BILL NUMBER: AB 776	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Salas

                        FEBRUARY 26, 2009

   An act to add Section 988.6 to the Military and Veterans Code,
relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 776, as introduced, Salas. Veterans.
   Under existing law, the Department of Veterans Affairs has
specified powers and duties relating to veterans, including the
administration of the CalVet Home Loan program, which helps fund the
purchase of homes and farms for eligible veterans with the proceeds
from tax-exempt bonds. Existing federal law requires the proceeds
from certain tax-exempt bonds to be used for the acquisition of a
single-family residence, as provided.
   This bill would require the department to urge the Congress of the
United States to act immediately to remove this requirement from
federal law, as specified, so that the proceeds from the bonds can be
used for other types of housing.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 988.6 is added to the Military and Veterans
Code, to read:
   988.6.  The department shall urge the Congress of the United
States to act immediately to remove the provisions in Section 143 of
the Internal Revenue Code that requires the proceeds from qualified
veterans' mortgage bonds to be used only for the acquisition of a
single-family residence, so that the proceeds from the bonds can be
used for other types of housing.