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.