HB 124 Summary: Benefit Corporations

• Establishes a new chapter in Alaska law (AS 10.60) allowing businesses to become "benefit corporations" that must pursue both shareholder profit and general public benefit purposes alongside optional specific public benefit purposes.

• Requires benefit corporations to have a benefit director who must be independent and prepare compliance statements regarding the corporation's adherence to its public benefit purposes; allows optional designation of a benefit officer.

• Mandates biennial benefit reports assessed against third-party standards measuring corporate performance on environmental, social, and stakeholder impact factors; reports must be filed with the state and made available to shareholders.

• Adds grounds for involuntary corporate dissolution if a benefit corporation is delinquent six months or more in filing its benefit report or paying the associated fee.

• Takes effect July 1, 2018, with the Department of Commerce, Community, and Economic Development authorized to adopt implementing regulations.