensation of any
2 purchasers or underwriters of notes or replacement notes
3 by discounting the purchase price of the notes or by
4 payment of a fixed fee or commission at the time of
5 issuance thereof, and all other costs and expenses,
6 including fees for agreements related to the notes,
7 issuing and paying agent costs and costs and expenses of
8 issuance, may be paid from the proceeds of the notes.
9 (4) When the authorization and direction of the issuing
10 officials provide for the issuance of replacement notes, the
11 State Treasurer shall, at or prior to the time of delivery of
12 these notes or replacement notes, determine the principal
13 amounts, dates of issue, interest rate or rates, or
14 procedures for establishing such rates from time to time,
15 rates of discount, denominations and all other terms and
16 conditions relating to the issuance and shall perform all
17 acts and things necessary to pay or cause to be paid, when
18 due, all principal of and interest on the notes being
19 refunded by replacement notes and to assure that the same may
20 draw upon any moneys available for that purpose pursuant to
21 any purchase, loan or credit agreements established with
22 respect thereto, all subject to the authorization and
23 direction of the issuing officials.
24 (5) Outstanding notes evidencing such borrowings may be
25 funded and retired by the issuance and sale of the bonds of
26 the Commonwealth as hereinafter authorized. The refunding
27 bonds must be issued and sold not later than a date three
28 years after the date of issuance of the first notes
29 evidencing the borrowings to the extent that payment of such
30 notes has not otherwise been made or provided for by sources
20050H1820B3867 - 17 -
1 other than proceeds of replacement notes.
2 (6) The proceeds of all such temporary borrowing shall
3 be paid to the State Treasurer to be held and disposed of in
4 accordance with the provisions of this act.
5 (d) Debt retirement.--
6 (1) All bonds issued under the authority of this act
7 shall be redeemed at maturity, together with all interest due
8 from time to time on the bonds, and these principal and
9 interest payments shall be paid from the Persian Gulf
10 Conflict Veterans' Compensation Bond Sinking Fund, which is
11 hereby created. For the specific purpose of redeeming the
12 bonds at maturity and paying all interest thereon in
13 accordance with the information received from the Governor,
14 the General Assembly shall appropriate moneys to the Persian
15 Gulf Conflict Veterans' Compensation Bond Sinking Fund for
16 the payment of interest on the bonds and notes and the
17 principal thereof at maturity. All moneys paid into the
18 Persian Gulf Conflict Veterans' Compensation Bond Sinking
19 Fund and all of the moneys not necessary to pay accruing
20 interest shall be invested by the State Treasurer in such
21 securities as are provided by law for the investment of the
22 sinking funds of the Commonwealth.
23 (2) The State Treasurer, with the approval of the
24 Governor, is authorized at any time to use any of the moneys
25 in the fund not necessary for the purposes of the referendum
26 authorizing the indebtedness necessary to carry out this act,
27 for the purchase and retirement of all or any part of the
28 bonds and notes issued pursuant to the authorization of this
29 act. In the event that all or any part of the bonds and notes
30 are purchased, they shall be canceled and returned to the
20050H1820B3867 - 18 -
1 loan and transfer agent as canceled and paid bonds and notes,
2 and, thereafter, all payments of interest thereon shall
3 cease. The canceled bonds, notes and coupons, together with
4 any other canceled bonds, notes and coupons, shall be
5 destroyed as promptly as possible after cancellation but not
6 later than two years after cancellation. A certification
7 evidencing the destruction of the canceled bonds, notes and
8 coupons shall be provided by the loan and transfer agent to
9 the issuing officials. All canceled bonds, notes and coupons
10 shall be so marked as to make the canceled bonds, notes and
11 coupons nonnegotiable.
12 (3) The State Treasurer shall determine and report to
13 the Secretary of the Budget by November 1 of each year the
14 amount of money necessary for the payment of interest on
15 outstanding obligations and the principal of the obligations,
16 if any, for the following fiscal year and the times and
17 amounts of the payments. It shall be the duty of the Governor
18 to include in every budget submitted to the General Assembly
19 full information relating to the issuance of bonds and notes
20 under the provisions of this act and the status of the
21 Persian Gulf Conflict Veterans' Compensation Bond Sinking
22 Fund of the Commonwealth for the payment of interest on the
23 bonds and notes and the principal thereof at maturity.
24 (4) The General Assembly shall appropriate an amount
25 equal to the sums as may be necessary to meet repayment
26 obligations for principal and interest for deposit into the
27 Persian Gulf Conflict Veterans' Compensation Bond Sinking
28 Fund.
29 (e) Expiration.--Authorization to issue bonds and notes, not
30 including refunding bonds and replacement notes, for the purpose
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1 of this act shall expire ten years from the effective date of
2 this section.
3 Section 13. Question.
4 (a) Submission of question to electorate.--The question of
5 incurring indebtedness of up to $20,000,000 for the purposes set
6 forth in this act shall be submitted to the electors at the next
7 primary, municipal or general election following enactment of <--
8 this act.
9 (b) Certification.--The Secretary of the Commonwealth shall
10 certify the question to the county boards of elections.
11 (c) Form of question.--The question shall be in
12 substantially the following form:
13 Do you favor indebtedness by the Commonwealth of up to
14 $20,000,000 for the payment of compensation for service
15 in the Persian Gulf Conflict?
16 (d) Election.--The election shall be conducted in accordance
17 with the act of June 3, 1937 (P.L.1333, No.320), known as the
18 Pennsylvania Election Code, except that the time limits for
19 advertisement of notice of the election may be waived as to the
20 question.
21 (e) Proceeds.--Proceeds of the borrowing shall be used for
22 the payment of compensation for service in or in support of the
23 Persian Gulf Conflict.
24 Section 14. Appropriations.
25 (a) Compensation appropriation.--For the purpose of payment
26 for the compensation to eligible veterans, staff services,
27 postage and other necessary expenses incurred by the Adjutant
28 General in the administration of this compensation program, such
29 sums, or as much thereof as may be necessary, are specifically
30 appropriated to the Adjutant General out of any moneys which
20050H1820B3867 - 20 -
1 have been deposited in the Persian Gulf Conflict Veterans'
2 Compensation Bond Fund.
3 (b) Continuing appropriations.--The appropriation under
4 subsection (a) shall be a continuing appropriation and shall not
5 lapse.
6 Section 15. Repeal. <--
7 The act of November 24, 1992 (P.L.703, No.106), known as the
8 SECTION 15. REPEALS. <--
9 REPEALS ARE AS FOLLOWS:
10 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
11 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THIS ACT.
12 (2) THE ACT OF NOVEMBER 24, 1992 (P.L.703, NO.106),
13 KNOWN AS THE Persian Gulf Conflict Veterans' Compensation and
14 Bond Act, is 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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