03/25/1993 01:00 PM House CRA

                                                                               
  HB 71:  DISSOLUTION OF NATIVE CORPORATIONS                                   
                                                                               
  Number 150                                                                   
                                                                               
  REPRESENTATIVE RICHARD FOSTER, PRIME SPONSOR OF HB 71,                       
  testified by reading his sponsor statement into the record.                  
  (A copy of the sponsor statement may be found in the House                   
  Community and Regional Affairs Committee Room, Capitol Room                  
  110, and after the adjournment of the second session of the                  
  18th Alaska State Legislature, in the Legislative Reference                  
  Library.)  He added, "This allows them to reincorporate and                  
  be able to officially do business according to state law...                  
  This is a paperwork thing, just to clean up and help some of                 
  those Native corporations."                                                  
                                                                               
  Representative John Davies joined the committee at 1:10 p.m.                 
                                                                               
  CHAIRMAN OLBERG pointed out the equivalent of HB 71 died in                  
  Senate Rules last year.                                                      
                                                                               
  Number 190                                                                   
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY asked, "Why do you need this?"                 
                                                                               
  REPRESENTATIVE FOSTER said, "There are some villages that                    
  aren't able to apply for state assistance or grants or                       
  anything.  Some villages don't have a village council or a                   
  city council.  They don't have any official governing body                   
  within that village and so the IRA or the Native corporation                 
  has taken over their governing functions and the state won't                 
  give them a grant or any help or revenue sharing or anything                 
  unless they have somebody to officially hand it over to and                  
  some of the villages, they're totally disorganized."                         
                                                                               
  Number 200                                                                   
                                                                               
  REPRESENTATIVE TOOHEY gave an example of her forming a                       
  corporation and failing to file a biennial report.  She                      
  asked, "What is the reason that they can't do it, why do we                  
  have to have a bill?"                                                        
                                                                               
  Number 214                                                                   
                                                                               
  LARRY LABOLLE, STAFF TO REPRESENTATIVE FOSTER, testified to                  
  explain, "This is tied in with the ANCSA (Alaska Native                      
  Claims Settlement Act) incorporations that were made at the                  
  time of the Native Lands Claims.  They need to go back and                   
  refer to that federal title that they were incorporated                      
  under.  That's why they have the need to reinstate the                       
  existing corporation...  This bill (HB 71) provides a one                    
  year window for that reinstatement of that ANCSA                             
  incorporation."                                                              
                                                                               
  REPRESENTATIVE TOOHEY asked, "They can't do it without it?"                  
                                                                               
  MR. LABOLLE said, "They can establish another corporation,                   
  but it still doesn't fall under that ANCSA incorporation."                   
                                                                               
  Number 227                                                                   
                                                                               
  REPRESENTATIVE BILL WILLIAMS clarified, "Basically, what                     
  happened earlier is that a lot of these                                      
  corporations...didn't understand what the corporation was...                 
  That happened in our village.  We didn't send in the                         
  necessary money...we caught up with it (but) some villages                   
  are not as sophisticated as people in the urban areas."                      
                                                                               
  VICE CHAIRMAN JERRY SANDERS asked, "Is this about villages                   
  or regional corporations?"                                                   
                                                                               
  REPRESENTATIVE WILLIAMS indicated both.                                      
                                                                               
  VICE-CHAIRMAN SANDERS said, "It seems like a regional                        
  corporation should have a little more responsibility about                   
  something this important.  If it has to do with villages,                    
  you got me."                                                                 
                                                                               
  CHAIRMAN OLBERG said, "It specifically has to do with                        
  villages."                                                                   
                                                                               
  Number 252                                                                   
                                                                               
  REPRESENTATIVE BUNDE confirmed, "This is a one year window                   
  and then it would sunset..."                                                 
                                                                               
  REPRESENTATIVE FOSTER said, "I'm just trying to help the                     
  Native community."                                                           
                                                                               
  CHAIRMAN OLBERG clarified, "It appears to open a one year                    
  window as of the effective date for these people to get back                 
  on board and get their paperwork up to snuff.  It's a                        
  housekeeping measure on behalf of village corporations..."                   
                                                                               
  Number 269                                                                   
                                                                               
  REPRESENTATIVE BUNDE MOVED that HB 71 be passed out of                       
  committee with individual recommendations.  There were no                    
  objections, and the MOTION CARRIED.