Legislature(2003 - 2004)
03/11/2003 01:32 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 58-REINSTATEMENT OF NATIVE CORPS
CHAIR BUNDE announced HB 58 to be up for consideration.
MR. LARRY LABOLLE, staff to Representative Foster, sponsor of HB
58, said that HB 58 deals with a perennial problem, which is the
involuntary dissolutionment of Native village corporations. Some
corporations have received certified letters that said their
incorporation expired; they then received letters that said
their grace period is lapsing. Then they are involuntarily
dissolved and are no longer corporations. Savoonga, a remote
village without legal counsel, brought the situation to
Representative Foster's attention. These corporations have
shareholders and assets; returning the assets creates a problem.
In the past, the Department of Commerce and Economic Development
(DCED) opened a window of opportunity to give a corporation 60
or 90 days to apply and be reinstated as a corporation.
Currently, three corporations have been involuntarily dissolved.
He said this is the fourth time this bill has gone through the
legislature in 15 years.
CHAIR BUNDE asked if an expense is involved in going through
this process.
MR. LABOLLE replied there is an expense and penalties have to be
paid as well. The department assured him that if the fiscal note
wasn't zero, it would be a positive, but so slight that it would
be inconsequential.
CHAIR BUNDE said he hoped that next time around, there wouldn't
even be three, because they'll realize it's costing them money
to do this.
MR. LABOLLE replied that is probably the case. The first time
this happened all of the villages weren't remote, but this time
they are very remote.
TAPE 03-10, SIDE B
SENATOR FRENCH asked how often Native corporations need to be
reauthorized.
MR. LABOLLE replied every three or five years.
SENATOR FRENCH commented that's probably why the villages are in
trouble.
MS. ALICE HOUSTON, Corporation Supervisor, DCED, clarified that
corporations of any type have to file bi-annual reports every
other year. After two years, post offices don't forward mail so
if the department hasn't been notified of an address change, the
corporations don't get the notice.
SENATOR FRENCH recapped that every two years the corporations
have to renew their authorization; most remember and a few
don't.
MS. HOUSTON agreed and added that most remember; others are
reminded with notices by certified mail. After the dissolution
takes place, they have two years to reinstate before they get to
this point.
SENATOR FRENCH asked how many Native corporations exist.
MS. HOUSTON replied that there are 119 ANGSA corporations.
CHAIR BUNDE asked if she could answer his question about the
cost to the corporation.
MS. HOUSTON replied that a for-profit corporation's bi-annual
fee is $100; the late penalty is $37.50. Once a corporation is
dissolved, the fee is double or $275 for each two-year period.
CHAIR BUNDE asked why they must reauthorize bi-annually and
whether it would make more sense to reauthorize every five
years.
MS. HOUSTON replied that she didn't know the history, but she
thought she would have more trouble getting notices to folks
every five years. She pointed out the bi-annual requirement is
in statute.
CHAIR BUNDE asked why paperwork needs to be generated over this.
SENATOR SEEKINS responded that he thought a lot of corporations
just voluntarily dissolve. It takes no affirmative action on
DCED's part and it has a chance, on a regular basis, to clean
out the corporations that didn't renew.
MS. HOUSTON agreed and said requiring the information every five
years would make it outdated.
CHAIR BUNDE asked if the information equaled the cost of
generating that paper work.
MS. HOUSTON said she would research that for him.
SENATOR STEVENS asked if it is true that the communities are
very remote or unsophisticated.
MS. HOUSTON replied that most of the corporations were very
small and were dissolved in 2000 or earlier.
SENATOR SEEKINS asked when a corporation voluntarily dissolves
and then applies for reinstatement, if there is any other
examination to see whether it has acted as a corporation to
issue the certificate.
MS. HOUSTON replied that DCED is just a filing agency and
doesn't do any investigation.
CHAIR BUNDE said they would bring the bill up again after some
work and adjourned the meeting at 2:25 p.m.
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