Legislature(1993 - 1994)

05/04/1993 03:10 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
...TO MEET AT CALL OF CHAIR...
HB 264
HB 275
HJR 27
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                           May 4, 1993                                         
                            3:10 p.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-93, #72, Side 2 (075-end)                                                
  SFC-93, #74, Side 1 (000-355)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator Drue  Pearce,  Co-chair,  convened  the  meeting  at                 
  approximately 3:10 p.m.                                                      
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Frank and Pearce,  Senators Jacko,                 
  Kelly, Kerttula, Rieger, and Sharp were present.                             
                                                                               
  ALSO ATTENDING:   Senator Salo,  Representative Bill  Moses,                 
  Bill Stoltze,  staff for  Representative Ed Willis;  Charles                 
  Cole,  Attorney  General,  Department  of  Law;  Kim  Elton,                 
  Executive  Director,  Alaska  Seafood  Marketing  Institute;                 
  Representative Bill Hudson, sponsor of HB 275; Jerry McCune,                 
  President, United Fisherman of Alaska; Dean Paddock, Bristol                 
  Bay Driftnetters  Assoc.; Mike  Greany,  Director, and  Dave                 
  Tonkovich, Fiscal Analyst, Legislative Finance Division; and                 
  aides to committee members.                                                  
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  CSHB 264(FIN) -     An  Act levying  and  providing for  the                 
                      collection  of  and  disposition of  the                 
                      proceeds of a  fishery resource  landing                 
                      tax;  and  providing  for  an  effective                 
                      date.                                                    
                                                                               
                      Attorney General Charles  Cole spoke  to                 
                      CSHB 264(FIN).   Discussion  was had  by                 
                      Senators  Rieger,  Kelly, and  Mr. Cole.                 
                      Senator  Kelly MOVED  amendment  1.   It                 
                      FAILED on a vote of  4-3.  CSHB 264(FIN)                 
                      was REPORTED OUT of committee with a "do                 
                      pass" and  with a fiscal note  for Dept.                 
                      of Revenue  for $94.0 and  for the Dept.                 
                      of Commerce &  Economic Development  for                 
                      $860.0.    Senators  Kelly and  Kerttula                 
                      signed a "no recommendation."  Co-chairs                 
                      Pearce  and   Frank,  Senators   Rieger,                 
                      Jacko, and Sharp signed "do pass."                       
                                                                               
  CSHB 275(FIN) am -  An Act  relating to  the Alaska  Seafood                 
                      Marketing   Institute   and   a   salmon                 
                                                                               
                                                                               
                      marketing  tax;  and  providing  for  an                 
                      effective date.                                          
                                                                               
                      Testimony was heard by Kim Elton, Alaska                 
                      Seafood       Marketing       Institute;                 
                      Representative Bill  Hudson, sponsor  of                 
                      HB 275; Jerry McCune,  President, United                 
                      Fisherman  of   Alaska;  Dean   Paddock,                 
                      Bristol  Bay  Driftnetters  Assoc.,  and                 
                      Senator Salo in support of CSHB 275(FIN)                 
                      am.   Amendment  1  and 3  were ADOPTED.                 
                      Amendment  2  by  Senator Jacko  FAILED.                 
                      SCSCSHB  275(FIN)  was  REPORTED OUT  of                 
                      committee with a "no recommendation" and                 
                      with a fiscal note for Dept. of Commerce                 
                      & Economic Development for  $5,640.3 and                 
                      the Dept.  of  Revenue  for  $109.7  and                 
                      revenue  of  $5,750.0.   Co-chairs Frank                 
                      and  Pearce  signed "do  pass." Senators                 
                      Sharp, Rieger, and  Kerttula signed  "no                 
                      recommendation."    Senators  Jacko  and                 
                      Kelly signed "do not pass."                              
                                                                               
  HJR 27    -         Relating   to   an   amendment  to   the                 
                      Constitution   of   the   United  States                 
                      prohibiting desecration of  the Flag  of                 
                      the United States.                                       
                                                                               
                      Testimony was heard in support of HJR 27                 
                      by    Bill     Stoltze,    staff     for                 
                      Representative Ed  Willis.   HJR 27  was                 
                      REPORTED  OUT of  committee  with a  "do                 
                      pass."    Senators Sharp,  Jacko, Kelly,                 
                      Kerttula and Co-chair  Frank signed  "do                 
                      pass."    Senator  Rieger  and  Co-chair                 
                      Pearce signed "no recommendation."                       
                                                                               
  Bills scheduled but not heard:                                               
                                                                               
  CSHB 82(FIN) -      An Act relating  to school  construction                 
                      grants and major  maintenance grants  to                 
                      school districts;  providing for  school                 
                      district  participation  in the  cost of                 
                      school     construction    and     major                 
                      maintenance;     creating    a     major                 
                      maintenance  grant  fund;   creating  an                 
                      education  facilities   maintenance  and                 
                      construction fund; and providing  for an                 
                      effective date.                                          
                                                                               
  CSHB 124(FIN) -     An  Act  establishing   capital  project                 
                      matching     grant     programs      for                 
                      municipalities     and    unincorporated                 
                      communities;   and   providing   for  an                 
                                                                               
                                                                               
                      effective date.                                          
                                                                               
  CSHB 179(FIN) am -  An  Act relating  to motor  vehicles and                 
                      mobile  homes;  and  providing   for  an                 
                      effective date.                                          
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 264(FIN):                                              
                                                                               
       An Act levying and providing  for the collection of and                 
       disposition  of  the  proceeds of  a  fishery  resource                 
       landing tax; and providing for an effective date.                       
                                                                               
  CO-CHAIR DRUE PEARCE announced that CSHB 264(FIN) was before                 
  the committee.  She invited  Charles Cole, Attorney General,                 
  Department of Law, to speak to the bill.                                     
                                                                               
  CHARLES COLE said  that he had  been reading advance  sheets                 
  for  the Supreme Court.  He described one case that he hoped                 
  would enable the committee to evaluate the constitutionality                 
  of the tax as set forth in CSHB 264(FIN).  The case was ITEL                 
  Containers   International   Corp.   petitioner    vs.   Joe                 
  Huddleston, Commissioner of Revenue, State of Tennessee.  He                 
  felt  the  case was  interesting because  it involved  a tax                 
  imposed  by the state of Tennessee  on containers which were                 
  delivered  by  lessees  or  their  agents  in  many  states,                 
  including  Tennessee.  In the  course of the Supreme Court's                 
  opinion it  said that the  state rejected the  argument that                 
  the tax created a substantial risk of international multiple                 
  taxation  because  the  taxes  were  imposed on  a  discreet                 
  transaction, the transferred possession of cargo  containers                 
  within Tennessee.  So  it did not risk multiple  taxation or                 
  impede  federal  regulation  or  foreign  trade.    In  CSHB
  264(FIN)  the  proposed   tax  is   also  upon  a   discreet                 
  transaction  which  takes  place entirely  in  the  state of                 
  Alaska, the first landing of fish products.  This Alaska tax                 
  is  similar  to the  tax  in  the aforementioned  case.   In                 
  further describing the case, he  said the Supreme Court,  in                 
  the course  of its  opinion,  said the  state tax  satisfied                 
  complete  domestic  commerce  law  tests  "when the  tax  is                 
  applied to an  activity and when a  substantial nexus within                 
  the   taxing   state   is  fairly   apportioned,   does  not                 
  discriminate  against  interstate  commerce  and  is  fairly                 
  related to the services provided by the state."  The Supreme                 
  Court  had no trouble in  its opinion finding this Tennessee                 
  tax satisfied  those four tests.   It said,  therefore, that                 
  there  was  a   substantial  nexus,   the  tax  was   fairly                 
  apportioned, that it did not discriminate against interstate                 
  commerce, and was fairly related to the services provided by                 
  the state.   The Court went on to say that the tax is a fair                 
  measure of the  state's contact within the  given commercial                 
  transaction in all  four aspects.   This complete  auto-test                 
  confirmed both the state's legitimate interest in taxing the                 
                                                                               
                                                                               
  transaction and the  absence of an attempt to interfere with                 
  the free  flow of commerce  be it foreign or  domestic.  The                 
  Court  went on to  discuss international aspects  of the tax                 
  and had no problem  with those.  He said that  based on this                 
  case in the United States Supreme Court dated February 1993,                 
  and the lines  of authority cited in it, that  the tax found                 
  in  this  bill, while  not  entirely  free from  the  tax on                 
  domestic and foreign  commerce clauses of the  United States                 
  Constitution, in his view, withstood these tests.                            
                                                                               
  SENATOR STEVE RIEGER  asked if there was  a distinction made                 
  whether the tax  is imposed on the  landing or on the  fish.                 
  Mr. Cole said that the tax is a landing tax not on the fish.                 
  It is  an event  with substantial  nexus with  the state  of                 
  Alaska.                                                                      
                                                                               
  SENATOR TIM KELLY MOVED amendment 1 (copy on file).  Senator                 
  Kelly spoke in  support of  the amendment which  gave a  tax                 
  credit for  those  who  have been  funding  the  Bering  Sea                 
  Foundation.   SENATOR JACKO  OBJECTED.   Senator Jacko  said                 
  that this  amendment  was not  necessary for  this piece  of                 
  legislation and that he had drafted another bill that  would                 
  address this issue.   Co-chair Pearce  called for a show  of                 
  hands and the amendment FAILED to be adopted on a vote  of 4                 
  to 3.  Senators  Kelly, Pearce and Kerttula were  in support                 
  of the amendment.  Senators Frank, Rieger, Jacko,  and Sharp                 
  were opposed.                                                                
                                                                               
  Senator  Jacko  MOVED  for  passage  of CSHB  264(FIN)  from                 
  committee  with individual  recommendations.   No objections                 
  being heard,  CSHB 264(FIN)  was REPORTED  OUT of  committee                 
  with a "do  pass," and with a fiscal note for the Department                 
  of Revenue for $94.0,  and a fiscal note for  the Department                 
  of Commerce  & Economic  Development for  $860.0.   Co-chair                 
  Frank, Senators Jacko,  Rieger, and  Sharp voted "do  pass."                 
  Co-chair  Pearce, Senators  Kerttula  and  Kelly  voted  "no                 
  recommendation."                                                             
                                                                               
                                                                               
  CS FOR HOUSE BILL NO. 275(FIN) am:                                           
                                                                               
       An  Act   relating  to  the  Alaska  Seafood  Marketing                 
       Institute and a salmon marketing tax; and providing for                 
       an effective date.                                                      
                                                                               
  Co-chair  Pearce  invited  Kim  Elton,  Executive  Director,                 
  Alaska Seafood Marketing Institute, to join the committee at                 
  the table and speak to CSHB 275(FIN) am.                                     
                                                                               
  KIM  ELTON  spoke  to  the sections  of  CSHB  275(FIN)  am.                 
  Senator Kelly asked what  changes had been made to  the bill                 
  in the  Senate version.   Mr.  Elton  said that  one of  the                 
  changes provided for a separate  salmon committee that would                 
                                                                               
                                                                               
  advise the whole board on the  salmon marketing program.  He                 
  also believed  that a  change had  been made  to the  salmon                 
  enhancement  tax  legislation.   Senator  Kelly  asked  if a                 
  public member had been  reinstated to the board.   Mr. Elton                 
  answered  affirmatively.     Mr.  Elton  said   that  United                 
  Fisherman of Alaska  (UFA) are  interested in amending  this                 
  bill to reestablish  the salmon marketing subcommittee,  and                 
  ASMI board had no objection to that amendment.                               
                                                                               
  REPRESENTATIVE BILL  HUDSON, sponsor  of HB  275, said  that                 
  amendment 1  revised (copy  on file)  had been  forwarded by                 
  UFA.  He said that the concept was in the Senate  version of                 
  the bill but had been removed when it was in  the House.  It                 
  would  establish   the  salmon   marketing  committee   with                 
  representation  from  around the  coast  to advise  the ASMI                 
  board.  It would also delete  the provision that establishes                 
  the executive board which would still  be up to the majority                 
  of the board  members who will  now consist of 12  fishermen                 
  and  12  processors.   He  said that  he  was in  support of                 
  amendment 1 revised.                                                         
                                                                               
  SENATOR JUDITH  SALO spoke in favor of  amendment 1 revised.                 
  She said that it  would make the fishermen in her  area much                 
  more comfortable with the bill.                                              
                                                                               
  Senator  Kelly questioned  setting up  the executive  board.                 
  Representative   Hudson  said   that  the   amendment  would                 
  eliminate  the executive board.   Senator Kelly said that he                 
  was satisfied with the amendment.                                            
                                                                               
  Senator Kerttula MOVED for adoption  of amendment 1 revised.                 
  No objections being heard, amendment 1 revised was ADOPTED.                  
                                                                               
  Senator Jacko asked what part of  the state would contribute                 
  the majority of  the tax money.   Mr. Elton said that  if it                 
  was evaluated by  region, Bristol  Bay would contribute  the                 
  majority of the tax money.                                                   
                                                                               
  In answer to  Senator Kelly,  Representative Hudson said  he                 
  had  introduced separate  legislation  providing  for a  one                 
  percent assessment change.   He felt it was not  appropriate                 
  to include it  in CSHB 275(FIN)  because there had not  been                 
  adequate time to analyze this assessment.                                    
                                                                               
  Senator Jacko  MOVED for  adoption of amendment  2 (copy  on                 
  file).   Co-chair Pearce OBJECTED  for discussion  purposes.                 
  Senator Jacko explained  that since the majority  of the tax                 
  revenue would be realized from  the Bristol Bay area,  there                 
  was  concern  that  this area  was  being  asked  to pay  an                 
  additional tax.   This area already is forced to  pay a good                 
  amount of municipal and  raw fish taxes.  He  explained that                 
  his amendment would  require that  the ASMI  board would  be                 
  comprised  of  13  fishermen from  the  Bristol  Bay, Alaska                 
  Peninsula,  Bering  Sea,  or Yukon-Kuskokwim  region.    One                 
                                                                               
                                                                               
  member of the  board would be a  lay person selected by  the                 
  Governor.  He felt that  this would insure representation by                 
  this area in the decision making  process in regard to where                 
  the  tax  money is  spent.   In  answer to  Co-chair Pearce,                 
  Senator Jacko said the  total number of board members  would                 
  remain at 25  but representation of the  board members would                 
  change.                                                                      
                                                                               
  Representative Hudson voiced his opposition to  amending the                 
  language of  the bill  and requiring  all of the  commercial                 
  fishing members be  from the Bristol Bay,  Alaska Peninsula,                 
  Bering Sea, or Yukon-Kuskokwim region.   He said this  would                 
  mean there would  be no  fishermen from the  balance of  the                 
  state  of  Alaska.   Co-chair  Pearce asked  Senator Jacko's                 
  intent of the amendment.   Senator Jacko answered that since                 
  50 percent of the tax money would be received from that area                 
  that 50  percent of  the board  members should  be from  the                 
  area.                                                                        
                                                                               
  Representative Hudson said that the purpose of CSHB 275(FIN)                 
  was to provide broad representation  throughout the maritime                 
  regions of Alaska on the ASMI  board to control not the only                 
  the  domestic  marketing program  but  to control  all other                 
  aspects  of  the  ASMI program.    To  only  draw from  this                 
  specific area to represent the entire  coast of Alaska would                 
  be objectionable by fisherman in  Cook Inlet, Prince William                 
  Sound,   southeast  Alaska  and  other  areas.    Discussion                 
  followed between Co-chair Pearce and Senator Jacko regarding                 
  other members of  the board.   It was  determined that  this                 
  amendment would  say  that all  the fishermen  on the  board                 
  would have to be from Bristol Bay, Alaska Peninsula,  Bering                 
  Sea, or Yukon-Kuskokwim  region.  Co-chair Pearce  said that                 
  she could understand objections to the amendment.                            
                                                                               
                          Recess 3:44pm                                        
                        Reconvene 4:00pm                                       
                                                                               
  Co-chair Pearce announced that amendment 2 had been offered.                 
  Senator  Kelly  OBJECTED  to  amendment  2.   Representative                 
  Hudson said  that amendment 2 would break  the bill's intent                 
  of having an even-handed approach between the processors and                 
  fishermen.   The Governor  makes these  appointments and  to                 
  require  all  fishermen to  come from  one region  in Alaska                 
  would  mean  that  the  rest  of  the  state  would  not  be                 
  represented.    He  said this  amendment  would  destroy the                 
  merits  of  this   bill.    Senator  Kelly   maintained  his                 
  OBJECTION.                                                                   
                                                                               
  JERRY MCCUNE, President, United Fisherman  of Alaska, voiced                 
  his opposition to having  all 13 fishermen from the  Bristol                 
  Bay, Alaska Peninsula, Bering Sea, or Yukon-Kuskokwim region                 
  and asked how the other fishermen  from areas such as Copper                 
  River and Kenai would be represented.                                        
                                                                               
                                                                               
  Co-chair Frank said that there should be fair representation                 
  from  all  areas of  Alaska.   Senator  Jacko said  that the                 
  experience of most  of the  fishermen was that  UFA was  not                 
  that supportive of  fishermen from southwestern Alaska.   If                 
  this legislation was  passed, processors  in 1993 would  pay                 
  $3.2 million and fishermen at 1%  would pay $5 million.  The                 
  majority of the  $5 million would  come from the regions  he                 
  indicated in his amendment.  Senator Jacko would support the                 
  number of processors reduced  on the board in order  to make                 
  room for other fishermen from other areas.                                   
                                                                               
  Mr. Elton said that over the last 15 years, ASMI has gone to                 
  great  lengths to  not only include  regional representation                 
  but gear  type representation as  well to insure  that large                 
  processors  and small  operations  were  included  in  their                 
  program.   He said  that this  tax could  vary from year  to                 
  year.   ASMI  is  Alaska Seafood  Marketing not  just salmon                 
  marketing.  He  said he  understood Senator Jacko's  concern                 
  but a balance  needed to be  maintained for ASMI.   He  felt                 
  assured  that  ASMI  would  listen   to  all  the  different                 
  fishermen and regions regarding ASMI's marketing plans.                      
                                                                               
  Mr.  McCune  said that  he  would  be willing  to  work with                 
  Senator Jacko regarding this amendment but he maintained his                 
  opposition  to  having  all the  fishermen  coming  from one                 
  region.                                                                      
                                                                               
  Representative Hudson suggested  that the words  "commercial                 
  fishermen  members shall  be appointed  proportional  to the                 
  amount  of salmon taxes  by region  to the  extent possible"                 
  added to page  2, line 2.   He said that this  wording would                 
  provide   legislative  intent   to   the  Governor   in  his                 
  appointment  process giving  consideration to  those regions                 
  that pay the highest taxes.                                                  
                                                                               
  End SFC-93 #72, Side 2                                                       
  Begin SFC-93 #74, Side 1                                                     
                                                                               
  Senator  Jacko  said  that he  would  consider  amending his                 
  amendment 2 to  include one fisherman  from another part  of                 
  Alaska.                                                                      
                                                                               
  SENATOR  BERT  SHARP asked  if there  was  any other  tax in                 
  statutes  that required fishermen  other than the processors                 
  to contribute a salmon  tax.  Mr. Elton said there  had been                 
  discussion about having  1 percent across  the board on  all                 
  different types of fishing.   Mr. Elton said there  are some                 
  groups that are in favor  of that tax.  The  biggest problem                 
  facing  the  seafood  market  is  the  salmon  market.   The                 
  decision was made to see how this tax works in this bill and                 
  then another tax  could be added later  for other fisheries.                 
  Mr. Elton said  that problems in  the halibut and king  crab                 
  market  were being faced but at this time salmon is the main                 
  problem.                                                                     
                                                                               
                                                                               
  Representative  Hudson said that  ASMI markets  its products                 
  worldwide and millions of federal dollars have  been used to                 
  try and  enhance the marketplace of Alaskan  products.  This                 
  money can only  be used for  overseas marketing.  Mr.  Elton                 
  said that  $8.5 million of  federal dollars were  spent this                 
  year, partially matched by the state.  Representative Hudson                 
  said that one part of salmon marketing that has been missing                 
  for years  is the  fresh and  frozen salmon.   This  present                 
  challenge is to increase the consumption of Alaska salmon in                 
  the domestic market.  Alaska is  not alone in its efforts to                 
  look to the domestic market.  Japan,  Chile, the Norwegians,                 
  New Zealanders, etc.  are all looking  at the U.S.  domestic                 
  market.  If this legislation would pass, ASMI should be able                 
  to bring the fishermen and  processors together, moving them                 
  into the domestic market with more  knowledge.  He wanted to                 
  emphasize that the  goal of  increasing the domestic  market                 
  for all fishermen  and processors must  not be lost in  side                 
  issues.  He asked  the committee to consider the  wording he                 
  had suggested for amending the bill.                                         
                                                                               
                          Recess 4:15pm                                        
                        Reconvene 4:50pm                                       
                                                                               
  Co-chair Pearce announced that amendment  2 was still before                 
  the committee.  Senator Kelly maintained his objection.  Co-                 
  chair Pearce  called for  a show  of hands  and amendment  2                 
  FAILED on a  vote of 6  to 1.   Co-chairs Pearce and  Frank,                 
  Senators  Rieger,  Sharp,  Kerttula, and  Kelly  opposed the                 
  amendment.  Senator Jacko voted in support of amendment 2.                   
                                                                               
  Senator  Jacko MOVED  for adoption  of amendment 3  (copy on                 
  file).  Senator Kelly  OBJECTED.  Senator Kelly said  he was                 
  opposed to the  word majority  in the  amendment.   Co-chair                 
  Frank said that this amendment would assure that there would                 
  be proportional representation on the  board.  Senator Kelly                 
  said that he  was not sure that "majority" was proportional.                 
  Co-chair Frank said that it was  not the number of fishermen                 
  but it should be proportionally based  upon the value of the                 
  product.     Senator  Kelly  maintained  his   objection  to                 
  amendment 3.  Co-chair Pearce called for a show of hands and                 
  amendment 3 passed on a vote of 4 to 3.  Co-chairs Frank and                 
  Pearce,  Senators  Jacko,  and  Sharp  voted in  support  of                 
  amendment  3.    Senators Kerttula,  Rieger  and  Kelly were                 
  opposed.                                                                     
                                                                               
  DEAN PADDOCK, Bristol Bay Driftnetters Association, spoke in                 
  support of  the  original bill,  HB  275.   His  association                 
  believed  that Alaska  was in desperate  need of  a domestic                 
  marketing program.   He voiced his opposition to amendment 3                 
  and  would  have  preferred  the  wording  as  submitted  by                 
  Representative  Hudson.    He   said  that  getting  Alaskan                 
  fishermen  to  work  together  was   a  difficult  thing  to                 
  accomplish.  He  feared that amendment 3 would  polarize the                 
                                                                               
                                                                               
  fishermen and the  processors.  He reiterated  that everyone                 
  needed  to work  together.   He  said  that after  attending                 
  meetings of the ASMI  board and after contact with  them, he                 
  had never had any problems.   He hoped that this legislation                 
  would work for the good of all.                                              
                                                                               
  Senator Kerttula MOVED  for passage  of SCSCSHB 275(FIN)  as                 
  amended with  individual recommendations  and a fiscal  note                 
  for the Department  of Commerce  & Economic Development  for                 
  $5,640.3 and  a fiscal  note for  Department of Revenue  for                 
  $109.7 with revenue of $5,750.  Senator Jacko OBJECTED.  Co-                 
  chair Pearce called for show  of hands and SCSCSHB  275(FIN)                 
  as  amended  was   REPORTED  OUT   of  committee  with   the                 
  accompanying fiscal notes on  a vote of  4 to 3.   Co-chairs                 
  Frank  and  Pearce  signed  "do   pass."    Senators  Sharp,                 
  Kerttula,   Rieger,    Kelly,   and    Jacko   signed    "no                 
  recommendation."                                                             
                                                                               
                                                                               
  HOUSE JOINT RESOLUTION NO. 27:                                               
                                                                               
       Relating to  an amendment  to the  Constitution of  the                 
       United States  prohibiting desecration  of the  Flag of                 
       the United States.                                                      
                                                                               
  Co-chair  Pearce  announced  that  HJR  27  was  before  the                 
  committee.      She   invited   Bill  Stoltze,   staff   for                 
  Representative Ed Willis, to speak to the resolution.                        
                                                                               
  BILL  STOLTZE  said that  HJR 27  asked  Congress to  pass a                 
  specific   constitutional    amendment   prohibiting    flag                 
  desecrations and requests  several other  states to join  in                 
  this request.  He said that  31 states had already submitted                 
  requests  but  that it  would  take  38 states  to  pass the                 
  amendment.   He said  that the American  Legion and  several                 
  other  veterans'  organizations  were  in  support  of  this                 
  resolution.                                                                  
                                                                               
  Senator Kelly MOVED  for passage of  HJR 27 with  individual                 
  recommendations.    No objections  being  heard, HJR  27 was                 
  REPORTED OUT of committee  with a zero fiscal note  from the                 
  House  Judiciary  Committee.   Co-chair  Frank  and Senators                 
  Sharp, Jacko, Kelly  and Kerttula signed  a "do pass."   Co-                 
  chair Pearce and Senator Rieger signed "no recommendation."                  
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 4:55 p.m.                         
                                                                               

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