Assembly Joint Resolution
No. 17
CHAPTER 116
Relative to veterans’ home loan programs.
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Filed with
Secretary of State
September 24, 2001.
]
LEGISLATIVE COUNSEL'S DIGEST
AJR 17, Chavez.
Extension of home loan programs.
This measure would respectfully urge the Congress of the United States to amend the Internal Revenue Code to change the definition of “qualified veteran” for purposes of providing financing for home loans to any veteran who meets the requirements as may be imposed by the state law pursuant to which qualified veterans’ mortgage bonds are issued.
Digest Key
WHEREAS, The States of Alaska, California, Oregon, Texas, and Wisconsin have established veterans’ home loan programs; and
WHEREAS, The States of Alaska, California, Oregon, Texas, and Wisconsin have authority in the Internal Revenue Code to issue qualified veteran mortgage bonds to finance their respective veteran home loan programs; and
WHEREAS, Veterans’ eligibility under current federal tax law restricts the eligibility to veterans who served on active duty prior to January 1, 1977; and
WHEREAS, The federal tax law devalues the service to our country given by those men and women who have served in the military of the United States since 1977 by denying them access to a benefit that has been available to their counterparts from other eras; and
WHEREAS, Service in uniform should be accorded the same respect and stature irrespective of the moment in time during which it was provided. The men and women who have served since 1977 should have the same opportunity to take root in the communities they have defended as was offered those who “made the world safe for democracy” in World War II, or were called upon to “pay any price, bear any burden, support any friend or oppose any foe to ensure the survival and success of liberty...” during the Vietnam and Cold War eras; and
WHEREAS, The Directors of Veterans Affairs of the States of Alaska, California, Oregon, Texas, and Wisconsin are desirous of extending their respective veteran home loan programs to include the men and women of the United States of America who are dispatched to participate in any conflict that has occurred or will occur on or after January 1, 1977; and
WHEREAS, Nearly 3 million veterans reside in California. Of those, 1.05 million, began their active military service on or after January 1, 1977, and over one-quarter million of those served in Desert Storm; and
WHEREAS, Since 1922, California has operated, at no expense to its General Fund, the Cal-Vet Farm and Home Loan Program. Cal-Vet is a qualified veterans mortgage bond (QVMB) program that has helped 408,000 California veterans become homeowners; and
WHEREAS, Opening participation in this home loan benefit to post-1976 veterans requires no direct budget expenditure by Congress and the well-established benefits of home ownership to local communities will be enhanced and expanded; and
WHEREAS, Veterans of all conflicts should receive benefits consistent with the benefits available to veterans of previous armed conflicts; and
WHEREAS, Those veterans have been qualified for eligibility into congressionally chartered veterans’ organizations by prior acts of the Congress of the United States; now, therefore, be it
Resolved by the Assembly and Senate of the State of California, jointly, That the Legislature of the State of California respectfully memorializes the Congress and the President of the United States to urge the Congress of the United States to amend paragraph (4) of Section 143(l) of the Internal Revenue Code of 1986 to read: “(6) Qualified veteran—For purposes of this subsection, the term ‛qualified veteran’ means any veteran—(A) who meets such requirements as may be imposed by the State law pursuant to which qualified veterans’ mortgage bonds are issued”; and be it further
Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the President and Vice President of the United States, and to the Speaker of the House of Representatives, the President of the Senate, and each Member in the Congress of the United States.