03/31/2005 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

HB 229-REINSTATEMENT OF NATIVE CORPORATIONS                                                                                   
                                                                                                                                
8:09:10 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS announced that the  first order of business would                                                               
be HOUSE  BILL NO. 229 "An  Act relating to the  reinstatement of                                                               
Native corporations; and providing for an effective date."                                                                      
                                                                                                                                
8:09:14 AM                                                                                                                    
                                                                                                                                
PAUL  LABOLLE,  Staff  to  Representative  Foster,  Alaska  State                                                               
Legislature,  presented  HB  229   on  behalf  of  Representative                                                               
Foster.  He explained that every  two years a $100 fee and report                                                               
listing the  corporate officers is required  by the state.   If a                                                               
Native  corporation  fails  to  file  the  aforementioned  report                                                               
during the  allocated time period,  this legislation  provides an                                                               
additional two-year  grace period after which  no compliance will                                                               
result in  involuntarily disolvement and legislation  is required                                                               
to reinstate the corporation.   Reinstatement ensures that should                                                               
the  dissolved corporation  form a  new corporation,  it wouldn't                                                               
have  its   assets  granted  under   the  Alaska   Native  Claims                                                               
Settlement  Act  and thus  it  would  be  a corporation  with  no                                                               
assets.                                                                                                                         
                                                                                                                                
8:10:13 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS  asked if a  new corporation is formed,  would it                                                               
take the debts with it.                                                                                                         
                                                                                                                                
MR.  LABOLLE  replied  that  the new  corporation  would  be  not                                                               
maintain  the debts  or assets,  although the  shareholders would                                                               
have the debts and assets.                                                                                                      
                                                                                                                                
8:10:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked why the shareholders  would have the                                                               
debts of the corporation.                                                                                                       
                                                                                                                                
MR.  LABOLLE related  that he  will  refer that  question to  the                                                               
technical expert.   He noted  that the assets would  be broken-up                                                               
and transferred  to each member  of the corporation, and  thus he                                                               
assumed the same would apply for the debts.                                                                                     
                                                                                                                                
ALYCE  HOUSTON,  Corporation   Records  &  Licensing  Supervisor,                                                               
Department  of  Commerce,   Community,  &  Economic  Development,                                                               
related that  it would be  "winding up business" as  the statutes                                                               
allow for voluntary or involuntary dissolution.                                                                                 
                                                                                                                                
8:11:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  moved to  report HB  229 out  of committee                                                               
with individual recommendations and the  zero fiscal note.  There                                                               
being no objection, HB 229  was reported from the House Community                                                               
and Regional Affairs Standing Committee.                                                                                        
                                                                                                                                
The committee took an at-ease from 8:12:21 AM to 8:39:37 AM.