03/03/2016 01:30 PM Senate LABOR & COMMERCE

                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.