Legislature(2017 - 2018)GRUENBERG 120

04/12/2017 01:00 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 15 Minutes Following Session --
+= HB 170 AK SECURITIES ACT; PENALTIES; CRT. RULES TELECONFERENCED
Moved CSHB 170(JUD) Out of Committee
+= HB 200 NONPARTISAN OPEN PRIMARY ELECTIONS TELECONFERENCED
<Bill Hearing Canceled>
+= HB 208 TRUSTS; COMM PROP TRUSTS; POWERS OF APPT TELECONFERENCED
Heard & Held
+ HB 175 US PRESIDENT ELECT. POPULAR VOTE COMPACT TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ HB 223 MUNICIPAL PENALTY PROVISIONS TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled TELECONFERENCED
        HB 170-AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                     
                                                                                                                                
3:44:55 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced that the  final order of business would be                                                               
HOUSE   BILL   NO.  170,   "An   Act   relating  to   securities,                                                               
registration,  exempt  securities, exempt  transactions,  broker-                                                               
dealers,   agents,   investment  advice,   investment   advisers,                                                               
investment adviser  representatives, federal  covered securities,                                                               
federal   covered   investment  advisers,   viatical   settlement                                                               
interests, small intrastate  security offerings, Canadian broker-                                                               
dealers, and Canadian agents;  relating to administrative, civil,                                                               
and  criminal enforcement  provisions, including  restitution and                                                               
civil penalties for violations;  relating to an investor training                                                               
fund; establishing  increased civil  penalties for  harming older                                                               
persons   and  vulnerable   adults;   relating  to   corporations                                                               
organized  under   the  Alaska  Native  Claims   Settlement  Act;                                                               
amending  Rules 4,  5,  54, 65,  and 90,  Alaska  Rules of  Civil                                                               
Procedure,  and Rule  602, Alaska  Rules of  Appellate Procedure;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
3:45:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX moved  to adopt  Amendment 1,  Version 30-                                                               
LS0333\J.2, Bannister, 4/10/17, which read as follows:                                                                          
                                                                                                                                
     Page 34, lines 18 - 19:                                                                                                    
          Delete "by a governmental authority"                                                                                  
                                                                                                                                
REPRESENTATIVE FANSLER objected for purposes of discussion.                                                                     
                                                                                                                                
3:45:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  explained that  the amendment  deletes the                                                               
phrase "by  a governmental authority" because,  she opined, there                                                               
should  be a  description  of any  pending  litigation action  or                                                               
proceeding  that  materially  affects the  issuer's  business  or                                                               
assets,  whether or  not it  was contemplated  by a  governmental                                                               
entity, or anyone.                                                                                                              
                                                                                                                                
REPRESENTATIVE FANSLER withdrew his objection.                                                                                  
                                                                                                                                
3:46:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  objected for purposes of  discussion, and                                                               
noted that  he was not  sure he understood exactly  how expansive                                                               
it would be  when removing that language.  He  offered a scenario                                                               
of making  a motion to  change a  bylaw for his  political party,                                                               
and asked  how he draws  that barrier to  make sure it's  not too                                                               
expansive.                                                                                                                      
                                                                                                                                
REPRESENTATIVE   LEDOUX   responded    that   if   someone   sent                                                               
Representative  Eastman a  letter that  read, "Dear  David, We're                                                               
going to  sue you, and  we're going to  sue you for  $1 million."                                                               
In that scenario, if Representative  Eastman was a billion dollar                                                               
entity being  sued for $1  million, possibly  it would be  no big                                                               
deal,  but  if  $1  million   was  other  than  chump  change  to                                                               
Representative Eastman,  it would materially affect  his business                                                               
or assets.                                                                                                                      
                                                                                                                                
3:47:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked whether  there was some  other part                                                               
of  this  chapter that  had  the  word  "legal" before  the  word                                                               
"action" so that an action must be a legal action.                                                                              
                                                                                                                                
REPRESENTATIVE  LEDOUX  referred to  the  first  portion of  Sec.                                                               
45.56.310(b)(12).   Securities  registration   by  qualification,                                                               
which read as follows:                                                                                                          
                                                                                                                                
         (12)   a    description   of    any   pending                                                                          
     litigation, action, or proceeding ...                                                                                      
                                                                                                                                
REPRESENTATIVE  LEDOUX   advised  that   this  is   boiler  plate                                                               
language.                                                                                                                       
                                                                                                                                
3:47:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  withdrew his  objection.  There  being no                                                               
further objection, Amendment 1 was adopted.                                                                                     
                                                                                                                                
[CHAIR CLAMAN passed gavel to Vice Chair Fansler.]                                                                              
                                                                                                                                
3:48:06 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN moved to adopt Amendment 2, Version 30-LS0333\J.1,                                                                 
Bannister, 4/11/17, which read as follows:                                                                                      
                                                                                                                                
     Page 1, line 5, following "agents;":                                                                                     
          Insert   "relating   to   protecting   older   and                                                                  
     vulnerable adults from financial exploitation;"                                                                          
                                                                                                                                
     Page 62, line 12, following "a":                                                                                           
         Insert "broker-dealer, investment adviser, or"                                                                         
                                                                                                                                
     Page 62, line 14:                                                                                                          
          Following "the":                                                                                                      
         Insert "broker-dealer, investment adviser, or"                                                                         
          Delete "promptly"                                                                                                     
                                                                                                                                
     Page 62, line 15, following "administrator":                                                                               
          Insert "not later than five days after the                                                                            
     broker-dealer,   investment   adviser,   or   qualified                                                                    
     individual  develops  the  reasonable belief  that  the                                                                    
     financial    exploitation   or    attempted   financial                                                                    
     exploitation  has or  may have  occurred,  or is  being                                                                    
     attempted,  except that  the broker-dealer,  investment                                                                    
     adviser,  or qualified  individual  shall notify  adult                                                                    
     protective services  and the  administrator immediately                                                                    
     upon  confirmation  of  the financial  exploitation  or                                                                    
     attempted financial exploitation of the covered adult"                                                                     
                                                                                                                                
     Page 62, lines 16 - 19:                                                                                                    
          Delete all material and insert:                                                                                       
          "(b)  The requirements of (a) of this section may                                                                     
     not be construed to require  more than one notification                                                                    
     for  each  occurrence   of  exploitation  or  attempted                                                                    
     exploitation."                                                                                                             
                                                                                                                                
     Page  62, line  20, following  the first  occurrence of                                                                    
     "a":                                                                                                                       
         Insert "broker-dealer, investment adviser, or"                                                                         
                                                                                                                                
     Page 62, line 21, following "a":                                                                                           
         Insert "broker-dealer, investment adviser, or"                                                                         
                                                                                                                                
     Page 62, line 22, following "adult":                                                                                       
          Insert "previously"                                                                                                   
                                                                                                                                
     Page 62, line 23:                                                                                                          
          Following "adult,":                                                                                                   
          Insert "as well as any other person allowed under                                                                     
     state or federal law or regulation, or the rules of a                                                                      
     self-regulatory organization,"                                                                                             
          Following the second occurrence of "the":                                                                             
         Insert "broker-dealer, investment adviser, or"                                                                         
                                                                                                                                
     Page 62, lines 26 - 28:                                                                                                    
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 63, line 9:                                                                                                           
          Delete the second occurrence of "person"                                                                              
          Insert "individual"                                                                                                   
                                                                                                                                
     Page 63, line 16:                                                                                                          
          Delete "results"                                                                                                      
          Insert "status"                                                                                                       
                                                                                                                                
     Page 63, line 17, following "administrator":                                                                               
          Insert ", and provides additional status updates                                                                      
       to the administrator and adult protective services                                                                       
     upon request"                                                                                                              
                                                                                                                                
     Page 63, line 18:                                                                                                          
          Delete "(e)"                                                                                                          
          Insert "(d)"                                                                                                          
                                                                                                                                
     Page 63, line 31:                                                                                                          
          Delete "(e), (f), or (g)"                                                                                             
          Insert "(d) or (e)"                                                                                                   
                                                                                                                                
     Page 64, line 2:                                                                                                           
          Delete "person"                                                                                                       
          Insert "adult"                                                                                                        
                                                                                                                                
     Page 64, lines 4 - 7:                                                                                                      
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 64, following line 18:                                                                                                
          Insert a new subsection to read:                                                                                      
          "(h)  A broker-dealer, investment adviser, or                                                                         
     qualified   individual  acting   in   good  faith   and                                                                    
     exercising  reasonable care  under  (a) -  (g) of  this                                                                    
     section   is  immune   from  administrative   or  civil                                                                    
     liability for a  notification, disclosure, disbursement                                                                    
     delay,  or  record sharing  under  (a)  - (g)  of  this                                                                    
     section."                                                                                                                  
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
     Page 65, line 12:                                                                                                          
          Delete "investment adviser,"                                                                                          
                                                                                                                                
REPRESENTATIVE KOPP objected for purposes of discussion.                                                                        
                                                                                                                                
3:48:25 PM                                                                                                                    
                                                                                                                                
KEVIN  ANSELM,  Director,  Division of  Banking  and  Securities,                                                               
Department  of   Commerce,  Community  &   Economic  Development,                                                               
explained  that the  Division of  Banking  and Securities  worked                                                               
with  the industry  to create  this amendment  so the  bill would                                                               
work better for  its business practices, and was  clearer for the                                                               
community.  This amendment, in  and of itself, protects elder and                                                               
vulnerable  Alaskans  by  requiring  the  financial  industry  to                                                               
report when it believed that  financial exploitation was about to                                                               
take  place,  or  had  taken  place.   It  allows  the  financial                                                               
industry  to  hold onto  a  disbursement  regarding a  securities                                                               
trade, for  instance, until it  was determined there was,  or was                                                               
not,  exploitation,  she  explained.   She  noted  that  the  two                                                               
reporting  pieces   include  the  Administrator   of  Securities,                                                               
Division  of  Banking  and Securities,  Department  of  Commerce,                                                               
Community  & Economic  Development  (DCCED), and  also the  Adult                                                               
Protective Services  (APS), Division  of Senior  and Disabilities                                                               
Services, Department of Health and  Social Services.  She offered                                                               
that  in the  event those  reports  are made,  the industry,  the                                                               
stockbroker, investment advisor, the  advisor's firm, are granted                                                               
administrative  and civil  immunity  from violation  of the  act.                                                               
Immunity is  a large piece  for industry, she described,  and the                                                               
industry works together with the division to resolve the issue.                                                                 
                                                                                                                                
REPRESENTATIVE  KOPP  withdrew his  objection.    There being  no                                                               
objection, Amendment 2 was adopted.                                                                                             
                                                                                                                                
3:50:03 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  moved to adopt Amendment  3, Version 30-LS0333\J.4,                                                               
Bannister, 4/12/17, which read as follows:                                                                                      
                                                                                                                                
     Page 92, lines 13 - 15:                                                                                                    
          Delete ", a regulation adopted under this                                                                             
     chapter, or an order  issued under this chapter, except                                                                    
     AS 45.56.550  or  the  notice  filing  requirements  of                                                                    
     AS 45.56.330 or 45.56.445,"                                                                                                
                                                                                                                                
     Page 92, lines 16 - 18:                                                                                                    
          Delete "A person convicted of violating a                                                                             
     regulation or  order issued under  this chapter  may be                                                                    
     fined, but  may not  be imprisoned,  if the  person did                                                                    
     not know of the regulation or order."                                                                                      
                                                                                                                                
REPRESENTATIVE EASTMAN objected for purposes of discussion.                                                                     
                                                                                                                                
3:51:08 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN explained that Amendment  [3] was in response to the                                                               
in-depth  and extended  discussion during  the last  bill hearing                                                               
with regard to  criminal violations and issues.   He reminded the                                                               
committee that  the concerns expressed  involved having  a charge                                                               
that did not include a  mental state, and questions about whether                                                               
it did,  or did not, actually  create a misdemeanor.   During the                                                               
course  of  the discussions,  the  Department  of Law  offered  a                                                               
potential amendment to delete [Sec.  45.56.670(a), page 92, lines                                                               
13-15] to read as follows:                                                                                                      
                                                                                                                                
          (a)  ...   ,  a  regulation  adopted   under  this                                                                    
     chapter, or an order  issued under this chapter, except                                                                    
     AS 45.56.550  or the notice  filing requirements  of AS                                                                    
     45.56.330 or 45.56.445.                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  explained  that deleting  the  language  regarding                                                               
regulations and  orders would not  only be satisfactory  with the                                                               
Department of  Law, but it would  make the last sentence  of Sec.                                                               
45.56.670(a),  lines  16-18  superfluous because  it  related  to                                                               
regulations  and orders.   In  adopting Amendment  3, he  further                                                               
explained,   the  language   would   be   more  consistent   with                                                               
traditional  criminal  provisions, and  there  would  not be  the                                                               
issue  of  regulations  that  might   create  a  crime  that  the                                                               
legislature had not created.                                                                                                    
                                                                                                                                
3:52:38 PM                                                                                                                    
                                                                                                                                
MS. ANSELM advised  that the Department of  Commerce, Community &                                                               
Economic Development has no objection to Amendment 3.                                                                           
                                                                                                                                
3:52:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN asked  the  exact  effect this  amendment                                                               
would  have  on violations  of  notice  filing requirements,  and                                                               
whether  that would  increase the  penalties  for someone  merely                                                               
making a notice filing requirement violation.                                                                                   
                                                                                                                                
CHAIR  CLAMAN opined  that this  narrows  it, as  opposed to  the                                                               
range of regulations that could be  issued that one would have to                                                               
show knowledge.  Under this  amendment, the only issue that could                                                               
be  a basis  for a  criminal charge  would be  violations of  the                                                               
statutes.  He  explained that when "they  reference violates this                                                               
chapter" means Alaska Statutes within  Chapter 45, and they would                                                               
have to show  "knowing violation" of those  statutes, rather than                                                               
violations of  regulations or  orders.   It actually  narrows the                                                               
scope of  conduct that could  be subject to criminal  charges, he                                                               
said.                                                                                                                           
                                                                                                                                
3:54:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN noted  that  currently  AS 45.56.330  and                                                               
45.56.445  include  notice  filing  requirements,  and  they  are                                                               
currently exempted  because there is  [page 92, line  14] "except                                                               
... or."  In the event  that exemption was removed, and those are                                                               
included  within  this chapter,  he  paraphrased,  "A person  who                                                               
intentionally  violates  this  chapter,  including  these  notice                                                               
filing  requirements is  guilty of  a class  C felony"  [page 92,                                                               
lines 12-15].   He asked whether  the intent of the  committee is                                                               
that a simple notice filing  requirement violation would now be a                                                               
felony under Amendment 3.                                                                                                       
                                                                                                                                
CHAIR  CLAMAN  related  that he  did  not  follow  Representative                                                               
Eastman's question.                                                                                                             
                                                                                                                                
3:55:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KOPP   asked,   in   explaining   Representative                                                               
Eastman's question, the committee to  turn to Sec. 46.56.550, and                                                               
he pointed out that it currently  exempts this as being a felony,                                                               
and paraphrased,  "filing of  sales and  advertising literature."                                                               
Under  Amendment  3, he  explained,  it  takes out  this  section                                                               
dealing  with advertising  to clients  and the  proper manner  in                                                               
which  to advertise.   It  also removes  the filing  requirements                                                               
under  AS  45.56.330 and  45.56.445,  as  those are  specifically                                                               
exempted from  being felonies.  Representative  Eastman had asked                                                               
whether  the  intent of  the  committee  was  to now  make  those                                                               
felonies because  the amendment pulls  out the exceptions  and by                                                               
default would fall into felony territory.                                                                                       
                                                                                                                                
3:56:46 PM                                                                                                                    
                                                                                                                                
RENEE WARDLAW,  Assistant Attorney  General, Commercial  and Fair                                                               
Business  Section,   Department  of  Law,   [audio  difficulties]                                                               
responded   that  excluding   the  following   language  in   the                                                               
amendment, and  paraphrased, "except AS 45.56.550,  or the notice                                                               
filing requirements  of AS 45.56.330  or 45.56.445" means  that a                                                               
violation of those statutes could result in a class C felony.                                                                   
                                                                                                                                
3:57:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX   commented    that   she   agrees   with                                                               
Representative Eastman  and possibly  with Ms.  Wardlaw, although                                                               
she  was  unsure [due  to  audio  difficulties].   Representative                                                               
LeDoux advised that  she had to leave the meeting  but would like                                                               
to see an amendment to Amendment 3.                                                                                             
                                                                                                                                
REPRESENTATIVE  FANSLER commented  that there  was no  suggestion                                                               
from   Ms.   Wardlaw,   other    than   her   confirmation   that                                                               
Representative Eastman's point was correct.                                                                                     
                                                                                                                                
3:58:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP moved  to adopt  Conceptual  Amendment 1  to                                                               
Amendment 3,  for the  purpose of  not "felonizing"  conduct that                                                               
would  become a  felony, which  is not  currently a  felony.   In                                                               
order to  be consistent  moving forward,  he suggested  that this                                                               
amendment  would keep  everything  as currently  excepted from  a                                                               
felony prosecution,  the same as  it is currently.   In reference                                                               
to  amending Amendment  3,  to  simply delete  [page  1] line  3,                                                               
"except  AS 45.56.550  or the  notice filing  requirements of  AS                                                               
45.56.330 or 45.56.445."                                                                                                        
                                                                                                                                
REPRESENTATIVE FANSLER  surmised that  Conceptual Amendment  1 to                                                               
Amendment 3  deletes line 3,  "except AS 45.56.550 or  the notice                                                               
filing requirements of AS 45.56.330 or 45.56.445."                                                                              
                                                                                                                                
CHAIR CLAMAN  noted he would like  input from Ms. Anselm  and Ms.                                                               
Wardlaw as to Conceptual Amendment 1.                                                                                           
                                                                                                                                
MS. ANSELM  commented that the Department  of Commerce, Community                                                               
& Economic Development  is fine with Conceptual  Amendment 1, and                                                               
asked that Ms. Wardlaw speak to the conceptual amendment.                                                                       
                                                                                                                                
MS. WARDLAW advised  that the Department of Law  has no objection                                                               
to Conceptual Amendment 1.                                                                                                      
                                                                                                                                
CHAIR  CLAMAN, as  maker  of  the amendment,  advised  he has  no                                                               
objection  to  Conceptual  Amendment   1.    He  commented  that,                                                               
interestingly, by deleting "the  last sentence of the amendment,"                                                               
the   committee  was   keeping   that  language   in  the   bill.                                                               
Consequently, there was  a bit of a mirror effect,  but he had no                                                               
objection, he said.                                                                                                             
                                                                                                                                
REPRESENTATIVE   FANSLER   noted   there  being   no   objection,                                                               
Conceptual Amendment 1 to Amendment 3 was adopted.                                                                              
                                                                                                                                
4:02:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN withdrew  his objection  to Amendment  3.                                                               
There being no objection, Amendment 3, as amended, was adopted.                                                                 
                                                                                                                                
[VICE CHAIR FANSLER returned the gavel to Chair Claman.]                                                                        
                                                                                                                                
4:02:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  referred to Amendment 1,  noting that the                                                               
committee  removed  the  parameter   that  "contemplated  as  yet                                                               
unexecuted litigation  actions or  proceedings by  a governmental                                                               
authority."   He asked  Ms. Wardlaw, whether  it was  clear, with                                                               
this amendment now going forward  in the bill, exactly what types                                                               
of  proceedings  would be  wrapped  up  in  this which  were  not                                                               
previously included.                                                                                                            
                                                                                                                                
MS. WARDLAW  responded that the amendment  actually expands legal                                                               
proceedings  beyond   governmental  agencies  to   include  other                                                               
parties, and at this time the  Department of Law has no objection                                                               
to Representative LeDoux's amendment.                                                                                           
                                                                                                                                
REPRESENTATIVE EASTMAN  clarified that his question  was, what it                                                               
now  includes  because  the word  "contemplated"  remains,  which                                                               
means  it  has  not  yet  happened.    He  asked  what  sorts  of                                                               
contemplated things  haven't happened yet,  actions, proceedings,                                                               
and such, which now fall under the scope of this statute.                                                                       
                                                                                                                                
MS. WARDLAW  answered that "contemplated"  would be  inclusive of                                                               
any  proceedings that  had not  yet occurred,  such as  something                                                               
under  consideration by  "this agency,"  and was  not yet  at the                                                               
point of filing a complaint.                                                                                                    
                                                                                                                                
CHAIR CLAMAN  referred to "governmental authority"  and explained                                                               
that  it was  fairly common,  especially in  securities settings,                                                               
for an entity  "regulated by these" to receive a  letter from the                                                               
government  advising  the person  they  made  some errors.    The                                                               
government's  "demand  letter,"  or  a  private  entity's  demand                                                               
letter, serves  as putting the  person on notice that  within 30,                                                               
60 days,  or whatever time  period, if  the person had  not fixed                                                               
the  errors, the  government may  file civil  or criminal  action                                                               
with regard  to the violation, or  the private entity may  file a                                                               
civil  lawsuit.     He  explained   that  an  entity   must  take                                                               
affirmative  action in  the form  of the  demand letter  giving a                                                               
party notice that  a lawsuit may be filed, in  private as well as                                                               
public actions.                                                                                                                 
                                                                                                                                
MS. WARDLAW advised that Chair Claman was correct.                                                                              
                                                                                                                                
4:07:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN referred to  [Sec. 45.56.670(a), page 92],                                                               
lines 16-17, and  commented that it was simply saying  that it is                                                               
any proceeding to which the issuer is  a party.  He said that the                                                               
issuer could be  on either side of the action  because it did not                                                               
appear to  be limited in  any manner.   He then referred  to line                                                               
18,  and paraphrased,  "any contemplated  proceeding," and  asked                                                               
whether the  language here  limits this so  that it  only applies                                                               
when the party is on the  receiving end of a litigation action or                                                               
a proceeding  was being contemplated.   He further  asked whether                                                               
it would  not apply in a  case not yet filed  wherein someone was                                                               
going the other direction where  proprietary information might be                                                               
involved,  i.e.,  the  fact  that  they are  about  to  file  the                                                               
lawsuit,  and obviously  if the  lawsuit had  not yet  been filed                                                               
there was probably a reason.                                                                                                    
                                                                                                                                
MS.  ANSELM  responded  "No,  it   does  not  affect  that,"  and                                                               
explained that this is for  a registration by qualification which                                                               
is used  in many states.   The intent, she explained,  is that it                                                               
does not matter whether a party  was on the receiving side or the                                                               
promulgation side of situation, it  needs to be disclosed because                                                               
if  a party  is being  sued or  is suing  another party,  "it can                                                               
affect what  the value of  the securities  are, and it  should be                                                               
disclosed."                                                                                                                     
                                                                                                                                
4:09:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked, to whom this  information would go                                                               
to and whether there was  adequate protection that no proprietary                                                               
information would be disclosed to the detriment of the party.                                                                   
                                                                                                                                
MS. ANSELM answered  that when registrations come  in, until they                                                               
are  final,  are  considered proprietary,  and  the  issuers  are                                                               
allowed  to   point  out  to   the  division  which   pieces  are                                                               
proprietary.   She  offered that  it would  be kept  confidential                                                               
until it couldn't be kept  confidential any longer, and depending                                                               
upon the situation, it may not  be approved for sale in the State                                                               
of Alaska due to problems with a registration.                                                                                  
                                                                                                                                
REPRESENTATIVE EASTMAN  questioned that if the  information would                                                               
become  public  at some  point,  at  what  point does  it  become                                                               
public, and further questioned whether  the fact that someone was                                                               
contemplating   a   lawsuit   whether   that   would   meet   her                                                               
understanding of proprietary.                                                                                                   
                                                                                                                                
MS.  ANSELM responded  that "it  would  depend on  what it  was,"                                                               
typically,  if  there  was  a   problem  for  the  insurer  in  a                                                               
securities transaction,  the issuer would withdraw  the potential                                                               
offer of securities  until the problem was  resolved because that                                                               
is not  something they want hanging  out there.  She  pointed out                                                               
that  investors, and  the marketplace,  do not  like uncertainty;                                                               
therefore,  the  insurer would  probably  pull  it back,  get  it                                                               
resolved,  and  then  move  forward.   In  the  event  it  was  a                                                               
sensitive matter, the  insurer would ask the division  to keep it                                                               
cloaked, and under the privacy  pieces of the Securities Act, the                                                               
division  can keep  the information  cloaked, or  it can  open an                                                               
investigation and cloak it in that manner.                                                                                      
                                                                                                                                
REPRESENTATIVE  EASTMAN   asked  whether  it  would   be  cloaked                                                               
indefinitely.                                                                                                                   
                                                                                                                                
MS. ANSELM answered that it  would be cloaked indefinitely for an                                                               
investigation  because   those  investigatory  records   are  not                                                               
disclosable.                                                                                                                    
                                                                                                                                
4:12:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FANSLER  moved  to  report HB  170,  Version  30-                                                               
LS0333\J,   as  amended,   out  of   committee  with   individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection,  HB  170(JUD)  moved   from  the  House  Judiciary                                                               
Standing Committee.                                                                                                             

Document Name Date/Time Subjects
HB208 ver A 4.10.17.PDF HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Sponsor Statement 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Sectional Analysis ver A 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 PowerPoint Sectional 4.10.17.pptx HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Supporting Document-Decanting Matrix 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Supporting Document-Decanting Rankings 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Supporting Document-Trust Estate Glossary 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Supporting Document-Letter Peak Trust Company 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Supporting Document-Letter Manley & Brautigam 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Supporting Document-Letter ABA 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Supporting Document-Letter Northern Law Group 4.10.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB208 Fiscal Note LAW-CIV 4.7.17.pdf HJUD 4/10/2017 1:00:00 PM
HJUD 4/12/2017 1:00:00 PM
HJUD 4/14/2017 1:00:00 PM
HB 208
HB175 ver A 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB175 Sponsor Statement 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB175 Sectional Analysis ver A 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB175 Additional Document-Legal Memo 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB175 Supporting Document-Supplemental Information 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB 175 Supporting Document-Letters of Support 4.11.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB 175 Opposing Document-Letters of Opposition 4.11.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB175 Additional Document-Letter on Congressional Consent 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB175 Fiscal Note OOG-DOE 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 175
HB170 ver J 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Sponsor Statement 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Sectional Analysis 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Repealers List 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 DCCED Whitepaper 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Supporting Document-Letter ANCSA Regional Association 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Supporting Document-Letter NASAA 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 HJUD Slide Presentation 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Additional Document-Enforcement Comparison Chart 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Additional Document-Sponsor's Reply to House Judiciary Committee Questions 4.11.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Additional Document-Violations in Statute 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Amendments #1-3 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Amendments #1-3 HJUD Final Votes 4.12.17.pdf HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Fiscal Note DCCED-DBS 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170
HB170 Fiscal Note DHSS-SDSA 4.7.17.pdf HJUD 4/7/2017 1:00:00 PM
HJUD 4/11/2017 5:30:00 PM
HJUD 4/12/2017 1:00:00 PM
HB 170