03/03/2016 01:30 PM Senate LABOR & COMMERCE

        SB 108-AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                     
                                                                                                                                
2:09:43 PM                                                                                                                    
CHAIR   COSTELLO    reconvened   the   meeting    and   announced                                                               
consideration  of SB  108. She  relayed  that this  is the  third                                                               
hearing  and the  intent is  to  take public  testimony, adopt  a                                                               
committee  substitute, and  look to  the will  of the  committee.                                                               
Finding no public testimony on SB 108, she closed it.                                                                           
                                                                                                                                
SENATOR GIESSEL  moved to  adopt the  work draft  CS for  SB 108,                                                               
labeled 29-LS1060\W, as working document.                                                                                       
                                                                                                                                
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
WESTON  EILER,  Staff,  Senate Labor  &  Commerce  Committee  and                                                               
Senator  Costello,   Alaska  State   Legislature,  said   a  non-                                                               
substantive  change is  that the  CS reorders  sections beginning                                                               
with  the  amendments   to  Title  6  and   concluding  with  the                                                               
amendments to Title 45.                                                                                                         
                                                                                                                                
The CS also makes two substantive changes.                                                                                      
                                                                                                                                
2:12:17 PM                                                                                                                    
At ease from 2:12 p.m. to 2:17 p.m.                                                                                             
                                                                                                                                
CHAIR  COSTELLO  reconvened the  meeting  and  recapped that  Mr.                                                               
Eiler was explaining the changes in the CS for SB 108.                                                                          
                                                                                                                                
MR.  EILER said  the first  substantive change  removes the  term                                                               
"variable annuity"  that appears on  page 88, line 8,  of version                                                               
A.  The   administration  requested   this  change   so  variable                                                               
annuities  will  continue to  be  regulated  by the  Division  of                                                               
Insurance.                                                                                                                      
                                                                                                                                
The second  substantive change removes the  entire Sec. 45.56.220                                                               
starting on  page 13, line 24  through page 16, line  12. That is                                                               
inherently crowd funding, which is advancing through SB 126.                                                                    
                                                                                                                                
CHAIR  COSTELLO   removed  her  objection.  Finding   no  further                                                               
objection, version W was adopted.                                                                                               
                                                                                                                                
She asked Ms.  Anselm to give the committee the  30 thousand foot                                                               
rationale for the bill.                                                                                                         
                                                                                                                                
2:20:08 PM                                                                                                                    
KEVIN  ANSELM,  Director,  Division of  Banking  and  Securities,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), recapped the reasons to  modernize the Alaska Securities                                                               
Act:  to recognize  and incorporate  current securities  industry                                                               
terms and standards; synthesize with  other state laws to make it                                                               
easier for businesses, entrepreneurs  and investors to understand                                                               
their  rights,  responsibilities  and  opportunities  in  Alaska;                                                               
deter  investment  scams;  enhance penalties  for  harming  older                                                               
Alaskans; and  separate the securities  statutes from  the Alaska                                                               
Native  Claims Settlement  Act statutes  to reduce  confusion and                                                               
improve understanding  of both the  Securities Act and  the ANCSA                                                               
Proxy Settlement Act.                                                                                                           
                                                                                                                                
CHAIR COSTELLO thanked Ms. Anselm for her diligent work.                                                                        
                                                                                                                                
SENATOR GIESSEL moved  to report the CS for SB  108, labeled [29-                                                               
GS1060\W],  from committee  with  individual recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR COSTELLO  announced that  without objection,  CSSB 108(L&C)                                                               
is  reported   from  the  Senate  Labor   and  Commerce  Standing                                                               
Committee.