Legislature(2013 - 2014)
03/31/2014 04:31 PM House L&C
| Audio | Topic |
|---|---|
| Start | |
| HB328 | |
| HB308 | |
| HB372 | |
| HB149 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 31, 2014
4:31 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Lora Reinbold, Vice Chair
Representative Mike Chenault
Representative Dan Saddler
Representative Andy Josephson
MEMBERS ABSENT
Representative Bob Herron
Representative Charisse Millett
Representative Craig Johnson
COMMITTEE CALENDAR
HOUSE BILL NO. 328
"An Act establishing the Board of Massage Therapists; relating
to the licensing of massage therapists; and providing for an
effective date."
- MOVED CSHB 328(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 308
"An Act relating to the exemptions under the Alaska Securities
Act and to securities issued by Native corporations; and
providing for an effective date."
- MOVED HB 308 OUT OF COMMITTEE
HOUSE BILL NO. 372
"An Act extending the termination date of the emerging energy
technology fund and grant program."
- HEARD & HELD
HOUSE BILL NO. 149
"An Act making firefighters employed by the state eligible for
the presumption of coverage under workers' compensation for
disability due to certain diseases."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 328
SHORT TITLE: BOARD/LICENSING OF MASSAGE THERAPISTS
SPONSOR(s): REPRESENTATIVE(s) NAGEAK
02/21/14 (H) READ THE FIRST TIME - REFERRALS
02/21/14 (H) L&C, FIN
03/05/14 (H) L&C AT 3:15 PM BARNES 124
03/05/14 (H) -- MEETING CANCELED --
03/10/14 (H) L&C AT 3:15 PM BARNES 124
03/10/14 (H) Heard & Held
03/10/14 (H) MINUTE(L&C)
03/21/14 (H) L&C AT 3:15 PM BARNES 124
03/21/14 (H) -- MEETING CANCELED --
03/28/14 (H) L&C AT 3:15 PM BARNES 124
03/28/14 (H) Heard & Held
03/28/14 (H) MINUTE(L&C)
03/31/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 308
SHORT TITLE: ALASKA SECURITIES ACT EXEMPTIONS
SPONSOR(s): REPRESENTATIVE(s) HOLMES
02/17/14 (H) READ THE FIRST TIME - REFERRALS
02/17/14 (H) L&C
03/31/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 372
SHORT TITLE: EXTEND EMERGING ENERGY TECHNOLOGY FUND
SPONSOR(s): STATE AFFAIRS
03/10/14 (H) READ THE FIRST TIME - REFERRALS
03/10/14 (H) L&C, FIN
03/31/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 149
SHORT TITLE: WORKERS' COMP FOR STATE FIREFIGHTERS
SPONSOR(s): LEDOUX
03/01/13 (H) READ THE FIRST TIME - REFERRALS
03/01/13 (H) L&C, FIN
04/08/13 (H) L&C AT 3:15 PM BARNES 124
04/08/13 (H) Scheduled But Not Heard
03/31/14 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE BENJAMIN NAGEAK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as the prime sponsor of HB 328.
MARY SCHLOSSER, Staff
Representative Benjamin Nageak
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of the prime sponsor of
HB 328.
REPRESENTATIVE LINDSEY HOLMES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 308.
KEVIN ANSELM, Director
Division of Banking & Securities, Anchorage Office
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 308.
REPRESENTATIVE DOUG ISAACSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 372.
REPRESENTATIVE GABRIELLE LEDOUX
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of HB 149.
ACTION NARRATIVE
4:31:47 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 4:31 p.m. Representatives
Saddler, Reinbold, Josephson and Olson were present at the call
to order. Representative Chenault arrived as the meeting was in
progress.
HB 328-BOARD/LICENSING OF MASSAGE THERAPISTS
4:32:14 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 328, "An Act establishing the Board of Massage
Therapists; relating to the licensing of massage therapists; and
providing for an effective date."
REPRESENTATIVE BENJAMIN NAGEAK, Alaska State Legislature, asked
members to pass HB 328. He explained that a massage therapist
brought the concept of this bill to him and has asked for a few
changes to the bill, which are included in an amendment.
4:33:20 PM
CHAIR OLSON explained the committee previously held hearings on
HB 328 on 3/10/14 and 3/28/2014. During the meeting on 3/28/14,
the committee adopted Amendment 1, labeled "N.2" and closed out
public testimony. The bill was held over to allow members to
consider another amendment "N.1" [not yet before the committee].
4:33:36 PM
REPRESENTATIVE REINBOLD made a motion to adopt Amendment [2],
labeled 28-LS1431\N.1, Martin, 3/21/14, which read as follows:
Page 3, line 24:
Delete "board"
Insert "department"
Page 3, line 27, following "a":
Insert "(A)"
Page 3, line 28, following "school":
Insert "or; (B) board-approved apprenticeship
program"
Page 4, line 18:
Delete "board"
Insert "department"
Page 7, following line 31:
Insert a new paragraph to read:
"(11) person who has graduated from a
program or is a current recognized member of the
International Association of Structural Integrators;"
Renumber the following paragraphs accordingly.
Page 8, line 1, following "only":
Insert "light"
Page 8, lines 3 - 4:
Delete ", including the Feldenkrais method of
somatic education, the Trager approach to movement
education, and body-mind centering"
Insert "or to affect the energy systems"
Page 8, lines 5 - 8:
Delete all material.
Renumber the following paragraphs accordingly.
Page 8, following line 21:
Insert a new paragraph to read:
"(3) "department" means the Department of
Commerce, Community, and Economic Development;"
Renumber the following paragraphs accordingly.
Page 11, line 1:
Delete "AS 08.61.030(1) - (6) and (9)"
Insert "AS 08.61.030(1), (2), (4) - (6), and (9)"
CHAIR OLSON objected for the purpose of discussion.
4:34:03 PM
MARY SCHLOSSER, Staff, Representative Benjamin Nageak, Alaska
State Legislature, explained that Amendment 1 makes some minor
changes. First, it would add language to the requirements for
education, [which recognizes a board-approved apprenticeship
program] in exchange for the 500 hours required for licensure.
On page 3, line 24, and page 4, line 18, the amendment changes
"board" to "department" to allow the department to process
applications. On page 8, lines 1-8, the language combines
exemptions 11-12 to define a category of exempted practices not
naming each modality. On page 11, line 1, it removes paragraph
(3), with the intent of allowing the 500 hours of education to
be waived during the transition to allow these physical
therapists to be grandfathered in for licensure.
CHAIR OLSON removed his objection to Amendment 2.
4:36:06 PM
REPRESENTATIVE REINBOLD moved to adopt Conceptual Amendment 1 to
Amendment [2] "N.1." On page 1, lines 15-20, [Amendment 2] to
delete all material.
4:36:17 PM
MS. SCHLOSSER explained that Conceptual Amendment 1 would remove
duplicate language previously adopted [in Amendment 1 on
3/28/14].
CHAIR OLSON removed his objection to Conceptual Amendment 1 to
Amendment 2.
[The committee treated it as though he had previously objected
to Conceptual Amendment 1 for the purpose of discussion.]
There being no further objection, Conceptual Amendment 1 to
Amendment 2 was adopted.
[The committee treated Amendment 2 as adopted.]
4:37:45 PM
REPRESENTATIVE REINBOLD moved to report HB 328, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, the CSHB
328(L&C) was reported from the House Labor & Commerce Standing
Committee.
4:38:07 PM
The committee took an at-ease from 4:38 p.m. to 4:39 p.m.
HB 308-ALASKA SECURITIES ACT EXEMPTIONS
4:39:59 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 308, "An Act relating to the exemptions under the
Alaska Securities Act and to securities issued by Native
corporations; and providing for an effective date."
4:40:12 PM
REPRESENTATIVE LINDSEY HOLMES, Alaska State Legislature, stated
that HB 308 will help smaller businesses start up when they are
seeking investment by bringing in small numbers of in-state
investors. Currently, these businesses must perform a variety
of things to issue their stocks. This bill doesn't include
stocks covered under the federal securities exchange, but only
ones that are in the state and limited to a small number of
investors. The Division of Banking and Securities collects
registration forms about companies prior to their stock being
issued to small numbers of investors - 25 or fewer - or to
reinvestors. These companies are required to either pay a $50
filing fee or a $125 filing fee for expedited processing.
Currently the division does not use the information gathered on
these businesses.
REPRESENTATIVE HOLMES said that this bill leaves in place the
requirement that companies must provide investors with
information, retains consumer protection language in place, as
well as retaining all of the provisions that allow companies to
sue for damages. The bill does two other things. First, it
would increase the division's time to review an "offer to repay"
or rescission offer from 2 to 10 days. Second, it would clarify
that securities issued by Alaska Native Claims Settlement Act
(ANCSA) corporations, in compliance with applicable federal law,
are exempt from registration. Currently, state statutes did not
require regional corporations who issued their original stock
the transaction to file with the state; however, the statutes
were silent on later issuances of stock. The state must address
people born after 1971. This bill clearly indicates that later
issuances of stock are also exempt from securities registration
in the same manner as the original stock.
4:44:11 PM
KEVIN ANSELM, Director, Division of Banking & Securities,
Anchorage Office, Department of Commerce, Community & Economic
Development (DCCED), noted there are three substantive changes
contained in HB 308. First, it would eliminate the fee and
filing requirements for certain small or limited offering
exemptions, including those with 10 or fewer investors, those
with 25 or fewer investors, and existing security holders.
Second, the bill increases the division's time to review for an
offer to repay or rescission offer from 2 to 10 days since those
filings are more complicated than a regular security securities
registration, and an offer to repay usually means a problem has
arisen. Finally, the bill clarifies that securities issued by
ANCSA corporations, in compliance with applicable federal law,
don't need to be separately registered under state law.
4:46:08 PM
MS. ANSELM stated that these are often referred to as "friends
and family" exemptions. These transactions typically occur
because someone has an idea for a business or buys a business
and invites friends or family to invest. Typically, there are
no sales persons or sales commissions involved in these types of
transactions. These transactions are usually driven by the
entrepreneur so there isn't any public solicitation or
advertising; thus, the risk to the public is generally small.
Most states have these types of exemptions and these are
typically self-executing exemptions in other states, which means
that no fees and no filing are required, but all of the
requirements include consumer protection and enforcement
protection provisions.
4:47:02 PM
MS. ANSELM explained the next statutory change is to the limited
offering exemption. This applies to securities that are offered
to existing shareholders. This exemption might be used by an
existing business that is moving to the next level. The
division seldom receives filings for this exemption, in fact,
the division received one in 2013 and five in 2012. Those that
are filed are generally not necessary since there isn't any
commission paid, which is the only time an exemption needs to be
filed under current law. Further, HB 308 eliminates the $50
filing fee or $125 for expedited processing fee. It also
eliminates form preparation that will affect an average of 136
filings per year. This will reduce the division's revenue by
$6,800 per year. The statutes retain investor protection, the
division's oversight and the ability for an investor to seek
rescission or monetary damages. Anyone using an exemption has
the burden of proving the exemption, either to the division or
in a court of law. Finally, the bill clarifies that the ANCSA
securities issued after the initial issuance in 1972 do not need
to be registered with the state so long as they are in
compliance with federal law.
4:48:52 PM
REPRESENTATIVE CHENAULT asked for the purpose of the $50
processing fee.
MS. ANSELM answered that the division would review the form.
REPRESENTATIVE CHENAULT asked for the average length of time to
review the form.
MS. ANSELM answered that it would vary, depending on the
specific filing. Sometimes it can take considerable staff time
since people have questions about the filing. The division's
staff does spend time with an applicant, she said. In response
to a question, Ms. Anselm related the department's processing
time for the expedited filing is within two days of receipt.
4:49:55 PM
REPRESENTATIVE JOSEPHSON asked whether the form can be used as a
means to corroborate information in the instance in which a
dispute might arise. In other words, would anything be legally
relevant that could help resolve the dispute.
MS. ANSELM responded that the only thing would be to establish
that the party filed for an exemption, which is currently
required under the law.
4:50:51 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 308.
REPRESENTATIVE REINBOLD moved to report HB 308 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 308 was reported from the
House Labor and Commerce Standing Committee.
4:51:41 PM
The committee took an at-ease from 4:51 p.m. to 4:53 p.m.
HB 372-EXTEND EMERGING ENERGY TECHNOLOGY FUND
4:53:50 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 372, "An Act extending the termination date of
the emerging energy technology fund and grant program."
4:54:45 PM
REPRESENTATIVE DOUG ISAACSON, Alaska State Legislature, as
sponsor, stated that since the companion bill has been read
across so he would be brief. This one page bill is significant
in that it extends the term date for the emerging energy
technology fund from January 1, 2015 to January 1, 2020.
[HB 372 was held over.]
4:55:34 PM
The committee took a brief at-ease.
HB 149-WORKERS' COMP FOR STATE FIREFIGHTERS
4:56:17 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 149, "An Act making firefighters employed by the
state eligible for the presumption of coverage under workers'
compensation for disability due to certain diseases."
4:56:31 PM
REPRESENTATIVE GABRIELLE LEDOUX, Alaska State Legislature,
speaking as prime sponsor, characterized HB 149 as a "fix-it"
bill. It would correct an oversight in AS 23.30.121, which gave
firefighters presumptive coverage for various illnesses they
many have contracted while working as firefighters. The prior
bill inadvertently did not cover state-employed firefighters.
This bill would amend AS 23.30.121 to add paragraph (3)
pertaining to a firefighter employed by the state. This
provision would cover about 70 people. She offered her belief
that these brave men and women should have the same protection
as all other firefighters.
4:57:45 PM
REPRESENTATIVE JOSEPHSON recalled a former legislator had a case
in which a firefighter died from chemical exposure. He asked
whether that person was a state firefighter. He further asked
if she was familiar with the case.
REPRESENTATIVE LEDOUX said she did not know the case, but
basically the state firefighters are employed at the airport.
4:58:40 PM
REPRESENTATIVE SADDLER referred to new language in section one
that refers to three definitions of firefighters, including a
municipal volunteer, a person registered for purposes of
workers' compensation, [and a person employed by a municipal
fire department].
REPRESENTATIVE LEDOUX answered that the other three categories
of firefighters are currently covered by the statute, but the
statute has been redrafted. The effect of HB 149 is to add the
fourth group of people.
REPRESENTATIVE LEDOUX offered to distribute a copy of AS
09.65.205 for members.
5:00:34 PM
REPRESENTATIVE CHENAULT referred to the fiscal notes. He said
they are from DOT&PF and the Department of Public Safety at the
airports. He noticed a fiscal note in members' packets from the
University of Alaska (UA). The fiscal analysis shows that there
were 36 claims by UAF firefighters over the past five years or
an average of 7.2 claims per year. He was curious where the
firefighters were located.
CHAIR OLSON also noted that the committee is awaiting a fiscal
note from the risk manager as well.
REPRESENTATIVE LEDOUX said she stands corrected, that this would
apply to the airport and the university.
5:02:11 PM
REPRESENTATIVE CHENAULT wanted to ensure that state employees
working as firefighters are protected.
CHAIR OLSON said it was not the intent of the enabling
legislation to exclude the state firefighters.
[HB 149 was held over.]
5:02:40 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:02 p.m.
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