The American Civil Liberties Union of Alaska says the state’s financial regulator is chilling voices critical of Native corporations. Now, the Alaska Supreme Court is set to hear a legal challenge that could decide how much power the state has to police shareholders’ speech.

The Nome Nugget‘s editor Diana Haecker has worked at the paper since 2003. She received a letter to the editor in early 2017 about Sitnasuak Native Corporation’s upcoming board elections.

It wasn’t an endorsement of any one candidate, the newspaper — as a rule — doesn’t print those.

“We don’t want to end up with 50 letters to the editor endorsing the same candidate,” she said.

Instead, this letter criticized the election process which has been the subject of ongoing controversy and even lawsuits.

“To me voicing an opinion on process is exactly what letters to the editor are all about,” she said. “You voice your opinion and so I didn’t think twice about it, because to me that falls under the First Amendment rights of free speech.”

But the state of Alaska’s financial regulator sees it differently. The Division of Banking & Securities regulates Alaska’s native corporations including shareholder elections. It’s empowered to police online and written speech in a way designed to ensure fairness and transparency.

One of those ways is to require shareholders to file disclosures before making statements that could sway shareholders in an election. 

After receiving a complaint from a member of the Native corporation’s board, the state investigated and fined letter writer Austin Ahmasuk $1,500 and ordered him not to do it again.

ACLU of Alaska’s Legal Director Stephen Koteff says there are good reasons for states to regulate shareholder conduct. 

“Courts have almost universally agreed that these sorts of limitations are supported by compelling government interest and the interest in having fair and open elections among corporate entities,” he told CoastAlaska.

But Koteff says in this case, the state went too far. The gist of Austin Ahmasuk’s letter was that shareholders shouldn’t give their voting power to the board’s majority. 

The state claimed the letter was misleading, something he denies and remains unresolved. But the legality of this case isn’t over whether his letter was factual or not. It hinges on whether he should’ve filed a disclosure outlining his relationship with other shareholders with the division before writing in the newspaper. 

Division of Banking & Securities has broadly defined what is considered a solicitation for shareholder votes. That’s extended to social media chatter as well as more traditional media like the Nome Nugget newspaper.

“The statutes and regulations relating to ANCSA corporations and shareholders are intended to promote transparency in the solicitation process and the fairness of elections,” the division wrote in a statement.

No one from the state Attorney General’s office — which is representing the division in court — would be interviewed. But Assistant Attorney General Robert Schmidt wrote in a short statement to CoastAlaska that “the state is interested in making sure proxy statements do not contain material misstatements so shareholders can have accurate information.”

The ACLU maintains that the state is using its corporate speech policing power too broadly. Koteff says it was the general leadership of Sitnasuak Native Corporation that the criticism was aimed at. 

“And if the state is in the business of telling citizens or squelching citizens’ speech that is meant to criticize the corporate entity,” Koteff said, “then we have crossed the line and we are on our way well down that slippery slope.”

In 2019, the division says it received 27 complaints and issued enforcement orders in five cases. Four of those involved posts on Facebook, one of which remains under challenge.

This state Supreme Court case is a legal fight between a state regulator and a civil liberties group. But a friend of the court brief prepared by former Attorney General Jahna Lindemuth was submitted on behalf of four regional Native corporations. 

It backs up the state and cautions the court from forcing the division to change its rules.

“This is not a situation where the court should legislate from the bench, and change a regulation that has worked well for decades,” the former attorney general wrote on behalf of Doyon Limited, Bristol Bay Native Corporation, Calista Corporation and Cook Inlet Regional, Inc.

The Supreme Court case is Austin Ahmasuk v. Division of Banking and Securities. Oral arguments are scheduled for 11 a.m. Wednesday January 22. It’ll be carried live online by Gavel Alaska.

Editor’s Note: This article has been updated to correct the day of the oral arguments before the Alaska Supreme Court.

KCAW’s Post-Graduate Fellow bird hunting in Nome, Alaska. (Photo courtesy of Emily Russell.)

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There’s a new voice on Raven Radio! Emily Russell is this winter’s Post-Graduate Fellow and we met her on The Morning Interview.

KCAW’s Emily Kwong spoke to her about moving from New York to Fairbanks in pursuit of a Master’s degree in Northern Studies, getting her start in radio at KNOM in Nome, eating whale on St. Lawrence Island (which she dreamed of for years), and missing the sport of squash in Alaska.

Once a dress shop in Nome, “Vi’s Apparel” moved to Sitka in 1949 and Bonnie Brenner convinced her parents to purchase it at the age of 19. Brenner’s closed its doors last month after 65 years. (Emily Kwong/KCAW photo)

The doors of one of the oldest family-owned stores in Sitka closed last month. Brenner’s Fine Clothing & Gifts has been a staple on Lincoln Street for the past 65 years, and after nearly 50 years of management, owner Bonnie Brenner decided to retire.

KCAW sat down with Bonnie and her assistant manager, Stephanie Brenner, during the store’s last few weeks, to talk about what’s ahead, both as business partners and as a mother-daughter duo.

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Walking into Brenner’s awakens all the senses. A little bell rings when you open the door. Painted rain boots and cozy sweaters adorn the wall. The front tables display soap satchels and fine scented pillar candles. Brenner’s is the place you go when you want a little something special for your friend, or for yourself.

“This is a destination store,” said owner and manager Bonnie Brenner. “I know a lot of people that, if they come to Sitka, they’re coming to Brenner’s.”

(L to R): Stephanie and Bonnie Brenner said one of their big secrets to keeping merchandise interesting was buying items at gift shows around the country. Both women love to travel. (Emily Kwong/KCAW photo)

Brenner’s Fine Clothing & Gifts officially closed its doors to shoppers on March 30th. The store relocated to Sitka from Nome in 1949, where it was known as “Vi’s Apparel.” Bonnie Brenner began working there after school, and loved the store so much, she negotiated the sale with the owners – Duke and Vi Mitrovich – in 1962 or 1963, at the tender age of 19.

“[Duke and Vi] were getting ready to retire and I just said, ‘What are you going to do with it?’ I wanted to buy it,” said Bonnie Brenner. “I didn’t have any money! And my mom worked for a doctor. She’d never done retail.”

But the family bought it and renamed it Brenner’s, moving the store three times into gradually larger spaces. For Bonnie, the teenager entrepreneur, the appeal was not only the clothes, but the opportunity to hand pick items at markets outside of Sitka.

“I found out that when I went to college that you could go to market and travel. And that’s the part that I liked,” said Bonnie Brenner. “I found out that I could leave this island and hop on a plane. Otherwise, I would have never left.”

Stephanie Brenner, Bonnie’s daughter, started working at the store when she was just ten, dusting racks, cutting tissues, and fashioning bows on an old fashioned machine. She remembers watching her mother and grandmother work

“They just were always women that worked,” said Stephanie Brenner. “It always seemed kind of glamorous to me because I can remember when my mom and grandma would travel to New York City and I thought, ‘Oh, they’re going to New York City!’ They’d always bring back something really – not extravagant – but something unusual you wouldn’t have in Sitka, Alaska.”

With time, Stephanie became assistant manager and got bit by the same travel bug. Pretty soon, Bonnie and Stephanie were making yearly trips to markets and gift shows around the country – to Atlanta, Dallas, Los Angeles and many times to Seattle. The pair have come back with plenty of stories. Some they couldn’t tell on the radio, and others…

SB: We met Richard Simmons and that was absolutely hysterical. He was hilarious.
KCAW: Wait, how does one even meet Richard Simmons?
SB: He was at the Atlanta Gift Mart. I even think my mom had her picture taken with him.

Stephanie said that these little trips, which they sometimes called “research and development,” were a valuable way to keep the merchandise fresh. As the decades passed, the racks at Brenner’s would follow the ebb and flow of women’s fashion. Stephanie reminisced on the era of tuxedo blouses and some trends that have made a comeback.

One current trend Stephanie Brenner remembered from the past was, “Racks and racks of floral leggings and they would sell, as well as stirrup pants. You know, fashion evolves, but it’s sometimes reminiscent of maybe the 70s or the 80s.”

Though fashions have recycled, Bonnie said that the meteoric rise of online shopping has changed the buying habits of customers.

“People need to know with the internet buying that the tax dollars leaves Sitka,” said Bonnie Brenner.

Brenner’s hosted several sales the last month of operation, to sell the remaining merchandise. Many customers came by to pick up items and say their goodbyes to the store. (Emily Kwong/KCAW photo)

The Brenner women spoke of other economic changes that have affected the challenged the store, including the cost of utilities and the decreased number of cruise ships. Bonnie has been shrinking her inventory for the past two years, in preparation to retire and this year, the timing was good.

“I’ve done this for 50 years,” said Bonnie Brenner. “I will miss being downtown with my customers. I’m just overwhelmed with the comments I have received on how much they have loved our store. I have put my whole heart into it. It’s also a time – I’m excited. There’s going to be new changes in the store and it’s still going to be a wonderful store.”

Particularly exciting is Brenner’s Fine Clothing & Gifts in Hoonah, which Stephanie and her husband will operate this May through September. Stephanie said if she’s learned anything from her mom over the years, it’s to not be afraid of change.

“One thing that my mom has always said is that you’re never too old to stop learning,” said Stephanie. “I think that makes you better business people by being open to new ideas and trying new things. But I learned that from my mom.”

Among those new beginnings? The chance for Bonnie to return to her first love…

SB: And my mom is going to live the high life. (Laughs)
BB: Travel!

And the first destination? Somewhere in Europe or the fall leaves in New England.

Silver Basin, a home decor and cooking store, will move into the Brenner’s location in Sitka sometime next month.

The Brenner’s location will be turned over to Silver Basin, the home decor and cooking store, which is scheduled to open next month. (Emily Kwong/KCAW photo)