04/27/1998 03:28 PM House L&C

HB 486 - ALASKA SECURITIES ACT                                                 
                                                                               
Number 1227                                                                    
                                                                               
CHAIRMAN ROKEBERG announced the committee would hear HB 486, "An               
Act relating to the Alaska Securities Act; and providing for an                
effective date."  He stated that there is a committee substitute to            
the bill and an amendment by Representative Ryan.                              
                                                                               
Number 1242                                                                    
                                                                               
REPRESENTATIVE RYAN stated that the amendment has been further                 
refined by the Administration.  He made a motion to adopt CSHB 486,            
0-LS1426\E, dated 4/27/98, for discussion purposes.                            
                                                                               
CHAIRMAN ROKEBERG asked if there was an objection.  Hearing none,              
the proposed CS for HB 486, Version E, was before the committee.               
                                                                               
Number 1325                                                                    
                                                                               
REPRESENTATIVE RYAN made a motion to adopt Amendment 1, 0-                     
LS1426\A.2, dated 4/27/98.                                                     
                                                                               
CHAIRMAN ROKEBERG objected for purposes of discussion.  He asked               
Mr. Elder if Amendment 1 is consistent with the recommendations                
from the department.                                                           
                                                                               
Number 1401                                                                    
                                                                               
TERRY ELDER, Senior Securities Examiner, Division of Banking,                  
Securities and Corporations, Department of Commerce and Economic               
Development, replied yes it is.                                                
                                                                               
CHAIRMAN ROKEBERG asked if the amendment was acceptable to                     
Representative Ryan.                                                           
                                                                               
REPRESENTATIVE RYAN replied that it was.                                       
                                                                               
CHAIRMAN ROKEBERG removed his objection.  He asked if there was a              
further objection to Amendment 1.  Hearing none, Amendment 1, 0-               
LS1426\A.2, dated 4/27/98, was adopted.                                        
                                                                               
Number 1423                                                                    
                                                                               
CHAIRMAN ROKEBERG referred to Section 45 and Section 57 and asked              
Mr. Elder if he could describe what that does and how it fits into             
the scheme of things.                                                          
                                                                               
MR. ELDER stated that Section 45.55.170 covers unlawful                        
representations concerning registrations.  It states that just                 
because something is filed, it does not mean that the administrator            
has ruled it correct, true and not misleading.  He stated that                 
section codifies current practice, it has always been that way but             
it has never been in statute.                                                  
                                                                               
Number 1604                                                                    
                                                                               
CHAIRMAN ROKEBERG asked if it was true that there is nothing in the            
bill that makes a substantive change to Alaska Native Claims                   
Settlement Act (ANCSA) Corporations and the disposition of their               
corporate structure.                                                           
                                                                               
MR. ELDER replied that is correct.  He stated that it simply                   
codifies current practice.                                                     
                                                                               
REPRESENTATIVE RYAN stated that when you file your exemption letter            
for registration of corporation limited liability company, a                   
letter is sent to the filer from the director, stating receipt of              
the letter.  He asked if it was correct that the letter does not               
mean that the exemption is valid, it is just to document receipt of            
filing.                                                                        
                                                                               
MR. ELDER replied that is correct.                                             
                                                                               
Number 1650                                                                    
                                                                               
MR. ELDER replied that on page 55, Section 57, refers to the right             
to have a notice of an opportunity for hearing.  He stated that                
they have added "respondents named", if the order deals with                   
something other than securities.  He pointed out that this codifies            
current practice as the department has always afforded the                     
opportunity of hearings for people they issue orders against.                  
                                                                               
CHAIRMAN ROKEBERG stated that he wanted to put that on the record,             
because it is in some of the summaries and it might alert a red                
flag.                                                                          
                                                                               
MR. ELDER stated that any of the sections in the bill that refers              
to ANCSA Corporations simply codifies current practice and does not            
extend...                                                                      
                                                                               
CHAIRMAN ROKEBERG asked if it was true that there aren't any                   
substantive changes that would effect the stockholder or                       
shareholder rights from the ANCSA Corporations.                                
                                                                               
MR. ELDER replied that is correct.                                             
                                                                               
CHAIRMAN ROKEBERG stated that he has complied a list of questions              
for the department to answer that will be part of the floor                    
package.  There being no further questions or comments, he asked               
what the will of the committee was.                                            
                                                                               
Number 1902                                                                    
                                                                               
REPRESENTATIVE HUDSON moved and asked unanimous consent to pass                
CSHB 486(L&C), 0-LS1426\E, dated 4/27/98, as amended, out of                   
committee with the attached zero fiscal note.                                  
                                                                               
Number 1947                                                                    
                                                                               
CHAIRMAN ROKEBERG asked if there was an objection.  There being                
none, CSHB 486(L&C), Version 0-LS1426\E, dated 4/27/98, as amended,            
was moved out of the House Labor and Commerce Standing Committee.