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.