House File 2181

                                       HOUSE FILE       
                                       BY  STEVENS, DANDEKAR, STRUYK,
                                           and QUIRK


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act creating a Persian Gulf conflict veterans bonus and
  2    providing a tax exemption and a penalty.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 6200YH 80
  5 jr/pj/5

PAG LIN

  1  1    Section 1.  Section 35A.8, Code Supplement 2003, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  5.  a.  The executive director shall
  1  4 provide for the administration of the bonus authorized in this
  1  5 subsection.  The commission shall adopt rules, pursuant to
  1  6 chapter 17A, as necessary to administer this subsection
  1  7 including, but not limited to, application procedures,
  1  8 investigation, approval or disapproval, and payment of claims.
  1  9    b.  (1)  Each person who served on active duty in the armed
  1 10 forces of the United States at any time between August 2,
  1 11 1990, and December 5, 1995, both dates inclusive, and who at
  1 12 the time of entering into active duty service was a legal
  1 13 resident of the state of Iowa, and who had maintained the
  1 14 person's residence in this state for a period of at least six
  1 15 months immediately before entering into active duty service,
  1 16 and was honorably discharged or separated from active duty
  1 17 service, is entitled to receive from moneys appropriated for
  1 18 that purpose the sum of twelve dollars and fifty cents for
  1 19 each month that the person was on active duty service, within
  1 20 the dates specified in this paragraph, not to exceed a total
  1 21 sum of five hundred dollars.  Compensation for a fraction of a
  1 22 month shall not be considered unless the fraction is sixteen
  1 23 days or more, in which case the fraction shall be computed as
  1 24 a full month.
  1 25    (2)  A person is not entitled to compensation pursuant to
  1 26 this subsection if the person received a bonus or compensation
  1 27 similar to that provided in this subsection from another
  1 28 state.
  1 29    (3)  A person is not entitled to compensation pursuant to
  1 30 this subsection if the person was on active duty service after
  1 31 August 2, 1990, and the person refused on conscientious,
  1 32 political, religious, or other grounds to be subject to
  1 33 military discipline.
  1 34    (4)  The surviving unremarried widow or widower, child or
  1 35 children, mother, father, or person standing in loco parentis,
  2  1 in the order named and none other, of any deceased person,
  2  2 shall be paid the compensation that the deceased person would
  2  3 be entitled to pursuant to this subsection, if living, but if
  2  4 any person has died or shall die, or is disabled, from
  2  5 service=connected causes incurred during the period and in the
  2  6 area from which the person is entitled to receive compensation
  2  7 pursuant to this subsection, the person or the first survivor
  2  8 as designated by this subsection, and in the order named,
  2  9 shall be paid five hundred dollars, regardless of the length
  2 10 of service.
  2 11    c.  A person who knowingly makes a false statement relating
  2 12 to a material fact in supporting an application under this
  2 13 subsection is guilty of a serious misdemeanor.  A person
  2 14 convicted pursuant to this subsection shall forfeit all
  2 15 benefits to which the person may have been entitled under this
  2 16 subsection.
  2 17    d.  All payments and allowances made under this subsection
  2 18 shall be exempt from taxation and from levy and sale on
  2 19 execution.
  2 20    e.  The bonus compensation authorized under this subsection
  2 21 shall be paid from moneys appropriated for that purpose.
  2 22    f.  A Persian Gulf conflict veterans bonus fund is created
  2 23 in the state treasury.  The Persian Gulf conflict veterans
  2 24 bonus fund shall consist of all moneys appropriated to the
  2 25 fund to pay the bonus compensation authorized in this
  2 26 subsection.  Notwithstanding section 12C.7, interest or
  2 27 earnings on investments or time deposits of the moneys in the
  2 28 Persian Gulf conflict veterans bonus fund shall be credited to
  2 29 the bonus fund.  Section 8.33 does not apply to moneys
  2 30 appropriated to the Persian Gulf conflict veterans bonus fund.
  2 31                           EXPLANATION
  2 32    This bill creates a Persian Gulf conflict veterans bonus
  2 33 for persons who served on active duty in the United States
  2 34 armed forces during the period August 2, 1990, through
  2 35 December 5, 1995.  Eligible persons may receive $12.50 for
  3  1 each month that the person was on active duty, within the
  3  2 dates specified, not to exceed a total sum of $500.  The
  3  3 payments are exempt from taxation, levy, and execution.  A
  3  4 criminal penalty is provided for submission of a fraudulent
  3  5 application for the bonus.  Payment of the bonuses is subject
  3  6 to the making of an appropriation by the general assembly.
  3  7 LSB 6200YH 80
  3  8 jr/pj/5