House File 2701 - Introduced HOUSE FILE BY COMMITTEE ON VETERANS AFFAIRS (SUCCESSOR TO HSB 675) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing hardship grants on behalf of veterans seriously 2 injured in a combat zone, providing an income tax exclusion, 3 and including an effective date and retroactive applicability 4 provision. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5781HV 81 7 ec/je/5 PAG LIN 1 1 Section 1. NEW SECTION. 35A.14 VETERANS APPRECIATION 1 2 PROGRAM == TRUST FUND == GRANTS. 1 3 1. For the purposes of this section, "veteran" means a 1 4 resident of this state who is or was a member of the national 1 5 guard, reserve, or regular component of the armed forces of 1 6 the United States who has served on active duty at any time 1 7 after September 11, 2001, and, if discharged, was discharged 1 8 under honorable conditions. 1 9 2. A veterans appreciation program is created under the 1 10 control of the department for the purpose of providing 1 11 hardship grants to eligible veterans. 1 12 3. To finance the program created by this section, a 1 13 veterans appreciation trust fund is created in the state 1 14 treasury under the control of the department. Moneys credited 1 15 to the trust fund shall not be transferred, used, obligated, 1 16 appropriated, or otherwise encumbered, except as provided in 1 17 this section. Moneys in the trust fund may be used for cash 1 18 flow purposes during a fiscal year provided that any moneys so 1 19 allocated are returned to the trust fund by the end of that 1 20 fiscal year. 1 21 4. The trust fund shall consist of all of the following: 1 22 a. Moneys in the form of a devise, gift, bequest, 1 23 donation, federal or other grant, reimbursement, repayment, 1 24 judgment, transfer, payment, or appropriation from any source 1 25 intended to be used for the purposes of the trust fund. 1 26 b. Interest attributable to investment of moneys in the 1 27 fund or an account of the trust fund. Notwithstanding section 1 28 12C.7, subsection 2, interest or earnings on moneys in the 1 29 trust fund shall be credited to the trust fund. 1 30 5. Moneys credited to the trust fund for providing 1 31 veterans appreciation grants under this section may be 1 32 expended by the department for one=time hardship grants of up 1 33 to ten thousand dollars to a seriously injured veteran who 1 34 received a combat=related injury while serving in a combat 1 35 zone or in a zone where the veteran was receiving hazardous 2 1 duty pay since September 11, 2001. 2 2 6. The commission shall adopt rules governing the 2 3 distribution of hardship grants under this section. 2 4 Sec. 2. Section 422.7, Code Supplement 2005, is amended by 2 5 adding the following new subsection: 2 6 NEW SUBSECTION. 45. Subtract, to the extent included, the 2 7 amount of any grant provided pursuant to the veterans 2 8 appreciation program pursuant to section 35A.14. 2 9 Sec. 3. EFFECTIVE DATE == RETROACTIVE APPLICABILITY. 2 10 1. The section of this Act creating section 35A.14, being 2 11 deemed of immediate importance, takes effect upon enactment 2 12 and is retroactively applicable to veterans seriously injured 2 13 after September 11, 2001, and is applicable on and after that 2 14 date. 2 15 2. The section of this Act amending section 422.7, being 2 16 deemed of immediate importance, takes effect upon enactment 2 17 and is retroactively applicable to January 1, 2006, and is 2 18 applicable for tax years beginning on and after that date. 2 19 EXPLANATION 2 20 This bill establishes a veterans appreciation program under 2 21 the control of the department of veterans affairs. 2 22 New Code section 35A.14 establishes the veterans 2 23 appreciation program and trust fund. The fund receives any 2 24 appropriations and moneys provided for purposes of the fund, 2 25 and interest and earnings on the moneys credited to the fund. 2 26 Moneys in the fund are not subject to appropriation or 2 27 transfer except as provided by the bill. Moneys credited to 2 28 the trust fund for this program may be expended by the 2 29 department of veterans affairs for one=time hardship grants of 2 30 up to $10,000 for seriously injured veterans sustaining a 2 31 combat=related injury while serving in a combat zone or 2 32 hazardous duty pay zone since September 11, 2001. The bill 2 33 also requires that the commission of veterans affairs adopt 2 34 rules governing the distribution of these grants. The new 2 35 section takes effect upon enactment and applies retroactively 3 1 to veterans seriously injured after September 11, 2001. 3 2 The bill also amends Code section 422.7 to provide that 3 3 grants received under this program are subtracted from net 3 4 income for purposes of taxation. This provision takes effect 3 5 upon enactment and is applicable to tax years beginning on or 3 6 after January 1, 2006. 3 7 LSB 5781HV 81 3 8 ec:rj/je/5