05/01/2025 08:00 AM House TRIBAL AFFAIRS

              HB 126-REINSTATEMENT OF NATIVE CORPS                                                                          
                                                                                                                                
CHAIR DIBERT announced that the  final order of business would be                                                               
HOUSE  BILL NO.  126, "An  Act relating  to the  reinstatement of                                                               
Native corporations; and providing for an effective date."                                                                      
                                                                                                                                
8:21:24 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:21 a.m. to 8:22 a.m.                                                                       
                                                                                                                                
8:22:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STORY moved  to  adopt  the committee  substitute                                                               
(CS)  for   HB  126,   Version  34-LS0099/I,   Gunther,  3/25/25,                                                               
("Version I") as a working document.                                                                                            
                                                                                                                                
CHAIR DIBERT objected for the purpose of discussion.                                                                            
                                                                                                                                
8:22:36 AM                                                                                                                    
                                                                                                                                
PAUL  LABOLLE, Staff,  Representative Neal  Foster, Alaska  State                                                               
Legislature,  on  behalf  of the  prime  sponsor,  Representative                                                               
Foster,  presented CSHB  126.   He  explained  that the  proposed                                                               
legislation  would  allow  Native corporations  to  reincorporate                                                               
after they  have been  involuntarily dissolved.   He  stated that                                                               
the original  version of  the proposed  legislation would  give a                                                               
corporation  a  two-year  window  to reincorporate  as  the  same                                                               
entity  that  had been  listed  under  the Alaska  Native  Claims                                                               
Settlement  Act  (ANCSA), with  the  same  rights and  assets  as                                                               
established  under the  federal law.   He  explained that  when a                                                               
corporation in  Alaska is  involuntarily dissolved,  it currently                                                               
cannot reincorporate as the same  entity; rather, the assets must                                                               
be redistributed to the shareholders  and a new corporation would                                                               
have to be  created.  He added that the  corporation could retain                                                               
the same  name, but it would  not be considered the  same entity.                                                               
He  stated  that the  proposed  legislation  would help  maintain                                                               
consistency  with  ANCSA.   He  discussed  previous  attempts  at                                                               
passing similar legislation.                                                                                                    
                                                                                                                                
8:25:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK  expressed  the  understanding  that  the                                                               
proposed  CS  would  make  the   reinstatement  permanent.    She                                                               
requested clarification on any other changes made.                                                                              
                                                                                                                                
MR. LABOLLE replied that a  slight technical change would be made                                                               
in the  language on  page 1, line  5 through line  7, and  line 8                                                               
through 11.   Per  Legislative Legal  Services, he  expressed the                                                               
understanding that  this had been  done so the language  would be                                                               
more specific.   He stated that  the "main meat" of  the proposed                                                               
legislation has not been changed.                                                                                               
                                                                                                                                
8:27:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE UNDERWOOD  questioned the meaning  of "involuntary                                                               
dissolution."                                                                                                                   
                                                                                                                                
MR.  LABOLLE  explained  that an  involuntary  dissolution  of  a                                                               
corporation in  Alaska could happen  for many  different reasons.                                                               
He   described   some   Native  corporations   as   "very   small                                                               
organizations"  with a  board, but  no  employees; therefore,  in                                                               
some situations,  such as  people passing away  or moving  out of                                                               
town, paperwork filings could be overlooked.                                                                                    
                                                                                                                                
8:27:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MOORE  questioned the process of  verifying that a                                                               
dissolved Native corporation had resolved its issue.                                                                            
                                                                                                                                
MR.  LABOLLE referred  to the  Department of  Commerce, Community                                                               
and Economic Development (DCED).                                                                                                
                                                                                                                                
8:28:12 AM                                                                                                                    
                                                                                                                                
ROBERT  SCHMIDT Director,  Division  of  Banking and  Securities,                                                               
Department  of  Commerce,  Community  and  Economic  Development,                                                               
explained that the Division of  Banking and Securities would have                                                               
a limited role  in overseeing this, and he  deferred the question                                                               
to  the  Division  of  Corporations,  Business  and  Professional                                                               
Licensing.                                                                                                                      
                                                                                                                                
8:29:15 AM                                                                                                                    
                                                                                                                                
SYLVAN  ROBB, Director,  Division of  Corporations, Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development, explained that  the verification process to                                                               
be reincorporated would  be the same for all  corporations in the                                                               
state, and any dissolved Native  corporation would need to submit                                                               
the necessary paperwork to the  division, along with the required                                                               
fees.   He  said  that at  this point  the  corporation could  be                                                               
reinstated.                                                                                                                     
                                                                                                                                
8:30:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK asked  how  many  corporations have  been                                                               
involuntarily dissolved.                                                                                                        
                                                                                                                                
MR. LABOLLE expressed  uncertainty on the current  number, but in                                                               
2018, there were 19 corporations between 2010 and 2018.                                                                         
                                                                                                                                
8:30:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MOORE  questioned  the  process  of  corporations                                                               
being dissolved on an involuntary basis.                                                                                        
                                                                                                                                
MR. LABOLLE responded  that if paperwork for  the corporation has                                                               
not  been  filed on  time,  there  would  be a  two-year  waiting                                                               
period.   If the error  has not  been corrected after  this, DCED                                                               
would dissolve the  corporation.  He reiterated that  this is the                                                               
same for all corporations.                                                                                                      
                                                                                                                                
8:32:01 AM                                                                                                                    
                                                                                                                                
CHAIR  DIBERT removed  her  objection.   There  being no  further                                                               
objection, Version I was before the committee.                                                                                  
                                                                                                                                
8:32:38 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
8:32:55 AM                                                                                                                    
                                                                                                                                
CHAIR  DIBERT  opened   public  testimony  on  HB   126.    After                                                               
ascertaining that  there was  no one who  wished to  testify, she                                                               
closed public testimony.                                                                                                        
                                                                                                                                
8:33:36 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:33 a.m. to 8:36 a.m.                                                                       
                                                                                                                                
8:36:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY  moved to report  CSHB 126 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no  objection, CSHB 126(TRB) was reported out                                                               
of the House Special Committee on Tribal Affairs.