02/07/2003 03:15 PM House L&C

HB  58-REINSTATEMENT OF NATIVE CORPS                                                                                          
                                                                                                                                
CHAIR ANDERSON noted  the first order of business  was HOUSE BILL                                                               
NO.  58,  "An  Act  relating   to  the  reinstatement  of  Native                                                               
corporations; and providing for an effective date."                                                                             
                                                                                                                                
Number 0100                                                                                                                     
                                                                                                                                
LARRY  LaBOLLE, Staff  to Representative  Richard Foster,  Alaska                                                               
State Legislature,  presented HB  58 on behalf  of Representative                                                               
Foster, sponsor.  He said  the Legislature has considered similar                                                               
legislation several  times in the  past.  The bill  addresses the                                                               
situation that occurs when a  village Native corporation fails to                                                               
renew  its  corporate  papers  during   a  grace  period  and  is                                                               
involuntarily  dissolved.   The Native  village corporations  are                                                               
creations  of ANCSA  [Alaska Native  Claims Settlement  Act], and                                                               
they own  the assets  and operate the  businesses of  the village                                                               
corporation.   They could re-incorporate,  but they  wouldn't own                                                               
those assets  granted under  ANCSA.   Mr. LaBolle  testified that                                                               
the process  is cleaner  if the  legislature provides  a one-time                                                               
window  for them  to pay  their  penalty fees  and be  reinstated                                                               
under the state corporation laws.   This way, he said, there's no                                                               
question that the  corporation is a continuation  of the original                                                               
entity.   The  last provision  of the  bill allows  the board  of                                                               
directors  to legally  change the  corporation's name  if another                                                               
corporation has  taken the previously  used name.  At  this time,                                                               
the bill  applies to  three village  corporations that  have been                                                               
involuntarily  dissolved.   They  are  Savoonga, which  requested                                                               
that  Representative  Foster  sponsor   the  bill,  Paimiut  [and                                                               
Pununrimiut Rinit].                                                                                                             
                                                                                                                                
Number 0263                                                                                                                     
                                                                                                                                
MR. LaBOLLE, answering  questions from Representative Guttenberg,                                                               
said this is  the third time he  has staffed a similar  bill.  He                                                               
said this  "fix" is the  simplest option because it  falls within                                                               
the corporate laws of the state.                                                                                                
                                                                                                                                
Number 0375                                                                                                                     
                                                                                                                                
SALLY SADDLER,  Legislative Liaison, Office of  the Commissioner,                                                               
Department of  Community &  Economic Development,  testified that                                                               
the department has  no position on the bill.   She said staff has                                                               
examined  the bill  and anticipates  no problems  with it.   Back                                                               
penalties and fees  will generate a small amount  of revenue, but                                                               
they  are  not included  in  the  department's zero  fiscal  note                                                               
because   they  will   not   impact   the  department's   ongoing                                                               
operations.                                                                                                                     
                                                                                                                                
CHAIR ANDERSON  closed the public  hearing because there  were no                                                               
other witnesses.                                                                                                                
                                                                                                                                
Number 0462                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAHLSTROM moved  to report HB 58  out of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.   There being  no objection,  HB 58  was reported  from the                                                               
House Labor and Commerce Standing Committee.