HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE March 25, 1998 8:07 a.m MEMBERS PRESENT Representative Ivan Ivan, Chairman Representative Fred Dyson Representative Scott Ogan Representative Joe Ryan Representative Jerry Sanders Representative Albert Kookesh Representative Reggie Joule MEMBERS ABSENT All members present COMMITTEE CALENDAR * HOUSE BILL NO. 471 "An Act relating to the boards of commissioners of regional Native housing authorities." -HEARD AND HELD (* First public hearing) PREVIOUS ACTION BILL: HB 471 SHORT TITLE: REGIONAL NATIVE HOUSING AUTHORITIES SPONSOR(S): COMMUNITY AND REGIONAL AFFAIRS Jrn-Date Jrn-Page Action 3/19/98 2664 (H) READ THE FIRST TIME - REFERRAL(S) 3/19/98 2664 (H) CRA 3/25/98 (H) CRA AT 8:00 AM CAPITOL 124 WITNESS REGISTER JACQUES SMITH, Executive Director Aleutian Housing Authority 4000 Old Seward Highway, Suite 202 Anchorage, Alaska 99503 Telephone: (907) 263-2146 POSITION STATEMENT: Testified on HB 471. ASHLEY REED, Representative Cook Inlet region 360 West Benson, Suite 200 Anchorage, Alaska 99502 Telephone: Not provided POSITION STATEMENT: Testified on HB 471. FRANK PERATROVICH, Executive Director Cook Inlet Housing Authority; President, Alaska Housing Authority 2600 Cordova Street, Suite 201 Anchorage, Alaska 99503 Telephone: (907) 276-8822 POSITION STATEMENT: Testified on HB 471. CHUCK KATASSE, Executive Director Tlingit Haida Regional Housing Authority P.O. Box 32237 Juneau, Alaska 99803 Telephone: (907) 780-6868 POSITION STATEMENT: Testified on HB 471. LARRY LABOLLE, Legislative Assistant to Representative Richard Foster Alaska State Legislature Capitol Building, Room 410 Juneau, Alaska 99801 Telephone: (907) 465-3789 POSITION STATEMENT: Testified on HB 471. TOM WRIGHT, Legislative Assistant to Representative Ivan Alaska State Legislature Capitol Building, Room 418 Juneau, Alaska 99801 Telephone: (907) 465-3882 POSITION STATEMENT: Testified on HB 471. ACTION NARRATIVE TAPE 98-20, SIDE A Number 0001 CHAIRMAN IVAN IVAN called the House Community and Regional Affairs Standing Committee meeting to order at 8:07 a.m. Members present at the call to order were Representatives Ivan, Dyson, Ogan, Ryan, Sanders, Kookesh and Joule. HB 471 - REGIONAL NATIVE HOUSING AUTHORITIES Number 0052 CHAIRMAN IVAN stated that the committee would hear HB 471, "An Act relating to the boards of commissioners of regional Native housing authorities." He stated that it was drafted at the request of Cook Inlet Region Housing Authority and the Association of Village Council Presidents (AVCP). He stated that the current statute limits the boards to five people. Number 0140 REPRESENTATIVE REGGIE JOULE referred to line 7 and asked what the initial board of commissioners meant. Number 0180 CHAIRMAN IVAN responded that in the initial formation of the board of commissioners they were acting under the federal statutes. (INDISC. -- TAPE STATIC) Number 0232 REPRESENTATIVE FRED DYSON asked that someone speak to what problem the bill solves and what precipitated this. He stated that he is confused by the bill and is not sure how the amendment fits in the bill. Number 0274 CHAIRMAN IVAN replied that this is the second year the resolution was adopted by the AVCP. The AVCP region represents 56 communities which equates to 58,000 square miles and there are 5 commissioners on the board (INDISC. -- TAPE STATIC). Number 0339 CHAIRMAN IVAN stated that the amendment will be proposed on the behalf of Representative Foster and will address the village corporation that needs to be reinstated. Number 0389 REPRESENTATIVE DYSON restated that Representative Ivan had put together the bill and Representative Foster had a particular problem so the amendment will take care of this one village's particular problem. Number 0405 CHAIRMAN IVAN stated that is correct. It was brought forward (INDISC. -- TAPE STATIC). Number 0431 REPRESENTATIVE DYSON asked if the bill is expanding the board of commissioners specifically because Chairman Ivan's region wanted it and will it make the option available to other regional housing authorities. Number 0454 CHAIRMAN IVAN replied that is correct. He stated that he introduced this legislation six years in a row and the Cook Inlet region has now also made the request. He stated that he understood that there is some debate as to the timing of this issue. Number 0532 REPRESENTATIVE DYSON stated that it is probably not true in Chairman Ivan's area but in other areas when a board wants to be expanded it is because the non-majority group of the board would like to add more members in order to get control. Number 0563 CHAIRMAN IVAN stated that he could not respond to that. He stated that he would like to take comments from the regional authorities. Number 0634 JACQUES SMITH, Executive Director, Aleutian Housing Authority, stated that the sponsor statement is poorly written and it is a misrepresentation. He stated that the gross misrepresentation is that there are 13 Native housing authorities in the state of Alaska and 1 public housing authority. He explained that the sponsor statement states, "the regional housing authorities have requested a change in the statute. This will provide for the more fair representation they desire." He said, "we are talking about 13 regional housing authorities, not just Cook Inlet region and AVCP. He pointed out that this issue only just came up to the other regional housing authorities and they have not had a chance to review this bill. He requested that the committee give the authorities time to develop an opinion on it before it is passed through, as it also has the potential to affect the budgets of the smaller housing authorities. He reiterated his desire for the other housing authorities to look at the bill before it is pushed through. Number 0815 CHAIRMAN IVAN stated that the bill is not intended to hurt any authority. It is not a mandate for the 12 other housing authorities, it is an option that some may want to take advantage of. Number 0869 REPRESENTATIVE AL KOOKESH stated to Mr. Smith that he hopes he has read the bill because it states the "initial board", is a regional housing authority that wants to initially get started, it has nothing to do with the boards that are already in place. Number 0904 MR. SMITH asked if that is true and which boards would it affect. REPRESENTATIVE KOOKESH stated that it affects only the new boards trying to get started, initial boards will have no less than 5 members. MR. SMITH asked what housing authorities this would affect. CHAIRMAN IVAN stated it would give expanding authorization to the existing housing authorities (INDISC. -- TAPE STATIC). Number 1034 MR. SMITH stated that this bill has the potential to affect Indian housing authorities and what it costs to run the meetings, if there is a change and the board size increases. He stated that he realizes that it is not mandated but it opens the door for that to occur. Number 1044 CHAIRMAN IVAN stated that it offers that opportunity, but if the authorities wish to keep their status quo then they may do so. (INDISC. -- TAPE STATIC) Number 1069 REPRESENTATIVE KOOKESH stated that he is familiar with the association in Southeast Alaska and he would never do anything that would impact it, financially or otherwise. Number 1091 MR. SMITH stated that not all the housing authorities are the size of Cook Inlet and although it is not mandatory, it opens the door that could cost the state a lot of money. He stated that in regards to the Aleutian housing authority, it costs a tremendous amount to field the meetings of the board of directors. Number 1112 REPRESENTATIVE JOULE stated that he has also come from a region of an housing authority of (INDISC. -- TAPE STATIC). He stated that it is an option to be taken up. Number 1169 MR. SMITH stated that his board has not had the time to form an opinion either way on this but the wording in the sponsor statement clearly includes every Indian housing authority in the state of Alaska. He requested that section be changed because there is not specific support from all the authorities. Number 1190 CHAIRMAN IVAN (INDISC. -- TAPE STATIC). Number 1204 ASHLEY REED, Representative, Cook Inlet region, stated that he was between a rock and hard place. He thanked the committee for their consideration of the legislation. He wondered how someone could oppose the option for more participation. He stated that Cook Inlet, because of the large geographic area, would like to expand the board to include more people from the different communities. He stated that Cook Inlet Housing Authority supports the legislation. Yesterday, the state association of housing authorities met and decided that they needed to talk to the individual boards. He stated that he believed that the bill does not mandate or require anybody to do anything. There is no hidden motive. He thanked the committee for the introduction of the legislation. Number 1525 REPRESENTATIVE DYSON asked if Eklutna deals with a different housing authority. Number 1545 FRANK PERATROVICH, Executive Director, Cook Inlet Housing Authority; President, Alaska Housing Authority stated Eklutna (INDISC. -- TAPE STATIC). He stated that he would like to testify on the behalf of the Association of the Alaskan Housing Authorities to clarify what happened. He stated that they have a normal process on how they introduce legislation because they represent all the regions of Alaska. The process involves taking the legislation back to the region to discuss it with the different villages. He stated that this legislation short-circuited that process and that is the reason for the non-support. He pointed out that it is not that the people are against the bill, it is just that they have not had time to discuss it. It is an optional bill and it is true that the authorities do not have to participate if they do not want to; if it was only the housing authorities decision. He stated that it is not, the "non-profits" of the region, which are different from the housing authorities, are the ones that appoint the board. Therefore, it is not up to the housing authority to take action, it is made by an independent organization that does not have an oversight on the budget or fiscal constraints and they may make political decisions without knowledge of the housing authorities operation. He stated that this needs to be discussed with the authorities and that takes time. The concern is that the association would like to have the normal consensus process take place. He stated that if he was to speak for the Cook Inlet Housing Authority they are in favor of the bill because they represent 8 communities and are not in the same financial position as some of the other housing authorities. Number 1735 CHAIRMAN IVAN asked if he was in favor of the bill. Number 1744 MR. PERATROVICH stated that he apologizes for his split testimony, on behalf of Cook Inlet Housing Authority, he is in support of the bill but on the behalf of the Alaska Housing Authority he asked for time to take the bill to the constituents. Number 1766 REPRESENTATIVE JERRY SANDERS asked if he had any suspicion that this was an attempt to go around the association or if it was because everyone thought the bill was so favorable that there would not be any question on it. Number 1784 MR. PERATROVICH stated that it was a mistake in communication, usually something is drafted and is introduced the year after it is circulated. It was circulated in the Cook Inlet region and then sent to a lobbyist before it was sent to the full association meeting. Number 1871 CHUCK KATASSE, Executive Director, Tlingit Haida Regional Housing Authority, stated that the authority does not have enough information to determine support and in addition to that, it appears that it is a decision that the board of directors of the authority would want to make. Number 1910 REPRESENTATIVE KOOKESH stated that this bill was not just born yesterday, it has been around for a month or so and asked why the board was not on top of it. Number 1921 MR. KATASSE replied that he could not speak to that, it was information that he had received about a week ago. Number 1935 MR. SMITH stated that he believed it was submitted on the 13th and the regional housing authorities were not consulted and they do not monitor bills that are submitted without their knowledge. Number 1971 CHAIRMAN IVAN (INDISC. -- TAPE STATIC) stated that as far as he was concerned it is a good bill and maybe the authorities need time to look at the bill. Number 2006 MR. KATASSE stated that he is having a board of directors meeting tomorrow and he would share it with the board and ask them for direction on what they would like to do. Number 2014 MR. SMITH stated that most authorities meet quarterly and without a special meeting they would be waiting for the next quarterly meeting. A week is not enough time. Number 2031 REPRESENTATIVE DYSON asked if the bylaws allowed board meetings by phone. MR. SMITH stated that he did not know if it would be allowable for the regional nonprofit sector. Number 2068 CHAIRMAN IVAN stated that he would have like to move the bill out today (INDISC. -- TAPE STATIC). Number 2096 REPRESENTATIVE DYSON asked what are the other committees that the bill is referred to. CHAIRMAN IVAN replied the House Rules Committee. Number 2122 REPRESENTATIVE DYSON made a motion to adopt the Amendment, 0- LS1686\E.1, Bannister, 3/18/98 which reads: Page 1, line 1, following "authorities": Insert ";relating to the reinstatement of Native corporations; and providing for an effective date" Page 1, following line 3: Insert a new bill section to read: "*Section 1. AS 10.06.960(k) is amended to read: (k) Notwithstanding (i) of this section and As 10.06.633(e), a corporation that is organized as a Native village corporation under the act, that has ben involuntarily dissolved by the commissioner under AS 10.06.633(e) may be reinstated under AS 10.06.633(e) on or before December 31, 1998 [WITHIN ONE YEAR AFTER AUGUST 7, 1996]. The reinstated corporation and its shareholders have all of the rights, privileges, liabilities, and obligations that would have applied to them if the corporation had not been dissolved, and all corporate and shareholder action taken during the period of dissolution are considered to be as valid as if dissolution had not occurred. If a corporation elects to reinstate under this subsection and if the corporation's previously used corporate mane is no longer available for use by the corporation's previously used corporate name is no longer available for use by the corporation, then, notwithstanding AS 10.06.502 - 10.06.510, an amendment to the articles of incorporation changing the previously used corporate name may be adopted by action of the corporation's board of directors alone." Page 1, line 4" Delete "*Section 1." Insert "* Sec.2" Page 1, following line 10: Insert a new bill section to read: "* Sec. 3. Section 1 of this act takes effect immediately under AS 01.10.070(c)." Number 2143 CHAIRMAN IVAN asked if there was an objection. Hearing none the Amendment, 0-LS1686\E.1, Bannister, 3/18/98, was adopted. Number 2153 LARRY LABOLLE, Legislative Assistant to Representative Richard Foster, stated that there is a problem with Newtok Corporation and their need to do a land exchange, as their community corporation expired in 1992 for failure to file biannually and has never been reinstated. He explained that the secondary issue is that in the mean time, a third party has filed using the name Newtok Corporation, therefore, they will now have to do a corporation name change. He stated that the amendment would allow the board to do so without going to a full vote of the membership which requires two-thirds of the majority to vote for it. This is virtually impossible because it is hard to get two-thirds of the people to vote. He stated that this way of doing so was amenable to the department. Number 2202 REPRESENTATIVE JOULE stated that he was looking at the way the amendment was written, it would change the title. He asked if this would completely replace Section 1. Number 2236 TOM WRIGHT, Legislative Assistant to Representative Ivan, stated that it replaces Section one and renumbers Section one as Section two. Number 2270 REPRESENTATIVE JOULE stated that he is afraid that if it is adopted this way, it will completely take out the entire section. MR. WRIGHT stated that it does not take out the section but he recommended that it be made Section 2 instead of Section 1. Number 2275 REPRESENTATIVE DYSON stated that he reads the amendment to add a new paragraph K (INDISC. -- TAPE STATIC) Number 2290 MR. WRIGHT explained why it was Section K (INDISC. -- TAPE STATIC). CHAIRMAN IVAN stated that he would like to give the association a week (INDISC. -- TAPE STATIC). Number 2361 MR. PERATROVICH stated that his concern is that, if it was only his board that he was polling it would be feasible, but he is a little bit skeptical because the real appointing authority is the "regional non-profits." He stated that every region is different and he is unfamiliar with their politics to be able to do this in one week. He stated that he thought the individual board of the housing authorities could be polled, but they are not the ones that ultimately have the authority to make the board appointments, it is the regional non-profit corporations. He asked for a longer period of time. Number 2409 CHAIRMAN IVAN asked if another week would give him more time. Number 2423 MR. PERATROVICH replied that it would give them a better chance to accomplish it. Number 2433 CHAIRMAN IVAN stated that he would hold the bill over to give the regions more time to go over the bill. ADJOURNMENT Number 2467 CHAIRMAN IVAN adjourned the House Standing Community and Regional Affairs Committee at 8:54 a.m.