Legislature(2007 - 2008)CAPITOL 106

01/24/2008 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 293 LEGISLATIVE SESSIONS TO BE IN ANCHORAGE TELECONFERENCED
<Bill Hearing Postponed>
*+ HB 269 REQUIRE AK/US FLAGS BE MADE IN USA TELECONFERENCED
Heard & Held
*+ HB 284 PFD ALLOWABLE ABSENCE: FELLOWSHIPS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 269-REQUIRE AK/US FLAGS BE MADE IN USA                                                                                     
                                                                                                                                
8:34:47 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  last order of business  was HOUSE                                                               
BILL  NO. 269,  "An Act  requiring  the state  to procure  United                                                               
States and  Alaska flags manufactured  in the United  States; and                                                               
requiring  state buildings  and  schools to  display only  United                                                               
States and Alaska flags manufactured in the United States."                                                                     
                                                                                                                                
8:34:51 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN introduced  HB 269  as prime  sponsor.   He read  the                                                               
sponsor statement,  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
       HB 269 requires that official flags of the United                                                                        
          States of America and the State of Alaska be                                                                          
     manufactured in  the United States, and  that only such                                                                    
     flags be displayed on state buildings and schools.                                                                         
                                                                                                                                
     All manner  of products  are imported into  our nation,                                                                    
     but those items  are "things."  Our  nation and state's                                                                    
     flags are not  "things," not just colored  cloth.  They                                                                    
     are  unique symbols  to  which  we "pledge  allegiance"                                                                    
     because  they represent  our nation's  unique heritage,                                                                    
     values, and for which  thousands of Americans have died                                                                    
     for.                                                                                                                       
                                                                                                                                
     The National  Headquarters of  the American  Legion has                                                                    
     passed a  resolution that encourages state  agencies to                                                                    
     purchase   and  display   only  American   manufactured                                                                    
     American flags.  States other  than Alaska have already                                                                    
     enacted such legislation.                                                                                                  
                                                                                                                                
     Now is the time to  bring Old Glory and Alaska's "Eight                                                                    
     Stars on  a Field of  Blue" home to the  United States,                                                                    
     and that's what this bill does.                                                                                            
                                                                                                                                
8:37:32 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  said that many  of the flags  bought by the  State of                                                               
Alaska are  flown over the capitol  building.  He related  that a                                                               
couple  years  ago,  a  constituent   serving  in  the  Iraq  War                                                               
requested  that an  Alaska flag  be sent  for him  to fly.   That                                                               
marine  was killed  in  action soon  after  receiving that  flag.                                                               
Chair Lynn  noted that  that marine's mother  is now  working for                                                               
Senator  Huggins.   He said  he  hopes the  flag he  sent to  the                                                               
marine was made in America.                                                                                                     
                                                                                                                                
CHAIR LYNN noted  that he received a letter in  support of HB 269                                                               
from Michael  Porcaro, a  talk show host  for an  Anchorage radio                                                               
show.   He revealed  that it  was Mr.  Porcaro's comments  on his                                                               
radio show that  gave him the idea  for the bill.   The talk show                                                               
host,  naturally reserved,  was animated  when talking  about the                                                               
flag.  Chair  Lynn opined that an American flag  should indeed be                                                               
an American flag.  He noted  that also in the committee packet is                                                               
a letter from the American Legion.                                                                                              
                                                                                                                                
8:39:05 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN directed  attention to  a memorandum  from Dennis  C.                                                               
Bailey,  Legislative  Counsel,  Legislative  Legal  and  Research                                                               
Services,   which   addresses   the  commerce   clause   of   the                                                               
Constitution  of  the United  States  of  America.   He  cited  a                                                               
sentence near the end of the memorandum, which read:                                                                            
                                                                                                                                
         My searches revealed no state or federal cases                                                                         
      addressing a requirement that a flag be manufactured                                                                      
     in the United States.                                                                                                      
                                                                                                                                
CHAIR LYNN said he would check into the matter further.                                                                         
                                                                                                                                
8:40:34 AM                                                                                                                    
                                                                                                                                
VERN  JONES,  Chief  Procurement  Officer,  Division  of  General                                                               
Services, Department  of Administration, testified in  support of                                                               
HB 269.   He said  the bill would not  have any fiscal  impact to                                                               
the  division, because  the division  currently  buys flags  made                                                               
only in America.                                                                                                                
                                                                                                                                
8:42:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  expressed support for the  concept of bill,                                                               
but stated his concern that  this legislation would be cumbersome                                                               
for school  districts.  He  explained that every classroom  has a                                                               
flag, and  he does  not want  a school to  be challenged  for not                                                               
having a flag made in the U.S.  when the people in the school had                                                               
no  control  over  where  or  how the  procurement  of  the  flag                                                               
occurred.                                                                                                                       
                                                                                                                                
8:43:56 AM                                                                                                                    
                                                                                                                                
MR. JONES, in  response to a question  from Representative Roses,                                                               
said,  generally speaking,  the way  a  flag would  be bought  is                                                               
through price  selection; therefore,  a U.S.-made flag  would not                                                               
necessarily score better.  He  added that an Alaskan seller would                                                               
get  an Alaska  bidder preference.   In  response to  a follow-up                                                               
question from  Representative Roses as  to whether having  a U.S.                                                               
manufacturer  preference  would  help,  said  it  would  give  an                                                               
advantage  to  those  selling   U.S.  product,  including  flags;                                                               
however, he stated  that he thinks the bill  before the committee                                                               
"is a more direct route for that."                                                                                              
                                                                                                                                
8:45:43 AM                                                                                                                    
                                                                                                                                
MR. JONES,  in response  to a  remark by  Representative Coghill,                                                               
said  there  is  no  U.S. manufacture  product  procurement  code                                                               
preference, but there  is an Alaska product  preference code that                                                               
provides   three  levels   of  preferences,   depending  on   the                                                               
percentage of the product that's manufactured in Alaska.                                                                        
                                                                                                                                
REPRESENTATIVE COGHILL  recollected that  in the past,  there has                                                               
been some U.S. manufacture preference "on scoring."                                                                             
                                                                                                                                
CHAIR  LYNN questioned  whether there  should be  some protection                                                               
for someone who  buys a bunch of flags from  a catalog that sells                                                               
products made  in another country.   He said it would  be a shame                                                               
for this  to become  a controversial  issue "when  they're really                                                               
trying to do the right thing."                                                                                                  
                                                                                                                                
8:48:09 AM                                                                                                                    
                                                                                                                                
NANCY  MANLY,  Staff,  Representative   Bob  Lynn,  Alaska  State                                                               
Legislature, noted  that the  sponsor had  discussed how  far the                                                               
bill should go  and decided that the intent of  the bill would be                                                               
to  cover flags  that are  "officially flown,"  not flag  pins or                                                               
small flags to wave in parades, for example.                                                                                    
                                                                                                                                
8:49:45 AM                                                                                                                    
                                                                                                                                
DENNIS   BAILEY,  Attorney,   Legislative   Legal  and   Research                                                               
Services,  Legislative Affairs  Agency, stated  that he  does not                                                               
think a  pin is a  flag, even though  it may  depict a flag.   He                                                               
noted that  nowhere in  the bill does  the language  mention that                                                               
the flag must  be made of cloth.   In the absence  of a statutory                                                               
definition, he  proffered, a layman's definition  would work, and                                                               
he  said  he thinks  it  is  reasonable to  say  that  a flag  is                                                               
normally considered something that flies or is made of cloth.                                                                   
                                                                                                                                
8:52:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  mentioned various places in  statute that                                                               
address the  flag.   He offered his  understanding that  the bill                                                               
would  mandate  that  the  flag be  manufactured  in  the  United                                                               
States.   He questioned how  far in scope  the bill would  be and                                                               
what  the  possible effects  on  various  groups  would be.    He                                                               
expressed concern  that people may  start "picking on  each other                                                               
because we're going to go around looking at tags on the flag."                                                                  
                                                                                                                                
8:53:29 AM                                                                                                                    
                                                                                                                                
MR. BAILEY cited  AS 44.09.030(b)(1) and (2),  which mandate that                                                               
both  the U.S.  flag and  the flag  of Alaska  be flown  in state                                                               
buildings and schools.                                                                                                          
                                                                                                                                
8:54:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES reiterated  his  concern that  he does  not                                                               
want  schools to  end up  in the  midst of  a controversy  over a                                                               
matter they cannot control.                                                                                                     
                                                                                                                                
MR. BAILEY responded  that he thinks that is  a potential problem                                                               
in the bill.  He noted  that the memorandum he sent addresses the                                                               
penalties  for each  of  the particular  sections  that would  be                                                               
changed  by   the  bill.     Most  of   the  penalties   are  not                                                               
insubstantial.  He  said he presumes those  penalties would apply                                                               
to the person  who has control over  the flag that is  flown.  In                                                               
response  to a  request from  Chair Lynn,  he explained  that the                                                               
memorandum is  basically "a plea  for more time," because  he has                                                               
not  had a  chance to  study the  issue closely.   He  noted that                                                               
Representative Gruenberg was the recipient of the memorandum.                                                                   
                                                                                                                                
MR.  BAILEY referenced  the second  paragraph of  the memorandum,                                                               
which read:                                                                                                                     
                                                                                                                                
     You have asked  me to review the penalties  that may be                                                                    
     imposed  on a  state  entity or  school  that fails  to                                                                    
     comply   with   the   requirement   that   only   flags                                                                    
     manufactured in  the United States may  be purchased by                                                                    
     the  state  and  displayed   in  state  facilities  and                                                                    
     schools under AS 14.03.130, which  is amended by sec. 1                                                                    
     of  HB  269.     The  statutory  penalty  violating  AS                                                                    
     15.15.060(c), which  is amended  by sec.  2 of  HB 269,                                                                    
     probably  falls under  the crime  of election  official                                                                    
     misconduct  in the  first degree,  which penalizes  the                                                                    
     intentional failure  to perform an election  duty under                                                                    
     AS  15.56.070(a)(1)  and is  a  class  C felony.    The                                                                    
     penalty  for violation  of the  state procurement  code                                                                    
     (AS  36.30), which  is amended  by  sec. 3  of HB  269,                                                                    
     probably falls  under the criminal and  civil penalties                                                                    
     for  violation   of  the  procurement  code   under  AS                                                                    
     36.30.930, which reads:                                                                                                    
                                                                                                                                
     "Sec. 36.30.930.  Civil and criminal penalties.                                                                          
     The  following penalties  apply to  violations of  this                                                                    
     chapter:                                                                                                                   
          (1) a person who contracts for or purchases                                                                           
     supplies,  equipment  for  the state  fleet,  services,                                                                    
     professional services, or construction  in a manner the                                                                    
     person  knows to  be contrary  to  the requirements  of                                                                    
     this  chapter or  the  regulations  adopted under  this                                                                    
     chapter  is liable  for all  costs and  damages to  the                                                                    
     state arising out of the violation;                                                                                        
          (2) a person who intentionally or knowingly                                                                           
     contracts for or purchases  supplies, equipment for the                                                                    
     state  fleet,   services,  professional   services,  or                                                                    
     construction under  a scheme  or artifice to  avoid the                                                                    
     requirements of  this chapter  is guilty  of a  class C                                                                    
     felony."                                                                                                                 
                                                                                                                                
MR. BAILEY  said he  was unable  to find  a specific  penalty for                                                               
violation of  AS 44.09.030.  He  stated that he had  time only to                                                               
reach the conclusions in his memorandum,  but has not had time to                                                               
spend on the issues.                                                                                                            
                                                                                                                                
8:59:02 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  said the committee  would probably be  contacting Mr.                                                               
Bailey, but that he would like to see the legislation passed.                                                                   
                                                                                                                                
8:59:32 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN closed public testimony.                                                                                             
                                                                                                                                
8:59:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES said he would  like to know how many members                                                               
of the House have checked to see  if the flag they say the Pledge                                                               
of  Allegiance to  on the  House floor  is made  in America.   He                                                               
posited that  they don't care,  because the  flag is a  symbol of                                                               
pride.   He talked about growing  up as a military  dependent and                                                               
showing  respect  for the  flag.    He  said, "The  reverence  is                                                               
something that's  in the  heart; it's not  something that's  in a                                                               
piece of  cloth ...."   He stated  that although he  supports the                                                               
intent of  the bill, he does  not support "the potential  of what                                                               
could happen."  He reiterated  his concerns related to unintended                                                               
consequences.  He  stated that he personally does  not care where                                                               
the flag is  manufactured; he does not even have  to see the flag                                                               
to respect  it.  He said  he understands not wanting  any country                                                               
that does everything it can to  destroy the U.S. to gain from the                                                               
benefit of manufacturing a U.S. flag.                                                                                           
                                                                                                                                
9:03:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  said  he  respects the  intent  of  the                                                               
sponsor and would  not stop the bill, but he  asked the committee                                                               
to consider that  having flags made around the  world spreads the                                                               
message of America  across the world.  He suggested  that it is a                                                               
good thing to have that hope spread around the world.                                                                           
                                                                                                                                
9:05:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL  mentioned that  there would be  an amendment                                                               
that would  consider the approximately  563 flags that  "we" have                                                               
on hand.   She said  she interprets Mr.  Jones to have  said that                                                               
all of  those flags have  been purchased in  the U.S.   She noted                                                               
that she would not be offering the amendment today.                                                                             
                                                                                                                                
9:05:46 AM                                                                                                                    
                                                                                                                                
MR.  JONES  clarified that  he  had  spoken regarding  the  flags                                                               
bought  by  his  division,  but  not  those  purchased  by  other                                                               
branches.                                                                                                                       
                                                                                                                                
9:06:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL  mentioned a report by  Legislative Legal and                                                               
Research  Services that  indicates that  there are  approximately                                                               
303 [flags]  on hand that are  of unknown origin.   The amendment                                                               
that  would be  offered at  a  later date,  she explained,  would                                                               
"phase in the purchase of these  American flags as ... we procure                                                               
them."                                                                                                                          
                                                                                                                                
CHAIR LYNN said he has no objection to such an amendment.                                                                       
                                                                                                                                
9:06:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES said his greatest  fear is not someone being                                                               
prosecuted, but a situation in  which funding for schools becomes                                                               
a problem.  He  explained that the last thing he  wants to see is                                                               
a school with 100 flags it can't  fly because they were made in a                                                               
foreign  country and  that  school  not being  able  to follow  a                                                               
mandate to  fly flags because  it cannot  afford to buy  new ones                                                               
made in the U.S.                                                                                                                
                                                                                                                                
CHAIR LYNN noted that the concept  for the amendment that had not                                                               
yet been offered would prevent such a situation.                                                                                
                                                                                                                                
9:08:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  said he  personally thinks  people should                                                               
buy  as  close to  home  manufacture  as  possible, but  he  gets                                                               
nervous around  mandates.   He said  he does  not have  a problem                                                               
with a  commerce clause, but  is concerned that the  argument may                                                               
be on the mandate, rather than  focusing on respect for the flag.                                                               
He said he does not want someone  to tell him he can't buy a flag                                                               
to fly  that is not made  in the U.S., if  he is unable to  buy a                                                               
U.S. made flag because of a cotton crisis or a strike of flag                                                                   
makers in America, for example.                                                                                                 
                                                                                                                                
9:11:15 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN announced that HB 269 was heard and held.                                                                            

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