Legislature(1997 - 1998)

04/24/1997 03:34 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
            SENATE STATE AFFAIRS COMMITTEE                                     
                    April 24, 1997                                             
                      3:34 p.m.                                                
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Senator Lyda Green, Chairman                                                   
Senator Jerry Ward, Vice-Chairman                                              
Senator Jerry Mackie                                                           
Senator Mike Miller                                                            
Senator Jim Duncan                                                             
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
SENATE BILL NO. 25                                                             
"An Act relating to authorizing the Department of Corrections to               
provide an automated victim notification and prisoner information              
system."                                                                       
                                                                               
     -- HEARD AND PASSED SB 25 OUT OF COMMITTEE                                
                                                                               
SENATE BILL NO. 26                                                             
"An Act making a special appropriation for an automated victim                 
notification system; and providing for an effective date."                     
                                                                               
     -- HEARD AND PASSED SB 26 OUT OF COMMITTEE                                
                                                                               
SENATE JOINT RESOLUTION NO. 28                                                 
Requesting the federal government to conduct an audit of the Alaska            
Native regional corporations to determine their compliance with the            
Alaska Native Claims Settlement Act and to review the                          
accountability of the corporations to their shareholders.                      
                                                                               
     -- HEARD AND HELD IN COMMITTEE                                            
                                                                               
                                                                               
PREVIOUS SENATE COMMITTEE ACTION                                               
                                                                               
SB 25 - No previous action to record.                                          
                                                                               
SB 26 - No previous action to record.                                          
                                                                               
SJR 28 - See State Affair minutes dated 4/22/97.                               
                                                                               
                                                                               
WITNESS REGISTER                                                               
                                                                               
Senator Johnny Ellis                                                           
State Capitol                                                                  
Juneau, AK 99801-1182                                                          
POSITION STATEMENT:  Prime Sponsor of SB 25 & SB 26                            
                                                                               
John Richard, Chief Municipal Prosecutor                                       
Municipality of Anchorage                                                      
P.O. Box 196550                                                                
Anchorage, AK 99519-6650                                                       
POSITION STATEMENT:  Testified in support of SB 25                             
                                                                               
Arne Fritz                                                                     
Victims Witness Coordinator                                                    
Municipality of Anchorage                                                      
P.O. Box 196550                                                                
Anchorage, AK 99519-6650                                                       
POSITION STATEMENT:  Testified in support of SB 25                             
                                                                               
Ethel Barnz                                                                    
Eagle River, AK                                                                
POSITION STATEMENT:  Testified in support of SB 25                             
                                                                               
Dennis Willard                                                                 
1200 Eagle St., #3                                                             
Anchorage, AK 99501                                                            
POSITION STATEMENT:  Testified in opposition to SJR 28                         
                                                                               
Juliet Hildreth                                                                
9110 Teri Circle                                                               
Anchorage, AK 99502                                                            
POSITION STATEMENT:  Testified in support of SJR 28                            
                                                                               
William France                                                                 
1717 Cache Drive                                                               
Anchorage, AK 99507                                                            
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Harriet Beleal                                                                 
2705 Klamath                                                                   
Anchorage, AK 99517                                                            
POSITION STATEMENT:   Testified in support of SJR 28.                          
                                                                               
Po'A Johnston                                                                  
7311 Clairborne Drive                                                          
Anchorage, AK 99502                                                            
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Archie Nielson                                                                 
5801 E. 6th Ave.                                                               
Anchorage, AK 99504                                                            
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Harold Rudolph                                                                 
4200 E 4th Ave., #7                                                            
Anchorage, AK 99508                                                            
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Paulette Moreno                                                                
1107 Chugach Way                                                               
Anchorage, AK 99503                                                            
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Robert Monette                                                                 
675 N. Bliss St.                                                               
Anchorage, AK 99503                                                            
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Virginia Rude                                                                  
14940                                                                          
Eagle River, AK 99577                                                          
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Diane Shrader                                                                  
7810 Lumbis Ave.                                                               
Anchorage, AK 99510                                                            
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Dune Lankard                                                                   
P.O. Box 460                                                                   
Cordova, AK 99574                                                              
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Mike Boskofski                                                                 
Ouzinkie, AK                                                                   
POSITION STATEMENT:  Testified in support of SJR 28.                           
Sharon Kay                                                                     
13810 Malaspina St.                                                            
Eagle River, AK 99577                                                          
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Shirley Demientieff                                                            
229 2nd Ave.                                                                   
Fairbanks, AK 99701                                                            
POSITION STATEMENT:  Testified in opposition to SJR 28.                        
                                                                               
Darlene Herbert                                                                
455 3rd Ave., #431                                                             
Fairbanks, AK 99701                                                            
POSITION STATEMENT:  Testified in opposition to SJR 28.                        
                                                                               
Angela McComsey                                                                
114 Candlelight Drive                                                          
Kenai, AK 99601                                                                
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Ron Dolchok                                                                    
P.O. Box 83                                                                    
Kenai, AK 99611                                                                
POSITION STATEMENT:  Testified in support of SJR 28                            
                                                                               
Byron Charles                                                                  
P.O. Box 23316                                                                 
Ketchikan, AK 99901                                                            
POSITION STATEMENT:  Questioned the reason for SJR 28                          
                                                                               
Alan Larson                                                                    
P.O. Box 5                                                                     
Sutton, AK 99674                                                               
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Patricia Wade                                                                  
343 S. Bailey                                                                  
Palmer, AK 99645                                                               
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Carole Newcomer                                                                
617 Willoughby Ave., #223                                                      
Juneau, AK 99801                                                               
POSITION STATEMENT:  Testified in opposition to SJR 28                         
                                                                               
Ed Thomas                                                                      
320 W. Willoughby Ave.                                                         
Juneau, AK 99801                                                               
POSITION STATEMENT:  Testified in opposition to SJR 28                         
                                                                               
Julie Gonzales                                                                 
P.O. Box 020777                                                                
Juneau, AK 99802                                                               
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Kathy Polk                                                                     
P.O. Box 32677                                                                 
Juneau, AK 99803                                                               
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Frank L. Jones                                                                 
General Delivery                                                               
Juneau, AK 99801                                                               
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Charles Wheaton                                                                
147 Foster Ave.                                                                
Juneau, AK 99801                                                               
POSITION STATEMENT:  Testified in support of SJR 28                            
                                                                               
Michael Patterson                                                              
Juneau, AK                                                                     
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Dorothy Zura Williams                                                          
2140 Lawson Creek                                                              
Douglas, AK 99824                                                              
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
Ike Cropley                                                                    
4104 Birch Lane                                                                
Juneau, AK 99801                                                               
POSITION STATEMENT:  Testified in support of SJR 28                            
                                                                               
Kathy Honea                                                                    
P.O. Box 33776                                                                 
Juneau, AK 99802                                                               
POSITION STATEMENT:  Testified in support of SJR 28.                           
                                                                               
                                                                               
ACTION NARRATIVE                                                               
                                                                               
TAPE 97-23, SIDE A                                                             
Number 001                                                                     
                                                                               
            SB 25 TELEPHONE VICTIM NOTIFICATION SYSTEM                         
            SB  26 APPROP: VICTIM NOTIFICATION SYSTEM                          
                                                                               
                                                                               
CHAIRMAN GREEN called the Senate State Affairs Committee to order              
at 3:34 p.m. and brought SB 25 and SB 26 before the committee as               
the first order of business.                                                   
                                                                               
SENATOR JOHNNY ELLIS, prime sponsor of SB 25 and SB 26, said in                
December 1993, Kentucky resident Mary Byron was murdered by her                
rapist just days after his release on bail.  Neither Mary nor her              
family were aware that Mary's attacker had been released.  Waiting             
for her outside a shopping mall, Donovan Harris shot and killed                
Mary Byron; it was her 21st birthday.  He said that although this              
tragic event didn't happen in Alaska, there are compelling stories             
from people in this state who faced the same of kind dilemma.                  
                                                                               
Senator Ellis stressed that proper and timely notification to                  
victims of violent crime about the release or escape of their                  
attackers is a serious problem, both nationally and in Alaska.  In             
1996, Alaska prisons and pretrial facilities housed 2,990 inmates,             
49 percent of whom were considered violent offenders.  He pointed              
out that each day over 600 concerned Alaskans call our state                   
institutions seeking information about the status of inmates.                  
                                                                               
Senator Ellis related that in order to keep crime victims informed             
of inmate status, a state-of-the-art computer system called Victim             
Information and Notification Everyday (VINE) was developed and is              
now in place in over 150 counties in 12 states.                                
                                                                               
VINE provides two important services which enhance the vital link              
of communication between the justice system and victims of violent             
crime:  (1) the system provides automatic notification phone calls             
to crime victims when an inmate status changes within 10 minutes of            
a change in the offender's status; and (2) it provides critical                
inmate information 24 hours a day, 7 days a week through the                   
automated telephone system.                                                    
                                                                               
Senator Ellis said he believes implementing VINE will increase                 
state compliance with the Victims' Bill of Rights, overwhelmingly              
passed by the people of Alaska in the 1994 election.  SB 25 is what            
he considers a piece of unfinished business on the victims' rights             
agenda.  He noted the legislation has strong support throughout the            
state, and he urged the committee's favorable consideration.                   
                                                                               
Number 090                                                                     
                                                                               
SENATOR GREEN asked if there was any change in the fiscal notes                
attached to the legislation.  SENATOR ELLIS responded that he                  
worked closely with the Department of Corrections to reduce the                
amount of the appropriation bill from $250,000 to $150,000 which is            
the bare bones start-up costs.  It is estimated that the ongoing               
operating cost would be about $90,000 a year.  He added that there             
may be a possibility in the future to apply for some federal funds             
to offset those costs.                                                         
                                                                               
Number 120                                                                     
                                                                               
JOHN RICHARD, Chief Municipal Prosecutor, Municipality of                      
Anchorage, related that his office prosecutes about 1,500 domestic             
violence cases a year.  His major concern is the portion of the                
Domestic Violence Act of 1996 which added to the bail statutes by              
requiring the correctional facility to notify his office of a                  
defendant's release and then they must take reasonable steps to                
immediately notify the alleged victim of the release.                          
                                                                               
Mr. Richard said his office receives faxes from all the                        
correctional institutions of a proposed release date, and it is                
burdensome to attempt to notify the victims with that, but it is               
something that they have just barely been able to manage.  He said             
there is no way, his office can make any meaningful compliance with            
the requirement to immediately notify the victim of a defendant's              
release on bail when that occurs in the early morning hours, which             
they usually do.  He believes that an automated system is the only             
way to meaningfully comply with the statute.                                   
                                                                               
Concluding, Mr. Richard said that when victims can be given more               
safety, more assurance and more information, they are more                     
cooperative with his office and they can be more effective in                  
prosecuting these offenses.                                                    
                                                                               
ARNE FRITZ, Victim Witness Coordinator, Domestic Violence Unit,                
Municipality of Anchorage, testifying in support of SB 25 and SB
26, said he is also a member of the Board of Directors for the                 
Abused Women's Aid in Crisis Center in Anchorage.  He pointed out              
that the vast majority of cases they deal with are misdemeanor                 
cases, and in misdemeanor cases, the sentences are not necessarily             
very long.  Bail conditions can sometimes change daily, and there              
is no ability to really keep track of what a person's bail                     
conditions are much less of when they make those bail conditions.              
He thinks it is vital that victims have the empowerment and the                
ability to get the immediate information when they need it.                    
                                                                               
Number 215                                                                     
                                                                               
ETHEL BARNZ of Eagle River related she was the winner of the "Send             
Me to Juneau Contest" sponsored by the Anchorage Daily News.                   
Testifying in support of SB 25 and SB 26, Ms. Barns stated she has             
been threatened, attacked and stalked, and this is still occurring.            
She said the VINE program is needed to keep her children and                   
elderly parents safe.  She found out that her attacker was lose by             
him attacking her parents' tenant a week after he got out of jail.             
She urged the committee's support for the legislation.                         
                                                                               
Number 225                                                                     
                                                                               
CHAIRMAN GREEN thanked Ms. Barnz for her testimony, and  related               
that her own sister went through a similar situation for months,               
and it was a very difficult time in their family.                              
                                                                               
Number 236                                                                     
                                                                               
SENATOR MACKIE moved SB 25 and SB 26 and the accompanying fiscal               
notes be passed out of committee with individual recommendations.              
Hearing no objection, it was so ordered.                                       
                                                                               
Number 250                                                                     
                                                                               
         SJR 28 FED AUDIT OF NATIVE REGIONAL CORPORATIONS                      
                                                                               
                                                                               
CHAIRMAN GREEN brought SJR 28 back before the committee as the next            
order of business.                                                             
                                                                               
CAROLE NEWCOMER of Juneau said as an Alaskan Alaska Native and a               
shareholder of an ANCSA regional corporation, she is appalled by               
this blatant attack against the ANCSA regional corporations, the               
leaders and the shareholders of these corporations.  She pointed               
out she has experience as both a shareholder and as a past employee            
of her own regional corporation.                                               
                                                                               
Ms. Newcomer said the regional corporation, like any other                     
corporation, has accountability to its shareholders.  Her                      
corporation is audited every year by their in-house accounting                 
department and by a respected certified public accounting firm.                
The financials and minutes of all board and committee meetings of              
the corporation are available for all shareholders to review.  As              
a shareholder, like all other shareholders having shares in                    
corporations, they are able to make changes through corporation                
process.  She emphasized that changes can and have been made.                  
                                                                               
Ms. Newcomer said the officers of her corporation are compensated              
accordingly; like any other corporation they are paid for services             
rendered.                                                                      
                                                                               
Ms. Newcomer stressed that ANCSA regional corporations are for-                
profit corporations, and as a people, she does not believe they                
seek sovereignty due to any failure by their corporations.                     
However, she added that sovereignty is another topic altogether                
like subsistence.                                                              
                                                                               
Ms. Newcomer asserted that the shareholders in her corporation are             
more informed than other shareholders of other corporations.  They             
have never been deprived of a legal right or the right to vote.                
                                                                               
She said she has worked for several Alaska Native leaders, all of              
whom are highly ethical and committed to the betterment of all                 
Alaska Natives.                                                                
                                                                               
In her closing remarks, Ms. Newcomer said ANCSA corporations are               
the vehicle that give Alaska Natives a voice both politically and              
economically, and they are the thread that binds them together as              
a people.                                                                      
                                                                               
Number 307                                                                     
                                                                               
ED THOMAS stated he is a member of the Sealaska Board of Directors,            
President of the Tlingit & Haida Central Council, Alaska Area Vice             
President of the National Congress of American Indians, and a                  
shareholder of Shaan Seet, Inc., but he was testifying on how own              
behalf.                                                                        
                                                                               
Mr. Thomas voiced his opposition to SJR 28, stating that he feels              
it is a very discriminatory resolution, and he is opposed to any               
resolution that separates Alaska Natives out and tries to set up               
different standards for them than they do for the rest of the                  
population of this state.  He then reviewed several pieces of                  
legislation that have been introduced this session which he                    
believes are discriminatory against Native people.  He believes SJR
28 is just another vehicle to discredit the leadership of ANCSA                
regional corporations at a time when Native people really should be            
pulling together with welfare reform, the federal budget cuts, and             
state budget cuts.                                                             
                                                                               
Mr. Thomas suggested that if the Legislature is truly interested in            
doing what is best for Natives, it should: (1) uphold the Indian               
Country ruling; (2) ask Congress to investigate why most budget                
cuts are to the poor and needy; and (3) ask Congress to investigate            
what is being bought with large campaign contributions and the use             
of lobbyists.                                                                  
                                                                               
Mr. Thomas said he would agree with Senator Halford's comment that             
the reason why Alaska Natives are interested in sovereignty is                 
because these corporations have failed; they have made mistakes and            
have not met their expectatios.  However, he thinks the Native                 
people are most interested in sovereignty because of a failed state            
system.  Most of the money is going into the urban areas with no               
money going to water and sewer needs in some the state's poorest               
villages.                                                                      
                                                                               
In closing, Mr. Thomas urged that SJR 28 and all other anti-Native             
legislation be withdrawn.                                                      
                                                                               
Number 420                                                                     
                                                                               
SENATOR MACKIE asked Mr. Thomas if there has ever been a year that             
all shareholders of his particular corporation have not been issued            
an audit or a financial statement, and MR. THOMAS responded that               
there has not.  SENATOR MACKIE asked if it was correct that it is              
not only a law but a policy of Sealaska that every shareholder has             
access to any information they want about any salaries, or any                 
investments made by the corporation.  MR. THOMAS responded that                
they would have access to information on  salaries and the general             
investments in the companies that are under the umbrella of the                
corporation, but not on the intricacies of the investments.                    
                                                                               
SENATOR MACKIE asked Mr. Thomas why he believes that SJR 28 is so              
discriminatory.  MR. THOMAS responded that any time you put forth              
even a request to single out a group of people because of their                
ethnic background or their status as a people, that's                          
discriminatory.  He added that he has long felt that the pipeline              
should be audited, but they can contribute to campaigns, and they              
don't have to answer these questions.  He said their Native                    
corporations represent some of the poorest people in the country.              
                                                                               
SENATOR MACKIE noted he is a shareholder in a Native corporation,              
and he knows for a fact there are a lot of shareholders that are               
not happy with management in just about every Native corporation in            
the state.  He asked Mr. Thomas his feeling about whether or not               
Sealaska Corporation has made it mistakes and what is being done in            
trying to correct those in terms of working with shareholders as it            
relates to election policies and other things that shareholders are            
dissatisfied about.  MR. THOMAS answered that shareholders were                
dissatisfied that the proxy did not include a place for a write-in             
and that was then included; they were dissatisfied that the                    
corporation was using proxy solicitors to go out and beat the                  
bushes for management, and they got rid of that; and they are                  
trying to provide public forums by which questions relative to the             
operations can be addressed.  The responses have been designed to              
create some clarity as to what the concerns are and what's being               
done about them.                                                               
                                                                               
Number 488                                                                     
                                                                               
CHARLES WHEATON of Juneau stated he was speaking out for the fallen            
warriors, those who have given up all hope of receiving any kind of            
settlement.  He said he was one of these fallen warriors, and that             
he almost lost his life to drinking like so many of his people do.             
                                                                               
Mr. Wheaton said he has never had any pride in the Native                      
corporations because of their greed and disregard for their own                
people.                                                                        
                                                                               
Mr. Wheaton related that he has been in and out of jails, but he is            
going through a change because he found a family and a job in a                
Native-setting work place.  However, after he caught a fellow                  
employee altering time sheets and reported this to the top boss, he            
was placed on leave.  Some of his own people made false charges                
against him, and as a result, he lost his job.  He asserted that               
one of the leaders of Sealaska knows about this incident.                      
                                                                               
Mr. Wheaton believes that an audit should be done on the Native                
corporations to show how the money and people are being mishandled.            
                                                                               
Number 490                                                                     
                                                                               
DENNIS WILLARD of Anchorage, testifying in opposition to SJR 28,               
said the state doesn't have a good history when it comes to meeting            
the real economic and social needs of the Alaska Natives.  There               
are cutbacks being made to the maintenance and upkeep of the                   
villages and this affects the Alaska Natives.  There are cutbacks              
being made in welfare, which makes it difficult for a recipient to             
receive higher education or vocational training.  The state                    
approved $1 million to oppose Indian land decisions.  The state                
gave up its right to manage the fish and game because it wouldn't              
allow eight percent of its population to live in a subsistence way             
of life.                                                                       
                                                                               
Mr. Willard said he knows the shareholders have legitimate                     
concerns, but he believes they should be addressed within the                  
corporations themselves.  The shareholders need to realize that SJR
28 will not even address the needs of the Alaska Natives.  He said             
if the state is truly concerned about the needs of the Alaska                  
Natives, then it should work with the nonprofit organizations which            
address these needs.                                                           
                                                                               
Number 510                                                                     
                                                                               
JULIET HILDRETH, a Native corporation shareholder testifying from              
Anchorage, voiced her support for SJR 28.  She stated there is no              
voice for the Alaska Native in the nation's capital, much less in              
the state capital.  As an ANCSA shareholder she is concerned and               
troubled about their financial future and the direction of these               
regional corporations.  She said the ANCSA was intended to                     
financially benefit a few of a select group of board members and               
executives, who cleverly word proxy cards and abuse discretionary              
votes to continually secure their elected offices and the high                 
salaries.  She declared the self-proclaimed Native leaders of today            
will morally and financially bankrupt young Natives of tomorrow.               
                                                                               
Number 535                                                                     
                                                                               
BYRON CHARLES of Ketchikan questioned who put the resolution                   
together and if there was a violation by a regional corporation                
prior to the resolution being put together.  He believes it is an              
embarrassment to their elders, because they were the founders of               
the corporations that are existing in the state of Alaska today.               
He said if there is in fact a violation by any or all of the                   
regional corporations, as a concerned shareholder he would like to             
see some documentation on that.                                                
                                                                               
Number 565                                                                     
                                                                               
SENATOR MACKIE asked Mr. Charles if he believes if SJR 28 passes,              
an audit will occur.  MR. CHARLES said that is what he believes.               
SENATOR MACKIE clarified that a resolution passed by the                       
Legislature is nothing more than a letter requesting Congress to               
consider doing an audit, so that even if SJR 28 passes, it will not            
relieve all of Mr. Charles' concerns.                                          
                                                                               
TAPE 97-23, SIDE B                                                             
                                                                               
ALAN LARSON, a CIRI shareholder, testified from Mat-Su in favor of             
SJR 28.  Back in 1975 or 1976, CIRI declared that it made $50                  
million in profits but the method it used was questionable.  On one            
hand they gave it an actual value, in another column they gave it              
a face value and called the difference profit.  One has to be a CPA            
to understand the financial reports.  The Alaska Native Fund should            
also be examined.  The state of Alaska was required to  pay into               
that fund.  During one year, a budget cut was made that was the                
identical amount that was supposed to be paid into the Native fund.            
He stated he is in favor of a complete audit of ANCSA from its                 
inception.                                                                     
                                                                               
Number 563                                                                     
                                                                               
PATRICIA WADE read a statement from the elders of her clan, all                
CIRI stockholders.                                                             
                                                                               
"I support an audit of the ANCSA corporations.  I remember the                 
embarrassment 25 years ago when Alaska Native Claims Settlement Act            
was blast over the radio every 15 minutes.  They made it sound like            
the Natives were getting billions of dollars.  Because of it,                  
everybody looked at us like we were the lowest on Earth, even more             
so than before.  I was busy raising my own family and tribal                   
members, minding my own business, and this was being blast over the            
radio nationwide, over and over and over again.  Now, let's put                
them on the hot seat, the people that benefitted from it, and kept             
me embarrassed for too long.  I'm tired of taking the blame for                
Hundorf (ph) and his lawyers' wages."                                          
                                                                               
WILLIAM FRANCE, a CIRI shareholder, testified in full support of               
SJR 28.  He stated CIRI shareholders still do not have enough                  
information on the four options presented by CIRI.                             
                                                                               
RON DOLCHOK, a CIRI and Kenai Native Association shareholder,                  
stated that ANCSA is working.  He has been involved with ANCSA                 
since 1968, and does see problems with the CIRI board of directors             
election process.  Also, KNA is getting rid of corporation lands               
even though shareholders have voted against it twice.  The intent              
of ANCSA was to allow for maximum participation by shareholders,               
but that has not happened for 20 years.  He is in support of SJR
28.                                                                            
                                                                               
Number 500                                                                     
                                                                               
HARRIET BELEAL testified in support of SJR 28 and made the                     
following comments.  In 1992 she sued Sealaska for not allowing                
shareholders to vote on whether or not to sell their stock before              
1991 but the case was dismissed.  When shareholders do sell their              
stock, it will be minus the land and mineral value.  In 1992                   
Sealaska counted proxies for the election of six directors one day             
after the polls closed.  On the ballot was the issue of eliminating            
the discretionary vote and the super majority vote.  The                       
discretionary vote was defeated, the super majority vote passed                
which requires that two thirds of the voters approve any major                 
issues.  The Division of Banking and Securities will not respond to            
protests for a fair election.  The corporations are now playing a              
vicious game of politics while 70 percent of Alaska Natives are                
suffering in poverty.  Land has been removed from Alaska Natives               
and is now in a corporate structure.                                           
                                                                               
SHIRLEY DEMIENTIEFF, a Doyon and [indisc.] Village Corporation in              
Nenana, remembers the treatment Natives used to get in Fairbanks               
many years ago, and still do today, to some degree.  She remembers             
when Natives were not allowed to stay in certain hotels, yet due to            
ANCSA those hotels are now owned by Natives.  Doyon is audited                 
every year, and she trusts the CPA firm that conducts that audit.              
She believes SJR 28 is unnecessary.  She ran as an independent                 
candidate for the Doyon Board of Directors last year, came in                  
fifth, spent $25 on her election, and garnered a respectable number            
of votes.  Next year, if she chooses to run, she believes she will             
win a seat as an independent candidate.  She believes Doyon                    
stockholders are strong enough to demand what they want and will               
get it.  Although many social issues need to be addressed among                
Alaska Natives, that is an internal matter.  Sovereignty has always            
been an issue; regional corporations have nothing to do with it.               
She questioned why the State needs to be included in this requested            
review.  Regional corporations already fall under Title 10.                    
                                                                               
Number 430                                                                     
                                                                               
DARLENE HERBERT testified in opposition to SJR 28.  She believes if            
regional corporations are going to be audited, oil companies should            
be too.  As a Doyon stockholder, she sees its management as capable            
of solving its own corporate problems.                                         
                                                                               
PO'A JOHNSTON testified in support of SJR 28.  He expressed concern            
about the sad and unjust treatment of Alaska Natives employed at               
Prudhoe Bay.  Subsidiaries are managed by the "good old boy"                   
networks from down South.  At one time, KNA owned the King George              
Hotel, named after KNA's president.  KNA and Salamatoff Native                 
Corporation continue to watch out for their kingdom: hopefully SJR
28 will stop these dictatorships.  After management takes its cut              
of the pie, there is nothing left for the shareholders.                        
                                                                               
ANGELA MCCOMSEY, a CIRI shareholder and Kenai resident, testified              
in support of SJR 28 and made the following remarks.  As a CIRI                
shareholder, she is concerned and angry about top management voting            
for ridiculously high salaries, bonuses and retirement packages for            
themselves.  She asked why, if salary increases are justified by               
successful business practices, dividends do not reflect the                    
corporation's success.  CIRI is involved in a lawsuit against a                
board member who was voted in by shareholders and has spent                    
thousands of dollars to oppose the election of that director.                  
Shareholder opinion is not highly regarded by the Board.                       
Shareholders need honest full disclosure on all four options being             
offered by the CIRI Board.                                                     
                                                                               
Number 334                                                                     
                                                                               
IKE CROPLEY, a Sealaska and Goldbelt shareholder, spoke in favor of            
SJR 28 and said there are many people that question why efforts to             
recall Sealaska board members have been unsuccessful.  He asked how            
the State can defend the ANCSA settlement which would require proof            
that the Native corporations have improved the lives of 80,000                 
Natives.  He asked if those corporations have shared the wealth                
with the shareholders.  He did not think those corporations could              
be defended especially since financial statements show extravagant             
executive payrolls, huge retirement plans, and outrageous bonus                
payments.  Shareholders want the corporations under the scrutiny of            
the highest court in the land.  He believes the corporations are               
unconstitutional because they were forced upon Natives who never               
had the right to vote to accept them.  Sealaska has lost money on              
every business it has owned, and huge out-of-court settlements with            
FDIC and Kake Tribal have never been disclosed.  He encouraged                 
auditors to compare the pitiful benefits received by shareholders              
to the high salaries received by management and board members.  His            
solution to Sealaska's shareholders concerns is to liquidate and               
close the entire operation.                                                    
                                                                               
ARCHIE NIELSEN, a Sealaska and Shee Atika shareholder, testified               
that while in Seattle last year, he ran across two yards filled                
with thousands of board feet of Sealaska timber that no one wanted             
to buy.  The issue was never acknowledged by the Sealaska board.               
If shareholders had a voice, something with bite, they would not be            
supporting SJR 28.  He said he hoped, in the near future, there                
will be someone in the Division of Banking and Securities that will            
stand up for shareholders.                                                     
                                                                               
HAROLD RUDOLPH suggested amending SJR 28, on page 2, line 10, the              
"one-third" should be changed to "two thirds" since 70 percent of              
Alaska Natives live at or below the poverty level.  He stated he               
supports SJR 28 and questioned why no one from the regional                    
corporations was testifying on this resolution.  He is involved in             
a lawsuit with CIRI and hopes it will reveal "what these people are            
made of."                                                                      
                                                                               
ROBERT MONETTE testified in full support of an audit, and said if              
the word "audit" could be replaced with the word "accountability"              
it would alleviate his concern that the regional corporations have             
a level of authority and responsibility for others lives yet no                
accountability to those people.  He noted two regional corporation             
executives earned $400,000+ and $900,000+ in 1996.  Shareholders               
cannot afford to hire attorneys to challenge the lack of regional              
corporation accountability.  Shareholders are looking to the                   
Legislature as their last resource.                                            
                                                                               
Number 155                                                                     
                                                                               
VIRGINIA RUDE testified in support of SJR 28.  She has encountered             
many difficulties as a corporate shareholders and is concerned that            
the ordinary shareholder is effectively blocked from running for               
corporate board seats because of the expense and intimidation by               
corporate policies and the Division of Banking and Securities.                 
Shareholders need protection and equal opportunity to participate              
in their corporations as intended in ANCSA.  Passage of SJR 28                 
would immediately make the boards of directors accountable.  Right             
now, CIRI shareholders do not even know who the directors are.                 
Passage of SJR 28 will not divide the people, but will bring them              
together at long last.  Alaska Natives will have a goal of                     
conserving whatever is left.  Last, passage of SJR 28 will show                
that lawmakers do care about the original inhabitants of this great            
land.                                                                          
                                                                               
DIANE SHRADER, a CIRI shareholder, said shareholders deserve full              
accountability and responsiveness from their corporations.  She                
believes CIRI speaks half-truths to the stockholders and general               
public in its newsletters, information updates, and annual reports             
for shareholders.  For example, CIRI has made burial services                  
available to all shareholders regardless of where they reside,                 
however to be eligible for burial assistance one must have proof of            
one-quarter Native blood, one cannot receive certain types of                  
public assistance and must not have been suspended from any                    
assistance program.  This eliminates 70 percent of CIRI                        
shareholders.  Other criteria eliminate many other shareholders.               
CIRI is giving false and misleading information to its shareholders            
and the public.                                                                
                                                                               
DUNE LANKARD, tribal spokesperson for the Eyak Division of Elders              
and Counseling in Cordova, and shareholder and past director of the            
Eyak Village Corporation and a shareholder of the regional                     
corporation called Chugach, spoke on behalf of the last full-                  
blooded Eyak, Chief Marie Smith Jones.  Eyaks wholeheartedly                   
support SJR 28.  One of the problems Eyaks have had to deal with is            
the private Native corporation exemptions from the law - Eyaks call            
it the exemptions of sovereignty.  ANCSA regional corporations and             
all 226 village corporations are able to escape scrutiny by their              
shareholders.  No environmental or economic impact statements are              
required, nor are contracts, annual operating plans, restoration               
bonds, or executive session minutes.  Shareholders cannot evaluate             
or monitor their performance without such invaluable information.              
Alaska Natives' sovereignty is not for sale.  When the joint                   
venture corporations do business with their regional and village               
corporations, they are selling Alaska Natives' sovereignty.  They              
indemnify themselves from any wrongdoing by putting together                   
resolutions and by-laws that protect them from any bad decisions.              
                                                                               
TAPE 97-24, SIDE A                                                             
                                                                               
Mr. Lankard continued. There is a good chance that the only jobs or            
revenues that could be traded for the shareholders will be through             
the extraction of their natural resources, again destroying the                
land for profit.  It is necessary to investigate CIRI's stock                  
options and reverse the congressional amendment that allowed stock             
options be established without a shareholder vote.  The U.S.                   
Supreme Court could show true leadership by respecting the special             
government to government trust relationship between the Alaska                 
tribes and the federal government in honor of the sovereign                    
trusteeship by refusing to hear this appeal.  The U.S. Supreme                 
Court should also exercise its power and invoke the trust doctrine             
to review federal actions.  The 1971 Alaska Native Claims                      
Settlement Act and its amendments are federal actions that need                
immediate review.                                                              
                                                                               
MIKE BOSKOSFKI, a CIRI shareholder, testified from Ouzinkie in                 
support of SJR 28.  He believes people should show up for Tribunal             
meetings.                                                                      
                                                                               
SHARON KAY, a CIRI shareholder, testified in support of SJR 28.                
CIRI shareholders have a great many concerns about its'                        
corporations managers and directors.  CIRI stated that shareholders            
would get a final vote on their favorite options. If that is so,               
then CIRI should remove the word "advisory" from the vote.  She is             
requesting a certified copy of CIRI's 1996 tax returns.                        
                                                                               
Number 104                                                                     
                                                                               
KATHY HONEA, a Sealaska shareholder, testified in support of SJR 28            
because although this is one small issue, elders have made many                
attempts to try to get information about the Sealaska as                       
shareholders.  Because shareholders are not versed in corporate                
law, they are not heard.  By the time shareholders get versed in               
corporate law, there will be no corporation left.  An audit will               
bring information to light, and elders will finally get                        
recognition.  The young people who are very dissatisfied and do not            
want to stand up for what they feel is right because it separates              
them.  If nothing needs to be hidden, there is no reason to fear an            
audit.                                                                         
                                                                               
SENATOR WARD commended Ms. Honea for speaking well for her parents.            
                                                                               
MICHAEL PATTERSON, a Sealaska and Goldbelt shareholder, commented              
that the Sealaska board member who testified earlier admitted that             
Alaska Natives are the poorest nation of people and that it is the             
corporation's duty to protect Alaska Native's assets.  He                      
questioned how board members can accept bonuses that are more than             
he will ever see in his lifetime, how they can watch their elders              
pass away without ever receiving what they were promised, and how              
they can build expensive homes in Juneau and out-of-state in good              
conscience.  He noted he called CNN and asked for national news                
coverage of this issue.                                                        
                                                                               
Number 210                                                                     
                                                                               
PAULETTE MORENO testified from Anchorage in support of SJR 28.  She            
asked what brings her people before the committee at this time with            
such passion, conviction and determination to see things change.               
Alaska Natives have watched ANCSA and the people who say they                  
represent and lead them for the last 20 years.  ANCSA was supposed             
to help all Alaska Natives, but has only helped a few.  The reason             
Alaska Natives are before the committee today is because they are              
raising a new generation who needs change.  Alaska Natives are a               
powerful and strong people, with some of the brightest, well-                  
educated people who are unifying their voices for the purpose of               
making ANCSA corporations accountable for their decisions.  The                
introduction of SJR 28 has given hope for a brighter future.                   
                                                                               
DOROTHY ZURA WILLIAMS, a full-blooded Tlingit, testified that two              
recall petitions have been filed against Sealaska's current board              
and noted she is the very first newly-elected Goldbelt director                
that was voted without discretionary votes.  She is proud to fight             
for change for her people, which can occur if the corporate offices            
are audited.  If corporations are honest enough, they will change.             
The members of the audience have attended this hearing at their own            
expense, while Sealaska's CEO has written the committee a letter at            
shareholders' expense.  To regain the confidence of shareholders,              
discretionary voting needs to be eliminated and the board of                   
directors needs to do what the shareholders ask and are paying them            
for.  Sealaska's financial statements do not reveal the cash flow              
and where the money that came from the NOLs went.  Sealaska's board            
members run SERHC, Tlingit and Haida BIA affiliates and                        
shareholders are afraid they will lose their jobs if they talk.                
                                                                               
Number 305                                                                     
                                                                               
JULIE GONZALES testified on behalf of her mother and brother who               
are full shareholders in Sealaska and Goldbelt and fully support               
SJR 28.  For years they have watched other corporations distribute             
large dividends, while their dividends were very small.  When they             
received their dividends, their welfare benefits would be cut.  The            
corporations should give more money to the shareholders, or at                 
least build affordable housing for low-income and middle class                 
people.  As a family on welfare, without help from ANB Camp 2, they            
would not survive.                                                             
                                                                               
FRANK L. JONES, Sealaska shareholder, said he has had polio almost             
all of his life, and has not been able to work for the past three              
years.  For the past two years he has been living in a tent.  He               
has explained his situation to the BIA, Sealaska and Tlingit and               
Haida who offered no help.  He supports SJR 28.                                
                                                                               
KATHY POLK stated she was the chairperson for Goldbelt                         
Shareholders' Future and explained the purpose of the recall effort            
was to demand corporate change.  She read the following testimony.             
                                                                               
"I believe that this platform, if it was enforced by law, for our              
corporations, I believe that the disenchantment of our people will             
level off, because I really believe in this platform.  It has                  
helped our people and it made a lot of positive changes within                 
Goldbelt Incorporated.  They have adopted rules that they no longer            
use discretionary votes.  I would like to endorse to you and ask               
you if you would look into an election repeal for the Native                   
corporations so that we could do away with discretionary votes.  I             
am really against the way the elections are run along with the                 
other people all over the State of Alaska.  We have people that are            
in power right now that have been there since the beginning of our             
corporations.  I believe that the people should be responsive to               
this platform and it should be made available to anyone who would              
like to see it.  There are a lot of people who will not come                   
forward to speak because of what Dorothy said in regard to the                 
people being afraid and intimidated by our people in their jobs                
with BIA and Tlingit and Haida - the Native corporations.  I would             
recommend that we would consider having a petition circulated                  
amongst all of the Natives for every corporation that they state               
whether they are in favor of this bill or not.  All it does is it              
will come forth and tell the legislators, the lawmakers of the                 
United States Government what the people of Alaska feel.  It is                
straightforward.  We are very proud to be shareholders of our                  
corporations but we do need change.  It is time, it's time for                 
change.  We have children who are growing up and it is time for                
them to belong to our Native corporations.  I really ask you to                
take this bill very seriously - this resolution - it is very                   
important to our people.  It is the first hope that we have had and            
I believe that the recalls will be a thing of the past if they                 
would adopt this platform - all the Native corporations.  If they              
would adopt this platform we are going to see peace and love and               
unity within our corporations and we would not have to be wasting              
this beautiful day sitting here trying to dispute it.  Thank you               
for your time."                                                                
                                                                               
Number 390                                                                     
                                                                               
SENATOR HALFORD commented he gave Chair Green a copy of the legal              
report from Tam Cook, Director of the Division of Legal and                    
Research Services, that contain the special provisions in the                  
Securities Act that just apply to Native corporations.  There are              
two of concern: one is an exemption from the prohibitions on self              
dealing that are otherwise a corporation; the other allows for the             
adoption of by-law changes to indemnify the board of directors                 
against stockholder action by a much lower vote than any other                 
change.  He stated he probably will be drafting legislation to                 
repeal those two special provisions that work against stockholders             
because that is a problem within state law.                                    
                                                                               
CHAIRMAN GREEN announced the Senate State Affairs Committee will               
hold SJR 28 over, and depending on requests to provide testimony               
from representatives of the regional corporations, will rescheduled            
the bill accordingly.  She asked interested parties to direct                  
inquiries to the Senate State Affairs Office and adjourned the                 
meeting at 5:47 p.m.                                                           
                                                                               

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