03/03/2016 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB127 | |
| SB158 | |
| SB126 | |
| SB161 | |
| SB108 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 127 | TELECONFERENCED | |
| += | SB 158 | TELECONFERENCED | |
| += | SB 126 | TELECONFERENCED | |
| += | SB 161 | TELECONFERENCED | |
| += | SB 108 | TELECONFERENCED | |
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 |