As Adopted by the Senate

128th General Assembly
Regular Session
2009-2010
Sub. S. J. R. No. 1


Senators Grendell, Wilson 

Cosponsors: Senators Harris, Patton, Schuler, Schaffer, Hughes, Fedor, Miller, D., Smith, Widener, Miller, R., Wagoner, Carey, Cates, Stewart, Faber, Buehrer, Cafaro, Gibbs, Gillmor, Goodman, Kearney, Morano, Roberts, Sawyer, Schiavoni, Schuring, Turner 

A JOINT RESOLUTION
Proposing to enact Section 2r of Article VIII of the 1
Constitution of the State of Ohio to provide 2
compensation to veterans of the Persian Gulf, 3
Afghanistan, and Iraq conflicts.4

       Be it resolved by the General Assembly of the State of Ohio, 5
three-fifths of the members elected to each house concurring 6
herein, that there shall be submitted to the electors of the 7
state, in the manner prescribed by law at the general election to 8
be held on November 3, 2009, a proposal to enact Section 2r of 9
Article VIII of the Constitution of Ohio to read as follows:10

ARTICLE VIII
11

2r.  (A) Upon the request of the department of 12
veterans services, the Ohio public facilities commission shall 13
proceed to issue and sell, from time to time, bonds or other 14
obligations of the state in such amounts as are necessary to 15
provide all or part of the funds as may be required to pay the 16
compensation established by, and the expenses of administering, 17
this section. The original principal amount of obligations so 18
issued shall not exceed two hundred million dollars, provided 19
that obligations issued under this section to retire or refund 20
obligations previously issued under this section shall not be 21
counted against that issuance limitation. The full faith and 22
credit, revenue, and taxing power of the state is hereby pledged 23
for payment of debt service on such obligations issued under this 24
section, and the state covenants to continue the levy, 25
collection, and application of sufficient state excises, taxes, 26
and revenues to the extent needed for those purposes; provided 27
that moneys referred to in Section 5a of Article XII of the 28
Constitution of the State of Ohio may not be pledged or used for 29
the payment of debt service. As used in this section, "debt 30
service" means principal and interest and other accreted amounts 31
payable on the obligations authorized by this section.32

       Each obligation so issued shall mature not later than the 33
thirty-first day of December of the fifteenth calendar year after 34
its issuance, except that obligations issued to refund obligations 35
under this section shall mature not later than the thirty-first 36
day of December of the fifteenth calendar year after the year in 37
which the original obligation was issued. Except for obligations 38
issued under this section to retire or refund obligations 39
previously issued under this section, no obligations shall be 40
issued under this section later than December 31, 2013.41

       In the case of the issuance of any obligations under this 42
section as bond anticipation notes, provision shall be made in the 43
bond or note proceedings for the establishment, and the 44
maintenance during the period the notes are outstanding, of 45
special funds into which there shall be paid, from the sources 46
authorized for payment of the bonds anticipated, the amount that 47
would have been sufficient to pay the principal that would have 48
been payable on those bonds during that period if bonds maturing 49
serially in each year over the maximum period of maturity referred 50
to in this section had been issued without the prior issuance of 51
the notes. Those special funds and investment income on them shall 52
be used solely for the payment of debt service on those notes or 53
the bonds anticipated.54

       The obligations issued under this section, their transfer, 55
and the interest, interest equivalent, and other income thereon, 56
including any profit made on their sale, exchange, or other 57
disposition, shall at all times be free from taxation within the 58
state.59

       Such obligations may be sold at public or private sale as 60
determined by the Ohio public facilities commission.61

       (B) Out of the proceeds of the sale of all obligations, 62
except those issued to refund or retire obligations previously 63
issued under this section, the amount that represents accrued 64
interest, if any, shall be paid into the state treasury into the 65
Persian gulf, Afghanistan, and Iraq conflicts compensation bond 66
retirement fund, which is hereby created. As determined at the 67
time of sale, the amount that represents premium shall be paid 68
into either the Persian gulf, Afghanistan, and Iraq conflicts 69
compensation bond retirement fund or the Persian gulf, 70
Afghanistan, and Iraq conflicts compensation fund, which is hereby 71
created in the state treasury. The balance of the proceeds shall 72
be paid into the Persian gulf, Afghanistan, and Iraq conflicts 73
compensation fund. All proceeds of the sale of any obligations 74
issued under this section to refund or retire obligations 75
previously issued under this section shall be paid into the 76
Persian gulf, Afghanistan, and Iraq conflicts compensation bond 77
retirement fund and used to pay debt service on those outstanding 78
obligations so refunded. The general assembly may appropriate and 79
cause to be paid into the Persian gulf, Afghanistan, and Iraq 80
conflicts compensation bond retirement fund or the Persian gulf, 81
Afghanistan, and Iraq conflicts compensation fund, out of money 82
in the treasury not otherwise appropriated, such amount as is 83
proper for use for the purposes for which such funds are created. 84
Except for amounts advanced by the general assembly to the Persian 85
gulf, Afghanistan, and Iraq conflicts compensation fund with the 86
express expectation of reimbursement from the proceeds of 87
obligations paid into that fund, and except for amounts 88
transferred under division (E) of this section for the purpose of 89
defraying the immediate cost of administration and compensation, 90
if the general assembly appropriates any funds to the Persian 91
gulf, Afghanistan, and Iraq conflicts compensation fund prior 92
to the time obligations have been issued in the original 93
principal amount authorized in this section, that original 94
principal amount authorized in this section shall be reduced by 95
the amount of funds appropriated.96

       (C) On or before the fifteenth day of July of each fiscal 97
year, the Ohio public facilities commission shall certify, or 98
cause to be certified, to the director of budget and management99
the total amount of money required during the current fiscal year, 100
together with all other money that will be available in the 101
Persian gulf, Afghanistan, and Iraq conflicts compensation bond 102
retirement fund, to meet in full all debt service and related 103
financing costs on the obligations issued under this section. The 104
director shall transfer from the general revenue fund to the 105
Persian gulf, Afghanistan, and Iraq conflicts compensation bond 106
retirement fund, without necessity of appropriation by the 107
general assembly, an amount equal to the amount so certified, 108
and those funds shall be used for the payment of the debt 109
service.110

       (D)(1) The Persian gulf, Afghanistan, and Iraq conflicts 111
compensation fund shall be paid out upon the order of the 112
department of veterans services, without necessity of 113
appropriation by the general assembly, in payment of the 114
expenses of administering this section and as compensation as 115
follows to each person who meets all of the following 116
requirements:117

       (a) The person has served in active duty in the United States 118
armed forces, except active duty for training only, at any time 119
between August 2, 1990, and March 3, 1991, at any time between 120
October 7, 2001, and the date determined by the president of the 121
United States as the end of involvement of the United States 122
armed forces in Afghanistan, or at any time between March 19, 123
2003, and the date determined by the president of the United 124
States as the end of the involvement of the United States armed 125
forces in Iraq.126

       (b) The person was an Ohio resident at the start of active 127
duty service and is currently an Ohio resident.128

       (c) The person was separated from the United States armed 129
forces under honorable conditions, is still serving in active 130
duty service, or remains in any reserve component of the United 131
States armed forces or in the Ohio national guard after serving 132
on active duty.133

       A person who meets the requirements of divisions (D)(1)(a), 134
(b), and (c) of this section is entitled to, and may apply to 135
receive, compensation of fifty dollars for each month of active 136
domestic or foreign service and one hundred dollars for each month 137
of Persian gulf, Afghanistan, or Iraq service during the 138
compensable periods. A person who is medically discharged or 139
medically retired from service due to combat-related disabilities 140
sustained during Persian gulf, Afghanistan, or Iraq service is 141
entitled to, and may apply to receive, compensation of one 142
thousand dollars. The maximum amount of cash payable to any 143
person in active domestic or foreign service is five hundred 144
dollars and the maximum amount of cash payable to any person in 145
Persian gulf, Afghanistan, or Iraq service is one thousand 146
dollars, unless the person qualifies for a survivor's payment or 147
a payment based on missing in action or prisoner of war status 148
under division (D)(2) or (D)(3) of this section. Compensation for 149
a fraction of a month of service shall be paid on the basis of 150
one-thirtieth of the appropriate monthly amount for each day of 151
service.152

       (2) The surviving spouse, surviving child or children, or 153
surviving parent or parents, including a person or persons 154
standing in loco parentis for at least one year preceding 155
commencement of service in the United States armed forces, is 156
entitled to, and may apply to receive, the same amount of 157
compensation that the person who served in the armed forces 158
would have received under division (D)(1) of this section. If 159
the United States department of veterans' affairs determines 160
that the person's death was the result of injuries or illness 161
sustained in Persian gulf, Afghanistan, or Iraq service, the 162
person's survivors are entitled to, and may apply for, a 163
survivor's payment of five thousand dollars, regardless of the 164
amount of compensation that the deceased would have been 165
entitled to receive under this section, if living. The 166
survivor's payment shall be made to the surviving spouse. If 167
there is no surviving spouse, the payment shall go to the 168
surviving child or children. If there are no surviving children, 169
the payment shall go to the surviving parent or parents or 170
person or persons standing in loco parentis for at least one year 171
preceding commencement of service in the United States armed 172
forces.173

       (3) A person designated by the United States department of 174
defense as missing in action as a result of honorable service or 175
held in enemy captivity, or the spouse, child, or parent, 176
including a person standing in loco parentis for at least one 177
year preceding commencement of service in the United States 178
armed forces, of a person designated as missing in action or 179
held in enemy captivity, is entitled to, and may apply for, a 180
payment of five thousand dollars. This payment replaces any 181
other cash benefit payable under this section. While the person 182
is missing or held captive, the payment shall be made to the 183
person's spouse. If there is no spouse to claim the payment, 184
payment shall be made to the person's child or children. If the 185
person does not have children, payment shall be made to the 186
person's parent or parents or person or persons standing in loco 187
parentis for at least one year preceding commencement of service 188
in the United States armed forces.189

       No payment to a spouse, child, parent, or person in loco 190
parentis of a person designated as missing in action as a result 191
of honorable service or held in enemy captivity, while the person 192
is missing in action or held captive, shall prevent the missing or 193
captive person from claiming and receiving a bonus of an equal 194
amount on the person's release or location.195

       (4) Compensation shall not be paid under this section as 196
follows:197

       (a) To any person who received from another state a bonus or 198
compensation of a similar nature;199

       (b) To any person who served less than ninety days in the 200
United States armed forces, unless active duty was terminated as 201
a result of injuries or illness sustained during Persian gulf, 202
Afghanistan, or Iraq service during the compensable period;203

       (c) To any person for any time period spent under penal 204
confinement during the compensable period.205

       (5) No sale or assignment of any right or claim to 206
compensation under this section shall be valid. No claims of 207
creditors shall be enforceable against rights or claims to or 208
payments of compensation under this section. No fees shall be 209
charged for services in connection with the prosecution of any 210
right or claim to compensation or the collection of any 211
compensation under this section.212

       (6) All applications for payment of compensation under this 213
section shall be made to the department of veterans services214
according to the following schedule:215

       (a) For Persian gulf service, not later than December 31, 216
2013;217

       (b) For Afghanistan service, not later than three years after 218
the date determined by the president of the United States as the 219
end of involvement of the United States armed forces in 220
Afghanistan;221

       (c) For Iraq service, not later than three years after the 222
date determined by the president of the United States as the end 223
of involvement of the United States armed forces in Iraq.224

       (7) As used in this section:225

       "Afghanistan service" means military service within 226
Afghanistan during the period between October 7, 2001, and the 227
date determined by the president of the United States as the 228
end of the involvement of the United States armed forces in 229
Afghanistan.230

       "Domestic service" means service within the territorial 231
limits of the fifty states.232

       "Foreign service" means service in locations other than the 233
territorial limits of the fifty states, excluding Persian gulf, 234
Afghanistan, or Iraq service.235

       "Iraq service" means military service within Iraq during the 236
period between March 19, 2003, and the date determined by the 237
president of the United States as the end of the involvement of 238
the United States armed forces in Iraq.239

       "Persian gulf service" means military service within the 240
Persian gulf theater of operations during the period between 241
August 2, 1990, and March 3, 1991.242

       "United States armed forces" includes the army, air force, 243
navy, marine corps, and coast guard; any active reserve component 244
of such forces; and members of the Ohio national guard serving on 245
active duty.246

       (E) The department of veterans services (hereinafter 247
referred to as the "department") shall have complete charge of 248
making payment of compensation under division (D) of this section 249
and shall adopt rules, including rules regarding the amounts to 250
which beneficiaries are entitled, residency requirements for 251
purposes of division (D)(1)(b) of this section, and any other 252
rules necessary to implement this section. These rules shall be 253
adopted in accordance with Chapter 119. of the Revised Code.254

       The department shall select and appoint legal counsel and 255
employees as are necessary and fix their compensation and 256
prescribe their duties. All appointees shall serve at the 257
pleasure of the director of veterans services. When practical, the 258
department shall employ Persian gulf, Afghanistan, and Iraq 259
conflict veterans to fill such positions. The general assembly 260
shall transfer necessary funds to the Persian gulf, 261
Afghanistan, and Iraq conflicts compensation fund and to the 262
department's operating budget, for the purpose of defraying the 263
immediate cost of administration and compensation. Any funds so 264
transferred shall not reduce the original principal amount of 265
obligations that may be issued under this section.266

       On payment of all valid claims for cash compensation made 267
within the time limitations under this section, the department 268
may transfer any funds remaining in the Persian gulf, 269
Afghanistan, and Iraq conflicts compensation fund to the Persian 270
gulf, Afghanistan, and Iraq conflicts compensation bond 271
retirement fund.272

       On retirement of all of the obligations issued under this 273
section and payment of all valid claims for cash compensation made 274
within the time limitations under this section, the department 275
shall make a final report to the general assembly. Any balance 276
remaining in the Persian gulf, Afghanistan, and Iraq conflicts 277
compensation fund or the Persian gulf, Afghanistan, and Iraq 278
conflicts compensation bond retirement fund shall be transferred 279
or disposed of as provided by law.280

       Notwithstanding any other provision of this section to the 281
contrary, valid claims for cash compensation made within the time 282
limitations under this section shall be paid only if adequate 283
funds remain in the Persian gulf, Afghanistan, and Iraq conflicts 284
compensation fund.285

       (F) The people of this state declare it to be their intention 286
that this amendment in no manner affects or changes any of the 287
existing provisions of the Constitution except as set forth in 288
this section. The provisions of this section shall be 289
self-executing.290

       (G) Debt service on obligations issued pursuant to this 291
section shall not be included in the calculation of total debt 292
service for purposes of division (A) of Section 17 of Article VIII 293
of the Constitution of the State of Ohio.294

       (H) As provided in divisions (C) and (D)(1) of this section, 295
no further act of appropriation is necessary, notwithstanding 296
Section 22 of Article II of the Constitution of the State of Ohio.297

       (I) Any reference in this section to a public office, 298
officer, or body shall include any successor thereto.299

EFFECTIVE DATE
300

       If adopted by a majority of the electors voting on this 301
proposal at the general election held November 3, 2009, Section 2r 302
of Article VIII of the Constitution of the State of Ohio shall 303
take effect immediately.304