Alaska House passes Native corporation reinstatement bill after Senate changes

The Alaska House voted 36-3 Wednesday to accept Senate changes to a bill allowing involuntarily dissolved Native corporations to reinstate as the same legal entity.

House Bill 126 is aimed at Native corporations that lose corporate status after failing to file required reports or fees. Rep. Neal Foster, D-Nome, said the bill is needed because Native corporation land and shares were created under federal law and cannot simply be transferred into a new corporation.

The Senate version removed language the House had added for nonprofit and religious corporations. Foster said those organizations have other options if they are dissolved, including transferring assets into a new corporation, while Native corporations do not.

The Senate also removed a $1 million asset cap from certain corporate reporting provisions and changed a shareholder threshold from 500 current shareholders to 500 original shareholders.

Some members opposed concurrence over those changes. Rep. Sarah Vance, R-Homer, said religious nonprofits also needed flexibility. Rep. Rebecca Schwanke, R-Glennallen, said shareholders had raised concerns about reduced public access to corporate reporting information.

Foster said shareholders would still receive annual reports and proxy materials. He said the change affects whether some reports are posted publicly online, not whether shareholders can see them.

The House adopted the bill's effective date clause without objection.