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SB 104: "An Act relating to financial accounts for persons with disabilities; relating to financial institutions; relating to property exemptions; relating to securities; and providing for an effective date."

00                             SENATE BILL NO. 104                                                                         
01 "An Act relating to financial accounts for persons with disabilities; relating to financial                             
02 institutions; relating to property exemptions; relating to securities; and providing for an                             
03 effective date."                                                                                                        
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
06 to read:                                                                                                                
07       SHORT TITLE. AS 06.65, enacted by sec. 2 of this Act, may be cited as the Alaska                                  
08 ABLE Savings Program Act.                                                                                               
09    * Sec. 2. AS 06 is amended by adding a new chapter to read:                                                        
10            Chapter 65. Alaska Savings Program for Eligible Individuals.                                               
11            Sec. 06.65.010. Program authorized. The Alaska savings program for eligible                                
12       individuals is created in the department. The department shall implement and                                      
13       administer the program under this chapter and as required by the federal authorizing                              
14       law.                                                                                                              
01            Sec. 06.65.020. Department authority. To implement and administer the                                      
02       program, the department may, in addition to the other authority provided to the                                   
03       department under this chapter,                                                                                    
04                 (1)  contract with a person to advise and assist the department to                                      
05       implement the program;                                                                                            
06                 (2)  seek rulings and guidance from the secretary and the federal                                       
07       Internal Revenue Service relating to the program;                                                                 
08                 (3)  change the program as required for participants in the program                                     
09       to obtain the federal income tax treatment provided by the federal authorizing                                    
10       statute;                                                                                                          
11                 (4)  charge, impose, and collect fees for administering the program                                     
12       or in connection with a contract or other transaction relating to the program;                                    
13                 (5)  develop marketing plans and material to promote the program;                                       
14                 (6)  establish a method for the allocation of money to pay for the                                      
15       administrative costs of the program;                                                                              
16                 (7)  notify the secretary when a program account has been opened                                        
17       for a designated beneficiary and submit reports on the program as required by the                                 
18       secretary and this chapter.                                                                                       
19            Sec. 06.65.030. Contracts with financial institutions. The department                                      
20       may contract with one or more financial institutions to provide one or more types                                 
21       of program accounts.                                                                                              
22            Sec. 06.65.040. Procurement code. The department shall comply with                                         
23       AS 36.30 (State Procurement Code) when the department procures a contract                                         
24       under AS 06.65.030.                                                                                               
25            Sec. 06.65.050. Procurement specifications. (a) When procuring a                                           
26       contract under AS 06.65.030, the department shall require a person responding to                                  
27       the solicitation for the contract to describe the types of program accounts that the                              
28       person is offering.                                                                                               
29            (b)  When determining the financial institution offer that is the most                                       
30       advantageous to the state, the department shall consider, in addition to the other                                
31       requirements of AS 36.30,                                                                                         
01                 (1)  the financial stability and integrity of the financial organization;                               
02                 (2)  the safety of the types of program accounts being offered;                                         
03                 (3)  the ability of the financial organization to satisfy the record-                                   
04       keeping and reporting requirements of the program;                                                                
05                 (4)  the plan of the financial organization for promoting the program                                   
06       and the investment the financial organization is willing to make to promote the                                   
07       program;                                                                                                          
08                 (5)  the fees, if any, that the financial institution will charge the                                   
09       program account owners;                                                                                           
10                 (6)  the minimum contribution amount that the financial institution                                     
11       will require for the initial deposit into the program account and the minimum                                     
12       contribution amount that the financial organization will require or accept after the                              
13       initial deposit;                                                                                                  
14                 (7)  the ability of the financial organization to accept electronic                                     
15       payments, including payroll deductions, for a program account; and                                                
16                 (8)  other benefits to the state or state residents included in the                                     
17       proposal of a financial institution, including fees that the financial institution will                           
18       pay to the department to cover expenses of the department's operation of the                                      
19       program.                                                                                                          
20            Sec. 06.65.060. Financial contractor obligations. In addition to any other                                 
21       obligations imposed by the contract with the department, a financial contractor                                   
22       shall                                                                                                             
23                 (1)  provide program accounts that comply with the federal                                              
24       authorizing law;                                                                                                  
25                 (2)  take the action necessary to keep the program in compliance                                        
26       with the requirements of this chapter and to manage the program accounts in                                       
27       compliance with the federal authorizing law;                                                                      
28                 (3)  keep adequate records of each program account and keep each                                        
29       program account segregated from other program accounts;                                                           
30                 (4)  compile the information contained in statements required to be                                     
31       prepared under AS 06.65.200 and provide the statements and the compiled                                           
01       material to the department;                                                                                       
02                 (5)  provide the department with access to the books and records of                                     
03       the financial contractor to the extent needed to determine compliance with the                                    
04       contract, this chapter, and the federal authorizing law;                                                          
05                 (6)  hold program accounts for the benefit of the program account                                       
06       owner;                                                                                                            
07                 (7)  be audited at least annually by a firm of certified public                                         
08       accountants selected by the department and provide the results of the audits to the                               
09       department;                                                                                                       
10                 (8)  provide the department with copies of all filings and reports                                      
11       related to the program made by the financial contractor during the contract or                                    
12       while the financial contractor holds program accounts;                                                            
13                 (9)  make available to the department for review the results of                                         
14       periodic examinations of the financial contractor by a state or federal banking,                                  
15       insurance, or securities agency, except to the extent that the report is confidential                             
16       under state or federal law; and                                                                                   
17                 (10)  ensure that the descriptions of the program in the media that                                     
18       the financial contractor uses to promote the program are consistent with a                                        
19       marketing plan developed by the department for the program.                                                       
20            Sec. 06.65.070. Additional audits. In addition to the annual audit required                                
21       by AS 06.65.060(7), the department may require a financial contractor to have an                                  
22       audit conducted of the financial contractor's operations and financial position                                   
23       when the department is concerned about the financial position, the record-keeping                                 
24       practices, or the status of the program accounts of the financial contractor.                                     
25            Sec. 06.65.080. Contract termination; nonrenewal. The department may                                       
26       terminate or fail to renew a financial contract. If the department terminates or does                             
27       not renew a contract with a financial contractor, the department shall take custody                               
28       of the program accounts held by the financial contractor and transfer the program                                 
29       accounts to another financial contractor as soon as possible and into program                                     
30       accounts that are as similar as possible to the types of program accounts being                                   
31       transferred.                                                                                                      
01            Sec. 06.65.090. Eligible individuals. To be eligible for a program account,                                
02       when an individual or the individual's representative establishes the program                                     
03       account or makes a distribution to another program account under AS 06.65.190,                                    
04       the individual shall                                                                                              
05                 (1)  have established residency in this state under AS 01.10.055;                                       
06                 (2)  be an individual who is entitled to benefits based on blindness                                    
07       or disability under 42 U.S.C. 401 - 434 or 42 U.S.C. 1381 - 1383f, and the                                        
08       blindness or disability occurred before the date on which the individual reached                                  
09       the age of 26; and                                                                                                
10                 (3)  be an individual for whom a disability certification, which                                        
11       satisfies the secretary and the federal authorizing law, is filed with the secretary                              
12       for the calendar year in which the eligible individual or the eligible individual's                               
13       representative opens the program account.                                                                         
14            Sec. 06.65.100. Representative of eligible individual. (a) A person may act as                             
15       the representative of an eligible individual under this chapter if the eligible individual                        
16       is a minor or lacks decision-making capacity and if the person is                                                 
17                 (1)  a parent, guardian, or conservator of the eligible individual; in                                  
18       this paragraph,                                                                                                   
19                      (A)  "conservator" has the meaning given in AS 13.06.050;                                          
20                      (B)  "guardian" has the meaning given in AS 13.06.050;                                             
21                      (C)  "parent" includes a stepparent; or                                                            
22                 (2)  a trustee of the property of the eligible individual.                                              
23            (b)  The representative of an eligible individual may establish a program                                    
24       account for the eligible individual, and the eligible individual is the designated                                
25       beneficiary of the program account. The representative shall manage the program                                   
26       account for the benefit of the designated beneficiary.                                                            
27            (c)  In this section, "decision-making capacity" means the ability to                                        
28       understand and appreciate the nature and consequences of a decision and the                                       
29       ability to reach and communicate an informed decision.                                                            
30            Sec. 06.65.110. Program account ownership. (a) The owner of a program                                      
31       account is the designated beneficiary of the program account.                                                     
01            (b)  If a representative of an eligible individual establishes a program account                             
02       for an eligible individual, the representative is not an owner of the program account                             
03       and does not have or acquire an interest in the assets of the program account.                                    
04            Sec. 06.65.120. Number of program accounts. An eligible individual                                         
05       may not be the designated beneficiary on more than one program account.                                           
06            Sec. 06.65.130. Program account application. The application for a                                         
07       program account must be in the form established by the department and contain                                     
08                 (1)  the name, address, and social security number of the program                                       
09       account owner and the representative who opens the program account for the                                        
10       eligible individual;                                                                                              
11                 (2)  the name, address, and social security number of the designated                                    
12       beneficiary and the representative who opens the program account for the eligible                                 
13       individual;                                                                                                       
14                 (3)  certification that the program account owner has not contributed                                   
15       an amount that exceeds the program account limits set under AS 06.65.150; and                                     
16                 (4)  additional information that the department and the secretary                                       
17       determine is necessary.                                                                                           
18            Sec. 06.65.140. Program account establishment fee. The financial                                           
19       contractor may charge an eligible individual a nonrefundable fee for establishing a                               
20       program account. The department shall establish the amount of the fee by contract                                 
21       with the financial contractor or by regulation.                                                                   
22            Sec. 06.65.150. Program account contributions. (a) A person may not                                        
23       make a contribution to open or add to a program account unless the person makes                                   
24       the contribution in cash.                                                                                         
25            (b)  Any person may make a contribution to a program account after the                                       
26       program account is opened, but the amount that the person may contribute is                                       
27       subject to the limits set by the federal authorizing law.                                                         
28            (c)  The department or the financial contractor shall reject or withdraw                                     
29       from a program account                                                                                            
30                 (1)  that part of a contribution that exceeds the limit established                                     
31       under (b) of this section; or                                                                                     
01                 (2)  the total amount of a contribution, if the department or the                                       
02       financial contractor determines that                                                                              
03                      (A)  the value of the program account without the                                                  
04            contribution is equal to or greater than the maximum limit established by                                    
05            the federal authorizing statute for the program account; or                                                  
06                      (B)  the designated beneficiary is not an eligible individual                                      
07            during the calendar year in which the contribution is made.                                                  
08            (d)  If a person makes a distribution from a program account during a                                        
09       calendar year, the financial contractor shall report the distribution to the federal                              
10       Internal Revenue Service and to the account owner or the representative of the                                    
11       account owner.                                                                                                    
12            (e)  The report under (d) of this section must include the distribution                                      
13       information required by state and federal law.                                                                    
14            Sec. 06.65.160. Limited investment direction. A designated beneficiary                                     
15       or the designated beneficiary's representative may not, directly or indirectly, direct                            
16       the investment of a program account, including the earnings on the program                                        
17       account, more than twice in one calendar year.                                                                    
18            Sec. 06.65.170. Change of designated beneficiary. A designated                                             
19       beneficiary or the designated beneficiary's representative may change the                                         
20       designated beneficiary of an account to an eligible individual who is a member of                                 
21       the family of the previous designated beneficiary.                                                                
22            Sec. 06.65.180. Distributions for qualified expenses. Except as allowed                                    
23       under AS 06.65.190, a designated beneficiary or the representative of the                                         
24       designated beneficiary may not make a withdrawal or other distribution from a                                     
25       program account unless the withdrawal or other distribution is used to pay for the                                
26       qualified expenses of the designated beneficiary.                                                                 
27            Sec. 06.65.190. Rollover distribution. (a) Subject to the restrictions in the                              
28       federal authorizing law for rollover distributions, a designated beneficiary or the                               
29       designated beneficiary's representative may make a distribution of the money in a                                 
30       program account to another program account if the designated beneficiary of the                                   
31       program account to which the distribution is being made is                                                        
01                 (1)  the same eligible individual; or                                                                   
02                 (2)  an eligible individual who is a member of the family of the                                        
03       designated beneficiary from whom the distribution is made.                                                        
04            (b)  To qualify as a distribution allowed under (a) of this section, the                                     
05       designated beneficiary or the designated beneficiary's representative shall make                                  
06       the distribution to the other program account before the 60th day after the                                       
07       designated beneficiary or the designated beneficiary's representative makes the                                   
08       distribution from the program account.                                                                            
09            Sec. 06.65.200. Statements. (a) A financial contractor shall provide                                       
10       program account statements to the department, the secretary, and the designated                                   
11       beneficiary of each program account established with the financial contractor at                                  
12       least four times each calendar year and within 30 days after the end of the three-                                
13       month period to which the statement relates.                                                                      
14            (b)  The statements required by (a) of this section must                                                     
15                 (1)  identify each contribution made to the program account during                                      
16       the reporting period;                                                                                             
17                 (2)  give the total amount of the contributions made to the program                                     
18       account during the reporting period;                                                                              
19                 (3)  give the value of the program account at the end of the                                            
20       reporting period;                                                                                                 
21                 (4)  identify each distribution made from the program account                                           
22       during the reporting period;                                                                                      
23                 (5)  identify contributions that exceed the limits set by the federal                                   
24       authorizing law; and                                                                                              
25                 (6)  provide other information that the department or the secretary                                     
26       requires to be included in the report.                                                                            
27            Sec. 06.65.210. Preparation and filing. In addition to the other reporting                                 
28       requirements of this chapter, a program depository shall prepare and file                                         
29       statements and program account information as required by state and federal law.                                  
30            Sec. 06.65.220. Separate accounting. A financial contractor shall provide                                  
31       separate accounting for each program account established with the financial                                       
01       contractor.                                                                                                       
02            Sec. 06.65.230. Annual fee. A financial contractor may impose an annual                                    
03       fee on the program account owner for the maintenance of a program account.                                        
04            Sec. 06.65.240. Use as security. A person may not use a program account                                    
05       or an interest in a program account as security for a loan. If a person pledges a                                 
06       program account or an interest in a program account as security for a loan, the                                   
07       pledge is void.                                                                                                   
08            Sec. 06.65.250. Exemption from creditor claims. The money in a                                             
09       program account and money paid out of a program account are exempt from a                                         
10       claim by the creditors of the designated beneficiary of the program account.                                      
11            Sec. 06.65.260. No state obligation. (a) This chapter may not be construed                                 
12       to create an obligation of the state, the department, or an agency or instrumentality                             
13       of the state to guarantee for the benefit of a designated beneficiary                                             
14                 (1)  the return of the principal deposited in the program account;                                      
15                 (2)  a rate of interest or other return on the principal in a program                                   
16       account; or                                                                                                       
17                 (3)  the payment of interest or other return on the principal in a                                      
18       program account.                                                                                                  
19            (b)  Every contract, application, and other document that may be used in                                     
20       connection with opening a program account must clearly state that the state does                                  
21       not insure a program account or guarantee the items described in (a) of this                                      
22       section.                                                                                                          
23            Sec. 06.65.270. Confidentiality. The department and the Department of                                      
24       Health and Social Services shall maintain the confidentiality of the information                                  
25       they receive or exchange under this chapter about eligible individuals, designated                                
26       beneficiaries, and program accounts as required by state and federal law.                                         
27            Sec. 06.65.280. Exchange of information. The department may exchange                                       
28       information with the Department of Health and Social Services to determine                                        
29       whether an individual is an eligible individual.                                                                  
30            Sec. 06.65.290. Contracts with other states. (a) Notwithstanding the other                                 
31       provisions of this chapter, instead of establishing the program in this state, the                                
01       department may enter into a contract with another state to allow the residents of                                 
02       this state to participate in a program established by another state under the federal                             
03       authorizing law.                                                                                                  
04            (b)  The department may enter into a contract with another state to allow                                    
05       the residents of that contracting state to participate in the program in this state.                              
06            (c)  The procurement of a contract under this section is not subject to                                      
07       AS 36.30 (State Procurement Code).                                                                                
08            Sec. 06.65.300. Program expense fund. (a) The program expense fund is                                      
09       established as a separate fund of the state in the general fund.                                                  
10            (b)  The program expense fund consists of money appropriated to the fund                                     
11       to pay the expenses of the program.                                                                               
12            (c)  The department shall pay the expenses incurred by the department to                                     
13       implement and administer the program from the program expense fund.                                               
14            (d)  The department shall manage the fund.                                                                   
15            (e)  Except as provided otherwise by the appropriation for the money, the                                    
16       money remaining in the program expense fund at the end of a fiscal year does not                                  
17       lapse and remains available for expenditure under this section in successive fiscal                               
18       years.                                                                                                            
19            Sec. 06.65.310. Regulations. The department shall adopt regulations under                                  
20       AS 44.62 (Administrative Procedure Act) to implement this chapter.                                                
21            Sec. 06.65.320. Annual report. The department shall evaluate the program                                   
22       each year. The department shall submit an annual report containing the evaluation                                 
23       to the senate secretary and chief clerk of the house of representatives on or before                              
24       the first day of each regular session of the legislature and shall notify the                                     
25       legislature that the report is available.                                                                         
26            Sec. 06.65.390. Definitions. In this chapter,                                                              
27                 (1)  "department" means the Department of Commerce,                                                     
28       Community, and Economic Development;                                                                              
29                 (2)  "designated beneficiary" means the eligible individual for                                         
30       whom a program account for qualified expenses is established under this chapter;                                  
31                 (3)  "eligible individual" means an individual who is eligible under                                    
01       AS 06.65.090;                                                                                                     
02                 (4)  "federal authorizing law" means 26 U.S.C. 529A (Internal                                           
03       Revenue Code) and the regulations issued under that statute;                                                      
04                 (5)  "financial contractor" means a financial institution that enters                                   
05       into a contract with the department under AS 06.65.030;                                                           
06                 (6)  "financial institution" means a person that provides financial                                     
07       services and is                                                                                                   
08                      (A)  organized under this title or authorized to do business in                                    
09            the state under this title;                                                                                  
10                      (B)  chartered by an agency of the federal government; or                                          
11                      (C)  subject to the jurisdiction and regulation of the United                                      
12            States Securities and Exchange Commission;                                                                   
13                 (7)  "member of the family" has the meaning given in the federal                                        
14       authorizing statute;                                                                                              
15                 (8)  "program" means the Alaska savings program for eligible                                            
16       individuals established under AS 06.65.010;                                                                       
17                 (9)  "program account" means a savings account used by the                                              
18       program to meet the qualified disability expenses of the designated beneficiary of                                
19       the account;                                                                                                      
20                 (10)  "program account owner" means the designated beneficiary of                                       
21       a program account;                                                                                                
22                 (11)  "qualified expense" means a qualified disability expense as                                       
23       defined by the federal authorizing law;                                                                           
24                 (12)  "representative" means a person who is a representative of an                                     
25       eligible individual under AS 06.65.100(a);                                                                        
26                 (13)  "savings account" means a financial account;                                                      
27                 (14)  "secretary" means the United States Secretary of the Treasury.                                    
28    * Sec. 3. AS 09.38.015(a) is amended to read:                                                                      
29            (a)  An individual is entitled to exemption of the following property:                                       
30                 (1)  a burial plot for the individual and the individual's family;                                      
31                 (2)  health aids reasonably necessary to enable the individual or a                                     
01       dependent to work or to sustain health;                                                                           
02                 (3)  benefits paid or payable for medical, surgical, or hospital care to                                
03       the extent they are or will be used to pay for the care;                                                          
04                 (4)  an award under AS 18.67 (Violent Crimes Compensation Board) or                                     
05       a crime victim's reparations act of another jurisdiction;                                                         
06                 (5)  benefits paid or payable as a longevity bonus under AS 47.45;                                      
07                 (6)  compensation or benefits paid or payable and exempt under federal                                  
08       law;                                                                                                              
09                 (7)  liquor licenses granted under AS 04;                                                               
10                 (8)  tuition credit or savings accounts under a higher education savings                                
11       account established under AS 14.40.802 or an advance college tuition savings contract                             
12       authorized under AS 14.40.809(a);                                                                                 
13                 (9)  a permanent fund dividend to the extent allowed under                                              
14       AS 43.23.065;                                                                                                     
15                 (10)  [REPEALED                                                                                         
16                 (11)]  benefits paid or payable under AS 47.45.301 - 47.45.309;                                     
17                 (11)  the money in or paid from a program account established                                       
18       under AS 06.65, including interest.                                                                           
19    * Sec. 4. AS 40.25.120(a) is amended to read:                                                                      
20            (a)  Every person has a right to inspect a public record in the state, including                             
21       public records in recorders' offices, except                                                                      
22                 (1)  records of vital statistics and adoption proceedings, which shall be                               
23       treated in the manner required by AS 18.50;                                                                       
24                 (2)  records pertaining to juveniles unless disclosure is authorized by                                 
25       law;                                                                                                              
26                 (3)  medical and related public health records;                                                         
27                 (4)  records required to be kept confidential by a federal law or                                       
28       regulation or by state law;                                                                                       
29                 (5)  to the extent the records are required to be kept confidential under                               
30       20 U.S.C. 1232g and the regulations adopted under 20 U.S.C. 1232g in order to secure                              
31       or retain federal assistance;                                                                                     
01                 (6)  records or information compiled for law enforcement purposes, but                                  
02       only to the extent that the production of the law enforcement records or information                              
03                      (A)  could reasonably be expected to interfere with enforcement                                    
04            proceedings;                                                                                                 
05                      (B)  would deprive a person of a right to a fair trial or an                                       
06            impartial adjudication;                                                                                      
07                      (C)  could reasonably be expected to constitute an unwarranted                                     
08            invasion of the personal privacy of a suspect, defendant, victim, or witness;                                
09                      (D)  could reasonably be expected to disclose the identity of a                                    
10            confidential source;                                                                                         
11                      (E)  would disclose confidential techniques and procedures for                                     
12            law enforcement investigations or prosecutions;                                                              
13                      (F)  would disclose guidelines for law enforcement                                                 
14            investigations or prosecutions if the disclosure could reasonably be expected to                             
15            risk circumvention of the law; or                                                                            
16                      (G)  could reasonably be expected to endanger the life or                                          
17            physical safety of an individual;                                                                            
18                 (7)  names, addresses, and other information identifying a person as a                                  
19       participant in the Alaska Higher Education Savings Trust under AS 14.40.802 or the                                
20       advance college tuition savings program under AS 14.40.803 - 14.40.817;                                           
21                 (8)  public records containing information that would disclose or might                                 
22       lead to the disclosure of a component in the process used to execute or adopt an                                  
23       electronic signature if the disclosure would or might cause the electronic signature to                           
24       cease being under the sole control of the person using it;                                                        
25                 (9)  reports submitted under AS 05.25.030 concerning certain                                            
26       collisions, accidents, or other casualties involving boats;                                                       
27                 (10)  records or information pertaining to a plan, program, or                                          
28       procedures for establishing, maintaining, or restoring security in the state, or to a                             
29       detailed description or evaluation of systems, facilities, or infrastructure in the state,                        
30       but only to the extent that the production of the records or information                                          
31                      (A)  could reasonably be expected to interfere with the                                            
01            implementation or enforcement of the security plan, program, or procedures;                                  
02                      (B)  would disclose confidential guidelines for investigations or                                  
03            enforcement and the disclosure could reasonably be expected to risk                                          
04            circumvention of the law; or                                                                                 
05                      (C)  could reasonably be expected to endanger the life or                                          
06            physical safety of an individual or to present a real and substantial risk to the                            
07            public health and welfare;                                                                                   
08                 (11)  the written notification regarding a proposed regulation provided                                 
09       under AS 24.20.105 to the Department of Law and the affected state agency and                                     
10       communications between the Legislative Affairs Agency, the Department of Law, and                                 
11       the affected state agency under AS 24.20.105;                                                                     
12                 (12)  records that are                                                                                  
13                      (A)  proprietary, privileged, or a trade secret in accordance with                                 
14            AS 43.90.150 or 43.90.220(e);                                                                                
15                      (B)  applications that are received under AS 43.90 until notice is                                 
16            published under AS 43.90.160;                                                                                
17                 (13)  information of the Alaska Gasline Development Corporation                                         
18       created under AS 31.25.010 or a subsidiary of the Alaska Gasline Development                                      
19       Corporation that is confidential by law or under a valid confidentiality agreement;                               
20                 (14)  information under AS 38.05.020(b)(11) that is subject to a                                        
21       confidentiality agreement under AS 38.05.020(b)(12);                                                          
22                 (15)  names, addresses, and other information identifying a person                                  
23       as a participant in the Alaska savings program for eligible individuals under                                 
24       AS 06.65.                                                                                                     
25    * Sec. 5. AS 45.55.990(32) is amended to read:                                                                     
26                 (32)  "security" means a note; stock; treasury stock; bond; debenture;                                  
27       evidence of indebtedness; certificate of interest or participation in any profit-sharing                          
28       agreement; limited liability company interest under AS 10.50, notwithstanding the                                 
29       limitations of AS 45.08.103(c); collateral-trust certificate; preorganization certificate                         
30       or subscription; transferable share; investment contract; voting-trust certificate;                               
31       certificate of deposit for a security; viatical settlement interest; certificate of interest or                   
01       participation in an oil, gas, or mining title or lease or in payments out of production                           
02       under the title or lease or in any sale of or indenture or bond or contract for the                               
03       conveyance of land or any interest in land; an option on a contract for the future                                
04       delivery of agricultural or mineral commodities or any other commodity offered or                                 
05       sold to the public and not regulated by the Commodity Futures Trading Commission;                                 
06       however, the contract or option is not subject to the provisions of AS 45.55.070 if it is                         
07       sold or purchased on the floor of a bona fide exchange or board of trade and offered or                           
08       sold to the public by a broker-dealer or agent registered under this chapter; investment                          
09       of money or money's worth including goods furnished or services performed in the                                  
10       risk capital of a venture with the expectation of some benefit to the investor where the                          
11       investor has no direct control over the investment or policy decision of the venture; or,                         
12       in general, any interest or instrument commonly known as a "security," or any                                     
13       certificate of interest or participation in, temporary or interim certificate for, receipt                        
14       for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing;                         
15       "security" does not include a participation agreement entered into under AS 14.40.802,                        
16       a program account established under AS 06.65, or an insurance or endowment                                    
17       policy or annuity contract under which an insurance company promises to pay a fixed                               
18       or variable sum of money either in a lump sum or periodically for life or for some                                
19       other specified period;                                                                                           
20    * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to                          
21 read:                                                                                                                   
22       TRANSITION. The Department of Commerce, Community, and Economic                                                   
23 Development shall file its first report required by AS 06.65.320, added by sec. 2 of this Act,                          
24 on or before the first day of each regular session of the legislature.                                                  
25    * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to                          
26 read:                                                                                                                   
27       TRANSITION: REGULATIONS. The Department of Commerce, Community, and                                               
28 Economic Development may adopt regulations authorized by AS 06.65.310, added by sec. 2                                  
29 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but                             
30 not before the effective date of sec. 2 of this Act.                                                                    
31    * Sec. 8. Section 7 of this Act takes effect immediately under AS 01.10.070(c).