CSHB 527(STA): "An Act relating to the Alaska Securities Act, including reports, proxies, consents, authorizations, proxy statements, and other materials, civil penalties, refunds of proceeds from violations, restitution, attorney fees and costs, state jurisdiction, and investment adviser representatives; amending Rules 54(d), 79, and 82, Alaska Rules of Civil Procedure; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 527(STA) 01 "An Act relating to the Alaska Securities Act, including reports, proxies, consents, 02 authorizations, proxy statements, and other materials, civil penalties, refunds of 03 proceeds from violations, restitution, attorney fees and costs, state jurisdiction, and 04 investment adviser representatives; amending Rules 54(d), 79, and 82, Alaska Rules of 05 Civil Procedure; and providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 37.10.050(a) is amended to read: 08 (a) A state agency may not charge a fee for the provision of state services 09 unless the fee (1) is set or otherwise authorized by statute; and (2) where a regulation 10 is necessary, is set by or provided for in a regulation that meets the standards of 11 AS 44.62.020 and 44.62.030. Unless specifically exempted by statute, a state agency 12 authorized to collect or receive fees, licenses, taxes, or other money belonging to the 13 state shall account for and remit the receipts, less fees to which the collector is entitled
01 by statute or regulation, to the Department of Revenue at least once each month. The 02 commissioner of administration shall separately account under AS 37.05.142 for 03 receipts deposited under this subsection. A fee or other charge that is set by regulation 04 may not exceed the estimated actual costs of the state agency in administering the 05 activity or providing the service unless otherwise provided by the statute under which 06 the regulation is adopted; however, this limitation does not apply to sale or lease of 07 property by a state agency, fees charged by a resource agency for a designated 08 regulatory service as defined in AS 37.10.058, [OR] fees adopted by the Department 09 of Natural Resources under AS 44.37.025 or 44.37.027, or fees that are collected 10 under AS 45.55 (Alaska Securities Act). 11 * Sec. 2. AS 44.55.139 is amended to read: 12 Sec. 45.55.139. Reports of corporations. A copy of all annual reports, 13 proxies, consents or authorizations, proxy statements, and other materials relating to 14 proxy solicitations distributed, published, or made available by any person to at least 15 30 Alaska resident shareholders of a corporation that has [TOTAL ASSETS 16 EXCEEDING $1,000,000 AND] a class of equity security held of record by 250 [500] 17 or more persons and that [WHICH] is exempted from the registration requirements of 18 AS 45.55.070 by AS 45.55.138, shall be filed with the administrator concurrently with 19 its distribution to shareholders. 20 * Sec. 3. AS 45.55.920(b) is amended to read: 21 (b) The administrator may issue an order against an applicant, registered 22 person, or other person who knowingly or intentionally violates this chapter or a 23 regulation or order of the administrator under this chapter, imposing a civil penalty of 24 not more than $100,000 [$2,500] for a single violation, or not more than $1,000,000 25 [$25,000] for multiple violations, in a single proceeding or a series of related 26 proceedings. 27 * Sec. 4. AS 45.55.920(c) is amended to read: 28 (c) For violations not covered by (b) of this section, the administrator may 29 issue an order against an applicant, registered person, or other person who violates this 30 chapter or a regulation or order of the administrator under this chapter, imposing a 31 civil penalty of not more than $100,000 [$500] for a single violation, or not more than
01 $1,000,000 [$5,000] for multiple violations, in a single proceeding or a series of 02 related proceedings. 03 * Sec. 5. AS 45.55.920(e) is amended to read: 04 (e) After an order issued by the administrator under (b) or (c) of this section 05 becomes final and all rights of appeal are exhausted, the administrator may petition the 06 superior court to enter a judgment against a person who is a respondent in the order for 07 the amount of the civil penalty levied or the amount of restitution ordered against 08 the person and attorney fees and costs as allowed under (g) of this section. Subject 09 to AS 44.62.570, the filing of the petition for a judgment does not reopen the final 10 order to further substantive review unless the court orders otherwise. A judgment 11 entered under this subsection may be executed on and levied under in the manner 12 provided in AS 09.35. 13 * Sec. 6. AS 45.55.920 is amended by adding new subsections to read: 14 (f) In an order under (b) or (c) of this section, if another person has been 15 harmed as a result of the violation, the administrator may also require the violator to 16 refund to the administrator the proceeds received by the violator from the violation 17 and to make restitution to all persons harmed as a result of the violation. The amount 18 of the restitution paid to the harmed person may be two times the amount of loss 19 caused to the person by the violator. 20 (g) If the administrator is the prevailing party in a court action brought by the 21 administrator under this section, the court shall award to the administrator the actual 22 reasonable attorney fees and actual reasonable costs incurred by the administrator in 23 the action, including all expert witness fees. 24 * Sec. 7. AS 45.55.980 is amended by adding a new subsection to read: 25 (j) When determining the jurisdiction of the state over persons and acts under 26 this chapter, this section shall be interpreted to apply to persons and activities to the 27 fullest extent allowed by the Constitution of the State of Alaska and the Constitution 28 of the United States. 29 * Sec. 8. AS 45.55.990(15) is amended to read: 30 (15) "investment adviser representative" 31 (A) means a natural person who
01 (i) makes a recommendation or otherwise renders 02 advice regarding securities; manages accounts or portfolios of clients; 03 determines which recommendation or advice regarding securities 04 should be given; solicits, offers, or negotiates for the sale of or sells 05 advisory services; or supervises employees who perform an activity 06 described in this sub-subparagraph; and 07 (ii) is a supervised person of a state investment adviser 08 that is registered or required to be registered under this chapter or is a 09 supervised person of a federal covered adviser and has a place of 10 business located in this state, if a substantial portion of the business of 11 the supervised person is providing to clients who are natural persons 12 the services described in (i) of this subparagraph [, OR WHO IS A 13 SUPERVISED PERSON OF A FEDERAL COVERED ADVISER, 14 HAS A PLACE OF BUSINESS LOCATED IN THIS STATE, AND 15 HAS SIX OR MORE CLIENTS WHO ARE NATURAL PERSONS, 16 IF A SUBSTANTIAL PORTION OF THE BUSINESS OF THE 17 SUPERVISED PERSON IS PROVIDING TO CLIENTS WHO ARE 18 NATURAL PERSONS THE SERVICES DESCRIBED IN (i) OF 19 THIS SUBPARAGRAPH]; 20 (B) means other persons who are not otherwise covered by this 21 paragraph but who are designated by regulation or order of the administrator; 22 (C) except persons covered by (36)(A)(ii) of this section, does 23 not include a person that would not be defined as an investment adviser 24 representative under 17 C.F.R. 275.203A-3 adopted under 15 U.S.C. 80b-3a 25 (Investment Advisers Act of 1940), as that regulation exists on or after 26 October 1, 1999; 27 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 INDIRECT COURT RULE CHANGES. AS 45.55.920(g), added by sec. 6 of this 30 Act, has the effect of changing 31 (1) Rule 82, Alaska Rules of Civil Procedure, by establishing different rules
01 relating to the award of attorney fees in actions that are brought under AS 45.55; 02 (2) Rules 54(d) and 79, Alaska Rules of Civil Procedure, by establishing 03 different rules relating to the award of costs in actions that are brought under AS 45.55. 04 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 CONDITIONAL EFFECT. AS 45.55.920(g), enacted by sec. 6 of this Act, takes 07 effect only if sec. 9 of this Act receives the two-thirds majority vote of each house required by 08 art. IV, sec. 15, Constitution of the State of Alaska. 09 * Sec. 11. This Act takes effect immediately under AS 01.10.070(c).