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 291 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.]