Legislature(2017 - 2018)BELTZ 105 (TSBldg)

04/30/2018 03:30 PM COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 374 ON-BILL FINANCING OF ENERGY IMPROVEMENTS TELECONFERENCED
Moved SCS CSHB 374(CRA) Out of Committee
+ HB 410 REINSTATEMENT OF NATIVE CORPS TELECONFERENCED
Moved HB 410 Out of Committee
Bills Previously Heard/Scheduled
               HB 410-REINSTATEMENT OF NATIVE CORPS                                                                         
                                                                                                                                
3:35:49 PM                                                                                                                    
CHAIR BISHOP announced consideration of HB 410.                                                                                 
                                                                                                                                
3:36:22 PM                                                                                                                    
PAUL  LABOLLE,  staff  to  Representative  Foster,  Alaska  State                                                               
Legislature, Juneau, Alaska, said HB  410 is a one word amendment                                                               
found  on page  1, line  9, that  changes the  date from  2006 to                                                               
2020.                                                                                                                           
                                                                                                                                
He  explained that  this change  has to  do with  the involuntary                                                               
dissolution  of   Native  corporations.  When   any  corporation,                                                               
including Native corporations,  are involuntarily dissolved, they                                                               
can  reincorporate,  but they  can't  reincorporate  as the  same                                                               
entity.  For  Native  village corporations,  that  proves  to  be                                                               
problematic  as the  assets and  rights given  to them  under the                                                               
Alaska Native Claims  Settlement Act (ANCSA) of 1971  are tied to                                                               
that  specific  corporation.  This  change  will  allow  them  to                                                               
reincorporate and still maintain their status and assets.                                                                       
                                                                                                                                
3:37:55 PM                                                                                                                    
SENATOR GARDNER asked  how often this has  happened and generally                                                               
how long a corporation has been dissolved before being reformed.                                                                
                                                                                                                                
MR.  LABOLLE replied  that  this bill  had  been introduced  five                                                               
times, and the answer varies  depending largely on the reason for                                                               
the dissolution.  These are  not major  corporations like  the 13                                                               
regional  for-profit  corporations.  These are  very  small  non-                                                               
professional organizations.  Sometimes what  happens is  that the                                                               
president  of that  corporation  moves  out of  town  and no  one                                                               
submits the paperwork.  It could be two years,  four years, until                                                               
people realize what is going on and  what needs to be done to fix                                                               
it.  In this  case it's  the Native  village corporation  that is                                                               
associated with Bill Moore's Slough.                                                                                            
                                                                                                                                
SENATOR HOFFMAN asked why the  timeframe for reinstatement is for                                                               
such a short time.                                                                                                              
                                                                                                                                
MR. LABOLLE answered  that he was contacted by  the Department of                                                               
Commerce,  Community  and  Economic Development  (DCCED)  with  a                                                               
potential fix  that would be  permanent and that would  have been                                                               
to  just remove  the date  entirely. However,  the sponsors  felt                                                               
uncomfortable  rushing  through  the   24-hour  rule  to  make  a                                                               
permanent change on  such short notice. But it  is something that                                                               
Representative  Edgmon's office  and  he will  work  on over  the                                                               
interim.                                                                                                                        
                                                                                                                                
SENATOR  STEDMAN asked  how many  corporations  they are  dealing                                                               
with.                                                                                                                           
                                                                                                                                
3:40:44 PM                                                                                                                    
MR.  LABOLLE replied  that 19  organizations would  qualify under                                                               
this; the one he mentioned was  simply the one that had contacted                                                               
the  sponsor about  their  need  to reinstate.  In  terms of  the                                                               
number   that  have   been   historically  reincorporated   under                                                               
legislation  like  this,  he  would  have to  reach  out  to  the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED) for that answer.                                                                                                        
                                                                                                                                
SENATOR MACKINNON  asked if there  is a status benefit  to Native                                                               
corporations in calling out for these changes.                                                                                  
                                                                                                                                
MR. LABOLLE answered this specifically  relates to the rights and                                                               
assets granted to the corporation  under ANCSA. A corporation has                                                               
to have continuity in order to maintain those rights and assets.                                                                
                                                                                                                                
SENATOR  MACKINNON  asked  Mr.  LaBolle  how  the  administration                                                               
determines  that new  folks who  are  applying on  behalf of  the                                                               
corporation are part of the previous identified action.                                                                         
                                                                                                                                
SARA  CHAMBERS,   Deputy  Director,  Division   of  Corporations,                                                               
Business,  and Professional  Licensing,  Department of  Commerce,                                                               
Community and Economic Development  (DCCED), Juneau, Alaska, said                                                               
that  19 different  corporations have  formed under  this statute                                                               
since 2011.  Some of them  are the same small  corporations being                                                               
involuntarily  dissolved  for  the reasons  that  were  mentioned                                                               
earlier. She  explained that the  department does quite a  bit of                                                               
communication  with all  corporations of  all kinds  to let  them                                                               
know,  but  if no  one  is  there  to  receive the  message,  the                                                               
involuntary dissolution  happens. Quite a few  corporations would                                                               
qualify and could reinstate within  that window, and HB 410 would                                                               
allow a  temporary fix  for the  few who  would fall  within that                                                               
window to be able to reinstate  while the sponsor is working on a                                                               
longer-term solution.                                                                                                           
                                                                                                                                
Redoing this  every couple of  years would  be a policy  call for                                                               
the legislature to  make. Other corporations that  are not Native                                                               
corporations are able to reinstate within two years.                                                                            
                                                                                                                                
CHAIR BISHOP noted that is  under another section of law. Section                                                               
10 is specifically for Native corporations.                                                                                     
                                                                                                                                
MS. CHAMBERS  said that was  correct and added that  this section                                                               
refers back to  the other section that refers  to corporations in                                                               
general. If  the bill were to  pass, they would get  a little bit                                                               
longer time to reinstate.                                                                                                       
                                                                                                                                
3:45:55 PM                                                                                                                    
SENATOR MACKINNON asked  how the department knows who  is part of                                                               
these village corporations if contact has been lost.                                                                            
                                                                                                                                
3:46:30 PM                                                                                                                    
KATHY FAGERSTROM, Supervisor,  Division of Corporations, Business                                                               
and  Professional  Licensing  Section,  Department  of  Commerce,                                                               
Community  and  Economic  Development  (DCCED),  Juneau,  Alaska,                                                               
answered the  filings they would  submit, depending on  the issue                                                               
causing  the involuntary  dissolution, would  require a  specific                                                               
signature, and it  would be based on  who is on record  or who is                                                               
coming on  record. If the  reason for  the dissolution was  for a                                                               
lack of  a biannual  report, then the  new biannual  report would                                                               
identify the  new officer  and that would  be the  signature they                                                               
would look for on the document.                                                                                                 
                                                                                                                                
SENATOR MACKINNON  asked how  they know that  the people  who are                                                               
applying  to continue  to receive  the  assets were  part of  the                                                               
original  settlement,  because those  assets  are  what they  are                                                               
trying to retain.                                                                                                               
                                                                                                                                
MS. CHAMBERS  answered that ANCSA  is governed under  a different                                                               
section  of  statute.  Their division  is  basically  the  filing                                                               
entity   for   corporations   and  doesn't   have   a   fiduciary                                                               
responsibility  to ANCSA  or the  information  available to  make                                                               
that  determination,  other than  to  state  which entities  have                                                               
decided to incorporate under state law.                                                                                         
                                                                                                                                
CHAIR  BISHOP said  in this  particular corporation  it would  be                                                               
between the Bureau of Land  Management (BLM) and the corporation,                                                               
because this has to do with a land transfer.                                                                                    
                                                                                                                                
SENATOR HOFFMAN added  that these instances happen  in very small                                                               
communities  with only  100 shareholders  or  something close  to                                                               
that,  and the  administrator  isn't proficient  in following  up                                                               
with  the   paperwork  requirements.  This  happens   with  other                                                               
corporations that forget to recertify;  he has actually forgotten                                                               
to recertify.  He explained that the  Native village corporations                                                               
have to  hold annual  shareholder meetings,  and, in  many cases,                                                               
they have a minimum  of seven people and many of  them are on the                                                               
boards for two to three decades.                                                                                                
                                                                                                                                
3:50:20 PM                                                                                                                    
SENATOR MACKINNON said the shareholders  have all the rights; so,                                                               
her question  is does  the department  know who  the shareholders                                                               
who are filing paperwork are?                                                                                                   
                                                                                                                                
MS. FAGERSTROM  responded only  if they report  the names  of the                                                               
shareholders.  Statute   requires  that  they  only   report  the                                                               
shareholders who own 5 percent or more.                                                                                         
                                                                                                                                
3:51:08 PM                                                                                                                    
CHAIR BISHOP  opened public testimony,  and finding  none, closed                                                               
it. He mentioned the zero fiscal note.                                                                                          
                                                                                                                                
3:51:39 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:51:47 PM                                                                                                                    
CHAIR BISHOP called the meeting back to order.                                                                                  
                                                                                                                                
SENATOR  STEDMAN moved  to report  HB  410, version  30-LS1556\D,                                                               
from committee with individual  recommendations and attached zero                                                               
fiscal note. There were no objections and it was so ordered.                                                                    

Document Name Date/Time Subjects
01 - HB 374 House Labor & Commerce.PDF SCRA 4/30/2018 3:30:00 PM
HB 374
02 - HB 374 Sponsor Statement.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
03 - HB 374 Sectional Analysis.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
04 - HB 374 Explanation of House Changes.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
05 - HB 374 Fiscal Note HB0374-1-2-030918-CED-N.PDF SCRA 4/30/2018 3:30:00 PM
HB 374
06 - HB 374 Supporting Document - AIDEA and Renewable Juneau.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
07 - HB 374 Supporting Document - DOE Summary of On-Bill Financing, 27 February 2018.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
08 - HB 374 Agency Response - Department of Law letter, 20 April 2018.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
09 - Draft Senate CS CSHB 374 Version S, 25 April 2018.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
10 - HB 374 Explanation of Changes from Vers E to Vers S, 25 April 2018.pdf SCRA 4/30/2018 3:30:00 PM
HB 374
01 - HB 410 by House CRA, 6 April 2018.PDF SCRA 4/30/2018 3:30:00 PM
HB 410
02 - HB 410 Sponsor Statement.pdf SCRA 4/30/2018 3:30:00 PM
HB 410
03 - HB 410 Fiscal Note HB0410-1-2-041718-CED-N.PDF SCRA 4/30/2018 3:30:00 PM
HB 410
04 - HB 410 Certificate of Compliance for Kongnikilnomuit Yuita Corp, 7-10-13.pdf SCRA 4/30/2018 3:30:00 PM
HB 410
05 - HB 410 Certificate of Involuntary Dissolution for Kongnikilnomuit Yuita Corp, 9-25-15.pdf SCRA 4/30/2018 3:30:00 PM
HB 410
06 - HB 410 KYC law firm letter, 12 March 2018.pdf SCRA 4/30/2018 3:30:00 PM
HB 410
07 - HB 410 AS 10.06.960 Corporations organized under ANCSA.pdf SCRA 4/30/2018 3:30:00 PM
HB 410