Legislature(2007 - 2008)CAPITOL 106

02/28/2008 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 269 REQUIRE AK/US FLAGS BE MADE IN USA TELECONFERENCED
Moved CSHB 269(STA) Out of Committee
<Bill Hearing Rescheduled from 02/14/08>
+= HB 54 CONSTRUCTION OF LEGISLATIVE HALL TELECONFERENCED
Moved CSHB 54(STA) Out of Committee
*+ HB 353 PUBLIC LIBRARY INTERNET FILTERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 269-REQUIRE AK/US FLAGS BE MADE IN USA                                                                                     
                                                                                                                                
9:26:07 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  next 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."                                                                     
                                                                                                                                
9:26:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES moved  to  adopt  the committee  substitute                                                               
(CS) for HB 269, Version  25-LS1013\K, Bailey, 2/27/08, as a work                                                               
draft.   There  being  no  objection, Version  K  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
9:26:42 AM                                                                                                                    
                                                                                                                                
NANCY  MANLY,  Staff,  Representative   Bob  Lynn,  Alaska  State                                                               
Legislature, on  behalf of Representative Lynn,  prime sponsor of                                                               
HB 269,  discussed the two main  changes made in Version  K.  The                                                               
first,  she   said,  was   the  addition   of  a   definition  of                                                               
"manufactured in  the United  States" as  meaning that  "the flag                                                               
was  assembled  in  facilities  in   the  United  States".    The                                                               
definition  would be  in new  statute, AS  36.30.321.   Ms. Manly                                                               
explained the reason  for the definition is because  it is almost                                                               
impossible  to determine  where  raw materials  come  from.   The                                                               
second change, she  noted, was the addition  of the "TRANSITIONAL                                                               
PROVISIONS",  on page  2, lines  11-16, of  Version K,  which was                                                               
incorporated   into  the   bill  after   a  recommendation   from                                                               
Representative Doll at the previous bill hearing.                                                                               
                                                                                                                                
9:28:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  thanked all involved for  tightening up                                                               
the language  of bill, which he  said is now constitutional.   He                                                               
noted  for  the record  that  the  committee had  received  legal                                                               
opinions  from Dennis  Bailey of  Legislative Legal  and Research                                                               
Services, dated  January 24, 28, and  February 13, as well  as an                                                               
e-mail from  Jeff Freidman stating  concerns, which he  said have                                                               
been  addressed in  Version K.   He  stated his  desire that  all                                                               
those documents be included in the committee packet.                                                                            
                                                                                                                                
9:29:56 AM                                                                                                                    
                                                                                                                                
MS. MANLY,  in response  to a  question from  Representative Doll                                                               
regarding enforcement, said the bill  proposes no penalties.  She                                                               
stated,  "We're just  going to  assume that  the State  of Alaska                                                               
will  follow  its own  laws  and  the  schools  will also."    In                                                               
response  to  Representative  Doll,  she said  that  after  doing                                                               
research for the bill, she would  estimate that there are four or                                                               
five firms that manufacture flags in the U.S.                                                                                   
                                                                                                                                
9:31:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  said there are  only four companies  in the                                                               
United States that have been  certified to manufacture U.S. flags                                                               
made solely of  materials made in the U.S., but  he does not know                                                               
about certification for Alaska flags.                                                                                           
                                                                                                                                
MS.  MANLY related,  "When we  were working  on a  draft for  the                                                               
bill, we tried to use  that certification, and [Legislative Legal                                                               
and Research  Services] said,  'No, you couldn't  do that.'   So,                                                               
that's  why we  started  getting off  on a  tangent  for ...  raw                                                               
materials and stuff,  and then we just kind of  tightened that up                                                               
in this version."                                                                                                               
                                                                                                                                
9:32:00 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  said he concurs with  those who have called  HB 269 a                                                               
"feel good"  bill.  He said  as a military veteran,  when he dies                                                               
there will  be a flag  on his coffin,  and he certainly  hopes it                                                               
will have  been manufactured in  the U.S.   He remarked  that the                                                               
suit he is currently wearing was made  in China, but it is just a                                                               
"thing."  A flag,  on the other hand, is not just  a thing; it is                                                               
an important symbol of what the nation stands for.                                                                              
                                                                                                                                
9:33:22 AM                                                                                                                    
                                                                                                                                
VERN  JONES,  Chief  Procurement  Officer,  Division  of  General                                                               
Services,  Department   of  Administration,  in  response   to  a                                                               
question from  Representative Roses, stated his  belief that most                                                               
of the  American manufacturers of  U.S. flags also  produce state                                                               
flags, and  the State of Alaska,  as a practice, has  been buying                                                               
its state and  U.S. flags from a source that  buys its flags from                                                               
a  U.S.   manufacturer.     In  response   to  a   question  from                                                               
Representative Johnson,  he said the determination  of whether or                                                               
not to  go through a  competitive bidding process depends  on the                                                               
dollar amount, and  the amount that the state spends  on flags do                                                               
not "rise to that level."  He  said the purchase of flags for the                                                               
state is categorized  as "small procurements."  In  response to a                                                               
follow-up  question  from  Representative Johnson,  he  confirmed                                                               
that mandating  a source for  flags does not violate  the state's                                                               
procurement codes.                                                                                                              
                                                                                                                                
9:35:03 AM                                                                                                                    
                                                                                                                                
MR. JONES,  in response to  a question from  Representative Doll,                                                               
explained  that   there  are  "various  levels   of  competition"                                                               
required  in the  state's procurement  code.   Procurements  over                                                               
$5,000 must  have competitive  quotes, procurements  over $25,000                                                               
must  have  written  quotes,  and  procurements  over  $50,000  -                                                               
"formal" procurements -  must be done with  full competition with                                                               
public  notice and  a  21-day  circulation period.    He said  he                                                               
thinks the  procurement of  flags for the  state only  amounts to                                                               
hundreds of dollars, not thousands.                                                                                             
                                                                                                                                
REPRESENTATIVE DOLL  stated, "It was interesting  because we have                                                               
$15,000 just for the U.S. flags  that you buy each year, and that                                                               
doesn't include Alaskan.   So, I would imagine if  you put in the                                                               
Alaskan  along with  the U.S.,  you're up  to about  ... $30,000.                                                               
So,  it is  not just  a  tiny little  amount, but  thank you  for                                                               
clarifying that."                                                                                                               
                                                                                                                                
9:36:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ROSES  predicted   that  the   school  districts                                                               
probably would be  the most impacted [by HB 269].   He noted that                                                               
there is a  U.S. flag in every classroom, larger  ones on display                                                               
throughout the  building, and flags  flown outside  the building.                                                               
Most  of  the  schools  already  have  flags,  but  all  the  new                                                               
buildings and classrooms have none, he noted.                                                                                   
                                                                                                                                
9:37:32 AM                                                                                                                    
                                                                                                                                
MR.  JONES responded,  "What we're  talking about  as far  as the                                                               
impacts of  this bill  is the  difference you  would pay  for the                                                               
lowest prize,  presumably foreign-made  flags and the  U.S. flag,                                                               
and I think  our experience is there's not a  great difference in                                                               
the price."                                                                                                                     
                                                                                                                                
9:38:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  offered  his  understanding  that  the                                                               
proposed  legislation  would  not  require every  flag  in  every                                                               
classroom be  American made - only  the ones flying in  the front                                                               
of the building.                                                                                                                
                                                                                                                                
CHAIR LYNN stated  for record that the bill  pertains to official                                                               
flags flown outside the building,  not all the flags flown inside                                                               
the school,  even though he  would like to  see all the  flags be                                                               
American made.                                                                                                                  
                                                                                                                                
9:39:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES remarked  that  when students  stand up  to                                                               
salute the  flag, they are  not saluting the flag  flying outside                                                               
the building, but  the ones in their classrooms.   In response to                                                               
Chair Lynn, he said  he does not have a problem  with the bill as                                                               
it is,  he just wants the  record to be clear  regarding what the                                                               
vote will be.                                                                                                                   
                                                                                                                                
9:41:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  said Section 1 refers  to AS 14.03.130.                                                               
He read the  first sentence [in subsection (a)]  of that statute,                                                               
which read as follows:                                                                                                          
                                                                                                                                
          (a) United States and Alaska flags shall be                                                                           
     displayed upon  or near each principal  school building                                                                    
     during school  hours and at  other times  the governing                                                                    
     body considers proper.                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG said  he  interprets  that language  to                                                               
mean only the flag that is in front  of the school.  He asked Mr.                                                               
Bailey  if  that is  correct  or  if  a clarifying  amendment  is                                                               
needed.                                                                                                                         
                                                                                                                                
DENNIS BAILEY,  Attorney, Legislative Legal  Council, Legislative                                                               
Legal and Research  Services, responded yes.  He  referred to the                                                               
proposed amendment  to AS  44.09.030, in Section  4 of  the bill,                                                               
and noted  that [the current  language of subsection (b)  of that                                                               
statute] lists where the flags of  both the United States and the                                                               
State of Alaska  shall be displayed, weather  permitting, and one                                                               
of those  places, [as  shown in  paragraph (2)],  is "in  or near                                                               
every schoolhouse during  school days."  Mr. Bailey  said he does                                                               
not see a  specific requirement that a flag be  displayed in each                                                               
classroom.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked if  an amendment is  necessary to                                                               
clarify that  "what we're talking about  is the flag in  front of                                                               
the building  - one flag per  building - maximum," not  the flags                                                               
inside the building.                                                                                                            
                                                                                                                                
MR. BAILEY said the aforementioned  statutes speak to a flag near                                                               
a  school building,  whereas the  bill would  "apply to  any flag                                                               
under those  sections that  required would  have to  be purchased                                                               
from a manufacturer in the U.S."                                                                                                
                                                                                                                                
9:43:50 AM                                                                                                                    
                                                                                                                                
MR. BAILEY,  in response to  Chair Lynn, confirmed that  the bill                                                               
would apply  only to  new flags that  are purchased  for display;                                                               
the transitional provisions  in Section 5 would  allow flags that                                                               
are already purchased to be used.                                                                                               
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he  understands that, but  that is                                                               
not his  concern.   He reiterated  his previously  stated concern                                                               
regarding the need to specify  to which flags in school districts                                                               
the bill would apply.                                                                                                           
                                                                                                                                
9:45:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  moved  Conceptual Amendment  1,  "that                                                               
we're, in each  case, talking about the flag that's  in the front                                                               
of the building."                                                                                                               
                                                                                                                                
9:45:23 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN objected to Conceptual Amendment  1.  He said when the                                                               
flags  currently  shown in  classrooms  wear  out, they  will  be                                                               
replaced with a  flag in a storeroom, and when  there are no more                                                               
flags in  the storeroom, they  will be  replaced with a  new flag                                                               
that has been made in America.   He said he does not see the need                                                               
for Conceptual Amendment 1.                                                                                                     
                                                                                                                                
9:46:19 AM                                                                                                                    
                                                                                                                                
MR. JONES, in response to  Representative Johnson, said he is not                                                               
sure how many  flags the State of Alaska has  in reserve, because                                                               
the  procurement system  used is  decentralized;  each office  or                                                               
department that  needs a flag  makes its own purchase.   However,                                                               
he offered his understanding  that Legislative Research generated                                                               
a questionnaire and "had some results from that."                                                                               
                                                                                                                                
9:47:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DOLL said  information she  found shows  that the                                                               
State of  Alaska has 563 flags  on hand.  She  said, "We purchase                                                               
472 each year; we display 232."                                                                                                 
                                                                                                                                
9:48:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  in  determining  whether  or  not  to                                                               
maintain his  motion to adopt  Conceptual Amendment 1,  asked Mr.                                                               
Bailey:                                                                                                                         
                                                                                                                                
     Is  it your  interpretation  that AS  44.09.030 and  AS                                                                    
     14.03.130  simply refer  to the  ...  main flag  that's                                                                    
     flown  in front  of the  building or  on the  building,                                                                    
     rather than - in the  case of schools particularly - in                                                                    
     each classroom?                                                                                                            
                                                                                                                                
MR. BAILEY quoted AS  44.49.030(b) [language provided previously]                                                               
and said  he thinks it is  reasonable to interpret that  the bill                                                               
would apply to flags flown in a schoolhouse.                                                                                    
                                                                                                                                
9:49:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG  maintained   his   motion  to   adopt                                                               
Conceptual Amendment  1.  He  read from Mr. Freidman's  e-mail as                                                               
follows:   "I  believe  this  bill only  applies  to the  primary                                                               
display flags  outside the front of  each building - page  1.  If                                                               
applied to every classroom flag, the  impact would be huge, as we                                                               
have thousands  of classrooms in  the district."  Even  when only                                                               
pertaining to future flags,  Representative Gruenberg said, there                                                               
would still be a cost to the school district.                                                                                   
                                                                                                                                
9:50:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  said he thinks  that once  the transitional                                                               
amendment  was made,  that alleviated  the  greatest concern  the                                                               
school district  had, because  he said  he thinks  Mr. Freidman's                                                               
concern was in  anticipating having to buy thousands  of flags at                                                               
once.  He  said he thinks Conceptual Amendment 1  would water the                                                               
bill down  to the point where  "it's absolutely not even  a feel-                                                               
good bill, it's a meaningless bill."                                                                                            
                                                                                                                                
9:51:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG withdrew Conceptual Amendment 1.                                                                       
                                                                                                                                
9:51:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES moved to report CSHB 269, Version 25-                                                                      
LS1013\K,  Bailey,  2/27/08,  out of  committee  with  individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
REPRESENTATIVE  COGHILL objected.    He said,  "We start  talking                                                               
about national symbol  over nationalism."  He  explained that the                                                               
nationalism  says, "We  only can  spend our  money here,"  rather                                                               
than really produce a symbol.   He said he appreciates when money                                                               
is spent in  America.  He added, "But then,  under the "ism" that                                                               
I just said, we're  going to make a law that says  you must do it                                                               
that way.   Then  what ...  we do is  we put  the symbol  under a                                                               
whole different  type of scrutiny  than I ever really  ... wanted                                                               
it to be."                                                                                                                      
                                                                                                                                
A roll  call vote was  taken.  Representatives  Roses, Gruenberg,                                                               
Doll, and  Lynn voted in  favor of  moving CSHB 269,  Version 25-                                                               
LS1013\K,  Bailey,  2/27/08,  out of  committee  with  individual                                                               
recommendations    and    the    accompanying    fiscal    notes.                                                               
Representatives   Coghill   and   Johnson   voted   against   it.                                                               
Therefore,  CSHB 269(STA)  was reported  out of  the House  State                                                               
Affairs Standing Committee by a vote of 4-2.                                                                                    
                                                                                                                                

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