1.1                          A bill for an act
  1.2             relating to veterans; proposing an amendment to the 
  1.3             Minnesota Constitution, article XIII, section 8, 
  1.4             permitting the payment of a monetary bonus to veterans 
  1.5             of the Persian Gulf War; establishing the bonus 
  1.6             program; imposing a penalty; appropriating money; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapter 197. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10                             ARTICLE 1
  1.11                      CONSTITUTIONAL QUESTION
  1.12     Section 1.  [PERSIAN GULF WAR BONUS.] 
  1.13     An amendment to the Minnesota Constitution, article XIII, 
  1.14  section 8, is proposed to the people.  If the amendment is 
  1.15  adopted, the section will read: 
  1.16     Sec. 8.  [VETERANS' BONUS.] 
  1.17     The state may pay an adjusted compensation to persons who 
  1.18  served in the armed forces of the United States during the 
  1.19  period of the Vietnam conflict or the Persian Gulf War.  
  1.20  Whenever authorized and in the amounts and on the terms fixed by 
  1.21  law, the state may expend monies and pledge the public credit to 
  1.22  provide money for the purposes of this section.  The duration of 
  1.23  the Vietnam conflict and the Persian Gulf War may be defined by 
  1.24  law. 
  1.25     Sec. 2.  [SUBMISSION TO VOTERS.] 
  1.26     The proposed amendment shall be submitted to the people at 
  1.27  the 1996 general election.  The question submitted shall be: 
  2.1      "Shall the Minnesota Constitution be amended to permit the 
  2.2   payment of bonuses to veterans of the Persian Gulf War? 
  2.3                                      Yes .......
  2.4                                      No ........"
  2.5      Election procedures shall be as provided by law. 
  2.6                              ARTICLE 2
  2.7                 VETERANS' BONUS PROGRAM ESTABLISHED
  2.8      Section 1.  [197.79] [VETERANS' BONUS PROGRAM.] 
  2.9      Subdivision 1.  [DEFINITIONS.] The definitions in this 
  2.10  subdivision apply to this section. 
  2.11     (a) "Applicant" means a veteran or a veteran's guardian, or 
  2.12  a beneficiary or a beneficiary's guardian, who has filed an 
  2.13  application with the commissioner for a bonus under this section.
  2.14     (b) "Beneficiary" means in relation to a deceased veteran 
  2.15  and in the order named:  
  2.16     (1) the surviving spouse if not remarried; 
  2.17     (2) the children of the veteran, if there is no surviving 
  2.18  spouse or the surviving spouse has remarried; 
  2.19     (3) the veteran's surviving mother; 
  2.20     (4) the veteran's surviving father; or 
  2.21     (5) a surviving person standing in loco parentis. 
  2.22     (c) "Board" means a veterans affairs review board appointed 
  2.23  pursuant to this section, and authorized to review 
  2.24  determinations made by the commissioner. 
  2.25     (d) "Commissioner" means the commissioner of veterans 
  2.26  affairs. 
  2.27     (e) "Guardian" means the legally appointed representative 
  2.28  of a minor or incompetent, the chief officer of a hospital or 
  2.29  institution in which the minor or incompetent is placed if the 
  2.30  officer is authorized to accept money for the benefit of the 
  2.31  minor or incompetent, the person determined by the commissioner 
  2.32  to be the person who is legally charged with the responsibility 
  2.33  for the care of the minor or incompetent, or the person 
  2.34  determined by the commissioner to be the person who has assumed 
  2.35  the responsibility for the care of the minor or incompetent. 
  2.36     (f) "Honorable service" means honorable service in the 
  3.1   United States armed forces as evidenced by: 
  3.2      (1) an honorable discharge; 
  3.3      (2) a general discharge under honorable conditions; 
  3.4      (3) in the case of an officer, a certificate of honorable 
  3.5   service; or 
  3.6      (4) in the case of an applicant who has not been separated 
  3.7   or discharged from the armed forces, a certificate from an 
  3.8   appropriate service authority that the applicant's service to 
  3.9   date has been honorable. 
  3.10     (g) "Resident" means a person who was a resident of 
  3.11  Minnesota at the time of induction into the United States armed 
  3.12  forces and was a resident of this state during the six months 
  3.13  immediately preceding induction.  The rules for determining 
  3.14  residency with regard to voter eligibility govern the 
  3.15  determination of residency for purposes of this section. 
  3.16     (h) "Veteran" has the meaning given in section 197.447, and 
  3.17  also includes any resident who is serving honorably on active 
  3.18  duty in the United States armed forces and has not yet been 
  3.19  separated or discharged.  "Veteran" does not include a member of 
  3.20  the national guard or the reserve components of the armed forces 
  3.21  ordered to active duty for the sole purpose of training. 
  3.22     Subd. 2.  [BONUS AMOUNT.] (a) For a resident veteran who 
  3.23  provided honorable service in the United States armed forces at 
  3.24  any time during the period August 1, 1990, to July 31, 1991, but 
  3.25  who is not eligible for the Southwest Asia service medal, the 
  3.26  bonus amount is $100 plus $25 per month for each month or 
  3.27  fraction of a month the person served during that period of time.
  3.28  The maximum bonus under this paragraph is $300. 
  3.29     (b) For a resident veteran who provided honorable service 
  3.30  in the United States armed forces at any time during the period 
  3.31  August 1, 1990, to July 31, 1991, and who is eligible for the 
  3.32  Southwest Asia service medal, the bonus amount is $300 plus $25 
  3.33  for each month or fraction of a month the person served during 
  3.34  that period of time.  The maximum bonus under this paragraph is 
  3.35  $600. 
  3.36     (c) For a resident veteran who is eligible for the 
  4.1   Southwest Asia service medal and who provided honorable service 
  4.2   in the United States armed forces within the territory or 
  4.3   territorial waters of, or in the airspace over, the countries of 
  4.4   Kuwait or Iraq at any time on or after August 1, 1991, the bonus 
  4.5   amount is $300 plus $25 for each month or fraction of a month 
  4.6   the person served since that date.  The maximum bonus under this 
  4.7   paragraph is $600. 
  4.8      (d) For a person included under paragraphs (b) and (c), the 
  4.9   bonus amount is equal to the bonus amount calculated under 
  4.10  paragraph (b) plus $25 per month of qualifying service as 
  4.11  defined under paragraph (c).  The maximum bonus under this 
  4.12  paragraph is $600. 
  4.13     (e) In the case of a deceased veteran, the bonus must be 
  4.14  paid to the veteran's beneficiary.  No payment may be made to a 
  4.15  veteran or beneficiary who has an application pending for, has 
  4.16  received, or is eligible to receive a similar bonus payment from 
  4.17  another state. 
  4.18     Subd. 3.  [APPLICATION.] A veteran or the veteran's 
  4.19  beneficiary entitled to a bonus may make application for a bonus 
  4.20  to the commissioner on a form prescribed by the commissioner and 
  4.21  verified by the applicant.  If the veteran is incompetent or the 
  4.22  veteran's beneficiary is a minor or an incompetent, the 
  4.23  application must be made by the person's guardian.  An 
  4.24  application must be accompanied by evidence of honorable service 
  4.25  and other information the commissioner requires. 
  4.26     Subd. 4.  [BONUS PAYMENT.] Upon submission of proof 
  4.27  satisfactory to the commissioner that an applicant is entitled 
  4.28  to payment under this section, the commissioner shall compute 
  4.29  the amount of the bonus and pay the bonus to the person entitled 
  4.30  to it.  No payment may be made by the commissioner until the 
  4.31  expiration of the time for demanding a review unless the 
  4.32  applicant files with the commissioner a written acceptance of 
  4.33  the amount of the bonus as determined by the commissioner.  
  4.34  Filing of an acceptance constitutes a waiver of the right of 
  4.35  review.  If a demand for review is made by the applicant, the 
  4.36  commissioner shall not pay any bonus to the applicant until the 
  5.1   board of review has made its order. 
  5.2      Subd. 5.  [PERSIAN GULF WAR BONUS ACCOUNT.] A Persian Gulf 
  5.3   War bonus account is established in the bond proceeds fund of 
  5.4   the state treasury.  The proceeds of any bonds issued under 
  5.5   section 2 must be deposited in the account.  Money in the 
  5.6   account is appropriated to the commissioner for bonus payments 
  5.7   under this section.  Money in the account may not be spent to 
  5.8   administer this section. 
  5.9      Subd. 6.  [POWERS AND DUTIES OF THE COMMISSIONER.] (a) The 
  5.10  commissioner shall administer this section. 
  5.11     (b) The commissioner shall determine who is the beneficiary 
  5.12  of a deceased veteran and determine who is the person who has 
  5.13  assumed the responsibility for the care of any minor or 
  5.14  incompetent. 
  5.15     Subd. 7.  [APPEALS.] On determining the amount of bonus due 
  5.16  to an applicant or disallowing the claim of an applicant, the 
  5.17  commissioner shall promptly notify the applicant.  The 
  5.18  commissioner's decision is subject to review under subdivision 
  5.19  8.  A written demand for review must be filed with the 
  5.20  commissioner within 60 days of the day the commissioner has 
  5.21  mailed notice to the applicant of the commissioner's 
  5.22  determination.  Upon receipt of a demand for review, the 
  5.23  commissioner shall certify the demand and all files and records 
  5.24  relating to the claim to a board under subdivision 8.  Unless a 
  5.25  demand for review is filed with the commissioner by an 
  5.26  applicant, all orders, decisions, and acts of the commissioner 
  5.27  with reference to the claim of the applicant are final and 
  5.28  conclusive upon the applicant. 
  5.29     Subd. 8.  [BOARD OF REVIEW.] (a) The governor may appoint a 
  5.30  board consisting of three veterans, one of whom must be 
  5.31  designated as chair at the time of appointment.  The board must 
  5.32  comply with section 15.0575.  
  5.33     (b) If a determination of the commissioner comes before a 
  5.34  board for review, the board may examine and determine the claim 
  5.35  of the applicant for a bonus under this section.  The board may 
  5.36  hold public hearings and an applicant has the right to a public 
  6.1   hearing on request.  The board may conduct its own 
  6.2   investigations and may require an applicant to submit evidence 
  6.3   in support of a claim. 
  6.4      (c) Upon receipt from the commissioner of the files and 
  6.5   records relating to the claim of an applicant, the board shall 
  6.6   fix a time and place for a hearing on the claim, shall notify 
  6.7   the applicant of the hearing, and shall ask whether the 
  6.8   applicant desires a public hearing.  At the hearing on the claim 
  6.9   of the applicant for the bonus, the board shall consider the 
  6.10  results of its investigations, if any, and the evidence 
  6.11  submitted by the applicant in support of the claim, and as soon 
  6.12  after the hearing as possible make its order granting or 
  6.13  disallowing the claim of the applicant, and, if the claim is 
  6.14  granted, fixing the amount to which the applicant is entitled.  
  6.15  The decision and order of the board is final and conclusive.  
  6.16  The board shall mail copies of the order to the applicant and to 
  6.17  the commissioner.  The commissioner, upon receipt of an order of 
  6.18  the board allowing a claim, shall pay the bonus. 
  6.19     Subd. 9.  [NOTICES.] Notices and correspondence to an 
  6.20  applicant must be directed to the applicant by mail at the 
  6.21  address listed on the application.  Notices and correspondence 
  6.22  to the commissioner must be addressed to the commissioner's 
  6.23  office in St. Paul. 
  6.24     Subd. 10.  [SUPPORT.] The commissioner shall furnish to the 
  6.25  board the clerical assistance and supplies and services 
  6.26  necessary for the performance of the duties imposed by this 
  6.27  section.  The commissioner may employ persons and may incur 
  6.28  other expense necessary to administer this section. 
  6.29     Subd. 11.  [RULES.] The commissioner may adopt rules 
  6.30  necessary to administer this section. 
  6.31     Subd. 12.  [TAX EXEMPT GIFTS.] The bonus payments provided 
  6.32  for by this section are gifts or gratuities given as a token of 
  6.33  appreciation to eligible veterans and are not compensation for 
  6.34  services rendered.  The payments are exempt from taxation. 
  6.35     Subd. 13.  [NONASSIGNABLE; EXCEPTED FROM PROCESS.] A claim 
  6.36  for payment under this section is not assignable or subject to 
  7.1   garnishment, attachment, or levy of execution. 
  7.2      Subd. 14.  [PENALTIES.] A person who knowingly makes a 
  7.3   false statement relating to a material fact in support of a 
  7.4   claim for a bonus under this section is guilty of a gross 
  7.5   misdemeanor. 
  7.6      Sec. 2.  [APPROPRIATION; BONUS BOND ISSUE.] 
  7.7      Subdivision 1.  [PAYMENT OF BONUSES.] $....... is 
  7.8   appropriated from the bond proceeds fund to the commissioner of 
  7.9   veterans affairs for purposes of paying bonuses under section 1. 
  7.10     Subd. 2.  [BOND SALE.] To provide the money appropriated by 
  7.11  subdivision 1 from the bond proceeds fund, the commissioner of 
  7.12  finance, on request of the governor, shall sell and issue bonds 
  7.13  of the state in an amount up to $....... in the manner, on the 
  7.14  terms, and with the effect prescribed by Minnesota Statutes, 
  7.15  sections 16A.631 to 16A.675, and by the Minnesota Constitution, 
  7.16  article XI, sections 4 to 7, and article XIII, section 8. 
  7.17     Subd. 3.  [DEBT SERVICE.] The amount needed to make debt 
  7.18  service payments on the bonds issued under subdivision 2 is 
  7.19  appropriated from the general fund as provided in Minnesota 
  7.20  Statutes, section 16A.641, subdivision 10. 
  7.21     Sec. 3.  [APPROPRIATION.] 
  7.22     If the constitutional amendment in article 1 is approved by 
  7.23  the people in the next general election, $....... is 
  7.24  appropriated from the general fund to the commissioner of 
  7.25  veterans affairs for the purpose of administering the program 
  7.26  established in section 1. 
  7.27     Sec. 4.  [EFFECTIVE DATE.] 
  7.28     Sections 1 to 3 are effective the day following approval of 
  7.29  the constitutional amendment proposed to the people in article 1.