Legislature(2015 - 2016)SENATE FINANCE 532

04/05/2016 05:00 PM FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 126 SMALL SECURITY OFFERINGS TELECONFERENCED
Heard & Held
+ SB 154 BLOOD BANK OF ALASKA LICENSE PLATES TELECONFERENCED
Heard & Held
+ SCR 4 US COUNTERMAND CONVENTION DELEGATES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 69 BD OF CHIROPRACTIC EXAMINERS; PRACTICE TELECONFERENCED
Moved CSSB 69(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 5, 2016                                                                                            
                         5:04 p.m.                                                                                              
                                                                                                                                
5:04:20 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 5:04 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Peter Micciche, Vice-Chair                                                                                              
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Mia Costello, Sponsor;  Weston Eiler, Staff, Senator                                                                    
Mia   Costello;  Senator   Bill  Stoltze,   Sponsor;  Stuart                                                                    
Krueger, Staff,  Representative Shelley Hughes;  Erin Shine,                                                                    
Staff,  Senator Anna  MacKinnon;  Janey Hovenden,  Director,                                                                    
Division   of   Corporations,  Business   and   Professional                                                                    
Licensing,  Department of  Commerce, Community  and Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Renee   Wardlaw,  Division   of   Banking  and   Securities,                                                                    
Assistant Attorney  General, Anchorage; Thomas  Daly, Owner,                                                                    
HiSpeed  Gear, Kenai;  Bob Scanlon,  Blood  Bank of  Alaska,                                                                    
Anchorage; Tim Benintendi, Secretary,  Blood Bank of Alaska,                                                                    
Anchorage;  Michael  Schechter, Attorney  General's  Office,                                                                    
Anchorage;  Mike   Coons,  National   Legislative  Director,                                                                    
Citizen Initiatives, Palmer.                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 69     BD OF CHIROPRACTIC EXAMINERS; PRACTICE                                                                                
                                                                                                                                
          CSSB  69 was  REPORTED out  of committee  with "no                                                                    
          recommendation"  and with  one  new fiscal  impact                                                                    
          note  from   the  Senate  Finance   Committee  for                                                                    
          Department  of  Commerce, Community  and  Economic                                                                    
          Development.                                                                                                          
                                                                                                                                
SB 126    SMALL SECURITY OFFERINGS                                                                                              
                                                                                                                                
          SB  126  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SB 154    BLOOD BANK OF ALASKA LICENSE PLATES                                                                                   
                                                                                                                                
          SB  154  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SCR 4     US COUNTERMAND CONVENTION DELEGATES                                                                                   
                                                                                                                                
          SCR 4 was HEARD and  HELD in committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 126                                                                                                           
                                                                                                                                
     "An Act establishing an exemption  for the offering and                                                                    
     sale of certain securities."                                                                                               
                                                                                                                                
5:05:42 PM                                                                                                                    
                                                                                                                                
SENATOR MIA COSTELLO, SPONSOR, explained the legislation:                                                                       
                                                                                                                                
     Senate  Bill  126,  the Innovating  Alaska  Act,  helps                                                                    
     Alaskans  start  and  invest  in  local  businesses  by                                                                    
     enacting a new finance mechanism in state law.                                                                             
                                                                                                                                
     Crowdinvesting    (sometimes     known    as    "equity                                                                    
     crowdfunding") is a new concept  with a simple premise.                                                                    
     Instead  of  receiving  large investments  from  a  few                                                                    
     traditional  investors,  Alaskans starting  a  business                                                                    
     receive small  investments from  a potentially  a large                                                                    
     group of  investors. The approach lets  broad groups of                                                                    
     people invest in small businesses  in return for equity                                                                    
     ownership. This makes it  easier for business start-ups                                                                    
     to get capital to grow,  and allows average Alaskans to                                                                    
     invest   in   businesses   being   started   in   their                                                                    
     communities.                                                                                                               
                                                                                                                                
     The  federal Jumpstart  Our  Business Start-Ups  (JOBS)                                                                    
     Act of  2012 paved the  way for this paradigm  shift in                                                                    
     business creation. It refines  some of the more onerous                                                                    
     regulations  that have  historically made  it difficult                                                                    
     for  average Americans  to directly  invest in  private                                                                    
     companies.  Since  then  over 12  states  have  enacted                                                                    
     intra-state crowdinvesting laws.                                                                                           
                                                                                                                                
     Crowdinvesting  usually works  through young  companies                                                                    
     selling  equity  shares,  often   through  an  on  line                                                                    
     portal, to a  wide group of investors.  Senate Bill 126                                                                    
     would regulate  the sale of  these types  of securities                                                                    
     separately   from  the   Alaska   Securities  Act   (AS                                                                    
     45.55.010)  and  adds  several  safeguards  to  protect                                                                    
     investors.                                                                                                                 
                                                                                                                                
     Under  Senate Bill  126,  businesses  seeking to  raise                                                                    
     capital through crowdfunding would  apply to the Alaska                                                                    
     Division  of Banking  &  Securities  and hold  investor                                                                    
     funds in  escrow in an  Alaskan bank.  Investments made                                                                    
     through  crowdinvesting  are   limited  to  $7,500  for                                                                    
     investors   and  $1,000,000   for  businesses   raising                                                                    
     capital. Both  the investor and business  owner must be                                                                    
     Alaska residents.                                                                                                          
                                                                                                                                
     Business  start-ups  are  key to  growing  our  state's                                                                    
     economy.  Enacting crowdinvesting  through Senate  Bill                                                                    
     126 is  an innovative way to  give entrepreneurs easier                                                                    
     access to  capital, and help  Alaskans invest  in local                                                                    
     businesses.                                                                                                                
                                                                                                                                
5:09:12 PM                                                                                                                    
                                                                                                                                
WESTON EILER, STAFF, SENATOR MIA COSTELLO,  presented the                                                                       
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1. Amends the Alaska  Securities Act (AS 45.55)                                                                    
     by adding a new  section. Sec. 45.55.l75(a) exempts the                                                                    
     sale  of  securities   through  crowdinvesting  between                                                                    
     Alaska businesses  and residents from  the requirements                                                                    
     of   AS   45.55.070   -  45.55.120   (registration   of                                                                    
     securities)  and AS  45.55.150  (sales and  advertising                                                                    
     literature). Sets  new limitations and  requirements on                                                                    
     the  offer   and  sale  of  this   type  of  securities                                                                    
     including:                                                                                                                 
                                                                                                                                
          (1)  issuer's organizational  entity must  be for-                                                                    
          profit, and located and licensed in Alaska,                                                                           
                                                                                                                                
          (2)  securities under  this  section  may only  be                                                                    
          sold   to  Alaska   residents  and   must  be   in                                                                    
          compliance with  federal law's (Securities  Act of                                                                    
          1933) residency  requirements for  interstate sale                                                                    
          of securities,                                                                                                        
                                                                                                                                
          (3)  sale of  securities under  this section  by a                                                                    
          for-profit entity are capped at $1,000,000,                                                                           
                                                                                                                                
          (4)  investments by  an individual  in a  business                                                                    
          under this  exemption are capped at  $7,500 during                                                                    
          a 12-month period, (5)  issuer of securities under                                                                    
          this section  must have  a reasonable  belief that                                                                    
          the purchase  of securities is for  investment not                                                                    
          resale,                                                                                                               
                                                                                                                                
          (6) commissions  for persons participating  in the                                                                    
          offer or sale for the issuer are prohibited,                                                                          
                                                                                                                                
          (7)  requires escrow  account deposit  of investor                                                                    
          funds until  the minimum target for  the issuer is                                                                    
          met,                                                                                                                  
                                                                                                                                
          (8)  notice to  the department  about solicitation                                                                    
         of sale of securities under this section,                                                                              
                                                                                                                                
          (9)  restrictions  on  who  may  issue  securities                                                                    
          under this section,                                                                                                   
                                                                                                                                
          (10) disclosures  to investors about this  type of                                                                    
          securities  exemption in  statute and  restriction                                                                    
          on resale,                                                                                                            
                                                                                                                                
          (11) requires  signed investor  acknowledgement of                                                                    
          investment risk,                                                                                                      
                                                                                                                                
          (12)   exemption  for   sale  of   this  type   of                                                                    
          securities  may  not  be  used  along  with  other                                                                    
         exemptions to the Alaska Securities Act,                                                                               
                                                                                                                                
          (13) sale  of this type of  securities are covered                                                                    
          by anti-fraud statutes  and other provisions under                                                                    
          AS 45.55.010 - 45.55.028.                                                                                             
                                                                                                                                
     Sec.  45.55.175(b). Allows  the department  to deny  or                                                                    
     revoke  an exemption  under this  section  if the  sale                                                                    
     would lead to a fraud on purchasers.                                                                                       
                                                                                                                                
     Sec.   45.55.l75(c).   Requires   the   Department   of                                                                    
     Commerce, Community,  & Economic Development  to charge                                                                    
     an applicant a  filing fee for an  exemption under this                                                                    
     section.                                                                                                                   
                                                                                                                                
     Sec. 45.55.l75(d).  Prohibits an issuer from  using the                                                                    
     exemption  under  this section  if  the  entity or  its                                                                    
     officers are subject to a  disqualifier under the Dodd-                                                                    
     Frank Wall Street Reform and  Consumer Protection Act -                                                                    
     U.S.C. 78c(a)(39).                                                                                                         
                                                                                                                                
     Sec. 45.55.175(e). Defines terms for the section.                                                                          
                                                                                                                                
     Section   2.   Adds    a   sec.   45.55.175   exempting                                                                    
     transactions   under  this   bill   to   the  list   of                                                                    
     transactions  that  are   exempt  from  basic  security                                                                    
     registration  requirements under  AS  45.55.070 and  AS                                                                    
     45.55.075  (the  section   addressing  federal  covered                                                                    
     securities).                                                                                                               
                                                                                                                                
5:13:47 PM                                                                                                                    
                                                                                                                                
Senator  Dunleavy  wondered  if one  could  currently  micro                                                                    
invest  under  different rules.  Mr.  Eiler  replied in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Senator Dunleavy  surmised that  the bill  was related  to a                                                                    
business that wanted to go  public. Mr. Eiler explained that                                                                    
the  legislation  targeted  startup companies.  He  remarked                                                                    
that it was a mechanism for  large groups of Alaskans with a                                                                    
small amount of money could invest in private companies.                                                                        
                                                                                                                                
Senator  Dunleavy stated  that current  law already  allowed                                                                    
for  the  partnership.  Mr.  Eiler  replied  that  the  bill                                                                    
offered another  tool for a  general solicitation  without a                                                                    
broker dealer.                                                                                                                  
                                                                                                                                
Senator  Bishop  looked  at  Section  13,  and  queried  the                                                                    
recourse. Mr.  Eiler responded  that the  language reflected                                                                    
that nothing was exempt from fraud statutes.                                                                                    
                                                                                                                                
Senator Bishop surmised  that the investor had  a vehicle to                                                                    
recover some funds. Mr. Eiler replied in the affirmative.                                                                       
                                                                                                                                
5:18:07 PM                                                                                                                    
                                                                                                                                
Senator  Olson queried  the type  of people  the legislation                                                                    
was  intending to  invest. Mr.  Eiler  responded that  there                                                                    
were  many opportunities,  especially  in  rural areas.  The                                                                    
bill  would  remove  some  hurdles,  to  make  is  easy  for                                                                    
Alaskans   to   invest   in    small   companies   such   as                                                                    
microbreweries and arts businesses.                                                                                             
                                                                                                                                
Senator Olson  queried any protections for  the elderly. Mr.                                                                    
Eiler replied  that he had  conversations with  the Division                                                                    
of Banking  and Security.  He stated  that the  division had                                                                    
worked to monitor that problem.                                                                                                 
                                                                                                                                
Senator Bishop spoke in support of the legislation.                                                                             
                                                                                                                                
5:22:25 PM                                                                                                                    
                                                                                                                                
RENEE   WARDLAW,  DIVISION   OF   BANKING  AND   SECURITIES,                                                                    
ASSISTANT ATTORNEY GENERAL,  ANCHORAGE (via teleconference),                                                                    
introduced herself.                                                                                                             
                                                                                                                                
Co-Chair MacKinnon queried feedback  on the legislation. Mr.                                                                    
Wardlaw replied that the division was neutral on the bill.                                                                      
                                                                                                                                
Co-Chair   MacKinnon  wondered   whether   the  public   was                                                                    
protected under the legislation.  Ms. Wardlaw replied in the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon queried  any exemption  from the  Alaska                                                                    
Security Act. Ms. Wardlaw replied in the negative.                                                                              
                                                                                                                                
5:24:50 PM                                                                                                                    
                                                                                                                                
THOMAS    DALY,   OWNER,    HISPEED    GEAR,   KENAI    (via                                                                    
teleconference),  testified in  support of  the legislation.                                                                    
He  felt  that the  bill  helped  to diversify  the  state's                                                                    
economy. He wanted  to empower small businesses.  He did not                                                                    
feel  that the  legislature  was  properly diversifying  the                                                                    
state. He  remarked that the  bill would engage  Alaskans in                                                                    
businesses. He shared his phone number: 907-283-9136.                                                                           
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
SB  126  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
5:27:33 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:28:18 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 154                                                                                                           
                                                                                                                                
     "An Act relating to special registration plates                                                                            
     commemorating the Blood Bank of Alaska."                                                                                   
                                                                                                                                
5:28:41 PM                                                                                                                    
                                                                                                                                
SENATOR  BILL STOLTZE,  SPONSOR, explained  the legislation.                                                                    
He stated that this was the  first license plate bill he had                                                                    
offered. He  felt that  the bill  was straight  forward, and                                                                    
provided  a commemorative  license plate  for the  state. He                                                                    
stated that  there was  one change in  the bill,  which made                                                                    
the mechanism to provide the proceeds to the nonprofit.                                                                         
                                                                                                                                
Senator  Hoffman wondered  if the  bill was  a "bloody  good                                                                    
bill."  Senator Stoltze  replied that  it was  a "darn  good                                                                    
bill."                                                                                                                          
                                                                                                                                
5:31:18 PM                                                                                                                    
                                                                                                                                
BOB   SCANLON,  BLOOD   BANK  OF   ALASKA,  ANCHORAGE   (via                                                                    
teleconference), introduced himself.                                                                                            
                                                                                                                                
Co-Chair MacKinnon  wondered if  Mr. Scanlan was  in support                                                                    
of the bill. Mr. Scanlan replied in the affirmative.                                                                            
                                                                                                                                
5:32:29 PM                                                                                                                    
                                                                                                                                
TIM BENINTENDI,  SECRETARY, BLOOD BANK OF  ALASKA, ANCHORAGE                                                                    
(via teleconference), spoke in support of the legislation.                                                                      
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony                                                                                      
                                                                                                                                
SB  154  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 4                                                                                            
                                                                                                                                
     Relating  to the  duties of  delegates selected  by the                                                                    
     legislature  to  attend  a  convention  of  the  states                                                                    
     called  under  art.  V,   Constitution  of  the  United                                                                    
     States,  to consider  a  countermand  amendment to  the                                                                    
     Constitution of  the United  States; establishing  as a                                                                    
     joint  committee   of  the  legislature   the  Delegate                                                                    
     Credential Committee and relating  to the duties of the                                                                    
     committee;  providing for  an  oath  for delegates  and                                                                    
     alternates  to  a   countermand  amendment  convention;                                                                    
     providing  for  a  chair and  assistant  chair  of  the                                                                    
     state's  countermand  amendment  delegation;  providing                                                                    
     for  the  duties  of the  chair  and  assistant  chair;                                                                    
     providing   instructions  for   the   selection  of   a                                                                    
     convention president;  and providing  specific language                                                                    
     for  the countermand  amendment  on  which the  state's                                                                    
     convention delegates are  authorized by the legislature                                                                    
     to vote to approve.                                                                                                        
                                                                                                                                
5:34:19 PM                                                                                                                    
                                                                                                                                
SENATOR BILL STOLTZE, SPONSOR, explained the resolution:                                                                        
                                                                                                                                
     SJR 15 and  SCR 4 seek to restore the  balance of power                                                                    
     between the states and federal  government. The pair of                                                                    
     resolutions  would  strengthen   state  sovereignty  by                                                                    
     providing  states with  veto  (countermand) power  over                                                                    
     federal decisions deemed not  in their best interest by                                                                    
     establishing  an amendment  to  the U.S.  Constitution.                                                                    
     These two  resolutions in tandem are  intended to start                                                                    
     the  process of  amending the  US Constitution  via the                                                                    
     powers granted in Article V.                                                                                               
                                                                                                                                
     SJR  15 (The  Application)  provides  Alaska's call  to                                                                    
     Congress   for   a    clearly   defined,   single-issue                                                                    
     Countermand   Amendment  Convention.   The  Countermand                                                                    
     Amendment  to  the  United  States  Constitution,  when                                                                    
     ratified,  will  allow  states to  propose  Countermand                                                                    
     Initiatives,  which upon  approval  by three-fifths  of                                                                    
     the  state   legislatures,  will  repeal   any  federal                                                                    
     statute,   executive  order,   judicial  decision,   or                                                                    
     regulatory decision listed in the Initiative.                                                                              
                                                                                                                                
     SCR  4  (The  Delegate Resolution)  enables  the  state                                                                    
     legislature   to    institute   parameters    for   the                                                                    
     convention,  ensuring that  a  "runaway convention"  is                                                                    
     not possible,  and provides for a  productive, safe and                                                                    
     timely process.  The Delegate Resolution  establishes a                                                                    
     Credential Committee for selection  of delegates to the                                                                    
     convention, and  outlines the duties of  the delegates.                                                                    
     SCR  4  also  includes  the language  of  the  proposed                                                                    
     Countermand Amendment to the U.S. Constitution.                                                                            
                                                                                                                                
     These two resolutions do not  pertain to a conservative                                                                    
     versus liberal  agenda; this is a  state versus federal                                                                    
     issue. Passage  of these  resolutions is  an actionable                                                                    
     step  the Legislature  can take  toward restoration  of                                                                    
     the proper balance of state and federal powers.                                                                            
                                                                                                                                
5:36:07 PM                                                                                                                    
                                                                                                                                
STUART KRUEGER, STAFF, REPRESENTATIVE SHELLEY HUGHES,                                                                           
explained the Sectional Analysis (copy on file):                                                                                
                                                                                                                                
     Resolve 1                                                                                                                  
     Pg 2 ln  26: Authorizes the legislature  to appoint and                                                                    
     summon delegates for the amendment convention.                                                                             
                                                                                                                                
     Resolve 2                                                                                                                  
     Pg 2, ln 29: Gives  the legislature authority to decide                                                                    
     the  qualifications and  total number  of delegates  to                                                                    
     send to the convention.                                                                                                    
                                                                                                                                
     Resolve 3                                                                                                                  
     Pg 3,  ln 1: Gives  the legislature the ability  to add                                                                    
     or remove delegates and                                                                                                    
                                                                                                                                
     Resolve 4                                                                                                                  
     Pg. 3,  Ln 6: Provides parameters  and instructions for                                                                    
     state's delegates at the convention.                                                                                       
                                                                                                                                
          Prohibits delegates from voting for any other                                                                         
          amendments, outside of the countermand amendment,                                                                     
          at the convention.                                                                                                    
                                                                                                                                
     Resolve 5                                                                                                                  
     Pg 3, ln 13: Reserves  the countermand amendment as the                                                                    
     only  amendment for  consideration for  ratification by                                                                    
     the legislatures.                                                                                                          
                                                                                                                                
     Resolve 6                                                                                                                  
     Pg 3, ln 15                                                                                                                
     Upon a call  for convention by 34  states, this resolve                                                                    
     allows  for  establishing  of the  Delegate  Credential                                                                    
     Committee  within the  Alaska Legislature,  with duties                                                                    
     listed in section A.                                                                                                       
     Speaker of  the House shall appoint  three members from                                                                    
     the  House, one  being  a minority  caucus member.  The                                                                    
     President of the Senate shall  appoint three members of                                                                    
     the Senate, one being a minority caucus member.                                                                            
     Resolve 7                                                                                                                  
     Pg 3, ln 24                                                                                                                
     Provides for  replacement procedure for members  of the                                                                    
     Delegate Credential Committee.                                                                                             
     Resolve 8                                                                                                                  
     Allows for selection of co-chairs of the Delegate                                                                          
     One co-chair from the House, one from                                                                                      
     Pg 3, ln 26                                                                                                                
     Credential Committee                                                                                                       
     the Senate. Along with staff                                                                                               
     assignments for committee support.                                                                                         
     Resolve 9                                                                                                                  
     Pg 3, ln 30                                                                                                                
     Establishes  when  Delegate  Credential  Committee  can                                                                    
     meet.                                                                                                                      
     Resolve 10                                                                                                                 
     Pg 4, ln 1                                                                                                                 
     Acknowledges  that  the Delegate  Credential  Committee                                                                    
     will  continue until  the first  day  of the  Thirtieth                                                                    
     Alaska State Legislature.                                                                                                  
     Resolve 11                                                                                                                 
     Pg 4, ln 3                                                                                                                 
     Requests  that  the  Delegate Credential  Committee  be                                                                    
     considered  for  reestablishment during  the  Thirtieth                                                                    
     Alaska Legislature.                                                                                                        
     Resolve 12                                                                                                                 
     Pg 4, ln 6                                                                                                                 
     Provides  for  removal  and replacement  procedure  for                                                                    
     members of the Delegate Credential Committee                                                                               
     Members  are  removed  or  replaced  by  the  presiding                                                                    
     officer that appointed them.                                                                                               
     Resolve 13                                                                                                                 
     Section A.                                                                                                                 
     Pg 4, ln 17                                                                                                                
     Provides   the  duties   of  the   Delegate  Credential                                                                    
     Committee.                                                                                                                 
     Majority  vote on  decisions, official  facilitator for                                                                    
     the  legislature, appointment  of delegates,  provide a                                                                    
     committee  report  on  selected  delegates,  appointing                                                                    
     chair and  assistant chair of delegation,  properly vet                                                                    
     and  confirm  delegates,  issue  convention  passes  to                                                                    
     delegates,  notify legislature  of  financial needs  at                                                                    
     the  convention,  administer  oaths to  the  delegates,                                                                    
     alternates,   chair   and  assistant   chair,   monitor                                                                    
     activities  of  Alaska's delegation,  submit  quarterly                                                                    
     reports  to the  legislature on  events, progress,  and                                                                    
     recommendations  for   the  convention,   authority  to                                                                    
     recommend  removal  of  a  delegate  or  alternate  for                                                                    
     approval by the legislature.                                                                                               
     Resolve 13                                                                                                                 
     Section B                                                                                                                  
     Pg 6, ln 11                                                                                                                
     Provides for the duties of  the chair of Alaska's state                                                                    
     delegation and the president of the convention,                                                                            
     Chair  is  responsible  for  communicating  with  other                                                                    
     state  delegations  to  open convention  for  business;                                                                    
     identifying  other legislatures  that  have approved  a                                                                    
     delegate resolution;  build consensus with at  least 26                                                                    
     state   delegations   to   require  that   each   state                                                                    
     delegation  at  the  convention   has  only  one  vote;                                                                    
     require  a  simple majority  vote  at  all roll  calls;                                                                    
     nominate convention  officials; require a quorum  of 26                                                                    
     state  to conduct  business; build  a  consensus of  at                                                                    
     least  26 states  to  support  sending the  countermand                                                                    
     amendment   for   ratification;    work   to   conclude                                                                    
     convention  in 21  days, or  no longer  than 180  days;                                                                    
     nominate  a  candidate  for convention  president  from                                                                    
     Alaska's delegation, or work to elect a president                                                                          
     Resolve 13                                                                                                                 
     Section B, J                                                                                                               
     Pg 7, ln 31                                                                                                                
     Under duties  of the Alaska delegation  chair, includes                                                                    
     supporting  the  following  duties  of  the  convention                                                                    
     president.                                                                                                                 
     Convention  president duties  include: securing  a vote                                                                    
     for this delegate  resolution to be the  rules of order                                                                    
     at the convention; focus on  the purpose of sending the                                                                    
     countermand amendment  for ratification by  the states;                                                                    
     request   security   measures    as   needed;   oversee                                                                    
     installment  of officers  at the  convention; establish                                                                    
     convention  agenda;   provide  equal  time   for  floor                                                                    
     discussion for all states;  to prohibit introduction of                                                                    
     any subject other than  the countermand amendment; call                                                                    
     for  a vote  for sending  countermand amendment  to the                                                                    
     states; report to 50 state  legislatures, and the media                                                                    
     on convention  progress; provide formal  requests, when                                                                    
     needed,  to states  for money  that will  be needed  to                                                                    
     carry  on  business;  oppose any  effort  to  delay  or                                                                    
     modify  the  countermand  amendment  vote;  oppose  any                                                                    
     effort  by states  to offer  amendments other  than the                                                                    
     countermand amendment                                                                                                      
     Resolve 13                                                                                                                 
     Section C                                                                                                                  
     Pg 10, ln 3                                                                                                                
     Addresses  duties  and responsibilities  of  convention                                                                    
     delegates.                                                                                                                 
     Delegate  duties  include:  comply with  directives  in                                                                    
     this resolution;  follow instructions of the  chair and                                                                    
     assistant chair  of Alaska's delegation; be  present to                                                                    
     vote at  all roll  calls; attend all  assigned sessions                                                                    
     at the  convention; report to the  delegation chair the                                                                    
     number   of  states   in  favor   of  the   countermand                                                                    
     amendment; recommend strategies to  help join 26 states                                                                    
     in favor of the countermand amendment                                                                                      
     Resolve 13                                                                                                                 
     Section D                                                                                                                  
     Pg 11, Ln 1                                                                                                                
     Addresses  duties  and responsibilities  of  convention                                                                    
     delegate alternates.                                                                                                       
     Resolve 13                                                                                                                 
     Section E                                                                                                                  
     Pg 11, Ln 8                                                                                                                
     Provides the text for the  countermand amendment to the                                                                    
     United States Constitution.                                                                                                
                                                                                                                                
5:40:41 PM                                                                                                                    
                                                                                                                                
MICHAEL  SCHECHTER,  ATTORNEY  GENERAL'S  OFFICE,  ANCHORAGE                                                                    
(via  teleconference),  stated  that he  was  available  for                                                                    
questions.                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  queried  any technical  errors  in  the                                                                    
resolution.  Mr. Schechter  replied  that the  there was  an                                                                    
issue related  to how the constitutional  convention process                                                                    
would work.  The process had  never been used in  the United                                                                    
States.                                                                                                                         
                                                                                                                                
Senator Stoltze stated  that he hoped that there  would be a                                                                    
point when the questions would be addressed.                                                                                    
                                                                                                                                
5:44:18 PM                                                                                                                    
                                                                                                                                
MIKE   COONS,   NATIONAL   LEGISLATIVE   DIRECTOR,   CITIZEN                                                                    
INITIATIVES,  PALMER  (via   teleconference),  testified  in                                                                    
support of the legislation.                                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
SCR  4  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
5:49:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:49:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 69                                                                                                            
                                                                                                                                
     "An Act relating to the Board of Chiropractic                                                                              
     Examiners and the practice of chiropractic."                                                                               
                                                                                                                                
5:50:02 PM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  MOVED to ADOPT the  committee substitute for                                                                    
SB 69, 29-LS0704\S (Bruce, 4/4/16).                                                                                             
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
ERIN  SHINE, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
committee substitute.                                                                                                           
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
OBJECTION, the proposed committee substitute was adopted.                                                                       
                                                                                                                                
5:51:59 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:52:39 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
5:52:50 PM                                                                                                                    
                                                                                                                                
SENATOR  BILL  STOLTZE,  SPONSOR,  expressed  gratitude  for                                                                    
fixing some issues in the bill.                                                                                                 
                                                                                                                                
5:53:44 PM                                                                                                                    
                                                                                                                                
JANEY   HOVENDEN,   DIRECTOR,  DIVISION   OF   CORPORATIONS,                                                                    
BUSINESS   AND   PROFESSIONAL   LICENSING,   DEPARTMENT   OF                                                                    
COMMERCE,  COMMUNITY  AND ECONOMIC  DEVELOPMENT,  introduced                                                                    
herself. She stated that there  was a previous higher fiscal                                                                    
note, so  the current version  would reduce the  fiscal note                                                                    
to $2,500 for a regulation project.                                                                                             
                                                                                                                                
Co-Chair MacKinnon  queried the  location of the  new fiscal                                                                    
note. Ms.  Hovenden replied that  her staff did not  draft a                                                                    
fiscal note until the committee substitute was complete.                                                                        
                                                                                                                                
5:54:55 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:55:23 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
5:55:26 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  wanted to ensure  that there  would only                                                                    
be an  FY 17 one-time  expenditure for  regulation adoption,                                                                    
with the out years at zero. Ms. Hovenden agreed.                                                                                
                                                                                                                                
Senator Olson wondered  if the Alaska Board  of Medicine was                                                                    
in support of the bill.                                                                                                         
                                                                                                                                
Co-Chair MacKinnon wondered if  the Alaska Board of Medicine                                                                    
was in  support of  the bill.  Senator Stoltze  replied that                                                                    
there were discussions with the  medical community, and they                                                                    
did not have a position on the bill.                                                                                            
                                                                                                                                
Co-Chair  MacKinnon   queried  a  companion   bill.  Senator                                                                    
Stoltze replied in the negative.                                                                                                
                                                                                                                                
Co-Chair  MacKinnon stated  that the  bill would  go to  the                                                                    
other body for consideration.                                                                                                   
                                                                                                                                
Senator  Olson  wondered  if  conversations  were  with  the                                                                    
Medical Association  or the  Medical Board.  Senator Stoltze                                                                    
replied  that   there  was  only   a  conversation   with  a                                                                    
representative from the Medical Association.                                                                                    
                                                                                                                                
Co-Chair  Kelly   MOVED  to  REPORT  CSSB   69(FIN)  out  of                                                                    
committee  with  individual   recommendations  and  attached                                                                    
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
Senator Dunleavy declared his conflict of interest.                                                                             
                                                                                                                                
CSSB   69   was  REPORTED   out   of   committee  with   "no                                                                    
recommendation"  and with  one new  fiscal impact  note from                                                                    
the Senate Finance Committee for Department of Commerce,                                                                        
Community and Economic Development.                                                                                             
                                                                                                                                
5:59:40 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:01:31 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed the following day's agenda.                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
6:01:45 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 6:01 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 126 - Background Document - NASAA State Crowdfunding Legislation Index.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - Background Document - NCSL Intrastate Crowdfunding Update 2015.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - Background Document - Pew Charitable Trust Article - States Clear Way for Crowdfunding.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - Changes Version A to Version W.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - Sectional Analysis.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - Sponsor Statement.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - State Crowdfunding Press Articles.PDF SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - Support Letter - AIPPA.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
SB 126 - Support Letter - Randy Daly.pdf SFIN 4/5/2016 5:00:00 PM
SB 126
CSSB 154 (STA) - Changes.pdf SFIN 4/5/2016 5:00:00 PM
SB 154
CSSB 154 (STA) - Sponsor Statement.pdf SFIN 4/5/2016 5:00:00 PM
SB 154
SB 69 CS SB 69 (FIN) ver S.pdf SFIN 4/5/2016 5:00:00 PM
SB 69
SCR 4 Backup Document - New Hampshire Resolution Calling for Countermand Amendment.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Backup Document - New Mexico Resolution Proposing Countermand Amendment.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Sponsor Statement.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Support Document - Charles Kacprowicz Commentary.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Support Document - Email Don Brand 2-3-16.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Support Document - Email Mike Coons 3-25-15.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Support Document - Email Mike Coons 3-26-15.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Support Document - Letter Citizens Initiatives (Charles Kacprowicz) - 8-30-14.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Support Document - Letter Louisiana Senator A.G. Crowe.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4
SCR 4 Support Document - Letter North Dakota Rep Alan Fehr - 2-20-15.pdf SFIN 4/5/2016 5:00:00 PM
SCR 4