Legislature(2015 - 2016)BARNES 124

03/14/2016 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 214 REPEAL WORKERS' COMP APPEALS COMMISSION TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
*+ HB 313 PUBLIC CONSTRUCTION CONTRACTS WAGE RATES TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony <Time Limit May Be Set> --
+= HB 194 AK SECURITIES ACT; PENALTIES; CRT. RULES TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
**Streamed live on AKL.tv**
        HB 194-AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                     
                                                                                                                                
4:07:16 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL NO.  194, "An Act repealing and  reenacting the Alaska                                                               
Securities   Act,  including   provisions   relating  to   exempt                                                               
securities   and  transactions;   relating  to   registration  of                                                               
securities, firms, and  agents that offer or  sell securities and                                                               
investment  advice;   relating  to  administrative,   civil,  and                                                               
criminal enforcement provisions,  including restitution and civil                                                               
penalties for violations; allowing  certain civil penalties to be                                                               
used for an investor training  fund; establishing increased civil                                                               
penalties  for  harming   older  Alaskans;  retaining  provisions                                                               
concerning corporations organized under  the Alaska Native Claims                                                               
Settlement  Act; amending  Rules 4,  5,  54, 65,  and 90,  Alaska                                                               
Rules of Civil Procedure; and providing for an effective date."                                                                 
                                                                                                                                
4:07:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB 194,  labeled  29-GH1060\E,  Bannister,                                                               
3/11/16  as the  working  document.   There  being no  objection,                                                               
Version E was before the committee.                                                                                             
                                                                                                                                
4:08:12 PM                                                                                                                    
                                                                                                                                
KEVIN  ANSELM,  Director,  Division of  Banking  and  Securities,                                                               
Anchorage Office,  Department of  Commerce, Community  & Economic                                                               
Development, said she would discuss the changes to HB 194.                                                                      
                                                                                                                                
4:09:54 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 4:09 p.m. to 4:10 p.m.                                                                       
                                                                                                                                
4:10:49 PM                                                                                                                    
                                                                                                                                
MS.  ANSELM  paraphrased  from   the  following  brief  sectional                                                               
analysis  for the  proposed CS  for HB  194, Version  E [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     SECTIONS 1  - 14  (pp. 1-11) include  the corresponding                                                                    
     changes  to  statutes that  refer  to  former AS  45.55                                                                    
     provisions that have been moved to AS 45.56.                                                                               
                                                                                                                                
     SECTIONS  15  -  24  (pp. 11-24)  modify  AS  45.55  as                                                                    
     necessary to  delete references  to statutes  that have                                                                    
     no bearing  on the Alaska Native  Claims Settlement Act                                                                    
     corporations because of the enactment of AS 45.56.                                                                         
                                                                                                                                
     SECTION 25 (p. 14) Proposed new Chapter AS 45.56                                                                           
                                                                                                                                
     Article 1. General Provisions (pp. 14-15)                                                                                  
                                                                                                                                
     Sec. 45.56.105.  Securities registration  requirement -                                                                    
     same as current law  (AS 45.55.070). Securities must be                                                                    
     registered  before  offer   or  sale  unless  federally                                                                    
     covered or specifically exempt from registration.                                                                          
                                                                                                                                
     Article 2.  Exemptions from Registration  of Securities                                                                    
     (pp. 15-29)                                                                                                                
     Sec. 45.56.205. Exempt securities  - generally the same                                                                    
     as current  law (AS 45.55.900(a)) with  a few additions                                                                    
     including  securities issued  by an  insurance company;                                                                    
     certain  options,  warrants  and rights  that  are  not                                                                    
     federal  covered securities;  certain cooperatives  and                                                                    
     equipment trust certificates.                                                                                              
     Sec.  45.56.210.  Exempt   transactions  -  similar  to                                                                    
     current   law   AS   45.55.900(b),   reorganized   with                                                                    
     additions  reflecting  transactions allowed  under  the                                                                    
     Uniform Securities Act of 2002 (USA).                                                                                      
     Sec. 45.56.220.  Small intrastate  securities offerings                                                                    
     (referred  to  as  "Crowdfunding") Allows  Alaskans  to                                                                    
     invest up  to $5,000  per person,  per offering,  in an                                                                    
     Alaskan  business.  Businesses  can   raise  up  to  $1                                                                    
     million per offering and requires  a notice filing with                                                                    
     the   state  and   certain  investor   disclosures  and                                                                    
     protections. Sec.  45.56.230. Disqualifier  - prohibits                                                                    
     persons who  have been subject to  regulatory action or                                                                    
     participated   in  certain   crimes   from  using   the                                                                    
     available    exemptions     from    the    registration                                                                    
     requirement.                                                                                                               
     Sec. 45.56.240. Waiver and  modification - broadens the                                                                    
     administrator's   authority   to    waive   or   change                                                                    
     requirements or conditions for exemptions.                                                                                 
     Sec.   45.56.250.   Denial,   suspension,   revocation,                                                                    
     condition,   or  limitation   of  exemptions   -  same,                                                                    
     although the  appeal rights and hearing  information is                                                                    
     moved to Article 6.                                                                                                        
                                                                                                                                
     Article  3.  Registration   of  Securities  and  Notice                                                                    
     Filing of  Federal Covered  Securities. (pp.  29-42) No                                                                    
     significant changes to  registration provisions from AS                                                                    
     45.55. Material changes are noted by section.                                                                              
                                                                                                                                
     Sec.    45.56.305.     Securities    registration    by                                                                    
     coordination -  registration statement must be  on file                                                                    
     with the  Administrator for 20  days unless  reduced by                                                                    
     regulation.  10   days  is  the   current  requirement.                                                                    
     References to prompt notice by telegram are deleted.                                                                       
     Sec.    45.56.310.     Securities    registration    by                                                                    
     qualification  - adds  a  new  requirement that  filers                                                                    
     disclose  pending  litigation that  materially  affects                                                                    
     the  issuer   or  litigation  that   is  known   to  be                                                                    
     contemplated by governmental authorities.                                                                                  
     Sec.  45.56.320.  Securities   registration  filings  -                                                                    
     allows  the   administrator  to  set  escrow   time  by                                                                    
     regulation or order for certain  securities issued to a                                                                    
     promoter or  to other persons at  a price substantially                                                                    
     less than the public offering price.                                                                                       
     Sec.  45.56.330.  Notice   filing  of  federal  covered                                                                    
     securities - allows imposition of late fees.                                                                               
     Sec.   45.56.340.  Viatical   settlement  interests   -                                                                    
     combines current  AS 45.55.120  and AS  45.55.905(c) to                                                                    
     explain the joint regulation of  these interests by the                                                                    
     Securities  and  Insurance  statutes.  Sec.  45.56.350.                                                                    
     Waiver and modification  - administrator allowed waiver                                                                    
     authorities consolidated from other sections.                                                                              
     Sec. 45.56.360.  Denial, suspension, and  revocation of                                                                    
     securities   registration   -   adds   requirement   to                                                                    
     establish  regulations explaining  what conduct  may be                                                                    
     fraud   upon    purchasers;   unreasonable   discounts,                                                                    
     compensation,  profits  (including options,  etc.)  and                                                                    
     terms that are unfair, unjust or inequitable.                                                                              
                                                                                                                                
     Article    4.   Broker-dealers,    Agents,   Investment                                                                    
     Advisers,   Investment  Adviser   Representatives,  and                                                                    
     Federal Covered Investment Advisers. (pp. 42-66)                                                                           
                                                                                                                                
     Firm,    salesperson,    and    adviser    registration                                                                    
     (licensing)   provisions  are   reorganized  into   one                                                                    
     article,  making  it  more user-friendly  than  current                                                                    
     law. Notable changes are listed below.                                                                                     
     Sec. 45.56.405.  Broker-dealer registration requirement                                                                    
     and exemptions  - includes  a new  "snowbird exemption"                                                                    
     to  facilitate  ongoing  broker-customer  relationships                                                                    
     with customers  who have established a  second or other                                                                    
     residence and  clarifies the  number of  transactions a                                                                    
     broker-dealer   may   effect   annually  (3)   if   not                                                                    
     registered in Alaska.                                                                                                      
     Sec.  45.56.410.   Limited  registration   of  Canadian                                                                    
     broker-dealers and  agents - changed annual  renewal to                                                                    
     December 31 from December 1.                                                                                               
     Sec. 45.56.420.  Registration exemption for  merger and                                                                    
     acquisition  broker   -  this  new   provision  exempts                                                                    
     mergers  and  acquisitions  brokers  from  registration                                                                    
     (licensing)  requirements  because  these  transactions                                                                    
     are  typically between  knowing  parties with  adequate                                                                    
     legal  counsel  and  scrutiny.  The  exemption  is  not                                                                    
     available   if   the   broker  actually   handles   the                                                                    
     securities  exchanged in  the transaction  or otherwise                                                                    
     represents  an issuer  or public  shell company,  or is                                                                    
     subject to Securities and Exchange Commission action.                                                                      
     Sec.  45.56.430.  Agent  registration  requirement  and                                                                    
     exemptions  - the  rewrite of  this section  includes a                                                                    
     statement  of  the  types   of  business  covered  here                                                                    
     instead of in a definitional section.                                                                                      
     Sec.   45.56.435.   Investment   adviser   registration                                                                    
     requirement and exemptions -  includes a new "snowbird"                                                                    
     exemption that  matches the broker-dealer  exemption in                                                                    
     Sec. 45.56.405.                                                                                                            
     Sec.   45.56.440.  Investment   adviser  representative                                                                    
     registration   requirement  and   exemptions  -   these                                                                    
     provisions  mirror  the  broker-dealer agents  in  Sec.                                                                    
     45.56.430.                                                                                                                 
     Sec.  45.56.445.  Federal  covered  investment  adviser                                                                    
     notice filing  requirement -  these provisions  are not                                                                    
     separately stated in the current law.                                                                                      
     Sec. 45.56.450.  Registration by  broker-dealer, agent,                                                                    
     investment    adviser,     and    investment    adviser                                                                    
     representative   -  combines   provisions  in   current                                                                    
     statute  and  regulations  and  extends  the  automatic                                                                    
     registration   from   30   to  45   days   unless   the                                                                    
     registration is denied.                                                                                                    
     Sec. 45.56.455.  Succession and change  in registration                                                                    
     of  broker-dealer  or  investment adviser  -  clarifies                                                                    
     that   an  organizational   change  can   generally  be                                                                    
     completed by  amendment instead  of a  new registration                                                                    
     (for  instance  a  sole   proprietorship  moving  to  a                                                                    
     limited liability company).                                                                                                
     Sec.   45.56.460.   Termination    of   employment   or                                                                    
     association   of    agent   and    investment   adviser                                                                    
     representative   and   transfer    of   employment   or                                                                    
     association   -   requires   the  registrant   file   a                                                                    
     notification   with  the   division.   Allows  for   an                                                                    
     immediate temporary  effective registration with  a new                                                                    
     firm  when there  is  no  new disciplinary  information                                                                    
     added.                                                                                                                     
     Sec. 45.56.465.  Withdrawal of registration  of broker-                                                                    
     dealer,  agent,  investment   adviser,  and  investment                                                                    
     adviser representative - extends  the effective date of                                                                    
     registration  withdrawal up  to  60 days  and allows  a                                                                    
     revocation proceeding to commence within one year.                                                                         
     Sec. 45.56.470.  Filing fees - are  established and may                                                                    
     be paid through a designee by regulation.                                                                                  
     Sec.  45.56.475.   Post  registration   requirements  -                                                                    
     allows    establishing    continuing    education    by                                                                    
     regulation.                                                                                                                
     Sec.   45.56.480.   Denial,   revocation,   suspension,                                                                    
     withdrawal,  restriction, condition,  or limitation  of                                                                    
     registration  -  in  addition  to  current  provisions,                                                                    
     allows  the  administrator   to  bar  registration  and                                                                    
     includes  actions  taken  by  other  regulators.  Civil                                                                    
     penalty  for  registrants  is  increased  from  $2,500-                                                                    
     $10,000 per violation to up to $100,000 per violation.                                                                     
                                                                                                                                
     Article 5. Fraud and Liabilities. (pp. 66-69)                                                                              
                                                                                                                                
     Sec.  45.56.505. General  fraud  - same  as current  AS                                                                    
     45.55.010.  Sec.   45.56.510.  Prohibited   conduct  in                                                                    
     providing investment  advice - allows  administrator to                                                                    
     define prohibited conduct by regulation.                                                                                   
     Sec. 45.56.520.  Misleading filings  - same  as current                                                                    
     AS 45.55.160.                                                                                                              
     Sec.    45.56.530.     Misrepresentations    concerning                                                                    
     registration  or   exemption  -  same  content   as  AS                                                                    
     45.55.170.                                                                                                                 
     Sec. 45.56.540.  Evidentiary burden  - same  content as                                                                    
     AS 45.55.900(c).                                                                                                           
     Sec.  45.56.550.   Filing  of  sales   and  advertising                                                                    
     literature - same content as AS 45.55.150.                                                                                 
     Sec.   45.56.560.  Qualified   immunity  -   registered                                                                    
     persons  are not  liable to  other registered  persons,                                                                    
     under state  defamation laws, for  statements contained                                                                    
     in  disclosure records  required to  be filed  with the                                                                    
     administrator for  purposes of licensing  and potential                                                                    
     discipline. This  provision encourages  full disclosure                                                                    
     to the administrator.                                                                                                      
                                                                                                                                
     Article  6. Administration  and  Judicial Review.  (pp.                                                                    
     69-89)                                                                                                                     
                                                                                                                                
     Sec.   45.56.605.    Administration   -    allows   the                                                                    
     administrator   to  develop   and  implement   investor                                                                    
     education  initiatives and  accept grants  or donations                                                                    
     for investor education.                                                                                                    
     Sec.  45.56.610. Administrative  files  and opinions  -                                                                    
     requires the administrator keep  records according to a                                                                    
     retention  schedule and  outlines publicly  disclosable                                                                    
     documents.                                                                                                                 
     Sec.  45.56.615.  Public   records;  confidentiality  -                                                                    
     clarifies and specifies record confidentiality.                                                                            
     Sec. 45.56.620.  Uniformity and cooperation  with other                                                                    
     agencies  -  expands  opportunity for  cooperation  and                                                                    
     sharing    with    governmental    units,    regulatory                                                                    
     organizations   for  collaborative   efforts  including                                                                    
     regulation, enforcement and  coordination to reduce the                                                                    
     burden of raising capital by small business.                                                                               
     Sec.  45.56.625.  Securities   investor  education  and                                                                    
     training  fund  -  Creates a  securities  and  investor                                                                    
     education and training fund within  the general fund to                                                                    
     provide funds for investor education.  33% of the money                                                                    
     received in  civil penalties may  be used  for investor                                                                    
        education and training if so appropriated by the                                                                        
     legislature.                                                                                                               
      Sec. 45.56.630. Service of process - same as current                                                                      
     AS 45.55.980.                                                                                                              
     Sec. 45.56.635. Applicability of the chapter - same as                                                                     
     current AS 45.55.980.                                                                                                      
                                                                                                                                
4:30:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  returned attention to  proposed Section                                                               
45.56.625  and  asked  whether  licensees  could  pay  for  their                                                               
education and  training, instead of  the state, as do  members of                                                               
the Alaska Bar Association.                                                                                                     
                                                                                                                                
MS.  ANSELM said  those  who violate  the  Alaska Securities  Act                                                               
should pay for investor education  through one-third of the civil                                                               
penalties  they are  assessed,  and  that is  the  source of  the                                                               
funds.                                                                                                                          
                                                                                                                                
REPRESENTATIVE COLVER asked what  is currently being collected in                                                               
fines.                                                                                                                          
                                                                                                                                
MS. ANSELM advised that there  are two kinds of securities cases:                                                               
consent orders  result when the division  negotiates with parties                                                               
in  violation,  and  civil penalties  are  assessed;  non-consent                                                               
securities fines  imposed from 2012-2015, under  the current law,                                                               
totaled  $525,000.   She noted  that  the maximum  penalty for  a                                                               
violation is  currently $25,000;  if the  limit was  removed, the                                                               
potential  fines would  total $7.7  million and  $3.4 million  in                                                               
restitution.   In further response to  Representative Colver, she                                                               
confirmed  that  the  revised  fines are  part  of  the  proposed                                                               
statute, which would increase the  maximum from $25,000 for total                                                               
violations, to $100,000 per violation.                                                                                          
                                                                                                                                
REPRESENTATIVE COLVER  observed that  the regulation  changes and                                                               
increase  in  revenue  are  not  reflected  in  the  fiscal  note                                                               
[document not identified].                                                                                                      
                                                                                                                                
MS. ANSELM  stated that  enforcement actions  are unknown  to the                                                               
division; in  fact, there are  times when few actions  are taken,                                                               
thus revenue to the division is indeterminate.                                                                                  
                                                                                                                                
REPRESENTATIVE  COLVER   suggested  that   if  the   fiscal  note                                                               
reflected more revenue the legislature  would be more amenable to                                                               
regulatory   reform.     The   business   community  seeks   less                                                               
bureaucracy and  to increase productivity, and  he encouraged the                                                               
legislature to  support the  business sector  as the  state heads                                                               
for "a  bit of bad  weather, and anything we  can do to  keep our                                                               
corporations healthy is, is something we need to be working on."                                                                
                                                                                                                                
4:36:58 PM                                                                                                                    
                                                                                                                                
MS. ANSELM agreed to further discuss the bill's fiscal note.                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  surmised that  in addition  to $100,000                                                               
per violation,  through criminal  proceedings the  division could                                                               
recapture losses and collect restitution.                                                                                       
                                                                                                                                
MS. ANSELM explained that it  is difficult to collect any amount,                                                               
and  she  described three  pending  cases  in the  court  system:                                                               
Fortune  Oil and  Gas,  a  Texas corporation,  caused  a loss  to                                                               
Alaskan  investors  of  over  $3 million,  and  orders  from  the                                                               
division have  been ignored; Global Arena  Capital Corporation, a                                                               
New  York  firm, cold-called  and  pitched  an investment  to  an                                                               
elderly  resident  who  lost  $16,000,  and  who  only  recovered                                                               
$10,000; two Alaskans formed a  firm and collected $40,000 from a                                                               
fellow   Alaskan  for   the  new   company,  which   subsequently                                                               
dissolved, and an  agreement for rescission was  reached, but the                                                               
investor was never paid.                                                                                                        
                                                                                                                                
4:42:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked for an  idea of how many "bad actors"                                                               
have money  to pay the state  or their victims, and  how many are                                                               
judgement-proof.                                                                                                                
                                                                                                                                
MS. ANSELM answered  that many are judgement-proof,  but there is                                                               
money behind  the three aforementioned perpetrators.   In further                                                               
response  to  Representative  LeDoux,   she  advised  that  civil                                                               
penalties are  paid to the  general fund  and a provision  in the                                                               
bill  directs  restitution to  the  investor,  and penalties  for                                                               
violations to  the state.   Ms. Anselm returned to  the sectional                                                               
analysis [original punctuation provided]:                                                                                       
                                                                                                                                
     Sec.    45.56.640.    Regulations,    forms,    orders,                                                                    
     interpretative  opinions,   and  hearings   -  combines                                                                    
     existing AS 45.55.950 and  45.55.970 and clarifies that                                                                    
     GAAP  compliant   financial  statements  may   only  be                                                                    
     required as allowed by federal law.                                                                                        
     Sec. 45.56.645. Investigations  and subpoenas - similar                                                                    
     to   existing   AS   45.55.910   and   allows   broader                                                                    
     cooperation with other regulators.                                                                                         
     Sec. 45.56.650.  Administrative enforcement -  time for                                                                    
     a respondent  to make  a request  for hearing  after an                                                                    
     action is  taken is extended  from 15 days to  30 days.                                                                    
     Civil penalties are increased from  $2,500 for a single                                                                    
     violation  and $25,000  for  multiple  violations to  a                                                                    
     maximum of $100,000 for a  single violation with no cap                                                                    
     for  multiple  violations. If  a  victim  is an  "older                                                                    
     person" (a  person over 60  years old),  the respondent                                                                    
     is subject  to treble  damages. Restitution  and actual                                                                    
     costs   of   investigation    may   be   ordered.   The                                                                    
     administrator   may   deny   the  use   of   securities                                                                    
     exemptions   under    Article   2    and   registration                                                                    
     (licensing)  exemptions under  Article  4  if a  person                                                                    
     violates the  Act. The  administrator may  petition the                                                                    
     Superior Court to  enforce a final order  and the Court                                                                    
     may hold  a person in  contempt for violating  an order                                                                    
     of the administrator, punishable  by up to $100,000 per                                                                    
     violation, in addition  to any administrative penalties                                                                    
     that were originally assessed.                                                                                             
     Sec. 45.56.655.  Civil enforcement -  the administrator                                                                    
     may seek  remedies such as  asset freezes, an  order of                                                                    
     rescission, restitution,  and civil penalties of  up to                                                                    
     $100,000 per violation, and all  damages may be trebled                                                                    
     if  the victim  is an  "older person"  (person over  60                                                                    
     years of age).                                                                                                             
     Sec.  45.56.660. Civil  liability -  outlines instances                                                                    
     where  the  seller  is  liable  to  the  purchaser  and                                                                    
     potential remedies  (actual damages  including interest                                                                    
     as determined  by the court); also  describes instances                                                                    
     where  the buyer  may  be liable  to  the seller.  Sec.                                                                    
     45.56.665. Rescission offers  - outlines the rescission                                                                    
     offer  process, including  a new  requirement that  the                                                                    
     offeror must  demonstrate the ability  to pay  and then                                                                    
     actually pay as promised.                                                                                                  
     Sec.   45.56.670.   Criminal  enforcement   -   knowing                                                                    
     violations  of  the Act  and  fraud  are punishable  as                                                                    
     class  C   felonies  punishable  under   AS  12.55.125.                                                                    
     Unknowing   violations  are   punishable  as   class  A                                                                    
     misdemeanors  and  fine  of  not  more  than  $100,000.                                                                    
     Individuals who  alter or  destroy evidence  are guilty                                                                    
     of  a  class C  felony  and  a  fine  of not  more  the                                                                    
     $500,000 or both.                                                                                                          
     Sec. 45.56.675.  Judicial review  - appellants  have 30                                                                    
     days to request review of a final order.                                                                                   
                                                                                                                                
4:49:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX returned attention to proposed Section                                                                    
45.56.670 [text previously provided] and asked for an example of                                                                
an unknowing violation.                                                                                                         
                                                                                                                                
MS. ANSELM  explained that if a  person can prove that  they were                                                               
unaware  of securities  laws,  even when  they  should have  been                                                               
aware, a lesser fine is assessed.   She returned to the sectional                                                               
analysis [original punctuation provided]:                                                                                       
                                                                                                                                
     Article   7.  Miscellaneous   and  Additional   General                                                                    
     Provisions. (pp. 89-100)                                                                                                   
                                                                                                                                
     Sec. 45.56.710.  Reimbursement of expenses  incident to                                                                    
     examination or investigation - same as AS 45.55.915.                                                                       
     Sec.  45.56.720. Electronic  records  and signatures  -                                                                    
     facilitates   filing   of    electronic   records   and                                                                    
     signatures. Consumers must consent  and have the option                                                                    
     to withdraw such consent.                                                                                                  
     Sec.  45.56.730. References  to  federal  statutes -  a                                                                    
     list of all federal statutes referenced in the Act.                                                                        
     Sec. 45.56.740. References to  federal agencies - notes                                                                    
     that a reference  to an agency of the  United States is                                                                    
     also a reference to a successor agency.                                                                                    
     Sec. 45.56.900. Definitions.                                                                                               
      - Updates federal citations                                                                                               
      - New definitions include:                                                                                                
      - Disqualifier                                                                                                            
      - Filing                                                                                                                  
      - Institutional investor (reflects federal law)                                                                           
      - Insurance company                                                                                                       
      - Insured                                                                                                                 
      - International Banking Institution                                                                                       
      - Offer to purchase                                                                                                       
      - Older  person -  a person  that is  age 60  or older                                                                    
     (from AS 47.65.290(6))                                                                                                     
      - Price amendment                                                                                                         
      - Record                                                                                                                  
      - Self-regulatory organization                                                                                            
      - Sign                                                                                                                    
                                                                                                                                
     Sec. 45.56.995. Short title. This  chapter may be cited                                                                    
     as the Alaska Securities Act.                                                                                              
                                                                                                                                
     SECTIONS 26 - 28  (pp. 101-105). Citations are modified                                                                    
     to  reflect Chapter  45.56 in  place  of Chapter  45.55                                                                    
     references; federal law citations are updated.                                                                             
                                                                                                                                
     SECTION  29 (p.  105) -  Repeals statutes  that are  no                                                                    
     longer needed in AS 45.55  because they do not apply to                                                                    
     Alaska Native  Claims Settlement Act  corporation proxy                                                                    
     solicitations.                                                                                                             
                                                                                                                                
     SECTION  30  (p. 105)  -  Amends  indirect Court  Rules                                                                    
     relating to changes in AS 45.56.                                                                                           
                                                                                                                                
     SECTION  31 (pp.  105-106) -  Allows the  department to                                                                    
     adopt transition regulations.                                                                                              
                                                                                                                                
     SECTION 32  (pp. 106-107)  - Amends  the law  to effect                                                                    
     transition  and application  of AS  45.55 for  existing                                                                    
     proceedings, existing rights and duties.                                                                                   
                                                                                                                                
     SECTION 33  (p. 107) - Reviser's  instruction to rename                                                                    
     AS  45.55  to  Alaska   Native  Claims  Settlement  Act                                                                    
     Corporations Proxy  Solicitations and  Initial Issuance                                                                    
     of Stock.                                                                                                                  
                                                                                                                                
     SECTION  34 (p.  107) -  Conditional effect  of certain                                                                    
     provisions upon constitutionally  required vote of each                                                                    
     house. SECTION 35 - July 1, 2016 effective date.                                                                           
                                                                                                                                
4:54:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX returned attention  to proposed Section 45.                                                               
56.305 [text  previously provided],  and asked whether  email was                                                               
substituted for prompt notice by telegram.                                                                                      
                                                                                                                                
MS. ANSELM said yes.                                                                                                            
                                                                                                                                
REPRESENTATIVE  LEDOUX  directed  attention to  proposed  Section                                                               
45.56.310  [text previously  provided]  and  recalled a  proposed                                                               
change that  would require disclosure of  any litigation, whether                                                               
or not contemplated by a government authority.                                                                                  
                                                                                                                                
MS. ANSELM agreed to make this change.                                                                                          
                                                                                                                                
REPRESENTATIVE  LEDOUX  directed  attention to  proposed  Section                                                               
45.56.560   [text  previously   provided],  and   confirmed  that                                                               
qualified  immunity would  not be  granted if  there is  reckless                                                               
disregard of the truth, or a known untruth.                                                                                     
                                                                                                                                
MS. ANSELM said absolutely.                                                                                                     
                                                                                                                                
REPRESENTATIVE JOSEPHSON  directed attention to  proposed Section                                                               
45.56.670  [text previously  provided], and  asked whether  there                                                               
are  [Alaska Statutes]  Title 11  crimes that  could be  filed in                                                               
addition to the class C felony in the proposed statute.                                                                         
                                                                                                                                
MS. ANSELM deferred to the Department of Law.                                                                                   
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  surmised  that  the  impetus  for  the                                                               
proposed bill  was that the  pertinent legislation  was outdated,                                                               
and asked whether HB 194 was based on a model.                                                                                  
                                                                                                                                
MS. ANSELM  said the bill is  a combination of a  2002 model act,                                                               
modifications from  other states,  experiences in Alaska,  and an                                                               
increase in investor protection.                                                                                                
                                                                                                                                
[HB 194 was held over.]                                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
HB214 ver W.PDF HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Sponsor Statement.pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Sectional Analysis.pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Fiscal Note-DOA-DRM-03-11-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Fiscal Note-DOLWD-WCAC-03-08-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Supporting Documents-Letter-WCCA 2-01-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Draft Proposed Blank CS ver E.pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Summary of Changes-Draft Proposed Blank CS ver E .pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB214 Sectional Analysis-Draft Proposed Blank CS ver E .pdf HL&C 3/14/2016 3:15:00 PM
HB 214
HB194 Supporting Documents-Snowbird Exemptions.pdf HL&C 3/14/2016 3:15:00 PM
HB 194
HB194 Supporting Documents-Letter-NASAA 01-29-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 194
HB194 Fiscal Note-DOA-PDA-02-05-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 194
HB194 Draft Proposed CS ver E.pdf HL&C 3/14/2016 3:15:00 PM
HB 194
HB194 Sectional Analysis Draft Proposed CS ver E.pdf HL&C 3/14/2016 3:15:00 PM
HB 194
HB194 Supporting Documents-Crosswalk version E.pdf HL&C 3/14/2016 3:15:00 PM
HB 194
HB313 ver A.pdf HL&C 3/14/2016 3:15:00 PM
HB 313
HB313 Sponsor Statement.pdf HL&C 3/14/2016 3:15:00 PM
HB 313
HB313 Fiscal Notes-DOLWD-WHA-02-18-19.pdf HL&C 3/14/2016 3:15:00 PM
HB 313
HB313 Supporting Documents-Letter-KPBSD 02-19-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 313
HB313 Supporting Documents-Letter CPH 03-11-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 313
HB313 Opposing Documents-Letter AFL-CIO 03-14-16.pdf HL&C 3/14/2016 3:15:00 PM
HB 313
HB214 Supporting Documents-Summary of WCAC Cases since 2005.PDF HL&C 3/14/2016 3:15:00 PM
HB 214