File No. 323

House of Representatives, April 13, 2005

The Committee on Planning and Development reported through REP. WALLACE of the 109th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING THE DEFINITIONS OF "VETERAN" AND "SERVICE IN TIME OF WAR".

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (a) of section 27-103 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) As used in the general statutes, except chapter 504, and except as otherwise provided: (1) "Armed forces" means the United States Army, Navy, Marine Corps, Coast Guard and Air Force; (2) "veteran" means any person honorably discharged from, or released under honorable conditions from active service in, the armed forces, and includes any such person who served in the Connecticut National Guard on or after September 11, 2001; and (3) "service in time of war" means service of ninety or more days except, if the war, campaign or other operation lasted less than ninety days, "service in time of war" means service for the entire duration of the war, campaign or other operation, unless separated from service earlier because of a service-connected disability rated by the Veterans' Administration, during a "period of war", as defined in 38 USC 101, as amended, except that the "Vietnam Era" means the period beginning on February 28, 1961, and ending on July 1, 1975, in all cases; and "period of war" shall include service while engaged in combat or a combat support role in the Berlin Airlift, June 26, 1948, to September 30, 1949; the Berlin Crisis, August 14, 1961, to May 30, 1963; Lebanon, July 1, 1958, to November 1, 1958, or September 29, 1982, to March 30, 1984; Grenada, October 25, 1983, to December 15, 1983; Operation Earnest Will, involving the escort of Kuwaiti oil tankers flying the United States flag in the Persian Gulf, February 1, 1987, to July 23, 1987; and Panama, December 20, 1989, to January 31, 1990, and shall include service during such periods with the armed forces of any government associated with the United States.

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either House thereof for any purpose:

OFA Fiscal Note

State Impact: See Explanation Below

Municipal Impact: See Explanation Below

Explanation

The bill expands the definition of veteran as defined in CGS 27-103 to include National Guard members that served on or after September 11, 2001 and the bill also expands “service in time of war” to include the Berlin Airlift and Crisis.

It is unknown how many of those eligible would apply for the various services and therefore the fiscal impact is indeterminate. However, there are an estimated 500 National Guard members to whom the bill may apply. In addition, it is unknown how many additional veterans would become eligible due to the change in “war-time” status, although it is anticipated to be minimal (as these individuals may be included under an existing period of war).

Among the programs available to eligible veterans: 1) state subsidized local property tax exemptions; 2) retirement credit in state-sponsored pension system; 3) educational tuition waivers; 4) award payments to veterans from the Soldiers, Sailors and Marines’ Fund; 5) Department of Veterans’ Affairs services; and 6) motor vehicle exemptions.

Property Tax Exemption

The bill would result in an increased number of veterans eligible for a minimum property tax exemption of $1,500. The state reimburses municipalities for the tax loss associated with the additional exemption ($500 of the $1,500) for non-income qualified veterans, for an estimated 22,000 veterans. Currently, there are approximately 185,000 veterans who receive this property tax exemption, yet the municipalities are not reimbursed. This grant program administered by the Office of Policy and Management (OPM) has an FY 05 budget of $2.97 million for the state reimbursed portion of this program. The average benefit resulting from additional exemptions is approximately $35 per veteran. The number of veterans impacted by the bill is unknown and therefore any increased costs to the Property Tax Relief for Veterans account within OPM is unknown. These exemptions result in a minimal grand list reduction to municipalities.

Retirement Credit in State-Sponsored Pension Systems

Based upon current practice the bill is not anticipated to have any impact to the State Employees Retirement System (SERS), the Teachers’ Retirement System (TERS), or the Municipal Employees Retirement System (MERS). The Office of the State Comptroller administers SERS and MERS and the Teachers’ Retirement Board administers TERS. Both agencies indicated that members of their government-sponsored retirement systems who are National Guard members called to active duty under Title 32, are currently receiving retirement credit in their respective retirement systems.

Higher Education Tuition Waiver

The bill, which would result in a revenue loss to the state's public colleges and universities, extends tuition waiver rights. State statutes currently provide tuition benefits to certain veterans, national guardsmen and senior citizens at the state's constituent units of public higher education. In FY 05, approximately 5,326 individuals received tuition waivers across all state higher education units. The dollar value of these waivers is $5.1 million. In addition, the statutes provide for reimbursement of the cost of waivers that exceed tuition revenue - 2.5% for UCONN and CSU and 5% for the community colleges. Funds have never been appropriated for this purpose and as such the constituent units absorb these costs within their respective budgets.

Since the number of individuals who may take advantage of these waivers is unknown, the amount that the units would have to absorb is indeterminate.

Soldiers Sailors and Marines' Fund

The Soldiers Sailors and Marines’ Fund (SSMF), through interest earned on the trust fund, provides award payments to eligible veterans for emergency needs such as clothing, food, medical and surgical aid, and general care and relief. The value of the SSMF as of June 30, 2004 was $59 million (the interest earned by the fund for the same fiscal year was $2.72 million). In FY 04 there were 2,835 applications received for request for aid (includes weekly assistance, payments to meet emerging needs, medical costs and burial expenses). The needs of the current population of eligible veterans continue to change and duration of support provided can vary depending on available funding.

Department of Veterans' Affairs

This bill expands the number of veterans that would be eligible for admission to the Veterans’ Home. Currently, there are 159 beds occupied at the Health Care facility (rate of $574/day). The department also supports residential and rehabilitative services (domicile) on campus for eligible veterans. Currently, there are 373 veterans residing at the domicile (a cost of $89/day). The Federal Department of Veterans Affairs partially reimburses the state on a per diem basis for the care of eligible veterans at the Veterans Home. This per diem is deposited into the General Fund ($54.78 a day per veteran at the hospital and $23.19 a day per veteran at the domicile). Increasing the number of eligible veterans may create a waiting list if the funding level was not increased. Although any short-term impact is anticipated to be minimal, the long-term impact is uncertain.

Motor Vehicle Exemptions

Currently, disabled wartime veterans with certain service-connected disabilities, former prisoners of war, and recipients of the Congressional Medal of Honor are exempt from the $75 motor vehicle registration fee. In FY 04, 317 customers qualified for this exemption for a revenue loss to the Transportation Fund of $23,755. Moreover, the Department of Motor Vehicles also collects an additional $4.25, which is deposited in the Clean Air Fund. As a result, the revenue loss to this fund in FY 04 totaled $1,347. Therefore, passage of this bill would have an indeterminate revenue loss to the Transportation Fund but is expected to be minimal. Under current law, disabled wartime veterans with certain VA-rated disabilities qualify for special veteran's license plates. The plate exempts the veteran from overtime parking fines. Thus, passage of the bill would have a revenue loss to municipalities. However, the extent of such revenue loss is at present indeterminate but is expected to be minimal.



OLR Bill Analysis

sHB 5890

AN ACT CONCERNING THE DEFINITIONS OF "VETERAN" AND "SERVICE IN TIME OF WAR"

SUMMARY:

This bill gives wartime service benefits to National Guard members called to active service duty under Title 32 of federal law since September 11, 2001 (see Attorney General’s Opinion below). It also makes more veterans eligible for wartime service benefits by adding combat or combat-support service in the Berlin Airlift, June 26, 1948 to September 30, 1949, and Berlin Crisis, August 14, 1961 to May 30, 1963, to the definition of time of war. But veterans of the Berlin Crisis appear to be already eligible for benefits because they served during the Vietnam Era (February 28, 1961 to July 1, 1975), which is a defined period of war under existing law for purposes of wartime service benefits.

EFFECTIVE DATE: Upon passage

NATIONAL GUARD STATUS

By law, veterans honorably discharged from the armed forces after 90 days of active service during wartime, as defined in law, are eligible for benefits not available to other veterans. The armed forces is defined as the U.S. Army, Navy, Marine Corps, Coast Guard, and Air Force. Under federal law, guard members can be called into active service under Title 10 (armed forces) or Title 32 (National Guard). (Title 10 calls include active duty overseas and in the United States. Title 32 calls include airport duty and other types of duty in the United States after September 11, 2001 in response to the terrorist attacks.)

Under current practice, several state agencies provide veterans’ benefits to guardsmen called to active service under Title 10 but not Title 32, based apparently on the reasoning that guardsmen called under Title 32 are not part of the U.S. Armed Forces. By specifically including guard members who served in the National Guard on or after September 11, 2001 in the definition of veteran, the bill makes such guardsmen called under Title 32 eligible for benefits.

BACKGROUND

Attorney General’s Opinion

The Connecticut attorney general concluded that under the existing law, the National Guard is part of the U.S. Armed Forces whether called to active service under Title 10 or Title 32. According to the opinion, “periods spent as a full-time member of the National Guard, while in the armed forces of the United States under orders issued pursuant to either Title 10 or Title 32 of the United States Code, qualify as “vesting service” under Connecticut General Statutes § 5-192i(j) and as “credited service” under Connecticut General Statutes § 5-192j(d), entitling Connecticut state employees in Tier II to receive retirement credit for such service.” Under the opinion, the guardsmen are eligible regardless of whether they served before or after September 11, 2001 (Attorney General Opinion 05-004).

Berlin Airlift and Berlin Crisis

A 1999 law named the Berlin Airlift as a period of war, but the dates specified were for the Berlin Crisis, instead of the Berlin Airlift. A 2003 law adopted the federal definition of period of war, with minor exceptions, and eliminating the Berlin Airlift. Neither the Berlin Airlift nor the Berlin Crisis is included in the federal law.

Time of War

Table 1 shows the wars and operations occurring since 1940 that qualify as “time of war” for purposes of wartime service benefits, Service with the armed forces of any government associated with the United States during the qualifying periods counts towards eligibility.

Table 1: Post-1940 Wartime Service for Benefits

* Service in combat or combat-support role required

War Service Benefits

Education Benefits. The law waives tuition at the state's public colleges and universities for wartime veterans. It also provides state education aid to children between ages 16 and 23 of veterans who are killed in action, die in accidents or from illness while on active duty, or are totally and permanently disabled. The amount of aid, based on need, is up to $400 per year.

Medical Treatment. Wartime veterans are eligible for admission to the Veterans' Home and Hospital, and wartime veterans with no adequate means of support are eligible for admission to other hospitals at state expense.

Civil Service Examination Bonus Points. Wartime veterans get five bonus points and disabled wartime veterans 10 bonus points on initial state civil service examinations, as long as they meet the minimum competency scores. The same bonus awards apply to initial municipal civil service examinations.

Fee Exemptions. Wartime veterans are eligible for an exemption from any local itinerant vendor's license fee.

Firing Squads. Wartime veterans are entitled to funeral firing squads.

Soldiers, Sailors and Marines Fund. Needy wartime veterans are eligible for benefits such as food, clothing, and medical assistance from this fund.

Temporary Financial Assistance. Wartime veterans who need help because of disability or other service-related cause are eligible for temporary financial assistance from the veterans' affairs commissioner in an amount and for a time he decides.

Retirement. Members of the Municipal Employees’ Retirement System who leave municipal employment to enter the armed forces while the U.S. is at war and are reemployed by the municipality within six months of discharge, are credited with the period of service as though they had been continuously employed.

Wartime veterans who become members of the State Employees’ Retirement System or Teachers’ Retirement System may purchase retirement credit for their entire time of service, under certain circumstances. (Nonwartime veterans may purchase credit for up to 30 months.)

State police officers and correction officers and instructors who return to work from military leave within 90 days after discharge receive retirement credit for any period of wartime service. The law also provides retirement credit for wartime service prior to the veteran's employment, if he pays the appropriate contributions to the retirement fund.

Motor Vehicle Registration Fee Exemptions. Disabled wartime veterans qualify for registration fee exemptions for up to three vehicles they own or lease in the passenger, camper, or combination passenger and commercial registration categories. Former prisoners of war and Congressional Medal of Honor recipients qualify for two such registrations.

Disabled wartime veterans with certain VA-rated disabilities also qualify for free special license plates and an identification card. The plates allow the veteran to park overtime without penalty as long as he does not leave the vehicle at any one location for more than 24 hours. Surviving spouses may keep the plates and identification cards until death or remarriage.

COMMITTEE ACTION

Select Committee on Veterans' Affairs

Joint Favorable Substitute Change of Reference

Planning and Development Committee

Joint Favorable Report