HB 527: "An Act relating to the Alaska Securities Act, including reports, proxies, consents, authorizations, proxy statements, and other materials, civil penalties, refunds of proceeds from violations, restitution, and investment adviser representatives; and providing for an effective date."
00 HOUSE BILL NO. 527 01 "An Act relating to the Alaska Securities Act, including reports, proxies, consents, 02 authorizations, proxy statements, and other materials, civil penalties, refunds of 03 proceeds from violations, restitution, and investment adviser representatives; and 04 providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 44.55.139 is amended to read: 07 Sec. 45.55.139. Reports of corporations. A copy of all annual reports, 08 proxies, consents or authorizations, proxy statements, and other materials relating to 09 proxy solicitations distributed, published, or made available by any person to at least 10 30 Alaska resident shareholders of a corporation that has [TOTAL ASSETS 11 EXCEEDING $1,000,000 AND] a class of equity security held of record by 250 [500] 12 or more persons and that [WHICH] is exempted from the registration requirements of 13 AS 45.55.070 by AS 45.55.138, shall be filed with the administrator concurrently with 14 its distribution to shareholders.
01 * Sec. 2. AS 45.55.920(b) is amended to read: 02 (b) The administrator may issue an order against an applicant, registered 03 person, or other person who knowingly or intentionally violates this chapter or a 04 regulation or order of the administrator under this chapter, imposing a civil penalty of 05 not more than $2,500 for a single violation, or not more than $100,000 [$25,000] for 06 multiple violations, in a single proceeding or a series of related proceedings. 07 * Sec. 3. AS 45.55.920(c) is amended to read: 08 (c) For violations not covered by (b) of this section, the administrator may 09 issue an order against an applicant, registered person, or other person who violates this 10 chapter or a regulation or order of the administrator under this chapter, imposing a 11 civil penalty of not more than $500 for a single violation, or not more than $25,000 12 [$5,000] for multiple violations, in a single proceeding or a series of related 13 proceedings. 14 * Sec. 4. AS 45.55.920(e) is amended to read: 15 (e) After an order issued by the administrator under (b) or (c) of this section 16 becomes final and all rights of appeal are exhausted, the administrator may petition the 17 superior court to enter a judgment against a person who is a respondent in the order for 18 the amount of the civil penalty levied or the amount of restitution ordered against 19 the person. Subject to AS 44.62.570, the filing of the petition for a judgment does not 20 reopen the final order to further substantive review unless the court orders otherwise. 21 A judgment entered under this subsection may be executed on and levied under in the 22 manner provided in AS 09.35. 23 * Sec. 5. AS 45.55.920 is amended by adding a new subsection to read: 24 (f) When issuing an order under (b) or (c) of this section, if another person has 25 been harmed as a direct result of the violation, the administrator may also order the 26 violator to refund to the administrator the proceeds received by the violator from the 27 violation and may also order the violator to make restitution. 28 * Sec. 6. AS 45.55.990(15) is amended to read: 29 (15) "investment adviser representative" 30 (A) means a natural person who 31 (i) makes a recommendation or otherwise renders
01 advice regarding securities; manages accounts or portfolios of clients; 02 determines which recommendation or advice regarding securities 03 should be given; solicits, offers, or negotiates for the sale of or sells 04 advisory services; or supervises employees who perform an activity 05 described in this sub-subparagraph; and 06 (ii) is a supervised person of a state investment adviser 07 that is registered or required to be registered under this chapter or is a 08 supervised person of a federal covered adviser and has a place of 09 business located in this state, if a substantial portion of the business of 10 the supervised person is providing to clients who are natural persons 11 the services described in (i) of this subparagraph [, OR WHO IS A 12 SUPERVISED PERSON OF A FEDERAL COVERED ADVISER, 13 HAS A PLACE OF BUSINESS LOCATED IN THIS STATE, AND 14 HAS SIX OR MORE CLIENTS WHO ARE NATURAL PERSONS, 15 IF A SUBSTANTIAL PORTION OF THE BUSINESS OF THE 16 SUPERVISED PERSON IS PROVIDING TO CLIENTS WHO ARE 17 NATURAL PERSONS THE SERVICES DESCRIBED IN (i) OF 18 THIS SUBPARAGRAPH]; 19 (B) means other persons who are not otherwise covered by this 20 paragraph but who are designated by regulation or order of the administrator; 21 (C) except persons covered by (36)(A)(ii) of this section, does 22 not include a person that would not be defined as an investment adviser 23 representative under 17 C.F.R. 275.203A-3 adopted under 15 U.S.C. 80b-3a 24 (Investment Advisers Act of 1940), as that regulation exists on or after 25 October 1, 1999; 26 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).