As Introduced

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


Senators Grendell, Wilson 

Cosponsors: Senators Harris, Patton, Schuler, Schaffer, Hughes, Fedor, Miller, D. 

A JOINT RESOLUTION
Proposing to enact Section 2q 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 2q of 9
Article VIII of the Constitution of Ohio to read as follows:10

ARTICLE VIII
11

2q.  (A) Upon the order of the commissioners of the 12
sinking fund created by Section 8 of Article VIII of the 13
Constitution of the State of Ohio, the Ohio public facilities 14
commission shall proceed to issue and sell, from time to time, 15
bonds or other obligations of the state in such amounts as are 16
necessary to provide all or part of the funds as may be required 17
to pay the compensation established by, and the expenses of 18
administering, this section. The original principal amount of 19
obligations so issued shall not exceed two hundred million 20
dollars, provided that obligations issued under this section to 21
retire or refund obligations previously issued under this section 22
shall not be counted against that issuance limitation. The full 23
faith and credit, revenue, and taxing power of the state is 24
hereby pledged for payment of debt service on such obligations 25
issued under this section, and the state covenants to continue the 26
levy, collection, and application of sufficient state excises, 27
taxes, and revenues to the extent needed for those purposes; 28
provided that moneys referred to in Section 5a of Article XII of 29
the Constitution of the State of Ohio may not be pledged or used 30
for the payment of debt service. As used in this section, "debt 31
service" means principal and interest and other accreted amounts 32
payable on the obligations authorized by this section.33

       Each obligation so issued shall mature not later than the 34
thirty-first day of December of the fifteenth calendar year after 35
its issuance, except that obligations issued to refund obligations 36
under this section shall mature not later than the thirty-first 37
day of December of the fifteenth calendar year after the year in 38
which the original obligation was issued. Except for obligations 39
issued under this section to retire or refund obligations 40
previously issued under this section, no obligations shall be 41
issued under this section later than April 1, 2012.42

       In the case of the issuance of any obligations under this 43
section as bond anticipation notes, provision shall be made in the 44
bond or note proceedings for the establishment, and the 45
maintenance during the period the notes are outstanding, of 46
special funds into which there shall be paid, from the sources 47
authorized for payment of the bonds anticipated, the amount that 48
would have been sufficient to pay the principal that would have 49
been payable on those bonds during that period if bonds maturing 50
serially in each year over the maximum period of maturity referred 51
to in this section had been issued without the prior issuance of 52
the notes. Those special funds and investment income on them shall 53
be used solely for the payment of debt service on those notes or 54
the bonds anticipated.55

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

       Such obligations shall be sold only to the best bidder or 60
bidders after notice of sale has been published setting forth the 61
terms and conditions of the sale. The notice of sale shall state 62
the date and time of the sale, the total face value of the 63
obligations to be sold, their denominations and maturity 64
dates, information relative to the rates of interest that they 65
may bear, the dates on which the interest will be payable, 66
whether and on what terms they are subject to call or prior 67
redemption, and any other applicable term or condition of the 68
sale.69

       (B) Out of the proceeds of the sale of all obligations, 70
except those issued to refund or retire obligations previously 71
issued under this section, the amount that represents accrued 72
interest, if any, shall be paid into the state treasury into the 73
Persian gulf, Afghanistan, and Iraq conflicts compensation bond 74
retirement fund, which is hereby created. As determined at the 75
time of sale, the amount that represents premium shall be paid 76
into either the Persian gulf, Afghanistan, and Iraq conflicts 77
compensation bond retirement fund or the Persian gulf, 78
Afghanistan, and Iraq conflicts compensation fund, which is hereby 79
created in the state treasury. The balance of the proceeds shall 80
be paid into the Persian gulf, Afghanistan, and Iraq conflicts 81
compensation fund. All proceeds of the sale of any obligations 82
issued under this section to refund or retire obligations 83
previously issued under this section shall be paid into the 84
Persian gulf, Afghanistan, and Iraq conflicts compensation bond 85
retirement fund and used to pay debt service on those outstanding 86
obligations so refunded. The general assembly may appropriate and 87
cause to be paid into the Persian gulf, Afghanistan, and Iraq 88
conflicts compensation bond retirement fund or the Persian gulf, 89
Afghanistan, and Iraq conflicts compensation fund, out of money 90
in the treasury not otherwise appropriated, such amount as is 91
proper for use for the purposes for which such funds are created. 92
Except for amounts advanced by the general assembly to the Persian 93
gulf, Afghanistan, and Iraq conflicts compensation fund with the 94
express expectation of reimbursement from the proceeds of 95
obligations paid into that fund, and except for amounts 96
transferred under division (E) of this section for the purpose of 97
defraying the immediate cost of administration and compensation, 98
if the general assembly appropriates any funds to the Persian 99
gulf, Afghanistan, and Iraq conflicts compensation fund prior 100
to the time obligations have been issued in the original 101
principal amount authorized in this section, that original 102
principal amount authorized in this section shall be reduced by 103
the amount of funds appropriated.104

       (C) On or before the first day of July in each fiscal year, 105
there shall be certified to the director of budget and management106
the total amount of funds necessary to provide, together with all 107
other money that will be available in the Persian gulf, 108
Afghanistan, and Iraq conflicts compensation bond retirement 109
fund, for the payment of debt service in that fiscal year. The 110
director shall transfer from the general revenue fund to the 111
Persian gulf, Afghanistan, and Iraq conflicts compensation bond 112
retirement fund, without necessity of appropriation by the 113
general assembly, an amount equal to the amount so certified, 114
and those funds shall be used for the payment of the debt 115
service.116

       (D)(1) The Persian gulf, Afghanistan, and Iraq conflicts 117
compensation fund shall be paid out upon the order of the 118
commissioners of the sinking fund, without necessity of 119
appropriation by the general assembly, in payment of the 120
expenses of administering this section and as compensation as 121
follows to each person who meets all of the following 122
requirements:123

       (a) The person has served in active duty in the United States 124
armed forces, except active duty for training only, at any time 125
between August 2, 1990, and March 3, 1991, at any time between 126
October 7, 2001, and the date determined by the president or 127
congress of the United States as the end of involvement of the 128
United States armed forces in Afghanistan, or at any time between 129
March 19, 2003, and the date determined by the president or 130
congress of the United States as the end of the involvement of the 131
United States armed forces in Iraq.132

       (b) The person was an Ohio resident for at least one year 133
immediately preceding the start of active duty service and is 134
currently an Ohio resident.135

       (c) The person was separated from the United States armed 136
forces under honorable conditions, is still serving in active 137
duty service, is retired from active duty service, or remains in 138
the Ohio national guard after serving on active duty.139

       A person who meets the requirements of divisions (D)(1)(a), 140
(b), and (c) of this section is entitled to, and may apply to 141
receive, compensation of fifty dollars for each month of active 142
domestic or foreign service and one hundred dollars for each month 143
of Persian gulf, Afghanistan, or Iraq service during the 144
compensable periods. A person who is medically discharged or 145
medically retired from service due to combat-related disabilities 146
sustained during Persian gulf, Afghanistan, or Iraq service is 147
entitled to, and may apply to receive, compensation of one 148
thousand dollars. The maximum amount of cash payable to any 149
person in active domestic or foreign service is five hundred 150
dollars and the maximum amount of cash payable to any person in 151
Persian gulf, Afghanistan, or Iraq service is one thousand 152
dollars, unless the person qualifies for a survivor's payment or 153
a payment based on missing in action or prisoner of war status 154
under division (D)(2) or (D)(3) of this section. Compensation for 155
a fraction of a month of service shall be paid on the basis of 156
one-thirtieth of the appropriate monthly amount for each day of 157
service.158

       (2) The surviving spouse, surviving child or children, or 159
surviving parent or parents, including a person or persons 160
standing in loco parentis for one year preceding commencement of 161
service in the United States armed forces, is entitled to, and may 162
apply to receive, the same amount of compensation that the person 163
who served in the armed forces would have received under division 164
(D)(1) of this section. If the United States department of 165
veterans' affairs determines that the person's death was the 166
result of injuries or illness sustained in Persian gulf, 167
Afghanistan, or Iraq service, the person's survivors are entitled 168
to, and may apply for, a survivor's payment of five thousand 169
dollars, regardless of the amount of compensation that the 170
deceased would have been entitled to receive under this section, 171
if living. The survivor's payment shall be made to the surviving 172
spouse. If there is no surviving spouse, the payment shall go to 173
the surviving child or children. If there are no surviving 174
children, the payment shall go to the surviving parent or parents 175
or person or persons standing in loco parentis.176

       (3) A person designated by the United States department of 177
defense as missing in action as a result of honorable service or 178
held in enemy captivity, or the spouse, child, or parent, 179
including a person standing in loco parentis for one year 180
preceding commencement of active duty service, of a person 181
designated as missing in action or held in enemy captivity, is 182
entitled to, and may apply for, a payment of five thousand 183
dollars. This payment replaces any other cash benefit payable 184
under this section. While the person is missing or held captive, 185
the payment shall be made to the person's spouse. If there is no 186
spouse to claim the payment, payment shall be made to the 187
person's child or children. If the person does not have 188
children, payment shall be made to the person's parent or 189
parents or person or persons standing in loco parentis.190

       No payment to a spouse, child, parent, or person in loco 191
parentis of a person designated as missing in action as a result 192
of honorable service or held in enemy captivity, while the person 193
is missing in action or held captive, shall prevent the missing or 194
captive person from claiming and receiving a bonus of an equal 195
amount on the person's release or location.196

       (4) Compensation shall not be paid under this section as 197
follows:198

       (a) To any person who received from another state a bonus or 199
compensation of a similar nature;200

       (b) To any person who served less than ninety days in the 201
United States armed forces, unless active duty was terminated as 202
a result of injuries or illness sustained during Persian gulf, 203
Afghanistan, or Iraq service during the compensable period;204

       (c) To any person for any time period spent under penal 205
confinement during the compensable period.206

       (5) No sale or assignment of any right or claim to 207
compensation under this section shall be valid. No claims of 208
creditors shall be enforceable against rights or claims to or 209
payments of compensation under this section. No fees shall be 210
charged for services in connection with the prosecution of any 211
right or claim to compensation or the collection of any 212
compensation under this section.213

       (6) All applications for payment of compensation under this 214
section shall be made to the commissioners of the sinking fund 215
according to the following schedule:216

       (a) For Persian gulf service, not later than December 31, 217
2011;218

       (b) For Afghanistan service, not later than three years after 219
the date determined by the president or congress of the United 220
States as the end of involvement of the United States armed forces 221
in Afghanistan;222

       (c) For Iraq service, not later than three years after the 223
date determined by the president or congress of the United States 224
as the end of involvement of the United States armed forces in 225
Iraq.226

       (7) As used in this section:227

       "Afghanistan service" means military service within 228
Afghanistan during the period between October 7, 2001, and the 229
date determined by the president or congress of the United States 230
as the end of the involvement of the United States armed forces 231
in Afghanistan.232

       "Domestic service" means service within the territorial 233
limits of the fifty states, excluding sea duty.234

       "Foreign service" means service in locations other than the 235
territorial limits of the fifty states, excluding Persian gulf, 236
Afghanistan, or Iraq service.237

       "Iraq service" means military service within Iraq during the 238
period between March 19, 2003, and the date determined by the 239
president or congress of the United States as the end of the 240
involvement of the United States armed forces in Iraq.241

       "Persian gulf service" means military service within the 242
Persian gulf theater of operations during the period between 243
August 2, 1990, and March 3, 1991.244

       "United States armed forces" includes members of the Ohio 245
national guard serving on active duty.246

       (E) The commissioners of the sinking fund (hereinafter 247
referred to as "commissioners") 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, and any 251
other rules necessary to implement this section. These rules 252
shall be adopted in accordance with Chapter 119. of the Revised 253
Code.254

       The commissioners 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
commissioners' pleasure. When practical, the commissioners shall 258
employ Persian gulf, Afghanistan, and Iraq conflict veterans to 259
fill such positions. The general assembly shall transfer 260
necessary funds to the Persian gulf, Afghanistan, and Iraq 261
conflicts compensation fund and to the commissioners' operating 262
budget, for the purpose of defraying the immediate cost of 263
administration and compensation. Any funds so transferred shall 264
not reduce the original principal amount of obligations that may 265
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 commissioners 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 commissioners 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

       (F) The people of this state declare it to be their intention 281
that this amendment in no manner affects or changes any of the 282
existing provisions of the Constitution except as set forth in 283
this section. The provisions of this section shall be 284
self-executing.285

       (G) Debt service on obligations issued pursuant to this 286
section shall not be included in the calculation of total debt 287
service for purposes of division (A) of Section 17 of Article VIII 288
of the Constitution of the State of Ohio.289

       (H) As provided in divisions (C) and (D)(1) of this section, 290
no further act of appropriation is necessary, notwithstanding 291
Section 22 of Article II of the Constitution of the State of Ohio.292

       (I) Any reference in this section to a public office, 293
officer, or body shall include any successor thereto.294

EFFECTIVE DATE
295

       If adopted by a majority of the electors voting on this 296
proposal at the general election held November 3, 2009, Section 2q 297
of Article VIII of the Constitution of the State of Ohio shall 298
take effect immediately.299