Legislature(2023 - 2024)BARNES 124
04/04/2023 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| 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 | |
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 4, 2023
8:01 a.m.
DRAFT
MEMBERS PRESENT
Representative CJ McCormick, Chair
Representative Kevin McCabe, Vice Chair
Representative Tom McKay
Representative Justin Ruffridge
Representative Rebecca Himschoot
MEMBERS ABSENT
Representative Josiah Patkotak
Representative Donna Mears
COMMITTEE CALENDAR
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."
- HEARD & HELD
HOUSE BILL NO. 69
"An Act relating to the reclassification of first class cities
as second class cities; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 123
SHORT TITLE: ARTICLES OF INCORPORATION FOR ANCSA CORPS
SPONSOR(s): REPRESENTATIVE(s) C.JOHNSON
03/17/23 (H) READ THE FIRST TIME - REFERRALS
03/17/23 (H) CRA
04/04/23 (H) CRA AT 8:00 AM BARNES 124
BILL: HB 69
SHORT TITLE: RECLASSIFICATION OF FIRST CLASS CITIES
SPONSOR(s): REPRESENTATIVE(s) CRONK
02/10/23 (H) READ THE FIRST TIME - REFERRALS
02/10/23 (H) EDC, CRA
03/01/23 (H) EDC AT 8:00 AM DAVIS 106
03/01/23 (H) Heard & Held
03/01/23 (H) MINUTE(EDC)
03/13/23 (H) EDC AT 8:00 AM DAVIS 106
03/13/23 (H) Heard & Held
03/13/23 (H) MINUTE(EDC)
03/20/23 (H) EDC AT 8:00 AM DAVIS 106
03/20/23 (H) Moved HB 69 Out of Committee
03/20/23 (H) MINUTE(EDC)
03/22/23 (H) EDC RPT 5DP 2NR
03/22/23 (H) DP: STORY, MCKAY, MCCORMICK, ALLARD,
RUFFRIDGE
03/22/23 (H) NR: HIMSCHOOT, PRAX
04/04/23 (H) CRA AT 8:00 AM BARNES 124
WITNESS REGISTER
TOM WRIGHT, Staff
Representative Craig Johnson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 123 on behalf of
Representative Craig Johnson, prime sponsor.
REPRESENTATIVE MIKE CRONK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 69.
DAVE STANCLIFF, Staff
Representative Mike Cronk
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Co-presented HB 69 on behalf of
Representative Mike Cronk, prime sponsor.
ACTION NARRATIVE
8:01:30 AM
CHAIR CJ MCCORMICK called the House Community and Regional
Affairs Standing Committee meeting to order at 8:01 a.m.
Representatives McKay, Himschoot, McCabe, and McCormick were
present at the call to order. Representative Ruffridge arrived
as the meeting was in progress.
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.
8:06:28 AM
The committee took a brief at-ease at 8:06 a.m.
HB 69-RECLASSIFICATION OF FIRST CLASS CITIES
8:06:59 AM
CHAIR MCCORMICK announced the final order of business would be
HOUSE BILL NO. 69, "An Act relating to the reclassification of
first class cities as second class cities; and providing for an
effective date."
8:07:18 AM
REPRESENTATIVE MIKE CRONK, Alaska State Legislature, as prime
sponsor, presented HB 69. He explained it had been brought to
his attention that the first class city of Tanana, Alaska, was
unable to transfer its school into the Yukon-Koyukuk School
District (YKSD), and in researching, it became clear that Tanana
would have to be reclassified to legally transfer the school.
8:08:17 AM
DAVE STANCLIFF, Staff, Representative Mike Cronk, Alaska State
Legislature, on behalf of Representative Cronk, prime sponsor,
added that HB 69 is a "fairly simple piece of legislation" and
is intended to assist in the transfer of the Tanana City School
District, which would mean savings to the state, but the real
motivation is what is best for the students in Tanana. He
explained that the Local Boundary Commission set a population
threshold of 400 [for a city to be able to incorporate]. The
city of Tanana's population has dropped to 243 people - well
below the threshold. The bill would provide such a mechanism
giving a first class city the option of automatically being
reclassified if their population falls below the 400 resident
threshold.
8:11:17 AM
VICE CHAIR MCCABE asked if there are any other cities that are
in this situation.
8:11:41 AM
MR. STANCLIFF responded that there are four other communities in
the state that are first class cities at this time that could
make the request if they felt under duress, but none have
stepped forward to do so. He also noted there is support from
the Tanana City School District, the mayor of Tanana, and from
YKSD to make the transition happen.
8:13:46 AM
REPRESENTATIVE HIMSCHOOT observed the 10-day turnaround time
possibly being problematic, and she asked if there would be an
amendment to the 10 days, or a solution to the tight timeline.
MR. STANCLIFF replied that if a committee substitute for HB 69
were drawn up, it would include that. He also noted that after
hearing about the bill, the Local Boundary Commission was able
to convene a meeting well within the 10-day limit.
REPRESENTATIVE HIMSCHOOT commented on Pelican, Alaska, that the
mayor relayed the community is not looking at this [transition]
right now, but would welcome having an easier pathway than what
is currently available.
8:15:19 AM
CHAIR MCCORMICK announced that HB 69 was held over.
8:16:29 AM
ADJOURNMENT
There being no further business before the committee, the House
Education Standing Committee meeting was adjourned at 8:16 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 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 |