Section 1. NEW SECTION 35A.13 VETERANS TRUST FUND.

1. For the purposes of this section, "veteran" means the

same as defined in section 35.1 or a resident of this state

who served in the armed forces of the United States, completed

a minimum aggregate of ninety days of active federal service,

and was discharged under honorable conditions.

2. A veterans trust fund is created in the state treasury

under the control of the commission.

3. The trust fund shall consist of all of the following:

a. Moneys in the form of a devise, gift, bequest,

donation, federal or other grant, reimbursement, repayment,

judgment, transfer, payment, or appropriation from any source

intended to be used for the purposes of the trust fund.

b. Interest attributable to investment of moneys in the

fund or an account of the trust fund. Notwithstanding section

12C.7, subsection 2, interest or earnings on moneys in the

trust fund shall be credited to the trust fund.

4. Moneys credited to the trust fund shall not be

transferred, used, obligated, appropriated, or otherwise

encumbered, except as provided in this section. Moneys in the

trust fund may be used for cash flow purposes during a fiscal

year provided that any moneys so allocated are returned to the

trust fund by the end of that fiscal year.

5. The minimum balance of the trust fund required prior to

expenditure of moneys from the trust fund is fifty million

dollars. Once the minimum balance is reached, the interest

and earnings on the fund and any moneys received under

subsection 3, paragraph "a", are appropriated to the

commission to be used to achieve the purposes of this section.

6. Moneys appropriated to the commission under this

section shall not be used to supplant funding previously

provided by other sources. The moneys may be expended upon a

majority vote of the commission membership for the benefit of

veterans and the spouses and dependents of veterans, for any

of the following purposes:

a. College tuition aid.

b. Job training aid.

c. Expenses relating to an individual receiving care by a

nursing facility that are not payable by any other sources.

d. Benefits provided to children of disabled or deceased

veterans.

e. Unemployment aid needed during a veteran's unemployment

due to prolonged illness or disability resulting from military

service. A diagnosed case of mental distress due to military

service-related activities shall be included as a disability

under this paragraph.

f. Other purposes identified by the commission.