04/11/2002 08:06 AM House STA

SJR 31 - TAX EXEMPT BONDS TO FUND VETERANS LOANS                                                                              
                                                                                                                                
CHAIR COGHILL announced that the  next order of business would be                                                               
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 1775                                                                                                                     
                                                                                                                                
SENATOR JERRY WARD, Alaska  State Legislature, sponsor, presented                                                               
SJR 31.  He explained that  those who served in the United States                                                               
military prior  to 1976  were eligible  for low-income  homes and                                                               
other  programs.   Because of  a change  in the  Internal Revenue                                                               
Service (IRS) code  in the 1970s, veterans who  served after 1976                                                               
do not  receive the same  benefits as the military  personnel who                                                               
served prior to  1976.  There is overwhelming  state and national                                                               
support  for  this legislation.    He  said  he hopes  that  this                                                               
legislation will encourage veterans to  stay in Alaska or move to                                                               
Alaska.                                                                                                                         
                                                                                                                                
Number 1988                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES  noted that  this legislation is  timely and                                                               
she supports it.                                                                                                                
                                                                                                                                
Number 2090                                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS  agreed  that   this  is  only  fair  and                                                               
equitable for the people who have served after 1976.                                                                            
                                                                                                                                
Number 2110                                                                                                                     
                                                                                                                                
SENATOR WARD  acknowledged that  the anti-military  sentiment has                                                               
changed since the mid-1970s after the Vietnam War.                                                                              
                                                                                                                                
REPRESENTATIVE  HAYES  asked  Senator   Ward  about  the  federal                                                               
legislation.                                                                                                                    
                                                                                                                                
SENATOR  WARD said  that the  U.S. House  of Representatives  has                                                               
passed it  through the  committee and  is awaiting  final action.                                                               
The  U.S. Senate  is waiting.   Since  [the terrorist  attacks on                                                               
September 11,  2001], there  is a tremendous  amount of  focus on                                                               
the  veterans  and  their  families.   There  will  be  veterans'                                                               
legislative packages that will go  through this year, and this is                                                               
one thing being considered.  He  said he never understood why the                                                               
IRS  was so  insistent on  not allowing  the same  benefits after                                                               
1976,  but it  is not  opposing that  this year.   The  attack on                                                               
America has caused a lot of these issues to be brought up.                                                                      
                                                                                                                                
CHAIR COGHILL  explained that  1976 was the  time that  those who                                                               
were drafted into the military would  be out of the service.  The                                                               
military then went to an  all-volunteer basis, so this resolution                                                               
would affect a diminishing number of people.                                                                                    
                                                                                                                                
Number 2433                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES  moved  to  report  CSSJR  31(STA)  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSSJR  31(STA)  was                                                               
reported out of the House State Affairs Standing Committee.