Senate File 578 - Reprinted SENATE FILE BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SF 453) (SUCCESSOR TO SSB 1317) Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act creating a Vietnam Conflict veterans bonus for a certain 2 period of active duty military service, making an 3 appropriation, providing a tax exemption and a penalty, and 4 including a retroactive applicability provision. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 SF 578 7 ec/cc/26 PAG LIN 1 1 Section 1. Section 35A.8, Code 2007, is amended by adding 1 2 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) A person who served on active duty for not less 1 10 than one hundred twenty days in the armed forces of the United 1 11 States at any time between July 1, 1973, and May 31, 1975, 1 12 both dates inclusive, and who at the time of entering into 1 13 active duty service was a legal resident of the state of Iowa, 1 14 and who had maintained the person's residence in this state 1 15 for a period of at least six months immediately before 1 16 entering into active duty service, and was honorably 1 17 discharged or separated from active duty service, or is still 1 18 in active service in an honorable status, or has been retired, 1 19 or has been furloughed to a reserve, or has been placed on 1 20 inactive status is entitled to receive from moneys 1 21 appropriated for that purpose the sum of seventeen dollars and 1 22 fifty cents for each month that the person was on active duty 1 23 service in the Vietnam service area, within the dates 1 24 specified in this subparagraph, if the veteran earned either a 1 25 Vietnam service medal or an armed forces expeditionary medal= 1 26 Vietnam or can otherwise establish service in the Vietnam 1 27 service area during that period. Compensation under this 1 28 subparagraph shall not exceed a total sum of five hundred 1 29 dollars. Compensation for a fraction of a month shall not be 1 30 considered unless the fraction is sixteen days or more, in 1 31 which case the fraction shall be computed as a full month. 1 32 (2) A person otherwise qualified under this paragraph "b" 1 33 except that the person did not earn either a Vietnam service 1 34 medal or an armed forces expeditionary medal=Vietnam, and did 1 35 not serve in the Vietnam service area during the period 2 1 between July 1, 1973, and May 31, 1975, both dates inclusive, 2 2 is entitled to receive from moneys appropriated for that 2 3 purpose the sum of twelve dollars and fifty cents for each 2 4 month that the person was on active duty service, within the 2 5 dates specified in subparagraph (1). Compensation under this 2 6 subparagraph shall not exceed a total sum of three hundred 2 7 dollars. Compensation for a fraction of a month shall not be 2 8 considered unless the fraction is sixteen days or more, in 2 9 which case the fraction shall be computed as a full month. 2 10 (3) A person is not entitled to compensation pursuant to 2 11 this subsection if the person received a bonus or compensation 2 12 similar to that provided in this subsection from another 2 13 state. 2 14 (4) A person is not entitled to compensation pursuant to 2 15 this subsection if the person was on active duty service after 2 16 July 1, 1973, and the person refused on conscientious, 2 17 political, religious, or other grounds, to be subject to 2 18 military discipline. 2 19 (5) The surviving unremarried widow or widower, child or 2 20 children, mother, father, or person standing in loco parentis, 2 21 in the order named and none other, of any deceased person 2 22 shall be paid the compensation that the deceased person would 2 23 be entitled to pursuant to this subsection, if living. 2 24 However, if any person has died or shall die, or is disabled, 2 25 from service=connected causes incurred during the period and 2 26 in the area from which the person is entitled to receive 2 27 compensation pursuant to this subsection, the person or the 2 28 first survivor as designated by this subparagraph, and in the 2 29 order named, shall be paid five hundred dollars or three 2 30 hundred dollars, whichever maximum amount would have applied 2 31 pursuant to subparagraph (1) or (2), regardless of the length 2 32 of service. 2 33 (6) The maximum compensation a person may receive pursuant 2 34 to this subsection shall be reduced by the amount of any 2 35 Vietnam veterans bonus received from the state by that person 3 1 for service prior to July 1, 1973. 3 2 c. A person who knowingly makes a false statement relating 3 3 to a material fact in supporting an application under this 3 4 subsection is guilty of a serious misdemeanor. A person 3 5 convicted pursuant to this subsection shall forfeit all 3 6 benefits to which the person may have been entitled under this 3 7 subsection. 3 8 d. All payments and allowances made under this subsection 3 9 shall be exempt from taxation, levy, and sale on execution. 3 10 e. The bonus compensation authorized under this subsection 3 11 shall be paid from moneys appropriated for that purpose. 3 12 f. A Vietnam Conflict veterans bonus fund is created in 3 13 the state treasury. The Vietnam Conflict veterans bonus fund 3 14 shall consist of all moneys appropriated to the fund to pay 3 15 the bonus compensation authorized in this subsection. 3 16 Notwithstanding section 12C.7, interest or earnings on 3 17 investments or time deposits of the moneys in the Vietnam 3 18 Conflict veterans bonus fund shall be credited to the bonus 3 19 fund. Section 8.33 does not apply to moneys appropriated to 3 20 the Vietnam Conflict veterans bonus fund. 3 21 Sec. 2. Section 422.7, Code 2007, is amended by adding the 3 22 following new subsection: 3 23 NEW SUBSECTION. 50. Subtract, to the extent included, the 3 24 amount of any Vietnam Conflict veterans bonus provided 3 25 pursuant to section 35A.8, subsection 5. 3 26 Sec. 3. VIETNAM CONFLICT VETERANS BONUS FUND 3 27 APPROPRIATION. Notwithstanding any provision of section 3 28 35A.13 to the contrary, there is appropriated from the 3 29 veterans trust fund created in section 35A.13 to the 3 30 department of veterans affairs for the fiscal year beginning 3 31 July 1, 2007, and ending June 30, 2008, the following amount, 3 32 or so much thereof as is necessary, to be used for the purpose 3 33 designated: 3 34 For deposit in the Vietnam Conflict veterans bonus fund: 3 35 .................................................. $ 500,000 4 1 Sec. 4. RETROACTIVE APPLICABILITY. The section of this 4 2 Act amending section 422.7, is retroactively applicable to 4 3 January 1, 2007, and is applicable for tax years beginning on 4 4 and after that date. 4 5 SF 578 4 6 ec:nh/cc/26