PRINTER'S NO.  4279

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2702

Session of

2012

  

  

INTRODUCED BY GOODMAN, BRADFORD, CALTAGIRONE, COHEN, DALEY, FLECK, FRANKEL, FREEMAN, GEORGE, GIBBONS, GODSHALL, HESS, HORNAMAN, JAMES, KORTZ, KOTIK, KULA, LONGIETTI, MAHONEY, MANN, MUNDY, M. O'BRIEN, PARKER, PASHINSKI, PRESTON, SABATINA, SAYLOR, SCAVELLO, STABACK, TOBASH, WATERS, WILLIAMS AND GEIST, OCTOBER 17, 2012

  

  

REFERRED TO COMMITTEE ON VETERANS AFFAIRS AND EMERGENCY PREPAREDNESS, OCTOBER 17, 2012  

  

  

  

AN ACT

  

1

Providing compensation to persons in active service in

2

connection with the Iraq War or their beneficiaries;

3

authorizing the incurring of indebtedness and the issue and

4

sale of bonds by the Commonwealth for the payment of

5

compensation contingent upon electorate approval; creating a

6

special fund in the State Treasury to be known as the Iraq

7

War Veterans' Compensation Bond Fund; imposing powers and

8

duties on the Department of Military and Veterans Affairs;

9

and making appropriations.

10

The General Assembly of the Commonwealth of Pennsylvania

11

hereby enacts as follows:

12

TABLE OF CONTENTS

13

  

14

Section 1.  Short title.

15

Section 2.  Definitions.

16

Section 3.  Computation of compensation.

17

Section 4.  Application for compensation.

18

Section 5.  Persons to whom payments shall be made in case of

19

incompetence or death.

 


1

Section 6.  Applicant to designate beneficiaries.

2

Section 7.  Exemption from attachment.

3

Section 8.  Penalty for charging fees for assisting veterans.

4

Section 9.  Administration of compensation program.

5

Section 10.  Payment of compensation.

6

Section 11.  Iraq War Veterans' Compensation Bond Fund.

7

Section 12.  Commonwealth indebtedness.

8

Section 13.  Question.

9

Section 14.  Appropriations.

10

Section 15.  Effective date.

11

The General Assembly of the Commonwealth of Pennsylvania

12

hereby enacts as follows:

13

Section 1.  Short title.

14

This act shall be known and may be cited as the Iraq War

15

Veterans' Benefit Act.

16

Section 2.  Definitions.

17

The following words and phrases when used in this act shall

18

have the meanings given to them in this section unless the

19

context clearly indicates otherwise:

20

"Active service."  For a member of a component of the armed

21

forces of the United States, the time served on active duty for

22

which the member has received or is eligible to receive the Iraq

23

Campaign Medal; for a member of the Pennsylvania National Guard

24

or a reserve component of the armed forces of the United States,

25

time served on active duty for the support of operations in the

26

Iraq Conflict Theater, whether or not that service was in the

27

theater. The term includes time spent in hospitals as a result

28

of service-connected wounds, diseases or injuries sustained on

29

active service. Proof of such service shall be the official

30

military records of the United States or such other evidence as

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1

is deemed sufficient by the Adjutant General. The term does not

2

include time served on active duty for annual training or

3

schooling, except for training and schooling in preparation for

4

active duty in the Iraq Conflict Theater.

5

"Fund."  The Iraq War Veterans' Compensation Bond Fund.

6

"Iraq Conflict Theater."  The area established by the United

7

States Department of Defense for the awarding of the Iraq

8

Campaign Medal for the period of time from March 19, 2003,

9

through December 31, 2011.

10

"Issuing officials."  The Governor, the Auditor General and

11

the State Treasurer of the Commonwealth.

12

"Legal resident of this Commonwealth."  A member of the

13

United States Armed Forces, the reserve component of the United

14

States Armed Forces or the Pennsylvania National Guard whose

15

home of record at the time of the Iraq War was this Commonwealth

16

or any specific place in this Commonwealth without regard to the

17

place of enlistment, commission or induction. The proof of such

18

residence shall be the official records of the United States or

19

such other evidence as is deemed sufficient by the Adjutant

20

General.

21

"Veteran."  A member of the armed forces of the United

22

States, including a member of the Army National Guard of the

23

United States, the Air National Guard of the United States or a

24

reserve component of the armed forces, who was ordered into or

25

volunteered to serve on active duty in Iraq during the period

26

from March 19, 2003, to December 31, 2011, and has received the

27

Iraq Campaign Medal established by executive order 13363,

28

November 29, 2004. This term shall not include any individual

29

who has renounced his United States citizenship.

30

Section 3.  Computation of compensation.

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1

(a)  Eligibility.--Compensation shall be payable under this

2

act only to each veteran who was a legal resident of this

3

Commonwealth and who served under honorable conditions.

4

(b)  Compensation for service in the Iraq War.--Compensation

5

shall be payable on the basis of $75 for the first month of

6

eligibility with a minimum of one day of active service;

7

thereafter, it shall be computed on the basis of $75 for each

8

month or major fraction thereof.

9

(c)  Compensation on behalf of deceased veteran.--In addition

10

to any other compensation authorized under this section, the

11

compensation on behalf of a veteran who died in active service

12

or as a result of service-connected wounds, diseases or injuries

13

sustained during active service shall be $5,000.

14

(d)  Compensation of prisoner of war.--In addition to any

15

compensation under the other provisions of this section, the

16

compensation of a veteran who was declared a prisoner of war,

17

regardless of the length of time spent as a prisoner of war,

18

shall, upon return, be $5,000.

19

(e)  Total amount of compensation.--The compensation provided

20

for active service under subsection (b) shall be not less than

21

$75 and not more than $600.

22

(f)  Exclusion from compensation.--Any individual who has

23

received a bonus, gratuity or compensation of a nature similar

24

to that provided for by this act from any other state in the

25

United States is ineligible for compensation. This exclusion

26

does not apply to a similar bonus, gratuity or compensation from

27

the Federal Government.

28

Section 4.  Application for compensation.

29

(a)  Application to Adjutant General.--Applications shall be

30

made by a veteran, the facility entitled under section 5(a) or

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1

the beneficiaries designated under section 5(b). The Adjutant

2

General shall ascertain the applicants who are veterans and, as

3

to each veteran, the number of months of service for which the

4

veteran is entitled to receive compensation.

5

(b)  Time for filing application.--The Adjutant General shall

6

not accept or consider any application filed after December 31,

7

2021.

8

Section 5.  Persons to whom payments shall be made in case of

9

incompetence or death.

10

(a)  Incompetence.--In a case where the veteran is

11

incompetent, if no guardian has been appointed, payment shall be

12

made for the benefit of the veteran to the person who is

13

entitled to payment under subsection (b) or, in the absence of

14

any such person and if the veteran is in a facility, to the

15

person in charge of the facility to be expended for the clothing

16

and incidental needs of the veteran. No part of the compensation

17

paid to any facility shall be used for the maintenance of the

18

veteran. A statement from the person in charge of the facility

19

in which the veteran resides shall be evidence to determine the

20

competence of the veteran.

21

(b)  Death.--In the case of the death of a veteran, payment

22

shall be made, in the order named, to the:

23

(1)  surviving spouse unless the spouse was living

24

separate and apart from the veteran at the time of departure

25

for active service;

26

(2)  surviving children, share and share alike; or

27

(3)  surviving parents.

28

(c)  Definitions.--As used in this section, the following

29

words and phrases shall have the meanings given to them in this

30

subsection:

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1

"Facility."  Any mental health establishment, hospital,

2

clinic, institution, center, day-care center, base service unit,

3

community mental health center or other organizational unit, or

4

part thereof, which is devoted primarily to the diagnosis,

5

treatment, care, rehabilitation or detention of mentally

6

disabled persons.

7

"Parents."  Includes persons who, for a period of not less

8

than one year, acted in the capacity of a foster parent to the

9

veteran immediately prior to the veteran having attained 18

10

years of age.

11

Section 6.  Applicant to designate beneficiaries.

12

Every person making application for compensation shall set

13

forth in the application the names and addresses of all persons

14

who, under this act, would be entitled to receive compensation

15

in the event of the death of the applicant. If the applicant

16

dies before the payment of the compensation, the application

17

shall be deemed to inure to the benefit of the person next

18

entitled to compensation, and payment shall be made to the

19

person upon proof of identity satisfactory to the Adjutant

20

General. If no person designated in this act as being entitled

21

to compensation survives the veteran, the right to the

22

compensation shall cease.

23

Section 7.  Exemption from attachment.

24

No sum payable under this act to a veteran or to any other

25

person under this act shall be subject to attachment, levy or

26

seizure under any legal or equitable process and shall be exempt

27

from all State taxation. No right to compensation under this act

28

shall be assignable, except as otherwise provided in this act,

29

or shall serve as a security for any loan. Any assignment or

30

loan made in violation of this section shall be void.

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1

Assignments to any incorporated or unincorporated organization

2

of veterans, any nonprofit corporation formed solely for the

3

purpose of aiding disabled or incapacitated veterans and the

4

State Veterans' Commission shall be valid.

5

Section 8.  Penalty for charging fees for assisting veterans.

6

A person who charges or collects or attempts to charge or

7

collect, either directly or indirectly, any fee or other

8

compensation for assisting, in any manner, a veteran in

9

obtaining any of the benefits provided under this act commits a

10

misdemeanor of the second degree.

11

Section 9.  Administration of compensation program.

12

The Adjutant General shall administer the compensation

13

program. For that purpose, application forms shall be prepared

14

and distributed, applications shall be investigated, and, if

15

satisfied of the proof of an application, compensation shall be

16

approved and payment of compensation shall be made. The Adjutant

17

General shall promulgate rules and regulations to implement,

18

administer and enforce this act. The Adjutant General shall, as

19

soon as practicable after the effective date of this act,

20

prepare and distribute a digest explaining the provisions of

21

this act to assist veterans in filing their applications and

22

shall from time to time prepare and distribute additional or

23

supplementary information as may be found necessary. The

24

Adjutant General shall enlist, as far as possible, the services

25

of veteran organizations in this Commonwealth in the

26

dissemination of the information.

27

Section 10.  Payment of compensation.

28

The compensation payable under this act shall, upon

29

requisition by the Adjutant General, be paid by the State

30

Treasurer from the fund to be created with funds realized from a

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1

proposed bond issue. Payments shall be made as soon as possible

2

after funds are available.

3

Section 11.  Iraq War Veterans' Compensation Bond Fund.

4

(a)  Purpose of fund.--The Iraq War Veterans' Compensation

5

Bond Fund is established in the State Treasury and shall be the

6

source from which all payments are authorized with the approval

7

of the Governor to carry out the purposes of this act. The

8

moneys in the fund shall only be utilized:

9

(1)  For the purpose of providing compensation to

10

veterans in accordance with the provisions of this act.

11

(2)  For the administrative costs incurred in any of the

12

purposes in paragraph (1), including the costs incurred in

13

connection with the issuance of the bonds.

14

(b)  Interfund transfers authorized.--

15

(1)  Whenever the cash balance and the current estimated

16

receipts of the fund shall be insufficient at any time during

17

any State fiscal year to meet promptly the obligations of the

18

Commonwealth from such fund, the State Treasurer shall, from

19

time to time during such fiscal year, transfer from the

20

General Fund to the fund such sums as the Governor directs,

21

but in no case less than the amount necessary to meet

22

promptly the obligations to be paid from the fund nor more

23

than an amount which is the smallest of:

24

(i)  the difference between the amount of debt

25

authorized to be issued under the authority of this act

26

and the aggregate principal amount of bonds and notes

27

issued, not including refunding bonds and replacement

28

notes; and

29

(ii)  the difference between the aggregate principal

30

amount of bonds and notes to be issued during a State

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1

fiscal year and the aggregate principal amount of bonds

2

and notes, not including refunding bonds and replacement

3

notes, issued during such State fiscal year.

4

Any sums so transferred shall be available only for the

5

purposes for which funds are appropriated from the fund. The

6

transfers shall be made under this section upon warrant of

7

the State Treasurer upon requisition of the Governor.

8

(2)  In order to reimburse the General Fund for moneys

9

transferred from such funds under paragraph (1), there shall

10

be transferred to the General Fund from the fund moneys from

11

the proceeds obtained from bonds and notes issued under the

12

authority of this act or from other available funds in such

13

amounts and at such times as the Governor shall direct. The

14

retransfers shall be made upon warrant of the State Treasurer

15

upon requisition of the Governor.

16

Section 12.  Commonwealth indebtedness.

17

(a)  Borrowing authorized.--

18

(1)  If and when the electorate approves a referendum

19

question for the incurring of indebtedness in the amount and

20

for the purposes prescribed in this act, the issuing

21

officials, pursuant to the provisions of section 7(a)(3) of

22

Article VIII of the Constitution of Pennsylvania, are

23

authorized and directed to borrow, on the credit of the

24

Commonwealth, money not exceeding in the aggregate the sum of

25

$20,000,000, not including money borrowed to refund

26

outstanding bonds, notes or replacement notes, as may be

27

found necessary to carry out the purposes of this act.

28

(2)  As evidence of the indebtedness, general obligation

29

bonds of the Commonwealth shall be issued from time to time

30

to provide moneys necessary to carry out the purposes of this

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1

act for such total amounts, in such form, in such

2

denominations and subject to such terms and conditions of

3

issue, redemption and maturity, rate of interest and time of

4

payment of interest as the issuing officials direct, except

5

that the latest stated maturity date shall not exceed 20

6

years from the date of the first obligation issued to

7

evidence the debt.

8

(3)  All bonds and notes issued under the authority of

9

this act shall bear facsimile signatures of the issuing

10

officials and a facsimile of the Great Seal of the

11

Commonwealth and shall be countersigned by a duly authorized

12

officer of a duly authorized loan and transfer agent of the

13

Commonwealth.

14

(4)  All bonds and notes issued in accordance with the

15

provisions of this section shall be direct obligations of the

16

Commonwealth, and the full faith and credit of the

17

Commonwealth is hereby pledged for the payment of the

18

interest thereon, as it becomes due, and the payment of the

19

principal at maturity. The principal of and interest on the

20

bonds and notes shall be payable in lawful money of the

21

United States.

22

(5)  All bonds and notes issued under the provisions of

23

this section shall be exempt from taxation for State and

24

local purposes.

25

(6)  The bonds may be issued as coupon bonds or

26

registered as to both principal and interest as the issuing

27

officials may determine. If interest coupons are attached,

28

they shall contain the facsimile signature of the State

29

Treasurer.

30

(7)  The issuing officials shall provide for the

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1

amortization of the bonds in substantial and regular amounts

2

over the term of the debt so that the bonds of each issue

3

allocated to the programs to be funded from the bond issue

4

shall mature within a period not to exceed the appropriate

5

amortization period for each program as specified by the

6

issuing officials but in no case in excess of 20 years. The

7

first retirement of principal shall be stated to mature prior

8

to the expiration of a period of time equal to one-tenth of

9

the time from the date of the first obligation issued to

10

evidence the debt to the date of the expiration of the term

11

of the debt. Retirements of principal shall be regular and

12

substantial if made in annual or semiannual amounts whether

13

by stated serial maturities or by mandatory sinking fund

14

retirements.

15

(8)  The issuing officials are authorized to provide by

16

resolution for the issuance of refunding bonds for the

17

purpose of refunding any debt issued under the provisions of

18

this act and then outstanding, either by voluntary exchange

19

with the holders of the outstanding debt or providing funds

20

to redeem and retire the outstanding debt with accrued

21

interest, any premium payable thereon and the costs of

22

issuance and retirement of the debt, at maturity or at any

23

call date. The issuance of the refunding bonds, the

24

maturities and other details thereof, the rights of the

25

holders thereof and the duties of the issuing official in

26

respect thereto shall be governed by the provisions of this

27

section insofar as they may be applicable. Refunding bonds,

28

which are not subject to the aggregate limitation of

29

$20,000,000 of debt to be issued under this act, may be

30

issued by the issuing officials to refund debt originally

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1

issued or to refund bonds previously issued for refunding

2

purposes.

3

(9)  Whenever any action is to be taken or decision made

4

by the Governor, the Auditor General and the State Treasurer

5

acting as issuing officials and the three officers are not

6

able unanimously to agree, the action or decision of the

7

Governor and either the Auditor General or the State

8

Treasurer shall be binding and final.

9

(b)  Sale of bonds.--

10

(1)  Whenever bonds are issued, they shall be offered for

11

sale at not less than 98% of the principal amount and accrued

12

interest and shall be sold by the issuing officials to the

13

highest and best bidder or bidders after due public

14

advertisement on the terms and conditions and upon such open

15

competitive bidding as the issuing officials shall direct.

16

The manner and character of the advertisement and the time of

17

advertising shall be prescribed by the issuing officials. No

18

commission shall be allowed or paid for the sale of any bonds

19

issued under the authority of this act.

20

(2)  Any portion of any bond issue so offered and not

21

sold or subscribed for at public sale may be disposed of by

22

private sale by the issuing officials in such manner and at

23

such prices, not less than 98% of the principal amount and

24

accrued interest, as the Governor shall direct. No commission

25

shall be allowed or paid for the sale of any bonds issued

26

under the authority of this act.

27

(3)  When bonds are issued from time to time, the bonds

28

of each issue shall constitute a separate series to be

29

designated by the issuing officials or may be combined for

30

sale as one series with other general obligation bonds of the

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1

Commonwealth.

2

(4)  Until permanent bonds can be prepared, the issuing

3

officials may in their discretion issue, in lieu of permanent

4

bonds, temporary bonds in such form and with such privileges

5

as to registration and exchange for permanent bonds as may be

6

determined by the issuing officials.

7

(5)  The proceeds realized from the sale of bonds and

8

notes, except refunding bonds and replacement notes, under

9

the provisions of this act shall be paid into the fund. The

10

proceeds shall be paid by the State Treasurer periodically to

11

those Commonwealth officers and Commonwealth agencies

12

authorized to expend them at such times and in such amounts

13

as may be necessary to satisfy the funding needs thereof. The

14

proceeds of the sale of refunding bonds and replacement notes

15

shall be paid to the State Treasurer and applied to the

16

payment of principal, the accrued interest and premium, if

17

any, and cost of redemption of the bonds and notes for which

18

the obligations shall have been issued.

19

(6)  Pending their application for the purposes

20

authorized, moneys held or deposited by the State Treasurer

21

may be invested or reinvested as are other funds in the

22

custody of the State Treasurer in the manner provided by law.

23

All earnings received from the investment or deposit of the

24

funds shall be paid into the State Treasury to the credit of

25

the fund. The earnings in excess of bond discounts allowed,

26

expenses paid for the issuance of bonds and notes and

27

interest arbitrage rebates due to the Federal Government

28

shall be transferred annually to the fund. Any interest or

29

investment income shall be applied to assist in the payment

30

of the debt service incurred in connection with this act.

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1

(7)  The Auditor General shall prepare the necessary

2

registry book to be kept in the office of the duly authorized

3

loan and transfer agent of the Commonwealth for the

4

registration of any bonds, at the request of owners thereof,

5

according to the terms and conditions of issue directed by

6

the issuing officials.

7

(8)  There is hereby appropriated to the State Treasurer

8

from the fund as much money as may be necessary for all costs

9

and expenses in connection with the issue of and sale and

10

registration of the bonds and notes in connection with this

11

act and the payment of interest arbitrage rebates or proceeds

12

of such bonds and notes.

13

(c)  Temporary financing authorization.--

14

(1)  Pending the issuance of bonds of the Commonwealth as

15

authorized, the issuing officials are hereby authorized, in

16

accordance with the provisions of this act and on the credit

17

of the Commonwealth, to make temporary borrowings not to

18

exceed three years in anticipation of the issue of bonds in

19

order to provide funds in such amounts as may from time to

20

time be deemed advisable prior to the issue of bonds. In

21

order to provide for and in connection with the temporary

22

borrowings, the issuing officials are hereby authorized in

23

the name and on behalf of the Commonwealth to enter into any

24

purchase, loan or credit agreement or agreements or other

25

agreement or agreements with any banks or trust companies or

26

other lending institutions, investment banking firms or

27

persons in the United States having power to enter into the

28

same, which agreements may contain provisions not

29

inconsistent with the provisions of this act as may be

30

authorized by the issuing officials.

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1

(2)  All temporary borrowings made under the

2

authorization of this section shall be evidenced by notes of

3

the Commonwealth which shall be issued from time to time for

4

amounts not exceeding in the aggregate the applicable

5

statutory and constitutional debt limitation in the form and

6

in the denominations and subject to terms and conditions of

7

sale and issue, prepayment or redemption and maturity, rate

8

or rates of interest and time of payment of interest as the

9

issuing officials shall authorize and direct and in

10

accordance with this act. The authorization and direction may

11

provide for the subsequent issuance of replacement notes to

12

refund outstanding notes or replacement notes, which

13

replacement notes shall, upon issuance thereof, evidence the

14

borrowing and may specify other terms and conditions with

15

respect to the notes and replacement notes thereby authorized

16

for issuance as the issuing officials may determine and

17

direct.

18

(3)  When the authorization and direction of the issuing

19

officials provide for the issuance of replacement notes, the

20

issuing officials are hereby authorized in the name and on

21

behalf of the Commonwealth to issue, enter into or authorize

22

and direct the State Treasurer to enter into agreements with

23

any banks, trust companies, investment banking firms or other

24

institutions or persons in the United States having the power

25

to enter the same:

26

(i)  To purchase or underwrite an issue or series of

27

issues or notes.

28

(ii)  To credit, to enter into any purchase, loan or

29

credit agreements, to draw moneys pursuant to any such

30

agreements on the terms and conditions set forth therein

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1

and to issue notes as evidence of borrowings made under

2

any such agreements.

3

(iii)  To appoint as issuing and payment agent or

4

agents with respect to notes.

5

(iv)  To do such other acts as may be necessary or

6

appropriate to provide for the payment, when due, of the

7

interest on and the principal of such notes. Such

8

agreements may provide for the compensation of any

9

purchasers or underwriters of notes or replacement notes

10

by discounting the purchase price of the notes or by

11

payment of a fixed fee or commission at the time of

12

issuance thereof, and all other costs and expenses,

13

including fees for agreements related to the notes,

14

issuing and paying agent costs and costs and expenses of

15

issuance, may be paid from the proceeds of the notes.

16

(4)  When the authorization and direction of the issuing

17

officials provide for the issuance of replacement notes, the

18

State Treasurer shall, at or prior to the time of delivery of

19

these notes or replacement notes, determine the principal

20

amounts, dates of issue, interest rate or rates or procedures

21

for establishing such rates from time to time, rates of

22

discount, denominations and all other terms and conditions

23

relating to the issuance and shall perform all acts and

24

things necessary to pay or cause to be paid, when due, all

25

principal of and interest on the notes being refunded by

26

replacement notes and to assure that the same may draw upon

27

any moneys available for that purpose pursuant to any

28

purchase, loan or credit agreements established with respect

29

thereto, all subject to the authorization and direction of

30

the issuing officials.

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1

(5)  Outstanding notes evidencing such borrowings may be

2

funded and retired by the issuance and sale of the bonds of

3

the Commonwealth as hereinafter authorized. The refunding

4

bonds must be issued and sold not later than a date three

5

years after the date of issuance of the first notes

6

evidencing the borrowings to the extent that payment of such

7

notes has not otherwise been made or provided for by sources

8

other than proceeds of replacement notes.

9

(6)  The proceeds of all such temporary borrowing shall

10

be paid to the State Treasurer to be held and disposed of in

11

accordance with the provisions of this act.

12

(d)  Debt retirement.--

13

(1)  All bonds issued under the authority of this act

14

shall be redeemed at maturity, together with all interest due

15

from time to time on the bonds, and these principal and

16

interest payments shall be paid from the Iraq War Veterans'

17

Compensation Bond Sinking Fund, which is hereby established.

18

For the specific purpose of redeeming the bonds at maturity

19

and paying all interest thereon in accordance with the

20

information received from the Governor, the General Assembly

21

shall appropriate moneys to the Iraq War Veterans'

22

Compensation Bond Sinking Fund for the payment of interest on

23

the bonds and notes and the principal thereof at maturity.

24

All moneys paid into the Iraq War Veterans' Compensation Bond

25

Sinking Fund and all of the moneys not necessary to pay

26

accruing interest shall be invested by the State Treasurer in

27

such securities as are provided by law for the investment of

28

the sinking funds of the Commonwealth.

29

(2)  The State Treasurer, with the approval of the

30

Governor, is authorized at any time to use any of the moneys

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1

in the fund not necessary for the purposes of the referendum

2

authorizing the indebtedness necessary to carry out this act,

3

for the purchase and retirement of all or any part of the

4

bonds and notes issued pursuant to the authorization of this

5

act. In the event that all or any part of the bonds and notes

6

are purchased, they shall be canceled and returned to the

7

loan and transfer agent as canceled and paid bonds and notes,

8

and, thereafter, all payments of interest thereon shall

9

cease. The canceled bonds, notes and coupons, together with

10

any other canceled bonds, notes and coupons, shall be

11

destroyed as promptly as possible after cancellation but not

12

later than two years after cancellation. A certification

13

evidencing the destruction of the canceled bonds, notes and

14

coupons shall be provided by the loan and transfer agent to

15

the issuing officials. All canceled bonds, notes and coupons

16

shall be so marked as to make the canceled bonds, notes and

17

coupons nonnegotiable.

18

(3)  The State Treasurer shall determine and report to

19

the Secretary of the Budget by November 1 of each year the

20

amount of money necessary for the payment of interest on

21

outstanding obligations and the principal of the obligations,

22

if any, for the following fiscal year and the times and

23

amounts of the payments. It shall be the duty of the Governor

24

to include in every budget submitted to the General Assembly

25

full information relating to the issuance of bonds and notes

26

under the provisions of this act and the status of the Iraq

27

War Veterans' Compensation Bond Sinking Fund of the

28

Commonwealth for the payment of interest on the bonds and

29

notes and the principal thereof at maturity.

30

(4)  The General Assembly shall appropriate an amount

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1

equal to the sums as may be necessary to meet repayment

2

obligations for principal and interest for deposit into the

3

Iraq War Veterans' Compensation Bond Sinking 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

general election following enactment of this act.

13

(b)  Certification.--The Secretary of the Commonwealth shall

14

certify the question to the county boards of elections.

15

(c)  Form of question.--The question shall be in

16

substantially the following form:

17

Do you favor indebtedness by the Commonwealth of up to

18

$20,000,000 for the payment of compensation for service

19

in the Iraq War?

20

(d)  Election.--The election shall be conducted in accordance

21

with the act of June 3, 1937 (P.L.1333, No.320), known as the

22

Pennsylvania Election Code, except that the time limits for

23

advertisement of notice of the election may be waived as to the

24

question.

25

(e)  Proceeds.--Proceeds of the borrowing shall be used for

26

the payment of compensation for service in or in support of the

27

Iraq War.

28

Section 14.  Appropriations.

29

(a)  Compensation appropriation.--For the purpose of payment

30

for the compensation to eligible veterans, staff services,

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1

postage and other necessary expenses incurred by the Adjutant

2

General in the administration of this compensation program, such

3

sums, or as much thereof as may be necessary, are specifically

4

appropriated to the Adjutant General out of any moneys which

5

have been deposited in the fund.

6

(b)  Continuing appropriation.--The appropriation under

7

subsection (a) shall be a continuing appropriation and shall not

8

lapse.

9

Section 15.  Effective date.

10

This act shall take effect as follows:

11

(1)  Section 13(a), (b), (c) and (d) shall take effect

12

immediately.

13

(2)  The remainder of this act shall take effect upon the

14

certification of the approval by the electorate to incur the

15

indebtedness necessary to carry out the provisions of this

16

act.

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