Legislature(2023 - 2024)BARNES 124
04/04/2023 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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Audio | Topic |
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Start | |
HB123 | |
HB69 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | HB 123 | TELECONFERENCED | |
+ | HB 69 | TELECONFERENCED | |
HB 123-ARTICLES OF INCORPORATION FOR ANCSA CORPS 8:03:15 AM CHAIR MCCORMICK announced that the first order of business would be HOUSE BILL NO. 123, "An Act relating to an amendment to the articles of incorporation of a corporation organized under the Alaska Native Claims Settlement Act; and providing for an effective date." 8:03:25 AM TOM WRIGHT, Staff, Representative Craig Johnson, Alaska State Legislature, presented HB 123 on behalf of Representative Craig Johnson, prime sponsor. He paraphrased the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: The Alaska Corporations Code, adopted in 1989, requires corporations existing before July 1, 1989, (which includes all ANCSA corporations) to obtain an affirmative vote of at least two-thirds of the shares entitled to vote for the adoption of an amendment to the articles of incorporation. Per current AS 10.06.504(d): The requirement of an affirmative vote of at least two-thirds of the shares entitled to vote for the adoption of an amendment to the articles of incorporation as provided in former AS 10.05.276 shall remain in force for corporations existing before July 1, 1989. By contrast, corporations formed after July 1, 1989, including any newly formed corporation in the State of Alaska, generally require only a simple majority vote of all outstanding shares for articles amendments. The existing language of AS 10.06.504{d) effectively handicaps ANCSA corporations from making amendments to their Articles of Incorporation, unless an exception applies. Most ANCSA corporations typically received shareholder meeting quorums in the upper 50% or lower 60% of the total outstanding shares eligible to vote. But as the years go on and shares become distributed across larger numbers of individual descendants of original shareholders, quorum counts are expected to continue to decrease. ANCSA and Alaska law already recognize this phenomenon by providing reduced voting thresholds for ANCSA corporations for certain specified matters. Reduced voting thresholds apply to creation of a Settlement Trust or amending the Articles of Incorporation to issue new shares of Settlement Common Stock to descendants of original shareholders, along with amendments to the Articles of Incorporation to provide for classification of seats on the Board of Directors. There is no general catch-all allowing Alaska Native Corporations to amend the Articles of Incorporation for matters outside these narrow exceptions. Thus, AS 10.06.504 sets up a discriminatory, two-tier regime, in which Alaska Native Corporations are subjected to an effectively impossible heightened two- thirds voting standard and are effectively prevented from general amendments to their Articles of Incorporation. Other, newly formed corporations are provided a more realistic 50% voting standard. Research reflects that the 50% standard is the modern norm across most states. Based on research of various states' corporation codes, and the history and significance of ANCSA, ANCSA corporations believe the current law is antiquated, and leaves Native corporations established under ANCSA at a competitive disadvantage compared with newer corporations. 8:05:15 AM REPRESENTATIVE HIMSCHOOT asked for confirmation that the intent of HB 123 is to proactively solve a problem that "isn't exactly happening yet" but is anticipated. MR. WRIGHT answered that is correct. He added that it is becoming a problem, because not all shareholder meetings have a two-thirds threshold, and the bill seeks to "put them in step with all other corporations" that have "a 50 percent, plus one, threshold." 8:06:11 AM CHAIR MCCORMICK announced that HB 123 was held over.
Document Name | Date/Time | Subjects |
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HB 123 Aleut Letter Explanation for Change.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 123 CIRI to State Legislature.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 123 Ahtna Incorporated Letter Supporting HB 123.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 123 Letter of Support - Calista.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 123 Letter of Support ARA_03.28.2023.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 123 SMNC support.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 123 Sponsor Statement.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 123 TAC Letter of Support.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |
HB 69 Sectional.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 69 |
HB 69 Sponsor Statement.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 69 |
HB 69 Resolution Tanana City.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 69 |
HB 69 Tanana Resolution_23-4_Join YKSD.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 69 |
HB 69 Y-K dist. bullets.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 69 |
HB 69 Fiscal Note 2.24.23.pdf |
HCRA 4/4/2023 8:00:00 AM HEDC 3/20/2023 8:00:00 AM |
HB 69 |
HB 69 RECLASSIFICATION OF FIRST CLASS CITIES 33-LS0407-A.pdf |
HCRA 4/4/2023 8:00:00 AM HEDC 3/20/2023 8:00:00 AM |
HB 69 |
HB 69 Tanana City Mayor letter.pdf |
HCRA 4/4/2023 8:00:00 AM HEDC 3/20/2023 8:00:00 AM |
HB 69 |
HB 123 Fiscal Note CCED.pdf |
HCRA 4/4/2023 8:00:00 AM |
HB 123 |