Legislature(2015 - 2016)BARNES 124
03/23/2016 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB194 | |
| HB289 | |
| HB337 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 194 | TELECONFERENCED | |
| += | HB 289 | TELECONFERENCED | |
| += | HB 337 | TELECONFERENCED | |
HB 194-AK SECURITIES ACT; PENALTIES; CRT. RULES
3:23:29 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 194, "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."
[The committee substitute for HB 194, Version E, was before the
committee.]
3:23:57 PM
KEVIN ANSELM, Director, Division of Banking and Securities,
Department of Commerce, Community & Economic Development,
briefly reviewed HB 194, noting that the bill would recognize
and incorporate current securities industry terms and standards,
update the law, and delete outdated references. Furthermore, HB
194 would synthesize the Alaska Securities Act with other
states' laws, open equity crowdfunding opportunities to
Alaskans, deter investment scams, enhance penalties, and
separate the securities statutes from the Alaska Native Claims
Settlement Act statutes.
3:26:03 PM
REPRESENTATIVE LEDOUX moved to adopt Amendment 1, which read:
Page 34, lines 8 - 9:
Delete "by governmental authorities"
CHAIR OLSON objected for discussion purposes.
REPRESENTATIVE LEDOUX explained that Amendment 1 requires that
any action known to be contemplated has to be disclosed, not
only those contemplated by governmental authorities.
MS. ANSELM opined Amendment 1 would change the model language a
little; however, the original language was not very clear that
all potential or pending litigation that hasn't been filed
should be noticed. She acknowledged that the model language
includes an official comment that said, "Pending litigation can
include litigation that has not yet been filed." Ms. Anselm
said she understood the intent of the amendment, and accepted
the amendment.
REPRESENTATIVE KITO surmised that deleting "by [governmental
authorities]," raises concern about who or what is contemplating
the action.
MS. ANSELM answered that the language in the bill addresses what
needs to be disclosed to potential investors, particularly in
the prospectus of the offering document. An issuer must
disclose any pending litigation, action, or proceeding to which
the issuer is a party, and that materially affects the issuer's
business or assets, and is known to be contemplated by anyone.
Thus, the intent is to have any awareness of a lawsuit
disclosed, whether by the government or anyone else.
3:30:40 PM
REPRESENTATIVE KITO questioned how an individual would know;
actions by a governmental authority require public notice, but
for a private party, it may not be known.
MS. ANSELM agreed; however, sometimes parties do know, but the
paperwork hasn't been filed, and in those cases there should be
disclosure. In further response to Representative Kito, she
said the language can be made clear in regulation.
3:32:12 PM
CHAIR OLSON removed his objection to Amendment 1. There being
no further objection, Amendment 1 was adopted.
3:32:20 PM
CHAIR OLSON opened public testimony on HB 194. After
ascertaining no one wished to testify, public testimony was
closed.
3:32:43 PM
REPRESENTATIVE HUGHES moved to report the committee substitute
for HB 194, Version 29-GH1060\E, Bannister, 3/11/16, as amended,
out of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, CSHB
194(L&C) was reported from the House Labor and Commerce Standing
Committee.
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