(a) Every member of the military forces of this state who shall be wounded, disabled or injured, or who shall contract any disease or illness, in line of duty when in the service of this state on active state duty shall be entitled to and shall receive, or be reimbursed for, hospitalization, rehospitalization, and medical and surgical care in a hospital and at his home appropriate for the treatment of such wounding, disability, injury, disease or illness, and necessary transportation incident thereto so long as such wounding, disability, injury, disease or illness exists, and shall receive the same pay and allowance whether in money or in kind, to which he was entitled at the time when the injury was incurred or the disease or illness contracted, during the period of his disability but not for more than a total of twelve (12) months after the end of his tour of duty. In the event of his death in such cases, his estate shall be entitled to any reimbursement and compensation to which the deceased would have been entitled, to his accrued pay and allowances, and reimbursement for actual funeral expenses not to exceed the sum of Five Hundred Dollars ($500.00). Such payments to the estate, as well as the cost of carrying out the other provisions of this section, shall be paid out of the military fund in the same manner provided for other expenditure of state funds. However, no compensation or reimbursement shall be paid in any case where the same is payable under the provisions of any federal law or regulation.

(b) The Adjutant General shall administer the provisions of this section and shall prescribe such rules and regulations not inconsistent with the law as may be necessary to carry out the provisions of this section and the decision as to whether any wounding, disability, injury, disease, illness or death is in line of duty or as a result thereof, shall be made by the Adjutant General after proper investigation and hearing pursuant to such regulations as he may prescribe. Further, the Adjutant General shall have power to make interagency agreements or contracts with any agency of the state government to carry out the provisions of this section.

(c) The provisions of this section shall be in no way construed to be a gratuity but shall be construed to be compensation for services for which each member of the military forces of this state shall be deemed to have bargained for and considered as a condition of his enlistment or appointment.