Legislature(2019 - 2020)CAPITOL 106
03/14/2019 08:00 AM House TRIBAL AFFAIRS
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| Presentation: Other Alaska Native Entities | |
| Adjourn |
* first hearing in first committee of referral
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+ teleconferenced
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ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON TRIBAL AFFAIRS
March 14, 2019
8:02 a.m.
MEMBERS PRESENT
Representative Tiffany Zulkosky, Chair
Representative Bryce Edgmon, Vice Chair
Representative John Lincoln
Representative Dan Ortiz
Representative Chuck Kopp
Representative Dave Talerico
Representative Sarah Vance
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): OTHER ALASKA NATIVE ENTITIES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ANTHONY MALLOTT, President and Chief Executive Officer
Sealaska Corporation
Juneau, Alaska
POSITION STATEMENT: Presented on the Alaska Native Claims
Settlement Act Regional Association.
HALLIE BISSETT, Executive Director
Alaska Native Village Corporation Association
Juneau, Alaska
POSITION STATEMENT: Presented on Alaska Native Village
Corporations.
JACKIE PATA, Executive Director
Tlingit Haida Regional Housing Authority
Juneau, Alaska
POSITION STATEMENT: Presented on Alaska's tribal housing needs.
ACTION NARRATIVE
8:02:18 AM
CHAIR TIFFANY ZULKOSKY called the House Special Committee on
Tribal Affairs meeting to order at 8:02 a.m. Representatives
Talerico, Kopp, Lincoln, Edgmon, Ortiz, Vance, and Zulkosky were
present at the call to order.
Chair Zulkosky called a brief at-ease at 8:03 a.m.
^PRESENTATION: OTHER ALASKA NATIVE ENTITIES
PRESENTATION: OTHER ALASKA NATIVE ENTITIES
8:03:58 AM
ANTHONY MALLOTT, President and CEO, Sealaska Corporation,
relayed his personal background and relayed the importance of
this committee's work. Mr. Mallott stated that his presentation
would address the coordinated work and differences between the
independent regional corporations and the Alaska Native Claims
Settlement Act (ANCSA) Regional Association. He remarked, in
reference to slide two of his PowerPoint presentation, titled "A
Brief History of Land Claims," that the Alaska Native
Brotherhood (ANB) and the Alaska Native Sisterhood (ANS) were
formed in the early 1900s; ANB was formed as a grassroots
organization in Sitka while ANS was formed in Wrangell. He
shared that ANB and ANS have fought land claims since the late
1800s with their collaboration culminating in the 1971 Alaska
Native Claims Settlement Act (ANCSA).
MR. MALLOTT continued with his presentation on slide three and
stated that the passage of ANCSA in 1971 was precipitated by the
discovery of oil. The formation of ANCSA accommodated the quick
transfer of 44 million acres of land and close to $1 billion to
the 12 regional corporations. He described "the thirteenth
regional, which represents shareholders that resided outside of
Alaska at ANCSAs formation and may have sought representation.
He remarked that this group is landless and less active than the
12 regionals y many degrees." In reference to slide four, he
asserted that there are many layers of Native organizations,
which can be confusing even for shareholders or tribal citizens.
He recognized that the layers are deep, but he affirmed that the
organizations work together as best as possible to represent
their common constituency and communities. He remarked, "That's
the lead in all the work that we do together." Mr. Mallott
noted the potential for confusion to arise when organizational
composition differs by region. He relayed, as an example, that
in the Sealaska region there are 13 village corporations that
are distinct entities whereas Ahtna, Incorporated, another
regional corporation, has combined and absorbed all of the
regions village corporations. He emphasized, "We aim to work
together and we're getting better at working together."
8:09:11 AM
MR. MALLOTT, in reference to a map of the Alaska Native regional
corporations on slide five, noted that "the maps were drawn by
common culture and common interest." He stated that the
shareholder base in 1971 represented shareholders that were
originally from or lived in these regions at the point of
formation. For example, Sealaska has Aleut shareholders that
were living in southeast during ANCSA's passage. Mr. Mallott
took issue with the quarter blood quantum required by the
federal Bureau of Indian Affairs (BIA). He continued as
follows:
I mentioned the common constituency that we have with
our tribal citizens - that starts getting
differentiated as the Alaska Native Corporations
(ANCs) continue to abide by the original quarter blood
quantum, and some of our tribes have lineal
descendancy. It's an issue that we have to address at
some point in time and it is a very serious one to us.
We like the fact that we have common constituency with
our tribal citizens and prioritize not leaving
[individuals] out.
8:10:40 AM
REPRESENTATIVE ORTIZ asked if Mr. Mallott could clarify the
difference between the Cape Fox Corporation, in his region, from
the Alaska Native regional corporations.
8:10:58 AM
MR. MALLOTT replied that the Cape Fox Corporation represents the
Saxman community. He noted that Ketchikan is considered a
"landless community; Ketchikan shareholders are Sealaska
shareholders and are also registered as Ketchikan landless." He
relayed that there is a current effort in congress in which, if
passed, Ketchikan landless shareholders would become Ketchikan
urban corporation shareholders. Mr. Mallott shared that village
corporations were developed by distinct community, hence the
total of 256, while urban corporations, such as Goldbelt and
Shee Atika, were added later on.
8:12:13 AM
MR. MALLOTT shared that all 12 regional corporations are
considered "sister corporations" and prioritize collaboration.
He added, "We know we have common cause; that common cause
typically sticks to policy efforts working on things that we
all care about very deeply: subsistence, the health of our
communities, the resiliency of our communities, economic
development." He emphasized that the association agreement
assures that the regional corporations work together.
8:13:11 AM
MR. MALLOTT, in reference to the table on slide seven, noted
that, later on, the charts' data originates from these tables.
The data highlights differentiations between revenue and net
income. He said, It really gets confusing when everybody talks
about the top 49-ers and everybody sees the billions that ANCs
have. Those billions are revenue, which is very, very different
from net income." He disclosed that there are close to $9
billion in revenue and a five-year average of about $250 million
in net income. The $250 million in net income are then
dispersed across 12 regional corporations. Mr. Mallott
distinguished the differences between various types of land
claims, which were previously settled through trust and
reservation land. He stated that ANCSA was tailored to
specifically avoid the creation of reservation, trust, or fee
simple lands in Alaska. Mr. Mallott affirmed, "We are for-
profit corporations, but ... we act more like a family office.
Every dollar we ever make will benefit and go back to our
shareholders, which are the original Alaska Natives that we
represent."
8:15:20 AM
CHAIR ZULKOSKY asked Mr. Mallott to describe why Alaska settled
land claims through fee simple lands and not land into
trust, as in other reservations around the country.
8:15:32 AM
MR. MALLOTT responded that there are many theories and that the
[Alaska] Native community claims assimilation. He imparted
that it would be difficult to have 256 reservation systems
across the state. He shared that there was likely a combination
of reasons that led to the settlement decision and that there
was general agreement, on both sides, that the settlement was
favorable.
8:16:12 AM
MR. MALLOTT continued with his presentation and explained that
the land is held in corporation, not in a trust. He said:
We represent tribal citizens, but they are
shareholders, and the land that we represent their
original, indigenous, claimed rights, the land that
they've lived on for ten thousand years is not held
in trust, it's held within the corporations. ... We
don't carry the land in our balance sheet, we have
land protections, and then we also, in majority, have
land policies within our own corporations that
continue to cement the fact that we will prioritize
never losing an acre of land.
8:17:03 AM
CHAIR ZULKOSKY asked for Mr. Mallott to describe why all Alaska
Natives are not shareholders within ANCSA corporations.
8:17:14 AM
MR. MALLOTT postulated that this could be a product of the blood
quantum requirement, which would be "the main differentiation."
He said that, in comparison, The Central Council of the Tlingit
and Haida Indian Tribes of Alaska (Tlingit & Haida) has upwards
of 30,000 tribal citizens and that Sealaska Corporation has
22,000 shareholders. Mr. Mallott attributed some of the
difference to the design of the descendancy system; shares are
given to an individual at the age of 18.
8:18:11 AM
MR. MALLOTT returned to his presentation on slide nine. He
asserted that the situation of federal land ownership is well
known, especially in southeast where 96 percent of land is
federally owned. When ANCSA passed after the establishment of
the Tongass National Forest, Glacier Bay National Park, and
Misty Fjords National Monument Sealaska represented 21 percent
of the original shareholders and received 360,000 acres, less
than one percent of the 44 million acres. He asserted that the
federal land ownership in Southeast Alaska constricted the
amount of land the corporation could receive. Doyon, Limited,
another corporation, received 11 million acres. Mr. Mallott
attributed this to how federal land ownership mapped onto
different regions. He said, "It's why, in southeast, every
single one of those 360,000 acres is very dear to us. He
relayed that the people who partook in the land settlement have
indicated that they were urged to accept much less.
8:20:08 AM
MR. MALLOTT shared that the ANCSA corporation is legally
structured to be a family office; stock cannot be traded or
sold. He attested that benefiting ANCSAs common constituency
and protecting constituents land motivates ANCSAs work. He
stated, Unique differences between any other for-profit
corporation and an Alaska Native corp[oration] are real and
significant. Some of these differences are positive, such as
having a common constituency, and some of it makes it difficult
to perform as a corporation. He imparted that there are many
layers to the 7(i) and 7(j) conversation, but it is a fantastic
part of ANCSA; he believes that every regional and village
corporation would agree. He stated that all subsurface
resources and timber are 7(i) and 7(j) resources; 7(i) requires
that 70 percent of profit is shared throughout the entire
system. For example, as the Arctic Slope Regional Corporation
(ASRC) develops oil, 70 cents of every dollar goes to all of the
other regional corporations, which is then distributed through
7(j) to the village corporations. He said, "You can imagine,
early on, with the startup of these corporations, the fact that
Sealaska, [Cook Inlet Regional Inc.] (CIRI), and ASRC ... in
those early days were sharing natural gas wealth, some oil
exploration wealth, some timber wealth we were propping the
system up with that sharing." He asserted that ASRC, NANA
Regional Corporation (NANA), and a few others are continuing
to prop up the system. He stated that this sharing provides a
buffer to avoid bankruptcy, which would put the corporations at
risk of losing their land. He stated that very few acres have
left the Native corporations from the original 44 million. He
further reinforced that 7(i) and 7(j) are important components
of keeping Native lands within the corporations.
MR. MALLOTT stated, in reference to his presentation, that
undeveloped land is not carried on corporations balance sheet.
He stated that banks are aware of this and cannot put a lien on
or collateralize the land base; they can collateralize if they
would like some of the resources but "even that is lightly used
just because, again, the land is the original reason why we're
in existence.
MR. MALLOTT referenced the billions in revenues that keep
corporations in the top 49-ers and asserted that this may be
misinterpreted. He emphasized that the corporations have
billions in gross revenue, not net income. He related that
Sealaska value[s] what revenue describes," such as making an
economic impact and creating jobs, and that it's "a positive
number for the state,and he referenced Sealaskas work in
natural resource development and the service industry. He
stated, in reference to the information displayed on slide 12,
that the ANCs are a dominant employer.
8:26:29 AM
MR. MALLOTT stated, in reference to the table on slide 13, that
100 percent of the $250 million in net income goes to
shareholders in dividends, donations to cultural and Native non-
profits, and donations to non-Native non-profits. He relayed
that the average of $170 million in dividends equates to just
over one thousand dollars per shareholder. He said, "On a per
[capita] it is not that significant. It's important to our
shareholders to receive that money; it helps especially in the
rural community, but it is not, as we say, life-changing money."
He stated that other high priorities for the corporation and
shareholders are culture, arts, language, and education,
particularly scholarships.
8:28:32 AM
REPRESENTATIVE ORTIZ asked for examples of organizations or non-
profits that receive those donations.
8:28:49 AM
MR. MALLOTT relayed that Aiding Women in Abuse and Rape
Emergencies (AWARE), HOPE Community Resources (HOPE), Sealaska
Heritage Institute, and Alaska Native Heritage Center receive
donations. He stated that each region has its own non-profit as
does each village corporation, such as Huna Heritage Foundation
and Goldbelt Heritage Foundation. Mr. Mallott referred to the
village corporations as a closely affiliated non-profit that
works on the cultural enhancement of its tribe or region. As an
example, he shared that Sealaska Corporation gives $1.7 million
annually to Sealaska Heritage Institute.
8:29:49 AM
REPRESENTATIVE EDGMON thanked Mr. Mallott for his presentation.
He recognized the possibility of severe budget reductions and
noted that there may be the belief that regional corporations or
other Alaska Native entities will "pick up the tab."
Representative Edgmon asked if Mr. Mallott would like to
elucidate why that notion does not reflect the mission of the
regional corporations.
8:30:28 AM
MR. MALLOTT shared that, disregarding the misalignment in
mission, it should not be assumed that corporations have the
capacity to assist. He referenced the previously stated
misconception that the billions in revenue are available and
said, "the dollars we make are very well utilized right now and
there is not excess, at this point in time." He relayed that
the purpose of the system is to supplement many of the social,
community, and socioeconomic programs. He informed the
committee that tribes also have funding available for specific
programmatic purposes that match more closely with the
government. When tribes fall short in funding and tribal
members are not being served, ANCSA works with them to
supplement programs. He reiterated that ANCs were charged with
the economic side - economic development, job creation, and the
distribution of dividends - while tribes purview includes
oversight of their tribal citizen base.
8:32:09 AM
CHAIR ZULKOSKY introduced Hallie Bisset, a board member of the
Cook Inlet Region, Incorporated (CIRI) and the Executive
Director of the Alaska Native Village Corporation Association
(ANVCA).
8:32:26 AM
HALLIE BISSETT, Executive Director, Alaska Native Village
Corporation Association, shared that she is the great-
granddaughter of Chief Nikoli, who was the last traditional
chief of the Talkeetna area, also known as Sunshine Village.
She thanked the committee for the invitation to present on
village corporations.
MS. BISSETT stated, in reference to a PowerPoint presentation,
that the ANVCA was created in 2008 by a founding member of The
Kuskokwim Corporation; the President and CEO, Maver Carey, had
the vision to understand that the village corporations would
need their own association separate from ANCSA. She stated that
ANVCA and ANCSA differ; the former is a 501(c)6 with dues-paying
member organizations, such as village corporations and partner
organizations, which fund ANVCA. She stated that partners are
usually private, for-profit businesses that promote the
development of Alaska Native village corporations, though there
are also non-profit partners. Ms. Bissett shared that ANVCA has
a nine-member board of directors composing members representing
a variety of regions.
MS. BISSETT stated that under ANCSA, corporations received 44
million acres of land and $962 million, which was split 12 ways
and dispensed over 11 years. She stated that ANCSA created 12
in-state regional corporations and a thirteenth region was
created later for those that were living outside of the state
during ANCSA's passage. She shared that ANCSA created over 256
village corporations - defined as entities that had 25 or more
Alaska Native people living in the area - and that many
eventually merged together, leading to the 177 that remain
today. She stated that village corporations and urban
corporations differ; there are only four urban corporations -
Goldbelt, Shee Atika, Natives of Kodiak, and Kenai Native
Association - which are included in the 256 and 177 village
corporation counts. She remarked that efforts are underway to
amend ANCSA and establish more urban corporations.
8:36:09 AM
MS. BISSETT explained that if an individual was not born on or
before December 18th, 1971, the individual would not receive
shares in a Native corporation. She imparted that some regional
and village corporations have chosen to include individuals born
after the previously mentioned date. Ms. Bissett stated that
she serves on the board of directors for CIRI and that, while
she was born after 1971, she is able to serve as a board member
because her mother gifted her shares. She confirmed that
individuals can gift their shares to a family member.
MS. BISSETT stated, in reference to slide five of her
presentation, that regional corporations typically have sub-
surface estate rights to minerals, oil, et cetera, while village
corporations have surface rights to land. Ms. Bissett
emphasized the importance of the 7(i)7(j) revenue-sharing
provision through which the villages are recapitalized every
year. She shared that some villages are "almost completely
dependent" on the annual income from 7(j) payments and that
"about 80 percent would not exist without the infusion from the
7(j) payments." She further relayed that 7(j) payments compose
30 percent of some of the regional corporations' net incomes.
8:38:17 AM
CHAIR ZULKOSKY asked for an example of how regional corporations
subsurface estate rights and village corporations surface estate
rights are utilized by the respective corporations.
8:38:35 AM
MS. BISSETT, in response, posited that if Doyon, Limited had
been successful in finding natural gas in Fairbanks, the
regional corporation would have coordinated with the village
corporation, Toghotthele Corporation, on its surface estate
lands to develop the processing facilities that would have
resided on the surface. She stated that the land lease and
royalties would also have been negotiated with the village
corporation. She remarked that the regional and village
corporations work closely together to ensure that both entities
benefit from resource development.
8:39:29 AM
MS. BISSETT stated that ANVCA promotes the success of village
corporations and the protection of Alaska Native lands. She
said, "Lands [are] very important to us, it's what we're tied
to, it's what makes us Alaska Native people, and we want to
protect our land ownership as much as possible." She relayed
ANVCAs vision to support its mission with projects that provide
education to, advocacy of, outreach to, and inclusion of village
corporations, as well as sustainability efforts. She noted that
ANVCA does 12 networking events a year, a legislative fly-in,
and an annual conference. She stated that the conference
includes training, hosts roundtables, and accommodates the
sharing of best practices amongst ANCSA regional and village
corporations.
8:41:11 AM
MS. BISSETT imparted that most of ANVCA's advocacy concerns land
solutions and efforts to protect minority owned business
programs. She stated ANVCA's advocacy includes "[securing] a
solution for Alaska's fiscal future," which she described as
meaning that the state budget is balanced but, notably, not at
the expense of rural Alaskans. She stated that ANVCA develops
policy to support economic and infrastructure development and
promote the inclusion of Alaska Native representation in Arctic
discussions and decisions. She commented that ANVCA also
supports Get Out the Native Vote during campaign season.
8:42:10 AM
MS. BISSETT, regarding slide 11 of her presentation, discussed
the economic impact of village corporations, noting the 11
corporations that appeared in the top 49ers list. She said,
We're very proud of that, 20 percent of the total revenue [on
the list comes] from village corporations She shared that, if
combined, the village and urban corporations generated about
$3.7 billion in 2017, which increases to $12.9 billion with the
inclusion of regional corporations.
MS. BISSETT stated that Alaska Native village corporations and
regional corporations "reverse the traditional Alaska economic
model whereby typically a company will come in and extract a
resource, whether it be oil or natural gas or sea otter pellets,
and [take] those revenues home with them." She said that ANCs
and village corporations go outside the state or village,
generate revenue, and return home. She commented that this
allows for public/private partnership to develop infrastructure
and new economies to accommodate future economic growth. Ms.
Bissett noted that the $12.9 billion in annual revenue is about
a quarter of Alaska's gross domestic product (GDP). She shared
that approximately 80 percent or more of a Native corporation's
net income is returned to communities. She stated that this
demonstrates the commitment of these corporations to their
communities; they're returning money through scholarships,
dividends, and donations to Native entities and non-Native
charitable non-profits.
8:45:30 AM
MS. BISSETT spoke to "interesting facts" about ANCs on slide 14.
She shared that over half of the regional corporations and many
village corporations have voted to include individuals born
after 1971 as shareholders. She relayed that every region or
village corporation has implemented the expansion in a unique
way; some distribute Class B stock to individuals upon turning
18; other village corporations allocate stock when an individual
is born. She stated that every region has an educational
foundation that provides scholarships and grants to
shareholders. She relayed that most villages have individual
foundations; a majority of these entities provide elder
benefits, death and funeral expense assistance, and some
corporations have their own bank and administer microloans to
accommodate economic development in villages.
MS. BISSETT asserted that a handful of village corporations are
doing "really extraordinarily well" but that there are 177
entities in total. While there are 50 corporations for which
ANVCA possesses data corporations that have generated $3.4
billion in revenue - there are 127 corporations excluded that
are "really struggling." She shared, "A lot of them have made
investments at home in the village where they may or may not
have made sense." Ms. Bissett shared that she envisions "the
villages as an entrepreneurial people." She posited that
current investments made into human capital - through
scholarships, internships, and professional development - will
lead to growth in the future.
MS. BISSETT moved onto items for which ANVCA has previously
advocated and suggested that committee members inquire about the
items specifically.
8:49:09 AM
MS. BISSETT noted that Senate Bill 202 [passed during the
Twenty-Ninth Alaska State Legislature] relieved ANCs of
liability for contaminated lands received upon the passage of
ANCSA. She shared that, as a product Senate Bill 202, village
corporations now meet eligibility requirements and are applying
for Brownfield Development grants to accommodate cleanup in
villages. She shared that the cleanup of contaminated lands is
a federal concern but that, due to limited grant funding, the
state ought to prioritize ANCSA lands when cleanup does occur.
MS. BISSETT, in reference to slide 19 of her PowerPoint
presentation, imparted the importance of federal funding to
ANCs. She directed attention to the slide and referenced the
legislative advocacy that ANVCA is promoting federally to fund
energy projects in rural Alaska. She stated that ANVCA is
working to ensure that ANCs have investment opportunities "if
the Trump administration starts working on infrastructure
legislation." She shared that ANVCA intends to support Alaska
Native organizations participation in public/private
partnerships to allow the opportunity for ongoing revenue.
MS. BISSETT mentioned ANVCA's work with partners to address
Alaska's telecommunication needs and requisite infrastructure.
She indicated that she could go into more depth at the
committee's request.
8:52:31 AM
MS. BISSETT turned to slide 23, titled "2019 State Priorities,"
and related that the cleanup of ANCSA contaminated lands remains
a priority. She related that ANCSA supports the return of 14C3
ANCSA lands from the state to village corporations to elect to
not have a borough or municipality in their village." The 14C3
provision of ANCSA required village corporations to return land
to the state to be held in trust. Ms. Bissett related that the
current system in place works well between the appropriate
village entity and the duly elected entities in villages; some
villages, like Chenega, "are probably thinking to themselves,
We're never [going to] have a borough or a municipality." She
said, "We would like a process for the State of Alaska, who has
the power and the authority, to ... transfer these lands back to
our appropriate village entities." She stated that ANVCA has
been working with the state for several years in an attempt to
transfer a community school back to the village corporation of
Chenega for a community-based project. She relayed that village
corporations are required to go through Alaskas Department of
Commerce, Community, and Economic Development (DCCED) and ask
for their lands back and "prove that they know what's best for
the land they've been living on for thousands of years." She
indicated the need for a standard operating procedure and the
need to work collaboratively to return lands to villages.
MS. BISSETT continued to the third point and asserted the need
to amend the Local Boundary Commission process to include
requirements for consent from current landowners prior to
forming a borough or municipality. She related a story of a
recent effort by an out-of-state landowner, who owns land in
Girdwood, whose permits for a development project were denied,
initiating her effort to create a new borough. The new borough
would have included Girdwood, Whittier, Valdez, Chitina, and
Chenega, which prompted ANVCA's review of the local boundary
commission process. ANVCA found that it is not possible for
landowners, such as a village or regional corporation, to opt
out. She reported that ANVCA believes landowners should be
required to obtain explicit consent through board resolution
from the existing landowner prior to borough formation and, if
permission is not granted, ANVCA would like the ability to opt
village lands out of a proposed borough.
MS. BISSETT related the importance of education to ANVCA. She
stated that, as a for-profit organization, ANVCA is not allowed
to give money specifically to its communities as they exist
under the same rules as every other corporation. ANVCA can,
however, give through charitable donations. She reported that
ANVCA would like to have its charitable donations restored to a
dollar-for-dollar tax credit for the first $300,000, which would
allow for ANVCA to donate directly to schools in villages.
MS. BISSETT stated ANVCA would like to ensure local content in
any statewide infrastructure or capital projects. She commented
that this topic may not arise this year, but the association
will focus on it in the future. Ms. Bissett ended her
presentation with "tsin'aen," thanked the committee, and thanked
Chair Zulkosky for the invitation.
8:57:22 AM
REPRESENTATIVE KOPP thanked Ms. Bissett for her presentation and
inquired whether the village corporations' funds are a pass
through from the regional corporation of if they fall under the
purview of the 7(i) provision.
8:57:50 AM
MS. BISSETT responded that, under 7(i), 70 percent of revenues
are split between the twelve regional in-state corporations and,
under 7(j), 50 percent of that allocation is split between the
regions villages.
8:58:12 AM
REPRESENTATIVE KOPP asked if the Donlin [Gold LLC] project is on
the land of Doyon, Limited.
MS. BISSETT stated that no, the project is on Calista
Corporation land.
REPRESENTATIVE KOPP sought to confirm that the villages on
Calista Corporation land would benefit from the project, through
7(j), if it were to occur.
MS. BISSETT said that if Donlin Gold LLC is successful, every
regional and every village corporation would benefit.
8:58:43 AM
CHAIR ZULKOSKY thanked Ms. Bisset for her time and for her and
Mr. Mallott's overview of the complex nature of Alaska Native
entities.
CHAIR ZULKOSKY introduced the next speaker, Jacqueline Ku.seen
Pata, who previously served as the deputy assistant secretary
for the U.S. Department of Housing and Urban Development (HUD).
Chair Zulkosky relayed that Ms. Pata is the vice president of
Tlingit & Haida and a board member of Sealaska Corporation.
8:59:19 AM
JACKIE PATA, Executive Director, Tlingit Haida Regional Housing
Authority, introduced herself in the Tlingit language and noted
that her Tlingit name is Ku.seen. She stated that she is
presenting with a variety of hats as she is also a sitting board
member of the Sealaska Corporation and she is the second vice
president of Tlingit & Haida. She stated, in reference to a
PowerPoint presentation, that $94 million comes to Alaska
through the Native American Housing and Self Determination Act
(NAHASDA), which was passed by Congress in 1996 and implemented
in 1998. She stated that it was a substantial change from the
public housing model, which includes rental and other assistance
programs. She related that tribes nationwide and in Alaska are
aggressively involved in redesigning the public housing
program that utilized block grants and gave flexibility to
design programs, leverage dollars, and meet communities needs
while also addressing HUD's low-income requirements.
MS. PATA stated that with the NAHASDA model, tribes across the
country were able to leverage dollars. She related that, from
implementation to 2006, there was a big uptick in housing
construction with a peak from 2007 to 2010. She indicated that
this was a partial product of Congress' implementation of the
American Recovery and Reinvestment Act of 2009 (ARRA), which was
an investment and infusion of infrastructure dollars for
shovel-ready projects, which were abundant in housing. She
remarked that there's been a "drastic change" with a focus
shifting towards renovation rather than new construction.
9:02:19 AM
MS. PATA relayed, in reference to slide two, that she is the
executive director of the National Congress of American Indians
(NCAI); NCAI's analysis shows the impact of the proposed
budget's substantial cuts upon housing in Alaska. She relayed
that funding for housing infrastructure and housing related
services comes from the U.S. Environmental Protection Agency
(EPA), the U.S. Department of Agriculture (USDA), and the U.S.
Department of the Interior (DOI). She stated, in reference to
slide three, that $94 million come to Alaska through regional
housing authorities and tribally designated housing authorities.
She relayed that implementation of NAHASDA prompted recognition
of the existing housing structure and affirmed the sovereignty
of tribes, leading regional housing authorities to urge tribes
to implement new housing programs. Several years later, U.S.
Senator Stevens, by an amendment, eliminated that option for
Alaska, recognizing the number of tribes and concern for
administrative duplication and the possibility of dollars being
misdirected from new construction.
MS. PATA relayed that, under the Native American Housing Block
Grant (NAHBG) program, a tribe or a housing entity can do new
construction, rehabilitation, homeownership, or an alternatively
designed program. She stated that the Indian Community
Development Block Grant (ICDBG) program, which is currently
proposed to be zeroed out, has a 3 to 5 percent set-aside from
the mayors money across the country. She stated that the Title
VI loan guarantee program sought to allow tribes to leverage
their NAHASDA dollars against future infusions of money, similar
to what mayors have done with the Community Development Block
Grant (CDBG) program for larger scale infrastructure programs.
She relayed that HUDs Veterans Affairs Supportive Housing (HUD-
VASH) program coordinates with the housing authority and U.S.
Department of Veterans Affairs (VA) to house homeless
individuals and veterans that have high needs. She stated that
the Housing Improvement Program (HIP) operated by BIA, which
provides for the very low income, recently added the ability to
accommodate homeownership and down payment assistance, but
increased funding hasnt been proposed. She remarked that the
502 Direct Loan Program is administered by USDA.
9:06:48 AM
CHAIR ZULKOSKY inquired if non-profit regional housing
authorities were established under state statute.
9:07:01 AM
MS. PATA confirmed that they were established under state
statute, which also dictated how boards were created and
structured. She stated that, when NAHASDA was enacted, they
sought to sustain the efforts of the regional housing
authorities while recognizing that tribes could opt to develop
other programs.
9:07:36 AM
CHAIR ZULKOSKY referenced a presentation earlier in the week on
tribal compacting. She asked if tribes would elect to contract
with regional housing authorities for the distribution of funds.
9:07:50 AM
MS. PATA responded, Its not exactly like that. She relayed
tribes and housing authorities can form agreements, but
legislation recognizes regional housing authorities as the
rightful entity unless the tribe proactively chooses to provide
services. She confirmed that regional housing authorities can
compact with the tribe to work directly with them.
9:08:26 AM
MS. PATA stated that, important to note in discussion of budget
issues, in 1996, $650 million in housing funds were available
nationwide and that the current proposal is for $750 million.
She said that it hasnt really gone a lot in 20 years and
that, if funding had kept pace, it would be closer to $1
billion. She stated that the Alaska housing authorities are
dealing with housing dollars that have not kept pace with
inflation in addition to rising construction costs and the
substantial rise in infrastructure related issues. She shared
that, in a recent study, HUD found that 70 percent of
participants noted the cost of infrastructure as a reason for
not developing new construction, which is a substantial issue
in Alaska.
MS. PATA turned to the Association of Alaska Housing
Authorities (AAHA) legislative priorities on slide five of her
PowerPoint presentation. She relayed that previously, when AAHA
applied for federal grants, the state provided a match in
funding the Supplemental Housing Development Grant (SHDG)
and that upon NAHASDAs passage the match continued and has
assisted with funding additional infrastructure needs.
9:11:02 AM
MS. PATA stated that NAHASDAs block grant program developed a
formula based on census figures. She noted that Alaskas census
figures are a substantial undercount, which affects how housing
dollars are allocated to Alaska. She emphasized the
significance of the U.S. Census, especially with the historical
undercounting of Alaska's rural communities. The U.S. Census
Bureau gave an adjustment factor for the undercount of American
Indian and Alaska Native populations of 4 percent. For Alaska,
the adjustment was only permitted for rural areas, which had
such a narrow definition that it did not necessarily assist all
of the states applicable communities.
9:12:16 AM
MS. PATA moved on to slide seven of her presentation. She
stated that surveys have shown Alaska Native people rank
weatherization and energy efficiency as the most critical need;
the programs assist with energy affordability and mold issues.
Ms. Pata stated that other priorities include the Senior
Citizens Housing Development Grant Program (SCHDGP) and the
Teacher, Health Professional, and Public Safety Housing Grant
Program both being important pieces of designated housing.
She stated that available housing in rural communities can be
rare due to persistent overcrowding.
9:13:33 AM
MS. PATA stated that the $94 million in federal funding
generates $193 million in direct and indirect economic activity
through tribal housing programs. The programs employ
approximately 1,400 individuals and construct 125 affordable
energy-efficient homes. She relayed that the partnership
between Alaska construction associations and the housing
authorities became a testing ground for piloting improvements
related to energy efficiency, which the housing authorities
readily adopted.
MS. PATA provided the committee with economic data from the
recent Southeast Alaska Housing Summit. She relayed that 22
percent of Alaska Native households are headed by single women
compared to 8 percent of non-Native households. She continued
to share that 62 percent of employers noted that housing was a
barrier in their expansion or conduction of business.
9:16:06 AM
REPRESENTATIVE EDGMON thanked Ms. Pata for the presentation. He
stated that a lot of villages have substandard housing; he noted
the innovations occurring with the Cold Climate [Housing]
Research Center and commended Jack Hebert. He noted that many
of the communities in his district are growing and that there is
a mix of Haida houses, new homes, energy efficient homes, and
dilapidated, overcrowded housing units. He shared his support
for the weatherization programs and noted that it lacks adequate
funding from the federal and state government. He noted the
dual function of the weatherization program as improving living
conditions while also creating jobs, and he asked if Ms. Pata
had anything to share on the matter.
9:18:27 AM
MS. PATA stated that, in her position on the tribal council,
housing issues are seen much more frequently than other
problems. She said that the state would need 2,066 additional
units per year to accommodate demand; 125 affordable, energy
efficient homes have been built. She said, Weatherization can
only do so much to a unit; some of the units actually need to be
replaced.
9:19:26 AM
CHAIR ZULKOSKY inquired about the challenges to bringing new
construction to communities served by the regional housing
authorities.
9:19:38 AM
MS. PATA emphasized the value of planning in the creation of a
long-term strategy for infrastructure development. She relayed
that the acquisition of 10 to 15 funding sources is necessary
for a single construction project to begin. She stated that
most small villages are dealing with water and sewer moratoriums
and issues of affordable energy. She noted that electrification
and telecommunication, which require long-term planning, are not
accommodated by HUD's funding cycle. She furthered that housing
authorities often do large-scale projects rather than smaller
projects, which offer greater sustainability and long-term
employment.
9:21:36 AM
CHAIR ZULKOSKY said quyana and thanked Ms. Pata for her
service to Alaska.
9:21:56 AM
CHAIR ZULKOSKY ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Tribal Affairs meeting was adjourned at
9:22 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Alaska Native Village Corporation Association.pdf |
HTRB 3/14/2019 8:00:00 AM |
|
| ANCSA CEO Association.pdf |
HTRB 3/14/2019 8:00:00 AM |
|
| AAHA 2020 State Priorities Final.pdf |
HTRB 3/14/2019 8:00:00 AM |
|
| Housing Presentation .pdf |
HTRB 3/14/2019 8:00:00 AM |
|
| Southeast Housing Needs Assessment 2019-compressed.pdf |
HTRB 3/14/2019 8:00:00 AM |
|
| Supp and wx Flyer 2019 FINAL.PDF |
HTRB 3/14/2019 8:00:00 AM |
|
| Wx Infographic.pdf |
HTRB 3/14/2019 8:00:00 AM |