or major fraction of a month for foreign and domestic duty. The total adjusted compensation paid to a veteran hereunder shall not exceed $270 for domestic duty or $400 for foreign duty or a combination of domestic and foreign duty. However, the total adjusted compensation paid to a veteran who served during the period between June 27, 1950, and July 27, 1953, and who received or was eligible to receive a Korean Service Medal shall not exceed $400; payment to each veteran who served during the same period and who did not receive or who is eligible to receive a Korean Service Medal shall not exceed $200. If the veteran is deceased, payment shall be made to his beneficiary. No payment shall be made to any veteran or beneficiary who has applied for or received, or is eligible to receive, a similar payment from another state unless his application to another state has been denied."

SEC. 5. Minnesota Statutes 1953, Section 197.85, is amended to read: "197.85

Subdivision 1. All payments of adjusted compensation and expenses of administering, shall be paid from the veterans compensation fund, which is hereby created in the state treasury. All money appropriated or made available from any source for the purpose of paying adjusted compensation shall be deposited to the credit of such fund. All moneys in the veterans compensation fund are hereby appropriated for the purposes of Laws 1949, Chapter 642.

"Subdivision 2. All payments of adjusted compensation and the administrative expenses incurred in connection therewith authorized by this act shall be paid from the veterans compensation fund if there has been paid into such fund sufficient moneys to pay all obligations created by Laws 1949, Chapters 642, 643, and interest thereon, together with all administrative expenses incurred pursuant to such laws, or as certified to by the state auditor.

"Subdivision 3. There is hereby appropriated from the veterans compensation fund $15,000,000 for the purposes of this act in accordance with the terms thereof. The commissioner is hereby authorized to accept applications for payment of a bonus to those who served between June 27, 1950, and July 27, 1953, immediately upon passage of this act, provided, however, that no payment shall be made prior to December 31, 1958; and provided further that if said $15,000,000 is sufficient to pay all the adjusted compensation of all who file application therefor, the compensation of those who file applications therefor shall be reduced on a pro rata basis so that said sum shall pay all thereof.

SEC. 6. Minnesota Statutes 1953, Section 197.95, is amended to read: "197.95 No payment of adjusted compensation shall be made under the provisions of Laws 1949, Chapter 642, as amended, unless the application therefor is received by the commissioner on or before December 31, 1953, or under this act, unless the application is received on or before December 31, 1958.

"SEC. 7. This act shall take effect when sufficient moneys have been paid into the veterans compensation fund to pay all obligations of the State of Minnesota incurred by reason of Laws 1949, Chapters 642 and 643, together with interest thereon and expenses of administration as certified to by the state auditor.

"SEC. 8. Minnesota Statutes 1953, Section 197.80, Subdivision 13, is amended to read:

"Subdivision 13. Where a person had served five years or more on continuous active duty in the armed forces prior to December 7, 1941, or four years prior to June 27, 1950, and died from a service connected cause while serving in such service at any time during the period December 7, 1941, to September 2, 1945, or the period June 27, 1950, to July 27, 1953, he is deemed a "veteran" within the meaning of subdivision 12 and his beneficiary is entitled to receive the payIment which the veteran would receive, if alive, under sections 197.80 to 197.97. Approved, April 29, 1957.

MONTANA

House Bill No. 3

AN ACT To amend Initiative Measure No. 54, adopted by the vote of the legal electors of the State of Montana at the regular General Election held in the State of Montana on November 7th, 1950, by amending Section 1 thereof, defining terms; by amending Section 2 thereof so as to provide for the payment of an Honorarium to persons serving on active duty during the Korean War; authorizing issuance of Six Million Dollars ($6,000,000.00) of limited obligation bonds or so much thereof as may be necessary to supplement the moneys now in the "War Veterans' Compensation Fund" sufficiently to make the payments provided or in said Initiative No. 54 as hereby amended; by adding thereto a new section to be numbered 14-A, providing for the deposit of moneys from the sale of such additional bonds in said "War Veterans' Compensation Fund": amending Section 16 of said Initiative No. 54, and amending Sections 84-5606 and 84-5621, Revised Codes of Montana, 1947, as amended, by providing an additional excise tax upon the sale of cigarettes in the State of Montana; said moneys to be deposited in the "War Veterans' Compensation Bond Retirement Fund No. 2" for the payment of such additional bonds and interest thereon and creating such fund: making an appropriation of the moneys now remaining in the "War Veterans' Compensation Fund" not needed for the payment of the honorarium to persons who served in World War II and of the funds derived from the sale of said bonds, by adding a section to be numbered 17-A, providing that nothing in this Amendatory Act shall be construed as impairing the security of the Twenty-Two Million dollars ($22,000,000.00) of bonds heretofore sold under the authority of said Initiative Measure No. 54; providing that said Initiative No. 54 as by this Act amended shall be construed as though it had been originally passed with the amendments made by this Amendatory Act, if such construction does not conflict with express provisions of this Amendatory Act; providing limits of time within which claims under subdivisions (b), (c), and (d) of Section 2 of said Initiative No. 54, as said section is by this Amendatory Act amended, under Section 3 of said Initiative No. 54 as by this Amendatory Act amended, or under Section 5 of said Initiative No. 54 as by this Amendatory Act amended, may be filed; making incidental amendments of the Sections of said Initiative No. 54 in this Amendatory Act specifically referred to, germane to the general purpose of this Amendatory Act and designed to facilitate the administration thereof providing that if any part of this Amendatory Act shall be held invalid such invalidity shall not affect the other provisions of this Act; repealing all acts and parts of acts in conflict herewith; and providing for an effective date. Whereas the Korean War began before the submission of Initiative No. 54, adopted by the vote of the people of Montana at the regular General Election of November 7, 1950, but too late to permit the inclusion in the provisions of said Act of persons in the military service during said Korean War; and

Whereas it was the intent of the people of Montana to recognize by the honorarium provided in said Initiative No. 54 all residents of Montana rendering military service on behalf of said State in the then emergency: and

Whereas said Korean War was a recrudescence of said World War II and properly includible within the provisions of said Initiative No. 54, Now, therefore

Be it enacted by the Legislative Assembly of the State of Montana: SECTION 1. That Section 1 of said Initiative No. 54 be, and the same is hereby amended so as to read as follows:

"SECTION 1. As used in this law

"(a) The term 'World War II' means the period between December 7, 1941, and September 2, 1945, both dates inclusive.

"(b) The term 'Korean War' means the period between June 25, 1950 and October 16, 1953, both dates inclusive.

"(c) The term 'Korean Theater' means the Korean Peninsula and the waters surrounding said Peninsula, the islands of Japan and other territory upon which personnel of the United Nations were during said Korean War based or operating in the presence of the Korean Conflict.

"(d) The term 'Military Forces' as applied to World War II means the Army, the Navy, the Marine Corps, the Coast Guard, the Construction Battalions, the WAC's, the Waves, the Spars, the WMR, the Nursing Services, all Air Forces, and all other groups and services in and forming a part of the Armed Services under the control and subject to the discipline of the War Department or the Navy Department of the United States and engaged in the prosecution of World War II.

"(e) The term 'Military Forces' as applied to the Korean War means the Army, the Navy, the Marine Corps, the Air Force, the Coast Guard, the Construction Battalions, the WACs, the Waves, the Spars, the WMR. the Nursing Services, and all other groups and services forming a part of the Armed Services under the Control and subject to the discipline of the Department of Defense of the United States and on active duty during the period of said Korean War. The term 'Department of Defense' as herein used means all of the branches of the Armed Services of the United States acting under the unified control of the Department of Defense.

"(f) The term 'Military Service' means service on active duty by any person in any of the military forces at any time during World War II or during said Korean War.

"(g) The term 'Person' includes female as well as male.

"(h) The term 'Serviceman' means a person who is entitled to receive payments under Section 2 of this law.

(i) The term 'resident of Montana' means a person who was in Military Service, and who at the time of his or her entry into such Military Service had his or her home in Montana. A person who on December 7, 1941, or in the case of the Korean War, on June 25, 1950, was serving on active duty in any of the Armed Services of the United States and who at the time of his or her then last entry into such Service made his or her home in Montana and who was in the Military Service at some time in World War II or during the Korean War, shall be deemed a resident of Montana, unless he or she, after such last entry, and before entry into Military Service in either such War, had established and was then maintaining a home in some other State; and any such serviceman whose parents or surviving parent then resided in Montana, shall be deemed a resident of Montana. "(j) The term 'Continental limits of the United States' means the area of the 48 States and the District of Columbia to high water mark on its water boundaries."

SEC. 2. That Section 2 of said Initiative No. 54 be, and the same is hereby amended so as to read as follows:

"SEC. 2. In recognition and appreciation of the valor and devotion of the men and women who by their Military Service carried out and discharged the obligation of the State of Montana to contribute of its man power to the defense of this republic in World War II and in the prosecution of said Korean War, and in partial adjustment for the economic detriment suffered by the reason of their service, the State of Montana hereby grants and there shall be paid to

"(a) Each resident of Montana who was in Military Service as a member of any branch of the Military Forces of the United States at some time during World War II, an honorarium, or adjusted compensation, in the sum of Ten Dollars ($10.00) for each month and major fraction of a month of such service within the Continental Limits of the United States, and the sum of Fifteen Dollars ($15.00) for each month and major fraction of a month for such service outside the Continental Limits of the United States;

"(b) Each resident of Montana who was in Military Service at some time during the Korean War, and during part or all of the period of such service was in said Korean Theatre, and honorarium, or adjusted compensation, in the sum of Fifteen Dollars ($15.00) for each month and major fraction of a month of such service in said Korean Theatre, and Ten Dollars ($10.00) for each month and major fraction of a month of such service outside said Korean Theatre, provided further that any serviceman who, while on active duty in said Korean Theatre during said Korean War, shall have suffered disease, or injury from any cause whatsoever, including injury from exposure to weather and/or weather conditions, and in line of duty, and is hospitalized therefore by any of the Armed Services of the United States he or she shall be deemed, for the purpose of this Amendatory Act, to have been in Military Service in said Korean Theatre as long as he or she shall be or have been continuously hospitalized in any hospital or similar institution under the control of or employed by the United States, and wherever situated. subject to the limitation in this subdivision hereinafter specified; provided further that any serviceman who shall have been taken prisoner by the enemy in said Korean Theatre, and who shall have been classified by any of said Armed Services under the Department of Defense as a Prisoner of War, shall receive the sum of Fifteen Dollars ($15.00) for each month and major fraction of a month during which he or she was so held by the enemy as such prisoner; but any such Prisoner of War shall be paid not less than Three Hundred Dollars ($300.00); and provided, finally, that no serviceman shall be paid, under any of the provisions of this subdivision, more than Six Hundred Dollars ($600.00).

"(c) Each resident of Montana who was in Military Service during said Korean War, but whose Military Service was wholly outside said Korean Theatre, an honorarium, or adjusted compensation of Ten Dollars ($10.00) for each month and major fraction of a month of such service.

"(d) The surviving spouse, children, or parents, as the case may be, and as in this Amendatory Act hereinafter provided, of any Korean serviceman who died in line of duty while in such Military Service during either World War II or said Korean War, or who shall have died prior to payment under this Section from any cause attributable to his Military Service, in line of duty, as shown by the records of the United States Veterans Administration, shall be paid the amount to which such deceased serviceman would have been entitled had he received payment of said honorarium, or if such amount is less than Five Hundred Dollars ($500.00), then such surviving spouse, children or parents, as the case may be, shall be paid the sum of Five Hundred Dollars ($500.00), and no more.

"(e) Provided that there shall be paid to any resident of Montana who has received or is entitled to receive from any other State or territory of the United States a gratuity, bonus, honorarium, adjusted compensation or similar payment for Military Service in the Military Forces in either of said Wars, no more than the excess, if any, of the aggregate amount to which such resident would be entitled hereunder over and above the amount so received or to which he or she may be entitled from another such State or territory; and provided further that no payment shall be made under this law to any person who was dishonorably discharged from such Service and has not been by proper authority restored to an honorable status, nor to any person still in Service who is in a dishonorable status."

SEC. 3. That Section 3 of said Initiative No. 54 be, and the same is hereby amended so as to read as follows:

"SEC. 3. In the case of the death of any such serviceman prior to payment under this law, the amount specified in subsection (d) of Section 2 of this Amendatory Act, shall be paid as follows

"(1) To his or her surviving spouse, provided such spouse, if a widow, has not remarried prior to making application for such payment; or

"(2) If there is no surviving spouse, or if a widow and she is deceased or has remarried prior to making such application, then to the child or children who shall be living when such payment is made, in equal shares if more than one, and all thereof if only one; or

"(3) If there is no surviving spouse, or if there was a widow and she has remarried or is deceased, and if there are no surviving children, then such payment shall be made to the parents of the deceased, or if one of them shall be deceased, then the whole thereof to the parent who survives; or if both parents be deceased, then no payment shall be made.

"(4) The payments in this Paragraph provided for shall be made only to the persons herein designated who shall be living at the time of payment, and no payment shall be made to the estate of any such person."

SEC. 4. That Section 5 of said Initiative No. 54 be, and the same is hereby amended so as to read as follows:

"SEC. 5. In the case of minors or incompetent persons, claims shall be filed and payments made to his or her guardian; his or her custodian duly appointed by the Veterans' Administration, his or her legal fiduciary."

SEC. 5. That Section 12 of said Initiative No. 54, be, and the same is hereby amended so as to read as follows:

Such

"SEC. 12. For the purpose of providing for the payment of the honorarium, or adjusted compensation, herein provided for and for paying the expenses of administration of this Law, there shall be issued and sold under the direction and supervision of the Board of Examiners, limited obligation bonds of the State of Montana in the sum of Twenty-two Million Dollars ($22,000,000.00) or in such sum within that amount as may be necessary for such purposes. bonds shall distinctly state that they are not and shall never be or become a general obligation of the State of Montana, but shall be payable only from the proceeds of a cigarette tax in the manner in this Law provided: shall contain the pledge of the State of Montana to continue to levy and collect the cigarette tax in this Law provided for and place the proceeds thereof in the War Veterans' Compensation Bond Retirement Fund, until all bonds issued hereunder, and the interest accruing thereon, shall have been paid; shall draw interest at the rate of not more than four and one-half percent (4%%) per annum, payable semiannually; but in all other respects the Board of Examiners is hereby empowered and directed to fix the terms thereof, as to dates of maturity, the time after which and the terms and conditions upon which they may be called for payment prior to maturity; whether payable to bearer or registered, whether serial bonds or otherwise, and to prescribe the general form of such bonds; and

said Board of Examiners is hereby empowered to do whatever is lawful and necessary in the issuance and payment of such bonds and the interest thereon and the administration of this Law. The Attorney General shall assist the Board in the preparation of the form of such bonds. Such bonds shall be signed by the members of the Board of Examiners and be issued under the Great Seal of the State of Montana, and a record of all such bonds issued and sold shall be made in the office of the State Treasurer. Said bonds shall have interest coupons attached thereto, covering the interest due semi-annually, which coupons shall be executed with facsimile signatures of all the members of said Board of Examiners, and the signing of such coupons with such facsimile signatures shall be recognized as sufficient execution of such coupons on behalf of the State of Montana. Provided, however, that if the moneys derived from said first issue of Twenty-two Million Dollars ($22,000,000.00) of bonds as in this Section above provided shall be insufficient to pay all claims heretofore filed with and heretofore or hereafter allowed by said Board of Examiners under the original provisions of said Initiative No. 54 as heretofore amended, and to pay all claims filed and allowed under this amendatory act, together with the expenses of administration of this amendatory act, there shall be issued and sold under the direction and supervision of the Board of Examiners of the State of Montana limited obligation bonds of the State of Montana in the further sum of Six Million Dollars ($6,000,000.00) or in such sum within that amount as may be necessary for such purposes. The issuance of such bonds shall be made in the same manner and such bonds shall be subject to the same limitations, restrictions, and provisions as apply to said original issue of Twenty-two Million Dollars ($22,000,000.00), except that such bonds shall draw not more than four and one-half percent (42%) interest and shall be payable only out of a cigarette tax as hereinafter provided in this amendatory act.

SEC. 6. That there is hereby added to said Initiative No. 54 a new section to be numbered Section 14-A, to read as follows:

"SEC. 14-A. The money arising from the sale of such said additional bonds in the amount of Six Million dollars ($6,000,000.00) in this amendatory act above provided for as may be sold as herein provided shall be deposited in the State Treasury to the credit of the special fund created by said Initiative No. 54 and known as the 'War Veterans' Compensation Fund', and the moneys now in said fund, after payment of all claims heretofore filed with and heretofore or hereafter allowed by the Board of Examiners under the original provisions of said Initiative No. 54, shall, together with such additional funds as may be derived from the sale of bonds under the said issue of Six Million Dollars ($6,000,000.00) authorized by this amendatory act, be used to pay said honorarium granted by subdivisions (b), (c), and (d) of Section 2 hereof, and by Section 3 of said Initiative No. 54 as hereby amended, and the expense of administration of this amendatory act. For the purpose of carrying out the provisions of this amendatory act there is hereby appropriated from the War Veterans' Compensation Fund, in addition to the appropriation made by Section 14 of said Initiative No. 54 as originally enacted, the moneys now remaining in said Fund and not needed for the payment of the Honorarium to persons who served in World War II, and the sum of Six Million Dollars ($6,000,000.00), or so much thereof as may be necessary to pay said Honorarium to the persons who served in the military forces in said Korean War."

SEC. 7. That Section 16 of said Initiative No. 54, be, and the same is hereby, amended as to read as follows:

"SEC. 16. That in addition to the aggregate excise tax upon cigarettes now provided for by Section 16 of said Initiative Measure No. 54, there is hereby imposed a tax of one cent (14) on each package of cigarettes containing not more than twenty (20) cigarettes, and when a package shall contain more than twenty (20) cigarettes, then one cent (14) for each twenty (20) or fraction of twenty (20) cigarettes in such package. Such additional tax shall be collected at the same time and in the same manner as the tax levied and imposed by subdivision (2) of said Section 16 of said Initiative Measure No. 54. For the purpose of giving full legal effect to said increase of said excise tax, Section 84-5606 of said Title 84 and Section 8405621 of said Title 84 are hereby amended so as to read as follows:

"Section 84-5606 Subdivision (1) From and after the effective date of this amendatory law, there is hereby levied, imposed, and assessed, and there shall be collected and paid to the state of Montana, upon cigarettes sold or possessed in this state, the following excise tax which shall be paid prior to the time of sale and delivery thereof, to wit: Two cents (24) on each package containing