SENATE STATE AFFAIRS COMMITTEE April 24, 1997 3:34 p.m. MEMBERS PRESENT Senator Lyda Green, Chairman Senator Jerry Ward, Vice-Chairman Senator Jerry Mackie Senator Mike Miller Senator Jim Duncan MEMBERS ABSENT All members present COMMITTEE CALENDAR SENATE BILL NO. 25 "An Act relating to authorizing the Department of Corrections to provide an automated victim notification and prisoner information system." -- HEARD AND PASSED SB 25 OUT OF COMMITTEE SENATE BILL NO. 26 "An Act making a special appropriation for an automated victim notification system; and providing for an effective date." -- HEARD AND PASSED SB 26 OUT OF COMMITTEE SENATE JOINT RESOLUTION NO. 28 Requesting the federal government to conduct an audit of the Alaska Native regional corporations to determine their compliance with the Alaska Native Claims Settlement Act and to review the accountability of the corporations to their shareholders. -- HEARD AND HELD IN COMMITTEE PREVIOUS SENATE COMMITTEE ACTION SB 25 - No previous action to record. SB 26 - No previous action to record. SJR 28 - See State Affair minutes dated 4/22/97. WITNESS REGISTER Senator Johnny Ellis State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of SB 25 & SB 26 John Richard, Chief Municipal Prosecutor Municipality of Anchorage P.O. Box 196550 Anchorage, AK 99519-6650 POSITION STATEMENT: Testified in support of SB 25 Arne Fritz Victims Witness Coordinator Municipality of Anchorage P.O. Box 196550 Anchorage, AK 99519-6650 POSITION STATEMENT: Testified in support of SB 25 Ethel Barnz Eagle River, AK POSITION STATEMENT: Testified in support of SB 25 Dennis Willard 1200 Eagle St., #3 Anchorage, AK 99501 POSITION STATEMENT: Testified in opposition to SJR 28 Juliet Hildreth 9110 Teri Circle Anchorage, AK 99502 POSITION STATEMENT: Testified in support of SJR 28 William France 1717 Cache Drive Anchorage, AK 99507 POSITION STATEMENT: Testified in support of SJR 28. Harriet Beleal 2705 Klamath Anchorage, AK 99517 POSITION STATEMENT: Testified in support of SJR 28. Po'A Johnston 7311 Clairborne Drive Anchorage, AK 99502 POSITION STATEMENT: Testified in support of SJR 28. Archie Nielson 5801 E. 6th Ave. Anchorage, AK 99504 POSITION STATEMENT: Testified in support of SJR 28. Harold Rudolph 4200 E 4th Ave., #7 Anchorage, AK 99508 POSITION STATEMENT: Testified in support of SJR 28. Paulette Moreno 1107 Chugach Way Anchorage, AK 99503 POSITION STATEMENT: Testified in support of SJR 28. Robert Monette 675 N. Bliss St. Anchorage, AK 99503 POSITION STATEMENT: Testified in support of SJR 28. Virginia Rude 14940 Eagle River, AK 99577 POSITION STATEMENT: Testified in support of SJR 28. Diane Shrader 7810 Lumbis Ave. Anchorage, AK 99510 POSITION STATEMENT: Testified in support of SJR 28. Dune Lankard P.O. Box 460 Cordova, AK 99574 POSITION STATEMENT: Testified in support of SJR 28. Mike Boskofski Ouzinkie, AK POSITION STATEMENT: Testified in support of SJR 28. Sharon Kay 13810 Malaspina St. Eagle River, AK 99577 POSITION STATEMENT: Testified in support of SJR 28. Shirley Demientieff 229 2nd Ave. Fairbanks, AK 99701 POSITION STATEMENT: Testified in opposition to SJR 28. Darlene Herbert 455 3rd Ave., #431 Fairbanks, AK 99701 POSITION STATEMENT: Testified in opposition to SJR 28. Angela McComsey 114 Candlelight Drive Kenai, AK 99601 POSITION STATEMENT: Testified in support of SJR 28. Ron Dolchok P.O. Box 83 Kenai, AK 99611 POSITION STATEMENT: Testified in support of SJR 28 Byron Charles P.O. Box 23316 Ketchikan, AK 99901 POSITION STATEMENT: Questioned the reason for SJR 28 Alan Larson P.O. Box 5 Sutton, AK 99674 POSITION STATEMENT: Testified in support of SJR 28. Patricia Wade 343 S. Bailey Palmer, AK 99645 POSITION STATEMENT: Testified in support of SJR 28. Carole Newcomer 617 Willoughby Ave., #223 Juneau, AK 99801 POSITION STATEMENT: Testified in opposition to SJR 28 Ed Thomas 320 W. Willoughby Ave. Juneau, AK 99801 POSITION STATEMENT: Testified in opposition to SJR 28 Julie Gonzales P.O. Box 020777 Juneau, AK 99802 POSITION STATEMENT: Testified in support of SJR 28. Kathy Polk P.O. Box 32677 Juneau, AK 99803 POSITION STATEMENT: Testified in support of SJR 28. Frank L. Jones General Delivery Juneau, AK 99801 POSITION STATEMENT: Testified in support of SJR 28. Charles Wheaton 147 Foster Ave. Juneau, AK 99801 POSITION STATEMENT: Testified in support of SJR 28 Michael Patterson Juneau, AK POSITION STATEMENT: Testified in support of SJR 28. Dorothy Zura Williams 2140 Lawson Creek Douglas, AK 99824 POSITION STATEMENT: Testified in support of SJR 28. Ike Cropley 4104 Birch Lane Juneau, AK 99801 POSITION STATEMENT: Testified in support of SJR 28 Kathy Honea P.O. Box 33776 Juneau, AK 99802 POSITION STATEMENT: Testified in support of SJR 28. ACTION NARRATIVE TAPE 97-23, SIDE A Number 001 SB 25 TELEPHONE VICTIM NOTIFICATION SYSTEM SB 26 APPROP: VICTIM NOTIFICATION SYSTEM CHAIRMAN GREEN called the Senate State Affairs Committee to order at 3:34 p.m. and brought SB 25 and SB 26 before the committee as the first order of business. SENATOR JOHNNY ELLIS, prime sponsor of SB 25 and SB 26, said in December 1993, Kentucky resident Mary Byron was murdered by her rapist just days after his release on bail. Neither Mary nor her family were aware that Mary's attacker had been released. Waiting for her outside a shopping mall, Donovan Harris shot and killed Mary Byron; it was her 21st birthday. He said that although this tragic event didn't happen in Alaska, there are compelling stories from people in this state who faced the same of kind dilemma. Senator Ellis stressed that proper and timely notification to victims of violent crime about the release or escape of their attackers is a serious problem, both nationally and in Alaska. In 1996, Alaska prisons and pretrial facilities housed 2,990 inmates, 49 percent of whom were considered violent offenders. He pointed out that each day over 600 concerned Alaskans call our state institutions seeking information about the status of inmates. Senator Ellis related that in order to keep crime victims informed of inmate status, a state-of-the-art computer system called Victim Information and Notification Everyday (VINE) was developed and is now in place in over 150 counties in 12 states. VINE provides two important services which enhance the vital link of communication between the justice system and victims of violent crime: (1) the system provides automatic notification phone calls to crime victims when an inmate status changes within 10 minutes of a change in the offender's status; and (2) it provides critical inmate information 24 hours a day, 7 days a week through the automated telephone system. Senator Ellis said he believes implementing VINE will increase state compliance with the Victims' Bill of Rights, overwhelmingly passed by the people of Alaska in the 1994 election. SB 25 is what he considers a piece of unfinished business on the victims' rights agenda. He noted the legislation has strong support throughout the state, and he urged the committee's favorable consideration. Number 090 SENATOR GREEN asked if there was any change in the fiscal notes attached to the legislation. SENATOR ELLIS responded that he worked closely with the Department of Corrections to reduce the amount of the appropriation bill from $250,000 to $150,000 which is the bare bones start-up costs. It is estimated that the ongoing operating cost would be about $90,000 a year. He added that there may be a possibility in the future to apply for some federal funds to offset those costs. Number 120 JOHN RICHARD, Chief Municipal Prosecutor, Municipality of Anchorage, related that his office prosecutes about 1,500 domestic violence cases a year. His major concern is the portion of the Domestic Violence Act of 1996 which added to the bail statutes by requiring the correctional facility to notify his office of a defendant's release and then they must take reasonable steps to immediately notify the alleged victim of the release. Mr. Richard said his office receives faxes from all the correctional institutions of a proposed release date, and it is burdensome to attempt to notify the victims with that, but it is something that they have just barely been able to manage. He said there is no way, his office can make any meaningful compliance with the requirement to immediately notify the victim of a defendant's release on bail when that occurs in the early morning hours, which they usually do. He believes that an automated system is the only way to meaningfully comply with the statute. Concluding, Mr. Richard said that when victims can be given more safety, more assurance and more information, they are more cooperative with his office and they can be more effective in prosecuting these offenses. ARNE FRITZ, Victim Witness Coordinator, Domestic Violence Unit, Municipality of Anchorage, testifying in support of SB 25 and SB 26, said he is also a member of the Board of Directors for the Abused Women's Aid in Crisis Center in Anchorage. He pointed out that the vast majority of cases they deal with are misdemeanor cases, and in misdemeanor cases, the sentences are not necessarily very long. Bail conditions can sometimes change daily, and there is no ability to really keep track of what a person's bail conditions are much less of when they make those bail conditions. He thinks it is vital that victims have the empowerment and the ability to get the immediate information when they need it. Number 215 ETHEL BARNZ of Eagle River related she was the winner of the "Send Me to Juneau Contest" sponsored by the Anchorage Daily News. Testifying in support of SB 25 and SB 26, Ms. Barns stated she has been threatened, attacked and stalked, and this is still occurring. She said the VINE program is needed to keep her children and elderly parents safe. She found out that her attacker was lose by him attacking her parents' tenant a week after he got out of jail. She urged the committee's support for the legislation. Number 225 CHAIRMAN GREEN thanked Ms. Barnz for her testimony, and related that her own sister went through a similar situation for months, and it was a very difficult time in their family. Number 236 SENATOR MACKIE moved SB 25 and SB 26 and the accompanying fiscal notes be passed out of committee with individual recommendations. Hearing no objection, it was so ordered. Number 250 SJR 28 FED AUDIT OF NATIVE REGIONAL CORPORATIONS CHAIRMAN GREEN brought SJR 28 back before the committee as the next order of business. CAROLE NEWCOMER of Juneau said as an Alaskan Alaska Native and a shareholder of an ANCSA regional corporation, she is appalled by this blatant attack against the ANCSA regional corporations, the leaders and the shareholders of these corporations. She pointed out she has experience as both a shareholder and as a past employee of her own regional corporation. Ms. Newcomer said the regional corporation, like any other corporation, has accountability to its shareholders. Her corporation is audited every year by their in-house accounting department and by a respected certified public accounting firm. The financials and minutes of all board and committee meetings of the corporation are available for all shareholders to review. As a shareholder, like all other shareholders having shares in corporations, they are able to make changes through corporation process. She emphasized that changes can and have been made. Ms. Newcomer said the officers of her corporation are compensated accordingly; like any other corporation they are paid for services rendered. Ms. Newcomer stressed that ANCSA regional corporations are for- profit corporations, and as a people, she does not believe they seek sovereignty due to any failure by their corporations. However, she added that sovereignty is another topic altogether like subsistence. Ms. Newcomer asserted that the shareholders in her corporation are more informed than other shareholders of other corporations. They have never been deprived of a legal right or the right to vote. She said she has worked for several Alaska Native leaders, all of whom are highly ethical and committed to the betterment of all Alaska Natives. In her closing remarks, Ms. Newcomer said ANCSA corporations are the vehicle that give Alaska Natives a voice both politically and economically, and they are the thread that binds them together as a people. Number 307 ED THOMAS stated he is a member of the Sealaska Board of Directors, President of the Tlingit & Haida Central Council, Alaska Area Vice President of the National Congress of American Indians, and a shareholder of Shaan Seet, Inc., but he was testifying on how own behalf. Mr. Thomas voiced his opposition to SJR 28, stating that he feels it is a very discriminatory resolution, and he is opposed to any resolution that separates Alaska Natives out and tries to set up different standards for them than they do for the rest of the population of this state. He then reviewed several pieces of legislation that have been introduced this session which he believes are discriminatory against Native people. He believes SJR 28 is just another vehicle to discredit the leadership of ANCSA regional corporations at a time when Native people really should be pulling together with welfare reform, the federal budget cuts, and state budget cuts. Mr. Thomas suggested that if the Legislature is truly interested in doing what is best for Natives, it should: (1) uphold the Indian Country ruling; (2) ask Congress to investigate why most budget cuts are to the poor and needy; and (3) ask Congress to investigate what is being bought with large campaign contributions and the use of lobbyists. Mr. Thomas said he would agree with Senator Halford's comment that the reason why Alaska Natives are interested in sovereignty is because these corporations have failed; they have made mistakes and have not met their expectatios. However, he thinks the Native people are most interested in sovereignty because of a failed state system. Most of the money is going into the urban areas with no money going to water and sewer needs in some the state's poorest villages. In closing, Mr. Thomas urged that SJR 28 and all other anti-Native legislation be withdrawn. Number 420 SENATOR MACKIE asked Mr. Thomas if there has ever been a year that all shareholders of his particular corporation have not been issued an audit or a financial statement, and MR. THOMAS responded that there has not. SENATOR MACKIE asked if it was correct that it is not only a law but a policy of Sealaska that every shareholder has access to any information they want about any salaries, or any investments made by the corporation. MR. THOMAS responded that they would have access to information on salaries and the general investments in the companies that are under the umbrella of the corporation, but not on the intricacies of the investments. SENATOR MACKIE asked Mr. Thomas why he believes that SJR 28 is so discriminatory. MR. THOMAS responded that any time you put forth even a request to single out a group of people because of their ethnic background or their status as a people, that's discriminatory. He added that he has long felt that the pipeline should be audited, but they can contribute to campaigns, and they don't have to answer these questions. He said their Native corporations represent some of the poorest people in the country. SENATOR MACKIE noted he is a shareholder in a Native corporation, and he knows for a fact there are a lot of shareholders that are not happy with management in just about every Native corporation in the state. He asked Mr. Thomas his feeling about whether or not Sealaska Corporation has made it mistakes and what is being done in trying to correct those in terms of working with shareholders as it relates to election policies and other things that shareholders are dissatisfied about. MR. THOMAS answered that shareholders were dissatisfied that the proxy did not include a place for a write-in and that was then included; they were dissatisfied that the corporation was using proxy solicitors to go out and beat the bushes for management, and they got rid of that; and they are trying to provide public forums by which questions relative to the operations can be addressed. The responses have been designed to create some clarity as to what the concerns are and what's being done about them. Number 488 CHARLES WHEATON of Juneau stated he was speaking out for the fallen warriors, those who have given up all hope of receiving any kind of settlement. He said he was one of these fallen warriors, and that he almost lost his life to drinking like so many of his people do. Mr. Wheaton said he has never had any pride in the Native corporations because of their greed and disregard for their own people. Mr. Wheaton related that he has been in and out of jails, but he is going through a change because he found a family and a job in a Native-setting work place. However, after he caught a fellow employee altering time sheets and reported this to the top boss, he was placed on leave. Some of his own people made false charges against him, and as a result, he lost his job. He asserted that one of the leaders of Sealaska knows about this incident. Mr. Wheaton believes that an audit should be done on the Native corporations to show how the money and people are being mishandled. Number 490 DENNIS WILLARD of Anchorage, testifying in opposition to SJR 28, said the state doesn't have a good history when it comes to meeting the real economic and social needs of the Alaska Natives. There are cutbacks being made to the maintenance and upkeep of the villages and this affects the Alaska Natives. There are cutbacks being made in welfare, which makes it difficult for a recipient to receive higher education or vocational training. The state approved $1 million to oppose Indian land decisions. The state gave up its right to manage the fish and game because it wouldn't allow eight percent of its population to live in a subsistence way of life. Mr. Willard said he knows the shareholders have legitimate concerns, but he believes they should be addressed within the corporations themselves. The shareholders need to realize that SJR 28 will not even address the needs of the Alaska Natives. He said if the state is truly concerned about the needs of the Alaska Natives, then it should work with the nonprofit organizations which address these needs. Number 510 JULIET HILDRETH, a Native corporation shareholder testifying from Anchorage, voiced her support for SJR 28. She stated there is no voice for the Alaska Native in the nation's capital, much less in the state capital. As an ANCSA shareholder she is concerned and troubled about their financial future and the direction of these regional corporations. She said the ANCSA was intended to financially benefit a few of a select group of board members and executives, who cleverly word proxy cards and abuse discretionary votes to continually secure their elected offices and the high salaries. She declared the self-proclaimed Native leaders of today will morally and financially bankrupt young Natives of tomorrow. Number 535 BYRON CHARLES of Ketchikan questioned who put the resolution together and if there was a violation by a regional corporation prior to the resolution being put together. He believes it is an embarrassment to their elders, because they were the founders of the corporations that are existing in the state of Alaska today. He said if there is in fact a violation by any or all of the regional corporations, as a concerned shareholder he would like to see some documentation on that. Number 565 SENATOR MACKIE asked Mr. Charles if he believes if SJR 28 passes, an audit will occur. MR. CHARLES said that is what he believes. SENATOR MACKIE clarified that a resolution passed by the Legislature is nothing more than a letter requesting Congress to consider doing an audit, so that even if SJR 28 passes, it will not relieve all of Mr. Charles' concerns. TAPE 97-23, SIDE B ALAN LARSON, a CIRI shareholder, testified from Mat-Su in favor of SJR 28. Back in 1975 or 1976, CIRI declared that it made $50 million in profits but the method it used was questionable. On one hand they gave it an actual value, in another column they gave it a face value and called the difference profit. One has to be a CPA to understand the financial reports. The Alaska Native Fund should also be examined. The state of Alaska was required to pay into that fund. During one year, a budget cut was made that was the identical amount that was supposed to be paid into the Native fund. He stated he is in favor of a complete audit of ANCSA from its inception. Number 563 PATRICIA WADE read a statement from the elders of her clan, all CIRI stockholders. "I support an audit of the ANCSA corporations. I remember the embarrassment 25 years ago when Alaska Native Claims Settlement Act was blast over the radio every 15 minutes. They made it sound like the Natives were getting billions of dollars. Because of it, everybody looked at us like we were the lowest on Earth, even more so than before. I was busy raising my own family and tribal members, minding my own business, and this was being blast over the radio nationwide, over and over and over again. Now, let's put them on the hot seat, the people that benefitted from it, and kept me embarrassed for too long. I'm tired of taking the blame for Hundorf (ph) and his lawyers' wages." WILLIAM FRANCE, a CIRI shareholder, testified in full support of SJR 28. He stated CIRI shareholders still do not have enough information on the four options presented by CIRI. RON DOLCHOK, a CIRI and Kenai Native Association shareholder, stated that ANCSA is working. He has been involved with ANCSA since 1968, and does see problems with the CIRI board of directors election process. Also, KNA is getting rid of corporation lands even though shareholders have voted against it twice. The intent of ANCSA was to allow for maximum participation by shareholders, but that has not happened for 20 years. He is in support of SJR 28. Number 500 HARRIET BELEAL testified in support of SJR 28 and made the following comments. In 1992 she sued Sealaska for not allowing shareholders to vote on whether or not to sell their stock before 1991 but the case was dismissed. When shareholders do sell their stock, it will be minus the land and mineral value. In 1992 Sealaska counted proxies for the election of six directors one day after the polls closed. On the ballot was the issue of eliminating the discretionary vote and the super majority vote. The discretionary vote was defeated, the super majority vote passed which requires that two thirds of the voters approve any major issues. The Division of Banking and Securities will not respond to protests for a fair election. The corporations are now playing a vicious game of politics while 70 percent of Alaska Natives are suffering in poverty. Land has been removed from Alaska Natives and is now in a corporate structure. SHIRLEY DEMIENTIEFF, a Doyon and [indisc.] Village Corporation in Nenana, remembers the treatment Natives used to get in Fairbanks many years ago, and still do today, to some degree. She remembers when Natives were not allowed to stay in certain hotels, yet due to ANCSA those hotels are now owned by Natives. Doyon is audited every year, and she trusts the CPA firm that conducts that audit. She believes SJR 28 is unnecessary. She ran as an independent candidate for the Doyon Board of Directors last year, came in fifth, spent $25 on her election, and garnered a respectable number of votes. Next year, if she chooses to run, she believes she will win a seat as an independent candidate. She believes Doyon stockholders are strong enough to demand what they want and will get it. Although many social issues need to be addressed among Alaska Natives, that is an internal matter. Sovereignty has always been an issue; regional corporations have nothing to do with it. She questioned why the State needs to be included in this requested review. Regional corporations already fall under Title 10. Number 430 DARLENE HERBERT testified in opposition to SJR 28. She believes if regional corporations are going to be audited, oil companies should be too. As a Doyon stockholder, she sees its management as capable of solving its own corporate problems. PO'A JOHNSTON testified in support of SJR 28. He expressed concern about the sad and unjust treatment of Alaska Natives employed at Prudhoe Bay. Subsidiaries are managed by the "good old boy" networks from down South. At one time, KNA owned the King George Hotel, named after KNA's president. KNA and Salamatoff Native Corporation continue to watch out for their kingdom: hopefully SJR 28 will stop these dictatorships. After management takes its cut of the pie, there is nothing left for the shareholders. ANGELA MCCOMSEY, a CIRI shareholder and Kenai resident, testified in support of SJR 28 and made the following remarks. As a CIRI shareholder, she is concerned and angry about top management voting for ridiculously high salaries, bonuses and retirement packages for themselves. She asked why, if salary increases are justified by successful business practices, dividends do not reflect the corporation's success. CIRI is involved in a lawsuit against a board member who was voted in by shareholders and has spent thousands of dollars to oppose the election of that director. Shareholder opinion is not highly regarded by the Board. Shareholders need honest full disclosure on all four options being offered by the CIRI Board. Number 334 IKE CROPLEY, a Sealaska and Goldbelt shareholder, spoke in favor of SJR 28 and said there are many people that question why efforts to recall Sealaska board members have been unsuccessful. He asked how the State can defend the ANCSA settlement which would require proof that the Native corporations have improved the lives of 80,000 Natives. He asked if those corporations have shared the wealth with the shareholders. He did not think those corporations could be defended especially since financial statements show extravagant executive payrolls, huge retirement plans, and outrageous bonus payments. Shareholders want the corporations under the scrutiny of the highest court in the land. He believes the corporations are unconstitutional because they were forced upon Natives who never had the right to vote to accept them. Sealaska has lost money on every business it has owned, and huge out-of-court settlements with FDIC and Kake Tribal have never been disclosed. He encouraged auditors to compare the pitiful benefits received by shareholders to the high salaries received by management and board members. His solution to Sealaska's shareholders concerns is to liquidate and close the entire operation. ARCHIE NIELSEN, a Sealaska and Shee Atika shareholder, testified that while in Seattle last year, he ran across two yards filled with thousands of board feet of Sealaska timber that no one wanted to buy. The issue was never acknowledged by the Sealaska board. If shareholders had a voice, something with bite, they would not be supporting SJR 28. He said he hoped, in the near future, there will be someone in the Division of Banking and Securities that will stand up for shareholders. HAROLD RUDOLPH suggested amending SJR 28, on page 2, line 10, the "one-third" should be changed to "two thirds" since 70 percent of Alaska Natives live at or below the poverty level. He stated he supports SJR 28 and questioned why no one from the regional corporations was testifying on this resolution. He is involved in a lawsuit with CIRI and hopes it will reveal "what these people are made of." ROBERT MONETTE testified in full support of an audit, and said if the word "audit" could be replaced with the word "accountability" it would alleviate his concern that the regional corporations have a level of authority and responsibility for others lives yet no accountability to those people. He noted two regional corporation executives earned $400,000+ and $900,000+ in 1996. Shareholders cannot afford to hire attorneys to challenge the lack of regional corporation accountability. Shareholders are looking to the Legislature as their last resource. Number 155 VIRGINIA RUDE testified in support of SJR 28. She has encountered many difficulties as a corporate shareholders and is concerned that the ordinary shareholder is effectively blocked from running for corporate board seats because of the expense and intimidation by corporate policies and the Division of Banking and Securities. Shareholders need protection and equal opportunity to participate in their corporations as intended in ANCSA. Passage of SJR 28 would immediately make the boards of directors accountable. Right now, CIRI shareholders do not even know who the directors are. Passage of SJR 28 will not divide the people, but will bring them together at long last. Alaska Natives will have a goal of conserving whatever is left. Last, passage of SJR 28 will show that lawmakers do care about the original inhabitants of this great land. DIANE SHRADER, a CIRI shareholder, said shareholders deserve full accountability and responsiveness from their corporations. She believes CIRI speaks half-truths to the stockholders and general public in its newsletters, information updates, and annual reports for shareholders. For example, CIRI has made burial services available to all shareholders regardless of where they reside, however to be eligible for burial assistance one must have proof of one-quarter Native blood, one cannot receive certain types of public assistance and must not have been suspended from any assistance program. This eliminates 70 percent of CIRI shareholders. Other criteria eliminate many other shareholders. CIRI is giving false and misleading information to its shareholders and the public. DUNE LANKARD, tribal spokesperson for the Eyak Division of Elders and Counseling in Cordova, and shareholder and past director of the Eyak Village Corporation and a shareholder of the regional corporation called Chugach, spoke on behalf of the last full- blooded Eyak, Chief Marie Smith Jones. Eyaks wholeheartedly support SJR 28. One of the problems Eyaks have had to deal with is the private Native corporation exemptions from the law - Eyaks call it the exemptions of sovereignty. ANCSA regional corporations and all 226 village corporations are able to escape scrutiny by their shareholders. No environmental or economic impact statements are required, nor are contracts, annual operating plans, restoration bonds, or executive session minutes. Shareholders cannot evaluate or monitor their performance without such invaluable information. Alaska Natives' sovereignty is not for sale. When the joint venture corporations do business with their regional and village corporations, they are selling Alaska Natives' sovereignty. They indemnify themselves from any wrongdoing by putting together resolutions and by-laws that protect them from any bad decisions. TAPE 97-24, SIDE A Mr. Lankard continued. There is a good chance that the only jobs or revenues that could be traded for the shareholders will be through the extraction of their natural resources, again destroying the land for profit. It is necessary to investigate CIRI's stock options and reverse the congressional amendment that allowed stock options be established without a shareholder vote. The U.S. Supreme Court could show true leadership by respecting the special government to government trust relationship between the Alaska tribes and the federal government in honor of the sovereign trusteeship by refusing to hear this appeal. The U.S. Supreme Court should also exercise its power and invoke the trust doctrine to review federal actions. The 1971 Alaska Native Claims Settlement Act and its amendments are federal actions that need immediate review. MIKE BOSKOSFKI, a CIRI shareholder, testified from Ouzinkie in support of SJR 28. He believes people should show up for Tribunal meetings. SHARON KAY, a CIRI shareholder, testified in support of SJR 28. CIRI shareholders have a great many concerns about its' corporations managers and directors. CIRI stated that shareholders would get a final vote on their favorite options. If that is so, then CIRI should remove the word "advisory" from the vote. She is requesting a certified copy of CIRI's 1996 tax returns. Number 104 KATHY HONEA, a Sealaska shareholder, testified in support of SJR 28 because although this is one small issue, elders have made many attempts to try to get information about the Sealaska as shareholders. Because shareholders are not versed in corporate law, they are not heard. By the time shareholders get versed in corporate law, there will be no corporation left. An audit will bring information to light, and elders will finally get recognition. The young people who are very dissatisfied and do not want to stand up for what they feel is right because it separates them. If nothing needs to be hidden, there is no reason to fear an audit. SENATOR WARD commended Ms. Honea for speaking well for her parents. MICHAEL PATTERSON, a Sealaska and Goldbelt shareholder, commented that the Sealaska board member who testified earlier admitted that Alaska Natives are the poorest nation of people and that it is the corporation's duty to protect Alaska Native's assets. He questioned how board members can accept bonuses that are more than he will ever see in his lifetime, how they can watch their elders pass away without ever receiving what they were promised, and how they can build expensive homes in Juneau and out-of-state in good conscience. He noted he called CNN and asked for national news coverage of this issue. Number 210 PAULETTE MORENO testified from Anchorage in support of SJR 28. She asked what brings her people before the committee at this time with such passion, conviction and determination to see things change. Alaska Natives have watched ANCSA and the people who say they represent and lead them for the last 20 years. ANCSA was supposed to help all Alaska Natives, but has only helped a few. The reason Alaska Natives are before the committee today is because they are raising a new generation who needs change. Alaska Natives are a powerful and strong people, with some of the brightest, well- educated people who are unifying their voices for the purpose of making ANCSA corporations accountable for their decisions. The introduction of SJR 28 has given hope for a brighter future. DOROTHY ZURA WILLIAMS, a full-blooded Tlingit, testified that two recall petitions have been filed against Sealaska's current board and noted she is the very first newly-elected Goldbelt director that was voted without discretionary votes. She is proud to fight for change for her people, which can occur if the corporate offices are audited. If corporations are honest enough, they will change. The members of the audience have attended this hearing at their own expense, while Sealaska's CEO has written the committee a letter at shareholders' expense. To regain the confidence of shareholders, discretionary voting needs to be eliminated and the board of directors needs to do what the shareholders ask and are paying them for. Sealaska's financial statements do not reveal the cash flow and where the money that came from the NOLs went. Sealaska's board members run SERHC, Tlingit and Haida BIA affiliates and shareholders are afraid they will lose their jobs if they talk. Number 305 JULIE GONZALES testified on behalf of her mother and brother who are full shareholders in Sealaska and Goldbelt and fully support SJR 28. For years they have watched other corporations distribute large dividends, while their dividends were very small. When they received their dividends, their welfare benefits would be cut. The corporations should give more money to the shareholders, or at least build affordable housing for low-income and middle class people. As a family on welfare, without help from ANB Camp 2, they would not survive. FRANK L. JONES, Sealaska shareholder, said he has had polio almost all of his life, and has not been able to work for the past three years. For the past two years he has been living in a tent. He has explained his situation to the BIA, Sealaska and Tlingit and Haida who offered no help. He supports SJR 28. KATHY POLK stated she was the chairperson for Goldbelt Shareholders' Future and explained the purpose of the recall effort was to demand corporate change. She read the following testimony. "I believe that this platform, if it was enforced by law, for our corporations, I believe that the disenchantment of our people will level off, because I really believe in this platform. It has helped our people and it made a lot of positive changes within Goldbelt Incorporated. They have adopted rules that they no longer use discretionary votes. I would like to endorse to you and ask you if you would look into an election repeal for the Native corporations so that we could do away with discretionary votes. I am really against the way the elections are run along with the other people all over the State of Alaska. We have people that are in power right now that have been there since the beginning of our corporations. I believe that the people should be responsive to this platform and it should be made available to anyone who would like to see it. There are a lot of people who will not come forward to speak because of what Dorothy said in regard to the people being afraid and intimidated by our people in their jobs with BIA and Tlingit and Haida - the Native corporations. I would recommend that we would consider having a petition circulated amongst all of the Natives for every corporation that they state whether they are in favor of this bill or not. All it does is it will come forth and tell the legislators, the lawmakers of the United States Government what the people of Alaska feel. It is straightforward. We are very proud to be shareholders of our corporations but we do need change. It is time, it's time for change. We have children who are growing up and it is time for them to belong to our Native corporations. I really ask you to take this bill very seriously - this resolution - it is very important to our people. It is the first hope that we have had and I believe that the recalls will be a thing of the past if they would adopt this platform - all the Native corporations. If they would adopt this platform we are going to see peace and love and unity within our corporations and we would not have to be wasting this beautiful day sitting here trying to dispute it. Thank you for your time." Number 390 SENATOR HALFORD commented he gave Chair Green a copy of the legal report from Tam Cook, Director of the Division of Legal and Research Services, that contain the special provisions in the Securities Act that just apply to Native corporations. There are two of concern: one is an exemption from the prohibitions on self dealing that are otherwise a corporation; the other allows for the adoption of by-law changes to indemnify the board of directors against stockholder action by a much lower vote than any other change. He stated he probably will be drafting legislation to repeal those two special provisions that work against stockholders because that is a problem within state law. CHAIRMAN GREEN announced the Senate State Affairs Committee will hold SJR 28 over, and depending on requests to provide testimony from representatives of the regional corporations, will rescheduled the bill accordingly. She asked interested parties to direct inquiries to the Senate State Affairs Office and adjourned the meeting at 5:47 p.m.