BILL NUMBER: AJR 26	CHAPTERED  06/27/02

	RESOLUTION CHAPTER  96
	FILED WITH SECRETARY OF STATE  JUNE 27, 2002
	ADOPTED IN SENATE  JUNE 20, 2002
	ADOPTED IN ASSEMBLY  MAY 13, 2002

INTRODUCED BY   Assembly Member Havice

                        AUGUST 21, 2001

   Assembly Joint Resolution No. 26--Relative to military reserve
personnel.



	LEGISLATIVE COUNSEL'S DIGEST


   AJR 26, Havice.  Military reserve personnel.
   This measure would memorialize the President and Congress to take
various actions to ensure the fair treatment of military reservists
when they apply for loans.




   WHEREAS, The military reserve forces of the United States provide
a valuable service to the citizens of the United States; and
   WHEREAS, Military reserve personnel make up 60 percent of the
total armed forces of the United States; and
   WHEREAS, The reserve forces of the United States military provide
for the continuing freedom and pursuit of democracy throughout the
world; and
   WHEREAS, The military reserve upholds our values and beliefs in
times of peace as well as war; and
   WHEREAS, Evidence suggests that members of the military reserve
may be discriminated against due to their reserve status when
applying for financing; and
   WHEREAS, This discrimination results in members of the military
reserve being charged higher interest rates for loans due to their
reserve status; and
   WHEREAS, This discrimination is an attempt to circumvent the
Soldiers and Sailors Relief Act of 1940; and
   WHEREAS, The Soldiers and Sailors Relief Act of 1940 specifies
that should a member of the military reserve be called to active
duty, that person's outstanding loans shall be capped at a 6 percent
interest rate should the soldier prove that his or her active duty
status would put him or her in financial hardship; and
   WHEREAS, The practice of subprime lending based on reserve status
is not prohibited by federal law; and
   WHEREAS, California has taken the lead in protecting the military
reserve and the National Guard in California through Assembly Bill
120 of the 2001-02 Regular Session; and
   WHEREAS, We must protect the interest of our military reserve
personnel in order to preserve military readiness and morale; and
   WHEREAS, The federal government must stand firm in upholding the
rights and duties of the military reserve and continue to demonstrate
leadership in the implementation of a strong military force; now,
therefore, be it
   Resolved by the Assembly and Senate of the State of California,
jointly, That the Legislature of the State of California memorializes
the President and Congress of the United States to do all of the
following:
   (a) Stand firm in protecting the financial interest of military
reserve personnel.
   (b) Enact new legislation that strengthens the provisions of the
Soldiers and Sailors Relief Act of 1940.
   (c) Look into the practice of predatory lending against military
reservists based on their reserve status.
   (d) Enact legislation that makes it a crime to discriminate
against military reserve personnel based on reserve status when
applying for financing; 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 all members of Congress of the United States.