03/28/2000 08:10 AM House CRA

HB 437-NATIVE VILLAGE CORPORATIONS                                                                                            
                                                                                                                                
CO-CHAIRMAN MORGAN  announced the  first order of  business before                                                              
the committee  would be  HOUSE BILL NO.  437, "An Act  relating to                                                              
the reinstatement  of Native  corporations;  and providing  for an                                                              
effective date."                                                                                                                
                                                                                                                                
Number 0086                                                                                                                     
                                                                                                                                
CO-CHAIRMAN MORGAN,  speaking as the  sponsor of HB 437,  read the                                                              
following sponsor statement:                                                                                                    
                                                                                                                                
     This legislation extends the  date to December 31, 2000,                                                                   
     that Native  village corporations  may be reinstated  in                                                                   
     accordance with state law.                                                                                                 
                                                                                                                                
     In  order  to be  reinstated,  a  corporation  dissolved                                                                   
     under  the criteria  specified  in AS  10.06.633(a)(1-7)                                                                   
     must correct  all deficiencies,  for example back  taxes                                                                   
     or deficient [delinquent] annual reports.                                                                                  
                                                                                                                                
     AS  10.06.633(e) allows  any corporation  that has  been                                                                   
     involuntarily  dissolved  for   two  years  or  less  to                                                                   
     correct deficiencies  and be reinstated.   Existing law,                                                                   
     AS  10.06.960(k), offered  a window  of opportunity  for                                                                   
     Native village corporations  involuntarily dissolved for                                                                   
     greater than  two years to apply for  reinstatement, but                                                                   
     the opportunity expired in December 31, 1998.                                                                              
                                                                                                                                
     In  summary, this  legislation  would therefore  provide                                                                   
     several  Native  village  corporations   who  have  been                                                                   
     involuntarily  dissolved a short  window of  opportunity                                                                   
     to  take care  of corporate  business  matters and  once                                                                   
     again be viable entities.                                                                                                  
                                                                                                                                
Number 0291                                                                                                                     
                                                                                                                                
NICK   ISAAC,  Ohogamiut   Traditional   Council,  testified   via                                                              
teleconference from  Marshall.  He informed the  committee that he                                                              
belonged  to  a  small  village  corporation  that  had  dissolved                                                              
involuntarily.  He remarked that  HB 437 would be helpful not only                                                              
for himself  but also to shareholders  and the children.   With HB
, there will be the opportunity  to provide more jobs for young                                                              
people.                                                                                                                         
                                                                                                                                
CO-CHAIRMAN HARRIS  asked whether Co-Chairman Morgan  had a number                                                              
of [Native]  village corporations  contact him  in regard  to this                                                              
legislation.                                                                                                                    
                                                                                                                                
CO-CHAIRMAN  MORGAN  replied yes  and  noted  that Mr.  Isaac  had                                                              
contacted  him in  second-class to  reinstating  a Native  village                                                              
corporation.  He also noted that  the bill packet should contain a                                                              
letter from Mr. Isaac.                                                                                                          
                                                                                                                                
Number 0447                                                                                                                     
                                                                                                                                
CO-CHAIRMAN  HARRIS moved that  the committee  report HB  437 from                                                              
committee  with individual  recommendations  and the  accompanying                                                              
zero fiscal  note.  There  being no objection,  it was  so ordered                                                              
and HB  437 was  reported from  the House  Community and  Regional                                                              
Affairs Standing Committee.