Legislature(2013 - 2014)SENATE FINANCE 532
04/16/2014 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB379 | |
| SB220 | |
| HB308 | |
| HB361 | |
| HB160 | |
| HB116 | |
| SB48 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 278 | TELECONFERENCED | |
| + | HB 385 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | HB 379 | ||
| = | SB 220 | ||
| = | HB 308 | ||
| = | HB 361 | ||
| = | HB 160 | ||
| = | SB 48 | ||
| = | HB 116 | ||
HOUSE BILL NO. 308
"An Act relating to the exemptions under the Alaska
Securities Act and to securities issued by Native
corporations; and providing for an effective date."
2:31:01 PM
REPRESENTATIVE LINDSEY HOLMES, explained the legislation.
She stated that HB 308 removed the reporting requirements
and fees for three types of exempt security transactions:
sales by an issuer to not more than 10 persons in the
state; sales by an issuer to not more than 25 persons in
the state; an offer to existing security holders of the
issuer. Under current law, if the security issuance
qualifies as exempt from registration under AS
45.55.900(b), issuers are currently still required to file
a form and pay a fee to the Department of Commerce,
Community and Economic Development (DCCED). She stated that
DCCED collected the information and reviewed it, however it
did not appear to add any protections to the state or the
investors. Often small business owners hire lawyers to
navigate the form which caused expense and can slow down
the process. While removing the reporting requirements, the
bill still required the business issuing the securities to
provide required information to investors in compliance
with the Securities Act so that they could make an informed
investing decision. The bill kept the act's consumer
protection language intact and did not inhibit the Division
of Banking and Securities from investigating violations or
the investor seeking damages through the court system. The
bill also changed the amount of time DCCED had to review
rescission offers from only two days to ten days and had
several conforming language changes. The bill further
sought to clarify that stock issued by the Alaska Native
Claims Settlement Act (ANCSA) corporations to Alaska
Natives born after December 18, 1971 or issued after the
original stock offering in compliance with federal law were
exempt from registering under AS 45.55.070. This clean up
responded to a report done by the United States Government
Accountability Office that was concerned that Alaska
statutes were not treating newly issued ANCSA corporation
stocks the same as the initial offering.
ALLAN JOHNSTON, VOLUNTEER, TEAM NETWORK, ANCHORAGE (via
teleconference), testified in support of the legislation.
He stated that he had volunteered in various organizations
in Anchorage and across Alaska. He had worked to create
"Angel Funds" from the federal government, which would be
matched by the private sector. He stated that the Banking
and Securities Division had done a remarkable job in
assisting in education, because many people were unfamiliar
with securities laws. He stated that Alaska was 50th in the
country for its capital, and third in median family income.
He stressed that the gap would be closed by encouraging the
residents to invest locally and create local businesses.
2:36:52 PM
KEVIN ANSELM, DIRECTOR, DIVISION OF BANKING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, ANCHORAGE
(via teleconference), introduced herself. She offered to
outline the legislation, but felt that Representative
Holmes had summarized the bill accurately.
Co-Chair Meyer asked if DCCED had any comments on the
legislation. Ms. Anselm replied that there was a PowerPoint
presentation in the packet, which was an overview of the
securities requirement. She stated that the legislation
eliminated the paperwork and filing fees with the Banking
and Securities Division for the small offerings and for
offerings to existing securities holders. She added that
there were two clean-up items were related to rescission
offers allowing the division more time to ensure that it
met its consumer protection requirements.
Co-Chair Meyer CLOSED public testimony.
HB 308 was HEARD and HELD in committee for further
consideration.