SRC-AMY H.C.R. 161 78(R)   BILL ANALYSIS


Senate Research Center   H.C.R. 161
78R10103 RLM-FBy: Isett (Van de Putte)
Veteran Affairs & Military Installations
5/12/2003
Committee Report


DIGEST

Texas has long been a leader in recognizing and rewarding the tremendous
sacrifice of its veterans.  Home ownership is viewed by many as a major
component of the American Dream, and enabling veterans to achieve home
ownership at a lower cost is but a small reward for their faithful service
while in the U.S. Armed Forces.  In appreciation of this service on behalf
of our state and nation, the Texas Veterans Land Board has offered
below-market interest rates on home loan mortgages to eligible veterans
since 1983.  This program has assisted more than 50,000 Texas veterans in
obtaining affordable housing and in making a better life for themselves
and their dependents.  Texas utilizes federally tax-exempt bonds known as
Qualified Veterans Mortgage Bonds to fund approximately 50 percent of all
home and home improvement loans made to veterans.  Current federal law
governing the use of tax-exempt bonds used to fund these loans, as
contained in Section 143(I)(4) of the Internal Revenue Code of 1986,
unfairly limits these programs to only those veterans who served prior to
January 1, 1977.  This restriction prevents all veterans serving on active
duty after 1976 from using Qualified Veterans Mortgage Bonds, including
more than 500,000 men and women who served in Desert Shield and Desert
Storm and the 8,000 reservists and National Guard members of Texas called
up to serve our country since September 11, 2001.  These courageous men
and women deserve the same benefits offered to their earlier counterparts,
yet they and their families are being denied the opportunity to use
Qualified Veterans Mortgage Bonds.  Congress has failed to remedy this
discriminatory federal provision on behalf of these deserving men and
women, despite the fact that it will not increase federal discretionary
spending one cent. 

PURPOSE

H.C.R. submits the following resolutions:

That the 78th Legislature of the State of Texas hereby respectfully urge
the 108th Congress to support legislative action to immediately remove the
aforementioned discriminatory portion of the Internal Revenue Code in
order that today's veterans and their families might enjoy the same
benefits as their earlier counterparts.  That the Texas secretary of state
forward official copies of this resolution to the president of the United
States, the speaker of the house of representatives, and the president of
the senate of the United States Congress, and to all the members of the
Texas delegation to Congress with the request that this resolution be
officially entered in the Congressional Record as a memorial to the
Congress of the United States of America.