Legislature(2015 - 2016)BELTZ 105 (TSBldg)

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

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
-- Public Testimony --
+= SB 127 INSURER'S USE OF CREDIT HISTORY/SCORES TELECONFERENCED
Moved SB 127 Out of Committee
+= SB 158 REAL ESTATE BROKER LICENSURE REQS TELECONFERENCED
Moved SB 158 Out of Committee
+= SB 126 SMALL SECURITY OFFERINGS TELECONFERENCED
Moved CSSB 126(L&C) Out of Committee
+= SB 161 EXEMPTION: LICENSING OF CONTRACTORS TELECONFERENCED
Moved CSSB 161(L&C) Out of Committee
+= SB 108 AK SECURITIES ACT; PENALTIES; CRT. RULES TELECONFERENCED
Moved CSSB 108(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 3, 2016                                                                                          
                           1:33 p.m.                                                                                            
                                                                                                                                
                                                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Cathy Giessel, Vice Chair                                                                                               
Senator Kevin Meyer                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Gary Stevens                                                                                                            
Senator Johnny Ellis                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 127                                                                                                             
"An Act relating  to actions by insurers based  on credit history                                                               
or   insurance  score;   and  providing   for  an   exception  to                                                               
consideration  by  an  insurer of  credit  history  or  insurance                                                               
score."                                                                                                                         
                                                                                                                                
     - MOVED SB 127 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 158                                                                                                             
"An Act  relating to  real estate  broker licensure;  relating to                                                               
the  real  estate  commission; and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED SB 158 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 126                                                                                                             
"An Act  establishing an exemption  for the offering and  sale of                                                               
certain securities."                                                                                                            
                                                                                                                                
     - MOVED CSSB 126(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 161                                                                                                             
"An  Act  relating  to  an   exemption  from  the  regulation  of                                                               
construction contractors."                                                                                                      
                                                                                                                                
     - MOVED CSSB 161(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 108                                                                                                             
"An  Act  repealing and  reenacting  the  Alaska Securities  Act,                                                               
including   provisions   relating   to  exempt   securities   and                                                               
transactions; relating to registration  of securities, firms, and                                                               
agents  that  offer or  sell  securities  and investment  advice;                                                               
relating  to  administrative,  civil,  and  criminal  enforcement                                                               
provisions,  including   restitution  and  civil   penalties  for                                                               
violations; allowing  certain civil penalties  to be used  for an                                                               
investor  training fund;  establishing increased  civil penalties                                                               
for  harming  older  Alaskans;  retaining  provisions  concerning                                                               
corporations organized under the  Alaska Native Claims Settlement                                                               
Act; amending Rules  4, 5, 54, 65, and 90,  Alaska Rules of Civil                                                               
Procedure; and providing for an effective date."                                                                                
                                                                                                                                
     - MOVED CSSB 108(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 127                                                                                                                  
SHORT TITLE: INSURER'S USE OF CREDIT HISTORY/SCORES                                                                             
SPONSOR(s): SENATOR(s) HUGGINS                                                                                                  
                                                                                                                                
01/19/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (S)       STA, L&C                                                                                               
02/11/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/11/16       (S)       Heard & Held                                                                                           
02/11/16       (S)       MINUTE(STA)                                                                                            
02/16/16       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/16/16       (S)       Moved  SB 127 Out of Committee                                                                         
02/16/16       (S)       MINUTE(STA)                                                                                            
02/17/16       (S)       STA RPT 4DP 1AM                                                                                        
02/17/16       (S)       DP: STOLTZE, COGHILL, HUGGINS, MCGUIRE                                                                 
02/17/16       (S)       AM: WIELECHOWSKI                                                                                       
02/25/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/25/16       (S)       Heard & Held                                                                                           
02/25/16       (S)       MINUTE(L&C)                                                                                            
03/03/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 158                                                                                                                  
SHORT TITLE: REAL ESTATE BROKER LICENSURE REQS                                                                                  
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
01/25/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/25/16       (S)       L&C                                                                                                    
02/04/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/04/16       (S)       Scheduled but Not Heard                                                                                
02/18/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/18/16       (S)       Heard & Held                                                                                           
02/18/16       (S)       MINUTE(L&C)                                                                                            
03/03/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 126                                                                                                                  
SHORT TITLE: SMALL SECURITY OFFERINGS                                                                                           
SPONSOR(s): COSTELLO                                                                                                            
                                                                                                                                
01/19/16       (S)       PREFILE RELEASED 1/15/16                                                                               
01/19/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (S)       L&C, FIN                                                                                               
02/11/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/11/16       (S)       Heard & Held                                                                                           
02/11/16       (S)       MINUTE(L&C)                                                                                            
03/03/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 161                                                                                                                  
SHORT TITLE: EXEMPTION: LICENSING OF CONTRACTORS                                                                                
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
01/27/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/16       (S)       L&C, FIN                                                                                               
02/09/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/09/16       (S)       Heard & Held                                                                                           
02/09/16       (S)       MINUTE(L&C)                                                                                            
03/03/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 108                                                                                                                  
SHORT TITLE: AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
04/13/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/15       (S)       L&C, JUD, FIN                                                                                          
02/09/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/09/16       (S)       Scheduled but Not Heard                                                                                
02/11/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/11/16       (S)       Heard & Held                                                                                           
02/11/16       (S)       MINUTE(L&C)                                                                                            
02/18/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/18/16       (S)       Heard & Held                                                                                           
02/18/16       (S)       MINUTE(L&C)                                                                                            
03/03/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JANEY HOVENDEN, Director                                                                                                        
Division of Corporations, Business and Professional Licensing                                                                   
Department  of  Commerce,   Community  and  Economic  Development                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions related to SB 158.                                                                    
                                                                                                                                
WESTON EILER, Staff                                                                                                             
Senate Labor and Commerce Committee and                                                                                         
Senator Costello                                                                                                                
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Explained the changes  in the CS for SB 126;                                                             
the CS for SB 161; and the CS for SB 108.                                                                                       
                                                                                                                                
JAMES SQUYRES, representing himself                                                                                             
Rural Deltana, Alaska                                                                                                           
POSITION STATEMENT:  Testified in opposition to SB 161.                                                                       
                                                                                                                                
PAM GOODE, representing herself                                                                                                 
Rural Deltana, Alaska                                                                                                           
POSITION STATEMENT:  Testified in opposition to SB 161.                                                                       
                                                                                                                                
RICHARD CARR, BEMA Construction                                                                                                 
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of SB 161.                                                                          
                                                                                                                                
KEVIN ANSELM, Director                                                                                                          
Division of Banking and Securities                                                                                              
Department  of  Commerce,   Community  and  Economic  Development                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Recapped the reasons for SB 108.                                                                         
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:31 PM                                                                                                                  
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:33  p.m. Present at the  call to                                                               
order were Senators Meyer, Giessel and Chair Costello.                                                                          
                                                                                                                                
         SB 127-INSURER'S USE OF CREDIT HISTORY/SCORES                                                                      
                                                                                                                                
1:34:25 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of SB 127.                                                                           
                                                                                                                                
JEANNE   MUNGLE,   Deputy   Director,  Division   of   Insurance,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), offered to answers to questions related to SB 127.                                                                     
                                                                                                                                
CHAIR COSTELLO  found no  questions or  input from  the sponsor's                                                               
staff and solicited a motion.                                                                                                   
                                                                                                                                
SENATOR  GIESSEL moved  to report  SB  127, version  29-LS0529\W,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
1:35:58 PM                                                                                                                    
CHAIR  COSTELLO  announced  that  without objection,  SB  127  is                                                               
reported from  the Senate Labor and  Commerce Standing Committee.                                                               
                                                                                                                                
1:36:01 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
            SB 158-REAL ESTATE BROKER LICENSURE REQS                                                                        
                                                                                                                                
1:37:16 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  SB 158; "An Act relating to real  estate broker                                                               
licensure; relating to the real  estate commission; and providing                                                               
for an  effective date."  She noted this  is the  second hearing.                                                               
She  asked Ms.  Hovenden if  she wanted  to add  anything to  her                                                               
previous testimony.                                                                                                             
                                                                                                                                
1:37:38 PM                                                                                                                    
JANEY HOVENDEN, Director, Division  of Corporations, Business and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic  Development (DCCED),  said she  provided the  committee                                                               
follow up  information to  the questions  that were  asked during                                                               
the first hearing.                                                                                                              
                                                                                                                                
CHAIR COSTELLO asked if the  administration had a position on the                                                               
legislation.                                                                                                                    
                                                                                                                                
MS. HOVENDEN  said the Real  Estate Commission supports  the bill                                                               
and  the department  supports it  because it  provides additional                                                               
public protections.                                                                                                             
                                                                                                                                
CHAIR COSTELLO found no questions and solicited a motion.                                                                       
                                                                                                                                
SENATOR  GIESSEL moved  to report  SB  158, labeled  29-LS1303\W,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
1:38:59 PM                                                                                                                    
CHAIR  COSTELLO  announced  that  without objection,  SB  158  is                                                               
reported from  the Senate Labor and  Commerce Standing Committee.                                                               
                                                                                                                                
1:39:16 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                SB 126-SMALL SECURITY OFFERINGS                                                                             
                                                                                                                                
1:42:47 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  SB 126; "An  Act establishing an  exemption for                                                               
the  offering and  sale of  certain securities."  She stated  the                                                               
intent  is  to  conclude  public  testimony,  adopt  a  committee                                                               
substitute  and look  to the  will of  the committee.  Finding no                                                               
public testimony, she closed it.                                                                                                
                                                                                                                                
SENATOR GIESSEL  moved to adopt  the CS  for SB 126,  labeled 29-                                                               
LS1284\W, as the  working document.                                                                                             
                                                                                                                                
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
1:44:01 PM                                                                                                                    
WESTON  EILER, Staff,  Senate Labor  and  Commerce Committee  and                                                               
Senator  Costello, Alaska  State Legislature,  said the  CS makes                                                               
two  substantive changes.  The  first deletes  subsection (c)  on                                                               
page  4, lines  8-13. The  reason is  that it  the Department  of                                                               
Commerce,   Community   and   Economic   Development   has   more                                                               
flexibility if this rule is handled through regulations.                                                                        
                                                                                                                                
CHAIR COSTELLO asked  if the bill allows the  department to draft                                                               
those regulations.                                                                                                              
                                                                                                                                
MR. EILER answered yes.                                                                                                         
                                                                                                                                
He said  the second change adds  a new subsection (d)  on page 4,                                                               
lines  11-15.  It  states  that   if  someone  is  subject  to  a                                                               
disqualifier or  has violated the  Dodd-Frank Wall  Street Reform                                                               
and Consumer  Protection Act, they  can't use this  exemption for                                                               
crowd funding in  Alaska. This disqualifier was  requested by the                                                               
administration.                                                                                                                 
                                                                                                                                
MR. EILER referenced a question  Senator Giessel asked during the                                                               
last hearing about the Department  of Revenue conducting a report                                                               
on how  Alaskans can  become investors in  the AKLNG  project and                                                               
the gasline. He  related that it's the  department's intention to                                                               
initiate a  report once  a commercial  agreement is  presented to                                                               
the legislature.                                                                                                                
                                                                                                                                
CHAIR  COSTELLO  asked  if  that  would be  in  this  section  of                                                               
statute.                                                                                                                        
                                                                                                                                
MR.  EILER replied  it  would likely  be in  a  different set  of                                                               
statutes. This bill is a  securities exemption regulated by DCCED                                                               
and fiscal terms  dealing with the AKLNG project and  oil and gas                                                               
are regulated by the Department of Revenue.                                                                                     
                                                                                                                                
CHAIR  COSTELLO  removed her  objection  and  finding no  further                                                               
objection, version W was adopted.                                                                                               
                                                                                                                                
1:49:07 PM                                                                                                                    
SENATOR GIESSEL  moved to report the  CS for SB 126,  version 29-                                                               
LS1284\W,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR COSTELLO  announced that  without objection,  CSSB 126(L&C)                                                               
is  reported   from  the  Senate  Labor   and  Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
1:49:20 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
           SB 161-EXEMPTION: LICENSING OF CONTRACTORS                                                                       
                                                                                                                                
1:51:00 PM                                                                                                                    
CHAIR   COSTELLO    reconvened   the   meeting    and   announced                                                               
consideration  of SB  161. She  relayed that  this is  the second                                                               
hearing,  public  testimony is  open,  and  there is  a  proposed                                                               
committee substitute (CS).                                                                                                      
                                                                                                                                
1:51:27 PM                                                                                                                    
JAMES  SQUYRES,  representing  himself,  Rural  Deltana,  Alaska,                                                               
testified in  opposition to  SB 161.  He said  the bill  tries to                                                               
close   a  contractor   loophole,  but   it  has   an  unintended                                                               
consequence. Many  people living in  rural areas build  their own                                                               
homes and move  in before they are finished. Should  SB 161 pass,                                                               
an owner/builder who  wants or needs to sell  within the two-year                                                               
timeframe  would   have  to   demonstrate  to   the  department's                                                               
satisfaction that  they are not  a contractor. He  described this                                                               
new burden  as a liberty  bite. He  maintained the bill  does not                                                               
fix  the  problem;  it  does  unintentionally  affect  one  man's                                                               
liberty;  and it  will impact  state finances.  He suggested  the                                                               
bill needs a fiscal note  because new regulations and enforcement                                                               
will be  needed. He mentioned  previous versions of the  bill and                                                               
claimed  that it  keeps  coming up  because  of the  contractor's                                                               
lobby that  tenaciously chips  away at the  people. He  urged the                                                               
committee to hold SB 161.                                                                                                       
                                                                                                                                
CHAIR COSTELLO told  the committee that SB 161  is different than                                                               
the   versions  just   described.  Additionally,   the  committee                                                               
substitute  clarifies the  two-year timeframe  and the  period of                                                               
construction.                                                                                                                   
                                                                                                                                
1:56:03 PM                                                                                                                    
PAM   GOODE,  representing   herself,   Rural  Deltana,   Alaska,                                                               
testified in  opposition to SB  161. She  said this is  the third                                                               
year  in a  row she  has had  to testify  against this  bill. She                                                               
noted  this is  a Labor  and Commerce  Committee bill  and listed                                                               
entities that may  be pushing it. She maintained  that the people                                                               
of Alaska  should not  have to  file anything  with the  state in                                                               
order to sell  their homes. It goes against  an individual right.                                                               
She urged the committee to hold SB 161.                                                                                         
                                                                                                                                
1:58:44 PM                                                                                                                    
RICHARD CARR,  BEMA Construction,  Wasilla, Alaska,  testified in                                                               
support of  SB 161. He said  he is a homebuilder  who specializes                                                               
in  disaster  restoration  and  remodeling so  he  has  a  better                                                               
perspective than  most about  the need  for this  legislation. He                                                               
frequently  receives  calls from  homeowners  who  are upset  and                                                               
heartbroken  that   their  new   home  has  faulty   plumbing  or                                                               
electrical breakers  that keep tripping. Sometimes  the homeowner                                                               
is  unable to  find  out who  built  the home.  SB  161 does  not                                                               
prohibit  someone  from building  their  own  home, but  it  will                                                               
impede unscrupulous builders and protect Alaska consumers.                                                                      
                                                                                                                                
2:00:31 PM                                                                                                                    
CHAIR COSTELLO closed public testimony  on SB 161 and solicited a                                                               
motion to adopt the committee substitute (CS).                                                                                  
                                                                                                                                
SENATOR GIESSEL  moved to adopt  the CS  for SB 161,  labeled 29-                                                               
LS1319\W as working document.                                                                                                   
                                                                                                                                
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
WESTON  EILER,   Staff,  Senate   Labor  and   Commerce  Standing                                                               
Committee and  Senator Costello,  explained that the  CS replaces                                                               
the  term "ends"  with "begins"  in two  places. These  appear on                                                               
page 1, line 11  and page 3, line 4, of the  CS. The consensus of                                                               
the Department  of Commerce,  Community and  Economic Development                                                               
and stakeholders is  that two years after construction  ends is a                                                               
more  nebulous  timeframe  than   two  years  after  construction                                                               
begins.  The practical  implication is  that the  two year  clock                                                               
begins  when  the  foundation  and   footings  of  a  residential                                                               
structure are put in place.                                                                                                     
                                                                                                                                
CHAIR COSTELLO  asked if  an owner/builder  would be  affected by                                                               
the bill  if it takes  him/her four  years from the  beginning to                                                               
the end of construction.                                                                                                        
                                                                                                                                
MR. EILER  answered no; it  only affects individuals who  build a                                                               
home and  advertise to sell it  within two years of  the start of                                                               
construction.  In   that  situation,  the  individual   would  be                                                               
required to file  a form to satisfy the department  that they are                                                               
not  a  contractor.  The  intent   is  to  provide  oversight  of                                                               
individuals  who  are  taking   advantage  of  the  owner/builder                                                               
exemption provided in state law.                                                                                                
                                                                                                                                
CHAIR COSTELLO asked why there is no fiscal note.                                                                               
                                                                                                                                
MR. EILER explained that DCCED  issued a zero fiscal note because                                                               
they   don't   anticipate   that  processing   the   forms   that                                                               
owner/builders file will have a fiscal impact.                                                                                  
                                                                                                                                
CHAIR COSTELLO  asked him to speak  to the public value  the bill                                                               
intends to promote.                                                                                                             
                                                                                                                                
MR. EILER explained  that this is a consumer  protection bill for                                                               
those who are  buying homes in Alaska. The  legislative intent is                                                               
to  maintain  the  owner/builder exemption  while  ensuring  that                                                               
individuals that should have a  contractor license aren't able to                                                               
take advantage of the exemption.                                                                                                
                                                                                                                                
CHAIR COSTELLO  removed her objection  to the adoption of  the CS                                                               
and solicited a motion.                                                                                                         
                                                                                                                                
SENATOR GIESSEL  moved to report the  CS for SB 161,  labeled 29-                                                               
LS1319\W,  from  committee  with individual  recommendations  and                                                               
attached zero fiscal note.                                                                                                      
                                                                                                                                
CHAIR COSTELLO  announced that  without objection,  CSSB 161(L&C)                                                               
is  reported   from  the  Senate  Labor   and  Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
2:06:19 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        SB 108-AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                     
                                                                                                                                
2:09:43 PM                                                                                                                    
CHAIR   COSTELLO    reconvened   the   meeting    and   announced                                                               
consideration  of SB  108. She  relayed  that this  is the  third                                                               
hearing  and the  intent is  to  take public  testimony, adopt  a                                                               
committee  substitute, and  look to  the will  of the  committee.                                                               
Finding no public testimony on SB 108, she closed it.                                                                           
                                                                                                                                
SENATOR GIESSEL  moved to  adopt the  work draft  CS for  SB 108,                                                               
labeled 29-LS1060\W, as working document.                                                                                       
                                                                                                                                
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
WESTON  EILER,  Staff,  Senate Labor  &  Commerce  Committee  and                                                               
Senator  Costello,   Alaska  State   Legislature,  said   a  non-                                                               
substantive  change is  that the  CS reorders  sections beginning                                                               
with  the  amendments   to  Title  6  and   concluding  with  the                                                               
amendments to Title 45.                                                                                                         
                                                                                                                                
The CS also makes two substantive changes.                                                                                      
                                                                                                                                
2:12:17 PM                                                                                                                    
At ease from 2:12 p.m. to 2:17 p.m.                                                                                             
                                                                                                                                
CHAIR  COSTELLO  reconvened the  meeting  and  recapped that  Mr.                                                               
Eiler was explaining the changes in the CS for SB 108.                                                                          
                                                                                                                                
MR.  EILER said  the first  substantive change  removes the  term                                                               
"variable annuity"  that appears on  page 88, line 8,  of version                                                               
A.  The   administration  requested   this  change   so  variable                                                               
annuities  will  continue to  be  regulated  by the  Division  of                                                               
Insurance.                                                                                                                      
                                                                                                                                
The second  substantive change removes the  entire Sec. 45.56.220                                                               
starting on  page 13, line 24  through page 16, line  12. That is                                                               
inherently crowd funding, which is advancing through SB 126.                                                                    
                                                                                                                                
CHAIR  COSTELLO   removed  her  objection.  Finding   no  further                                                               
objection, version W was adopted.                                                                                               
                                                                                                                                
She asked Ms.  Anselm to give the committee the  30 thousand foot                                                               
rationale for the bill.                                                                                                         
                                                                                                                                
2:20:08 PM                                                                                                                    
KEVIN  ANSELM,  Director,  Division of  Banking  and  Securities,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), recapped the reasons to  modernize the Alaska Securities                                                               
Act:  to recognize  and incorporate  current securities  industry                                                               
terms and standards; synthesize with  other state laws to make it                                                               
easier for businesses, entrepreneurs  and investors to understand                                                               
their  rights,  responsibilities  and  opportunities  in  Alaska;                                                               
deter  investment  scams;  enhance penalties  for  harming  older                                                               
Alaskans; and  separate the securities  statutes from  the Alaska                                                               
Native  Claims Settlement  Act statutes  to reduce  confusion and                                                               
improve understanding  of both the  Securities Act and  the ANCSA                                                               
Proxy Settlement Act.                                                                                                           
                                                                                                                                
CHAIR COSTELLO thanked Ms. Anselm for her diligent work.                                                                        
                                                                                                                                
SENATOR GIESSEL moved  to report the CS for SB  108, labeled [29-                                                               
GS1060\W],  from committee  with  individual recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR COSTELLO  announced that  without objection,  CSSB 108(L&C)                                                               
is  reported   from  the  Senate  Labor   and  Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
2:22:49 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:22 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
CS for SB 161 (L&C) Ver. W.pdf SL&C 3/3/2016 1:30:00 PM
SB 161
CS SB 126 (L&C) Ver. W.pdf SL&C 3/3/2016 1:30:00 PM
SB 126
CS SB 108 ver. W.pdf SL&C 3/3/2016 1:30:00 PM
SB 108
DOR Response to Senate Labor and Commerce Committee - 2.25.16.pdf SL&C 3/3/2016 1:30:00 PM
SB 127 - Div of Insurance SEN. STA Q&A.PDF SL&C 3/3/2016 1:30:00 PM
SB 127
SB 127 - Follow-Up Letter J. Kinsey.pdf SL&C 3/3/2016 1:30:00 PM
SB 127
SB 158 - Follow-Up DCCED.pdf SL&C 3/3/2016 1:30:00 PM
SB 158