Legislature(2003 - 2004)

01/30/2003 08:02 AM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB  58-REINSTATEMENT OF NATIVE CORPS                                                                                          
CHAIR MORGAN announced that the  first order of business would be                                                               
HOUSE  BILL NO.  58, "An  Act  relating to  the reinstatement  of                                                               
Native corporations; and providing for an effective date."                                                                      
REPRESENTATIVE   RICHARD   FOSTER,  Alaska   State   Legislature,                                                               
speaking as  the sponsor  of HB  58 turned to  his staff  for the                                                               
presentation of the bill.                                                                                                       
Number 0361                                                                                                                     
LARRY  LaBOLLE, Staff  to Representative  Richard Foster,  Alaska                                                               
State  Legislature, explained  that HB  58 provides  a window  of                                                               
opportunity  for Native  village  corporations  to be  reinstated                                                               
under the corporate  laws of the State of Alaska.   When a Native                                                               
village corporation  fails to renew  its corporation  papers, the                                                               
corporation has one year [to  renew] otherwise the corporation is                                                               
involuntarily  dissolved.    This   is  problematic  because  the                                                               
corporation name  can be taken  by someone  else.  "But  it isn't                                                               
just the  corporation name,  it's the  corporation's properties,"                                                               
he pointed out.  The original  corporation is the one to whom the                                                               
property  and  monies  involved  in  the  [Alaska  Native  Claims                                                               
Settlement  Act]   were  granted   by  the   federal  government.                                                               
Although he  surmised that technically  one could argue  that the                                                               
[the  new  corporation]  could   assume  the  properties  of  the                                                               
previous corporation,  providing this window of  opportunity [for                                                               
the  corporation] to  regain the  original corporation  under the                                                               
statutes is much cleaner and not  open to challenge.  Mr. LaBolle                                                               
pointed out  that the title  specifies "Native  corporations" and                                                               
thus no one else can use  this legislation to circumvent the laws                                                               
of  this state.   He  also pointed  out that  the fiscal  note is                                                               
Number 0636                                                                                                                     
CARL PELOWOOK, President,  Savoonga Native Corporation, indicated                                                               
that   the  [Savoonga   Native  Corporation]   was  involuntarily                                                               
dissolved and  reincorporated under  the same name.   [Therefore,                                                               
it seeks to confirm its new status via this legislation.]                                                                       
SALLY  SADDLER, Legislative  Liaison, Department  of Community  &                                                               
Economic Development  (DCED), informed  the committee  that staff                                                               
in  the  Division  of Banking,  Securities  &  Corporations  have                                                               
reviewed  HB 58  and see  no problems  with it.   The  [division]                                                               
staff have  indicated that  there will  probably be  three Native                                                               
village corporations that  would be able to take  advantage of HB                                                               
58.  She noted that the  cost to operate this would be negligible                                                               
and would be  absorbed in the routine operating  expenses.  There                                                               
may be a  small revenue impact due to the  collection of fees and                                                               
Number 1060                                                                                                                     
REPRESENTATIVE ANDERSON  moved to report  HB 58 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note(s).  There being no objection, it was so ordered.                                                                          

Document Name Date/Time Subjects