1Providing for compensation payments to persons who served on
2active military duty in combat zones in connection with the
3Global War on Terrorism or their beneficiaries; authorizing
4the incurring of indebtedness and the issue and sale of bonds
5by the Commonwealth for the payment of the benefits
6contingent upon electorate approval; establishing the Global
7War on Terrorism Veterans' Bonus Payment Bond Fund and the
8Global War on Terrorism Veterans' Bonus Payment Bond Sinking
9Fund; and imposing powers and duties on the Department of
10Military and Veterans Affairs.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13Section 1. Short title.

14This act shall be known and may be cited as the Global War on
15Terrorism Veterans' Compensation Act.

16Section 2. Definitions.

17The following words and phrases when used in this act shall
18have the meanings given to them in this section unless the
19context clearly indicates otherwise:

20"Active duty." For a member of an active or reserve

1component of the armed forces of the United States, the time
2served on full-time duty in a zone of combat after September 11,
32001, for which the member has received combat or hazardous duty
4pay and received the Global War on Terrorism Expeditionary
5Medal, the Iraq Campaign Medal or the Afghanistan Campaign Medal
6for service related the to Global War on Terrorism. The term
7includes time spent in hospitals as a result of service-
8connected wounds, diseases or injuries sustained on active duty.
9Proof of such service shall be the official military records of
10the United States or such other evidence as deemed sufficient by
11the Adjutant General. The term does not include time served on
12active duty outside of combat zones or hospitals as provided in
13this definition or active duty for training or schooling.

14"Eligible veteran." A member or former member of the armed
15forces of the United States, including a member of the Army
16National Guard of the United States, the Air National Guard of
17the United States or a reserve component of the armed forces who
18was deployed overseas to perform active duty in a combat zone in
19connection with Global War on Terrorism operations. The term
20does not include an individual who:

21(1) at any time during the Global War on Terrorism or
22thereafter, was discharged or released from the armed forces
23under other than honorable conditions; or

24(2) has renounced his United States citizenship.

25"Fund." The Global War on Terrorism Veterans' Bonus Payment
26Bond Fund established in this act.

27"Global War on Terrorism." Military efforts in the United
28States and abroad directly resulting from the terrorist attacks
29on the Pentagon, the World Trade Center and the aircraft that
30went down in Somerset County, Pennsylvania, on September 11,

12001. For the purposes of this act, the Global War on Terrorism
2shall be deemed to have ended when military efforts cease as
3ordered by the Commander-in-Chief of the United States Armed

5"Issuing officials." The Governor, the Auditor General and
6the State Treasurer.

7"Legal resident of this Commonwealth." A member of the
8United States Armed Forces, the reserve component of the United
9States Armed Forces or the Pennsylvania National Guard whose
10place of enlistment was Pennsylvania or whose home of record
11upon discharge was Pennsylvania and whose current primary
12residence is Pennsylvania. The proof of such residence shall be
13the official records of the United States or such other evidence
14as deemed sufficient by the Adjutant General.

15"Parents." Includes persons who, for a period of not less
16than one year, acted in the capacity of a foster parent to the
17veteran immediately prior to the veteran having attained 18
18years of age.

19Section 3. Computation of compensation.

20(a) Amounts.--An eligible veteran or beneficiary of an
21eligible veteran shall qualify for payment of one of the
22following compensation payments:

23(1) If the eligible veteran performed one or more tours
24of active duty for a cumulative total of not less than 31,
25nor more than 365 days, $500.

26(2) If the eligible veteran performed one or more tours
27of active duty for a cumulative total of more than 365 days,

29(3) If the eligible veteran was wounded in action and
30awarded a Purple Heart while performing a tour of active

1duty, regardless of duration, $1,000.

2(4) If the eligible veteran was held as prisoner of war
3while performing a tour of active duty, regardless of
4duration, $5,000.

5(5) If the eligible veteran was killed in action while
6performing a tour of active duty, regardless of duration,

8(b) Exclusion from bonus payment.--An individual who has
9received a bonus, gratuity or bonus payment of a nature similar
10to that provided by this act from any other state in the United
11States is ineligible for payment under this act. This exclusion
12does not apply to a similar bonus, gratuity or bonus payment
13from the Federal Government.

14Section 4. Application for compensation.

15(a) Application to Adjutant General.--Applications must be
16made by a veteran or the beneficiaries designated under section

18(b) Time for filing application.--The Adjutant General shall
19not accept or consider any application filed after December 31,

21Section 5. Person to whom payments shall be made in case of
22incompetence or death.

23(a) Incompetence.--In a case where an eligible veteran is
24incompetent and no guardian has been appointed, payment shall be
25made for the benefit of the veteran to the person who is
26entitled to payment under subsection (b).

27(b) Death.--In the case of the death of an eligible veteran,
28payment shall be made, in the order named, to the:

29(1) surviving spouse unless the spouse was living
30separate and apart from the veteran at the time of departure

1for active duty;

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

3(3) surviving parents.

4Section 6. Applicant to designate beneficiaries.

5Every person making application for compensation shall set
6fourth in the application the names and addresses of all persons
7who, under this act, would be entitled to receive compensation
8in the event of the death of the applicant. If the applicant
9dies before the payment of the compensation, the application
10shall be deemed to inure to the benefit of the person next
11entitled to compensation, and payment shall be made to the
12person upon proof of identity satisfactory to the Adjutant
13General. If no person designated in this act as being entitled
14to compensation survives the veteran, the right to the
15compensation shall cease.

16Section 7. Exemption from attachment.

17(a) General rule.--No sum payable under this act to an
18eligible veteran or to any other person under this act shall be
19subject to attachment, levy or seizure under any legal or
20equitable process and shall be exempt from all State taxation.

21(b) Assignment.--

22(1) No right to compensation under this act shall be
23assignable, except as otherwise provided in this act or shall
24serve as security for any loan. Any assignment or loan made
25in violation of this section shall be void.

26(2) Paragraph (1) does not apply to assignments to any
27incorporated or unincorporated organization of veterans, any
28nonprofit corporation, formed solely for the purpose of
29aiding disabled or incapacitated veterans and the State
30Veterans' Commission.

1Section 8. Penalty for charging fees for assisting veterans.

2A person who charges or collects or attempts to charge or
3collect, either directly or indirectly, any fee or other
4compensation for assisting, in any manner, a veteran in
5obtaining any of the benefits provided under this act commits a
6misdemeanor of the second degree.

7Section 9. Administration of program.

8The Adjutant General shall administer the compensation
9program. For that purpose, application forms shall be prepared
10and distributed, applications shall be investigated and if
11satisfied of the proof of an application, compensation shall be
12approved and payment of compensation shall be made. The Adjutant
13General shall promulgate rules and regulations to implement,
14administer and enforce this act. The Adjutant General shall, as
15soon as practicable after the effective date of this section,
16prepare and distribute a digest explaining the provisions of
17this act to assist veterans in filing their applications and
18shall periodically prepare and distribute additional or
19supplementary information as may be found necessary. The
20Adjutant General shall request, as far as possible, the services
21of veteran organizations in this Commonwealth in the
22dissemination of the information.

23Section 10. Funding source of compensation payments.

24The compensation payable under this act shall, upon
25requisition by the Adjutant General, be paid by the State
26Treasurer from the fund with funds realized from a proposed bond
27issue. Payments shall be made as soon as possible after funds
28are available.

29Section 11. The Global War on Terrorism Veterans' Bonus Payment
30Bond Fund.

1(a) Establishment.--The Global War on Terrorism Bonus
2Payment Bond Fund is established in the State Treasury and shall
3be the source from which all payments are authorized with the
4approval of the Governor to carry out the purposes of this act.
5The moneys in the fund shall only be utilized:

6(1) For the purpose of providing compensation to
7veterans in accordance with the provisions of this act.

8(2) For the administrative costs incurred in any of the
9purposes in paragraph (1), including the costs incurred in
10connection with the issuance of the bonds.

11(b) Interfund transfers authorized.--

12(1) Whenever the cash balance and the current estimated
13receipts of the fund shall be insufficient at any time during
14any State fiscal year to meet promptly the obligations of the
15Commonwealth from the fund, the State Treasurer may, during
16such fiscal year, transfer from the General Fund to the fund
17such sums as the Governor directs, but in no case less than
18the amount necessary to meet promptly the obligations to be
19paid from the fund nor more than the amount which is the
20smaller of:

21(i) the difference between the amount of debt
22authorized to be issued under the authority of this act
23and the aggregate principal amount of bonds and notes
24issued, not including refunding bonds and replacement

26(ii) the difference between the aggregate principal
27amount of bonds and notes to be issued during a State
28fiscal year and the aggregate principal amount of bonds
29and notes, not including refunding bonds and replacement
30notes, issued during such State fiscal year.

1Any sums transferred shall be available only for the
2purposes for which funds are appropriated from the fund. The
3transfers shall be made under this section upon warrant of
4the State Treasurer upon requisition of the Governor.

5(2) In order to reimburse the General Fund for moneys
6transferred from such funds under paragraph (1), there shall
7be transferred from the fund to the General Fund moneys from
8the proceeds obtained from bonds and notes issued under
9authority of this act or from other available funds in such
10amounts and at such times as the Governor shall direct. The
11retransfers shall be made upon warrant of the State Treasurer
12upon requisition of the Governor.

13Section 12. Commonwealth indebtedness.

14(a) Borrowing authorized.--

15(1) If and when the electorate approves a referendum
16question for the incurring of indebtedness in the amount and
17for the purposes prescribed in this act, the issuing
18officials, pursuant to the provisions of section 7(a)(3) of
19Article VIII of the Constitution of Pennsylvania, are
20authorized and directed to borrow, on the credit of the
21Commonwealth, money not exceeding in the aggregate the sum of
22$40,000,000 not including money borrowed to refund
23outstanding bonds, notes or replacement notes, as may be
24found necessary to carry out the purposes of this act.

25(2) As evidence of the indebtedness, general obligation
26bonds of the Commonwealth shall be issued from time to time
27to provide moneys necessary to carry out the purposes of this
28act for such total amounts, in such form, in such
29denominations and subject to such terms and conditions of
30issue, redemption and maturity, rate of interest and time of

1payment of interest as the issuing officials direct, except
2that the latest stated maturity date shall not exceed 20
3years from the date of the first obligation issued to
4evidence the debt.

5(3) All bonds and notes issued under the authority of
6this act shall bear facsimile signatures of the issuing
7officials and a facsimile of the Great Seal of the
8Commonwealth and shall be countersigned by a duly authorized
9officer of a duly authorized loan and transfer agent of the

11(4) All bonds and notes issued in accordance with the
12provisions of this section shall be direct obligations of the
13Commonwealth and the full faith and credit of the
14Commonwealth is hereby pledged for the payment of the
15interest thereon, as it becomes due, and the payment of the
16principal at maturity. The principal of and interest on the
17bonds and notes shall be payable in lawful money of the
18United States.

19(5) All bonds and notes issued under the provisions of
20this section shall be exempt from taxation for State and
21local purposes.

22(6) The bonds may be issued as coupon bonds or
23registered as to both principal and interest as the issuing
24officials may determine. If interest coupons are attached,
25they shall contain the facsimile signature of the State

27(7) The issuing officials shall provide for the
28amortization of the bonds in substantial and regular amounts
29over the term of the debt so that the bonds of each issue
30allocated to the programs to be funded from the bond issue

1shall mature within a period not to exceed the appropriate
2amortization period for each program as specified by the
3issuing officials but in no case in excess of 20 years. The
4first retirement of principal shall mature prior to the
5expiration of a period of time equal to one-tenth of the time
6from the date of the first obligation issued to evidence the
7debt to the date of the expiration of the term of the debt.
8Retirements of principal shall be regular and substantial if
9made in annual or semiannual amounts whether by stated serial
10maturities or by mandatory sinking fund retirements.

11(8) The issuing officials are authorized to provide by
12resolution for the issuance of refunding bonds for the
13purpose of refunding any debt issued under the provisions of
14this act and then outstanding, either by voluntary exchange
15with the holders of the outstanding debt or providing funds
16to redeem and retire the outstanding debt with accrued
17interest, any premium payable thereon and the costs of
18issuance and retirement of the debt, at maturity or at any
19call date. The issuance of the refunding bonds, the
20maturities and other details thereof, the rights of the
21holders thereof and the duties of the issuing official in
22respect thereto shall be governed by the provisions of this
23section insofar as they may be applicable. Refunding bonds,
24which are not subject to the aggregate limitation of
25$20,000,000 of debt to be issued under this act, may be
26issued by the issuing officials to refund debt originally
27issued or to refund bonds previously issued for refunding

29(9) Whenever any action is to be taken or decision made
30by the Governor, the Auditor General and the State Treasurer

1acting as issuing officials and the three officers are not
2able unanimously to agree, the action or decision of the
3Governor and either the Auditor General or the State
4Treasurer shall be binding and final.

5(b) Sale of bonds.--

6(1) Whenever bonds are issued, they shall be offered for
7sale at not less than 98% of the principal amount and accrued
8interest and shall be sold by issuing officials to the
9highest and best bidder or bidders after due public
10advertisement on the terms and conditions and upon such open
11competitive bidding as the issuing officials shall direct.
12The manner and character of the advertisement and the time of
13advertising shall be prescribed by the issuing officials. No
14commission shall be allowed or paid for the sale of any bonds
15issued under the authority of this act.

16(2) Any portion of any bond issue so offered and not
17sold or subscribed for at public sale may be disposed of by
18private sale by the issuing officials in such manner and at
19such prices, not less than 98% of the principal amount and
20accrued interest, as the Governor shall direct. No commission
21shall be allowed or paid for the sale of any bonds issued
22under the authority of this act.

23(3) When bonds are issued from time to time, the bonds
24of each issue shall constitute a separate series to be
25designated by the issuing officials or may be combined for
26sale as one series with other general obligation bonds of the

28(4) Until permanent bonds can be prepared, the issuing
29officials may in their discretion issue, in lieu of permanent
30bonds, temporary bonds in such form and with such privileges

1as to registration and exchange for permanent bonds as may be
2determined by the issuing officials.

3(5) The proceeds realized from the sale of bonds and
4notes, except refunding bonds and replacement notes, under
5the provisions of this act shall be paid into the fund. The
6proceeds shall be paid by the State Treasurer periodically to
7those Commonwealth officers and Commonwealth agencies
8authorized to expend them at such times and in such amounts
9as may be necessary to satisfy the funding needs thereof. The
10proceeds of the sale of refunding bonds and replacement notes
11shall be paid to the State Treasurer and applied to the
12payment of principal, the accrued interest and premium, if
13any, and cost of redemption of the bonds and notes for which
14the obligations shall have been issued.

15(6) Pending their application for the purposes
16authorized, moneys held or deposited by the State Treasurer
17may be invested or reinvested as are other funds in the
18custody of the State Treasurer in the manner provided by law.
19All earnings received from the investment or deposit of the
20funds shall be paid into the State Treasury to the credit of
21the fund. The earnings in excess of bond discounts allowed,
22expenses paid for issuance of bonds and notes and interest
23arbitrage rebates due to the Federal Government shall be
24transferred annually to the fund. Any interest or investment
25income shall be applied to assist in the payment of the debt
26service incurred in connection with this act.

27(7) The Auditor General shall prepare the necessary
28registry book to be kept in the office of the duly authorized
29loan and transfer agent of the Commonwealth for the
30registration of any bonds, at the request of owners thereof,

1according to the terms and conditions of issue directed by
2the issuing officials.

3(8) There is hereby appropriated to the State Treasurer
4from the fund as much money as may be necessary for all costs
5and expenses in connection with the issue of and sale and
6registration of the bonds and notes in connection with this
7act and the payment of interest arbitrage rebates or proceeds
8of such bonds and notes.

9(c) Temporary financing authorization.--

10(1) Pending the issuance of bonds of the Commonwealth as
11authorized, the issuing officials are hereby authorized, in
12accordance with the provisions of this act and on the credit
13of the Commonwealth, to make temporary borrowings not to
14exceed three years in anticipation of the issue of bonds in
15order to provide funds in such amounts as may from time to
16time be deemed advisable prior to the issue of bonds. In
17order to provide for and in connection with the temporary
18borrowings, the issuing officials are hereby authorized in
19the name and on behalf of the Commonwealth to enter into any
20purchase, loan or credit agreement or agreements or other
21agreement or agreements with any banks or trust companies or
22other lending institutions, investment banking firms or
23persons in the United States having power to enter into the
24same, which agreements may contain provisions not
25inconsistent with the provisions of this act as may be
26authorized by the issuing officials.

27(2) All temporary borrowings made under the
28authorization of this section shall be evidenced by notes of
29the Commonwealth which shall be issued from time to time for
30amounts not exceeding in the aggregate the applicable

1statutory and constitutional debt limitation in the form and
2in the denominations and subject to terms and conditions of
3sale and issue, prepayment or redemption and maturity, rate
4or rates of interest and time of payment of interest as the
5issuing officials shall authorize and direct and in
6accordance with this act. The authorization and direction may
7provide for the subsequent issuance of replacement notes to
8refund outstanding notes or replacement notes, which
9replacement notes shall, upon issuance thereof, evidence the
10borrowing and may specify other terms and conditions with
11respect to the notes and replacement notes thereby authorized
12for issuance as the issuing officials may determine and

14(3) When the authorization and direction of the issuing
15officials provide for the issuance of replacement notes, the
16issuing officials are hereby authorized in the name and on
17behalf of the Commonwealth to issue, enter into or authorize
18and direct the State Treasurer to enter into agreements with
19any banks, trust companies, investment banking firms or other
20institutions or persons in the United States having the power
21to enter the same:

22(i) To purchase or underwrite an issue or series of
23issues or notes.

24(ii) To credit, to enter into any purchase, loan or
25credit agreements, to draw moneys pursuant to any such
26agreements on the terms and conditions set forth therein
27and to issue notes as evidence of borrowings made under
28any such agreements.

29(iii) To appoint as issuing and payment agent or
30agents with respect to notes.

1(iv) To do such other acts as may be necessary or
2appropriate to provide for the payment, when due, of the
3interest on and the principal of such notes. Such
4agreements may provide for compensation of any purchasers
5or underwriters of notes or replacement notes by
6discounting the purchase price of the notes or by payment
7of a fixed fee or commission at the time of issuance
8thereof, and all other costs and expenses, including fees
9for agreements related to the notes, issuing and paying
10agent costs and costs and expenses of issuance, may be
11paid from the proceeds of the notes.

12(4) When the authorization and direction of the issuing
13officials provide for the issuance of replacement notes, the
14State Treasurer shall, at or prior to the time of delivery of
15these notes or replacement notes, determine the principal
16amounts, dates of issue, interest rate or rates or procedures
17for establishing such rates from time to time, rates of
18discount, denominations and all other terms and conditions
19relating to the issuance and shall perform all acts and
20things necessary to pay or cause to be paid, when due, all
21principal of and interest on the notes being refunded by
22replacement notes and to assure that the same may draw upon
23any moneys available for that purpose pursuant to any
24purchase, loan or credit agreements established with respect
25thereto, all subject to the authorization and direction of
26the issuing officials.

27(5) Outstanding notes evidencing such borrowings may be
28funded and retired by the issuance and sale of the bonds of
29the Commonwealth as hereinafter authorized. The refunding
30bonds must be issued and sold not later than a date three

1years after the date of issuance of the first notes
2evidencing the borrowings to the extent that payment of such
3notes has not otherwise been made or provided for by sources
4other than proceeds of replacement notes.

5(6) The proceeds of all such temporary borrowing shall
6be paid to the State Treasurer to be held and disposed of in
7accordance with the provisions of this act.

8(d) Debt retirement.--

9(1) All bonds issued under the authority of this act
10shall be redeemed at maturity, together with all interest due
11from time to time on the bonds, and these principal and
12interest payments shall be paid from the Global War on
13Terrorism Veterans' Bonus Payment Bond Sinking Fund, which is
14hereby established in the State Treasury. For the specific
15purpose of redeeming the bonds at maturity and paying all
16interest thereon in accordance with the information received
17from the Governor, the General Assembly shall appropriate
18moneys to the Global War on Terrorism Veterans' Bonus Payment
19Bond Sinking Fund for the payment of interest on the bonds
20and notes and the principal thereof at maturity. All moneys
21paid into the Global War on Terrorism Veterans' Bonus Payment
22Bond Sinking Fund and all of the moneys not necessary to pay
23accruing interest shall be invested by the State Treasurer in
24such securities as are provided by law for the investment of
25the sinking funds of the Commonwealth.

26(2) The State Treasurer, with the approval of the
27Governor, is authorized at any time to use any of the moneys
28in the fund not necessary for the purposes of the referendum
29authorizing the indebtedness necessary to carry out this act,
30for the purchase and retirement of all or any part of the

1bonds and notes issued pursuant to the authorization of this
2act. In the event that all or any part of the bonds and notes
3are purchased, they shall be canceled and returned to the
4loan and transfer agent as canceled and paid bonds and notes,
5and, thereafter, all payments of interest thereon shall
6cease. The canceled bonds, notes and coupons, together with
7any other canceled bonds, notes and coupons, shall be
8destroyed as promptly as possible after cancellation, but not
9later than two years after cancellation. A certification
10evidencing the destruction of the canceled bonds, notes and
11coupons shall be provided by the loan and transfer agent to
12the issuing officials. All canceled bonds, notes and coupons
13shall be so marked as to make the canceled bonds, notes and
14coupons nonnegotiable.

15(3) The State Treasurer shall determine and report to
16the Secretary of the Budget by November 1 of each year the
17amount of money necessary for the payment of interest on
18outstanding obligations and the principal of the obligations,
19if any, for the following fiscal year and the times and
20amounts of the payments. It shall be the duty of the Governor
21to include in every budget submitted to the General Assembly
22full information relating to the issuance of bonds and notes
23under the provisions of this act and the status of the Global
24War on Terrorism Veterans' Bonus Payment Bond Sinking Fund of
25the Commonwealth for the payment of interest on the bonds and
26notes and the principal thereof at maturity.

27(4) The General Assembly shall appropriate an amount
28equal to the sums as may be necessary to meet repayment
29obligations for principal and interest for deposit into the
30Global War on Terrorism Veterans' Bonus Payment Bond Sinking


2(e) Expiration.--Authorization to issue bonds and notes, not
3including refunding bonds and replacement notes, for the purpose
4of this act shall expire ten years from the effective date of
5this section.

6Section 13. Question to be submitted to electorate.

7(a) Submission of question to electorate.--The question
8incurring indebtedness of up to $40,000,000 for the purposes set
9forth in this act shall be submitted to the electors at the next
10general election following the effective date of this section.

11(b) Certification.--The Secretary of the Commonwealth shall
12certify the question to the county boards of elections.

13(c) Form of question.--The question shall be in
14substantially the following form:

15Do you favor indebtedness by the Commonwealth of up to
16$40,000,000 for the payment of compensation for military
17service in the Global War on Terrorism?

18(d) Election.--The election shall be conducted in accordance
19with the act of June 3, 1937 (P.L.1333, No.320), known as the
20Pennsylvania Election Code, except that the time limits for
21advertisement of notice of the election may be waived as to the

23(e) Certification of results.--The Secretary of the
24Commonwealth shall certify the results of the question submitted
25to the electors and shall publish the certification as a notice
26in the Pennsylvania Bulletin.

27(f) Proceeds.--Proceeds of the borrowing shall be used for
28the payment of compensation for service in the Global War on

30Section 14. Appropriations.

1(a) General rule.--For the purpose of payments to eligible
2veterans, staff services, postage and other necessary expenses
3incurred by the Adjutant General in the administration of this
4act, such sums, or as much thereof as may be necessary, are
5specially appropriated to the Adjutant General out of any moneys
6which have been deposited in the fund.

7(b) Continuing appropriation.--The appropriation under
8subsection (a) shall be a continuing appropriation and shall not

10Section 15. Effective date.

11This act shall take effect as follows:

12(1) Section 13 and this section shall take effect in 60

14(2) The remainder of this act shall take effect upon
15publication of notice in the Pennsylvania Bulletin that the
16electors approved the question as provided in section 13(e).