03/14/2002 03:18 PM House MLV

SJR 31-TAX EXEMPT BONDS TO FUND VETERANS LOANS                                                                                
                                                                                                                                
CHAIR  CHENAULT announced  the first  order of  business, CS  FOR                                                               
SENATE  JOINT RESOLUTION  NO. 31(STA),  Urging the  United States                                                               
Congress to permit the use of  tax exempt bonds to fund loans for                                                               
veterans who served after 1976.                                                                                                 
                                                                                                                                
Number 0172                                                                                                                     
                                                                                                                                
SENATOR JERRY WARD, Alaska  State Legislature, sponsor, presented                                                               
SJR  31.   He  told the  members that  this  resolution has  been                                                               
before the United  States Congress for probably  the last decade.                                                               
It  is supported  by the  VFW [Veterans  of Foreign  Wars of  the                                                               
United States],  the American Legion, and  various other military                                                               
organizations.   For  some time,  these  organizations have  been                                                               
attempting to get Congress to change  the action it took in doing                                                               
away  with the  tax-exempt status  of veterans  who served  after                                                               
1977;  many veterans  in  Alaska  fall into  that  category.   He                                                               
indicated there seems to be  a tremendous amount of encouragement                                                               
from  Congress this  year to  help  the military,  not only  with                                                               
increases in pay,  but also with increases in the  ability to own                                                               
homes.   He said he believes  private ownership of a  home is one                                                               
of the greatest things a family can have.                                                                                       
                                                                                                                                
Number 0330                                                                                                                     
                                                                                                                                
SENATOR  WARD explained  that  he is  asking  the legislature  to                                                               
encourage Congress to  change the Internal Revenue  Code to allow                                                               
veterans that  served from  1977 on  to have  the same  rights as                                                               
those who  served before  1977 - to  have reduced  interest rates                                                               
for veterans  home loans  in Alaska.   Without those  bills going                                                               
through Congress,  veterans who  served prior to  1977 can  get a                                                               
lower  interest  rate,  but  veterans  who  serve  today  cannot.                                                               
Reporting  that Alaska's  congressional delegation  supports this                                                               
resolution, he urged its passage.                                                                                               
                                                                                                                                
Number 0448                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI  expressed  support   for  SJR  31  and                                                               
wondered if the committee has heard something similar before.                                                                   
                                                                                                                                
SENATOR WARD  noted this resolution  was not new.   The veterans'                                                               
organizations have been trying for this  for many years.  He said                                                               
he didn't know if there was a House version of the resolution.                                                                  
                                                                                                                                
Number 0568                                                                                                                     
                                                                                                                                
CAROL CARROLL, Director,  Central Office, Administrative Services                                                               
Division, Department  of Military  & Veterans  Affairs, suggested                                                               
that  Representative   Murkowski  could   be  referring   to  the                                                               
guaranteed  revenue   bonds  from  AHFC  [Alaska   House  Finance                                                               
Corporation].                                                                                                                   
                                                                                                                                
REPRESENTATIVE MURKOWSKI agreed it was.                                                                                         
                                                                                                                                
Number 0603                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES asked Senator Ward  if this would affect all                                                               
veterans from 1977 to the present.                                                                                              
                                                                                                                                
SENATOR WARD replied yes.                                                                                                       
                                                                                                                                
Number 0644                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Senator Ward why it stopped at 1976.                                                                 
                                                                                                                                
SENATOR WARD  replied, "Because  there's a  whole bunch  of anti-                                                               
military people  that got  into Congress,  and they  decided that                                                               
they're going to cut the pay  of the military, take away benefits                                                               
from  them, and  treat them  shabbily, and  we have  suffered for                                                               
that."                                                                                                                          
                                                                                                                                
CHAIR CHENAULT closed public testimony.                                                                                         
                                                                                                                                
Number 0739                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  moved  to  report  CSSJR  31(STA)  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
REPRESENTATIVES  KOTT and  REPRESENTATIVE HAYES  objected because                                                               
they would benefit  from the program and  declared their conflict                                                               
of interest.                                                                                                                    
                                                                                                                                
CHAIR CHENAULT  indicated that there being  no further objection,                                                               
CSSJR 31(STA) was reported out  of the House Special Committee on                                                               
Military and Veterans' Affairs.