02/09/2024 08:00 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM

                      HB 291-ANCSA REPORTS                                                                                  
                                                                                                                                
8:49:52 AM                                                                                                                    
                                                                                                                                
CHAIR BAKER announced  that the final order of  business would be                                                               
HOUSE BILL NO. 291, "An Act  relating to reports of Alaska Native                                                               
Claims Settlement Act corporations."                                                                                            
                                                                                                                                
REPRESENTATIVE  STANLEY  WRIGHT,  Alaska  State  Legislature,  as                                                               
prime sponsor,  presented HB 291.   He said that when  the Alaska                                                               
Native  Claims Settlement  Act (ANCSA)  was  passed, it  required                                                               
that Alaska Native corporations  be incorporated under state law.                                                               
He referenced  a current Alaska  statute that requires  an Alaska                                                               
Native corporation  with over 500 shareholders  to file extensive                                                               
materials with the  Alaska Division of Banking and  Security.  He                                                               
said this  threshold of 500 shareholders  has become problematic,                                                               
as shares  are passed down  through generations  of shareholders,                                                               
thus imparting smaller villages with  an unjustly large amount of                                                               
paperwork  in a  complex world  of regulatory  demands.   He said                                                               
that  HB 291  aims to  alleviate the  unintended burden  on these                                                               
corporations  by proposing  a revision  to the  "arbitrary assets                                                               
threshold" and  specifying the shareholders' count  to be current                                                               
to the time of incorporation.                                                                                                   
                                                                                                                                
8:52:36 AM                                                                                                                    
                                                                                                                                
CYNTHIA BERNS, Vice President, Community  & External Affairs, Old                                                               
Harbor  Native Corporation,  gave  invited testimony  on HB  291.                                                               
She gave  context to  what the Old  Harbor Native  Corporation is                                                               
and said that it is one  of 52 Native corporations established by                                                               
Congress.   She  echoed the  bill  sponsor's remark  that due  to                                                               
current statute, there  is unjust burden placed  on the employees                                                               
and shareholders  to file tremendous  amounts of  extra paperwork                                                               
because  of shares  passed through  generations.   She  cautioned                                                               
that because shareholder information  is public, there is general                                                               
concern  for  how that  information  could  be used  against  the                                                               
associated  communities  and people.    She  said over  the  last                                                               
several   years,  there   have   been   significant  efforts   by                                                               
corporations   in  the   Lower   48  to   attack  Alaska   Native                                                               
corporations  and their  shareholders.   She stated  that HB  291                                                               
would reduce  these burdens and  help communities  by alleviating                                                               
the regulatory requirements currently in statute.                                                                               
                                                                                                                                
8:57:35 AM                                                                                                                    
                                                                                                                                
CHRISTOPHER SLOTEE, Vice  President/General Counsel, gave invited                                                               
testimony  on  HB 291.    He  said  under the  current  statutory                                                               
regime, Alaska Native  corporations with more than  $1 million in                                                               
assets  and 500  or more  shareholders  must file  copies of  all                                                               
annual reports, proxy  consents/authorizations, proxy statements,                                                               
and  other materials  related to  proxy solicitations.   He  said                                                               
that current statute is based  on the number of shareholders, not                                                               
the  number of  shares,  which inevitably  leads  to all  village                                                               
corporations being  subject to this  statute through  the natural                                                               
dilution  of  their  shares  as they  are  inherited  and  gifted                                                               
through shareholders' descendants.   He purported that all Alaska                                                               
Native corporations  are harmed by  this burden and said  that HB
 would relieve that burden.                                                                                                  
                                                                                                                                
9:02:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  asked whether  it could  be an  issue if                                                               
the State of Alaska doesn't know who a shareholder is.                                                                          
                                                                                                                                
MR. SLOTEE  replied that  that does it  reduce the  obligation to                                                               
provide information  to the  shareholders.  He  said that  HB 291                                                               
only addresses the current need for corporations to file with                                                                   
the State of Alaska.  He added that currently, no other private                                                                 
corporation is required to file a list of their shareholders.                                                                   
                                                                                                                                
[HB 291 was held over.]