Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/11/2016 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB108 | |
| SB113 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 108 | TELECONFERENCED | |
| + | SB 113 | TELECONFERENCED | |
| *+ | SB 211 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 108-AK SECURITIES ACT; PENALTIES; CRT. RULES
1:39:30 PM
CHAIR MCGUIRE announced the consideration of SB 108. She noted
that this is the first hearing and the committee is considering
CSSB 108(L&C).
1:39:58 PM
KEVIN ANSELM, Director, Division of Banking and Securities,
Department of Commerce, Community and Economic Development
(DCCED), introduced SB 108 on behalf of the administration. She
informed the committee that the bill separates securities
statutes from the Alaska Native Claims Settlement Act (ANCSA)
statutes to reduce confusion and improve understanding of both
acts. It recognizes and incorporates current industry standards
and terms. It synthesizes with other states' laws to make it
easier for businesses, entrepreneurs, and investors to
understand their rights, responsibilities, and opportunities in
Alaska through adopting many of the Uniform Securities Act
provisions from the 2002 model act. The bill deters investment
scams and harm to Alaskans by increasing civil penalties and
providing resources from those penalties for investor, consumer,
or entrepreneurial education. SB 108 also enhances penalties
against people who harm older Alaskans.
MS. ANSELM offered to review the summary of changes from version
A to version W and the sectional analysis.
1:41:13 PM
SENATOR COGHILL requested a review of the changes.
CHAIR MCGUIRE asked Ms. Anselm to review the changes and noted
that Senator Micciche joined the committee.
1:41:34 PM
MS. ANSELM read the following summary of changes between version
A and version W of SB 108.
Structural Changes. The order of the sections has been
reorganized. SB 108A was drafted with the new AS 45.56
Alaska Securities Act at the beginning of the bill
with other statutes amended in numerical order at the
end. SB 108 CS W now follows the order of the statutes
amended beginning with Title 06.
Drafting. Legislative Counsel made conforming drafting
and legal improvements throughout the bill including
consolidating definitions into Article 7, Sec
45.56.740 or citing to existing definitions in other
statutes.
Sec. 1 - 24. Renumbered from SB108A and moved to the
front of the bill. SB 108 A, Sec. 7. AS 21.42.315(k)
is deleted because 'variable annuity' is removed from
the definition of security (see Article 7 Definitions)
Sec. 25. Chapter 56. Alaska Securities Act (pg. 14)
Article 1. General Provisions. No changes.
Article 2. Exemptions from Registration of Securities.
Small intrastate securities offerings (referred to as
"Crowdfunding") was removed at the request of Senate
Labor and Commerce (SB 126 contains similar
provisions)
Article 3. Registration of Securities and Notice
Filing of Federal Covered Securities. No substantive
changes.
Article 4. Broker-dealers, Agents, Investment
Advisers, Investment Adviser Representatives, and
Federal Covered Investment Advisers. No substantive
changes.
Article 5. Fraud and Liabilities. No substantive
changes.
Article 6. Administration and Judicial Review. (pp.
66-86)
Sec. 45.56.605(e) relating to the securities education
and training fund was moved to a new Sec. 45.56.625
Securities investor education and training fund.
Sec. 45.56.625 Jurisdiction contents were combined
with Sec. 45.56.635 Applicability of the chapter.
Sec. 45.56.660. Civil liability and Sec 45.56.665
Rescission Offers. The legal rate of interest for
rescission and civil enforcement is the legal rate of
interest under AS 09.30.970 or eight percent a year,
whichever is greater. (Bold is new)
Article 7. Miscellaneous and Additional General
Provisions.
Sec. 45.56.900. Definitions.
(23) Older Person (formerly Older Alaskan)- a natural
person that is age 60 or older (adapted from AS
47.26.290(6))
(32) Security - "variable annuity" is deleted from the
definition
Sections 26- 35. No substantive changes.
1:44:49 PM
SENATOR COGHILL asked if the two statutes were separated for
ease of application.
MS. ANSELM confirmed that it will be much easier for the public
and the corporations if the statutes relating to securities are
lifted out of the statutes that relate to the Alaska Native
Claims Settlement Act proxy solicitations.
SENATOR COGHILL asked why variable annuity was removed.
MS. ANSELM said the insurance industry is concerned that
including variable annuity in the Securities Act would result in
more regulation over that section of the industry. The division
does not agree and the topic will likely be discussed in the
future.
SENATOR WIELECHOWSKI asked how variable annuities will be
regulated in Alaska
MS. ANSELM replied the same as they are now, which is through
the Insurance Act.
SENATOR WIELECHOWSKI asked if that is standard practice among
states.
MS. ANSELM said they're regulated a variety of ways and it's
something the division wants to vet further before bringing the
issue up again.
SENATOR WIELECHOWSKI asked if the division has had many
complaints about the way variable annuities are dealt with in
Alaska.
MS. ANSELM said there have been complaints and often they bridge
insurance and securities because variable annuity sales people
are often also registered as securities sales people. She
reported that the two divisions work well together to address
the complaints.
CHAIR MCGUIRE informed the committee that Renee Wardlaw with the
Department of Law and Kristy Naylor with the Division of Banking
and Securities are available to answer questions.
SENATOR COGHILL asked if either has concerns with the bill.
1:48:54 PM
KRISTY NAYLOR, Securities Examiner, Division of Banking and
Securities, Department of Commerce, Community and Economic
Development (DCCED), stated the department has no concerns with
the way SB 108 is drafted.
1:49:23 PM
CHAIR MCGUIRE closed public testimony on SB 108.
1:49:36 PM
SENATOR COGHILL moved to report the CS for SB 108(L&C) from
committee with individual recommendations and attached fiscal
note(s).
CHAIR MCGUIRE announced that without objection, CSSB 108(L&C) is
reported from Senate Judiciary Standing Committee.