SB 108-AK SECURITIES ACT; PENALTIES; CRT. RULES  2:09:43 PM CHAIR COSTELLO reconvened the meeting and announced consideration of SB 108. She relayed that this is the third hearing and the intent is to take public testimony, adopt a committee substitute, and look to the will of the committee. Finding no public testimony on SB 108, she closed it. SENATOR GIESSEL moved to adopt the work draft CS for SB 108, labeled 29-LS1060\W, as working document. CHAIR COSTELLO objected for an explanation of the changes. WESTON EILER, Staff, Senate Labor & Commerce Committee and Senator Costello, Alaska State Legislature, said a non- substantive change is that the CS reorders sections beginning with the amendments to Title 6 and concluding with the amendments to Title 45. The CS also makes two substantive changes. 2:12:17 PM At ease from 2:12 p.m. to 2:17 p.m. CHAIR COSTELLO reconvened the meeting and recapped that Mr. Eiler was explaining the changes in the CS for SB 108. MR. EILER said the first substantive change removes the term "variable annuity" that appears on page 88, line 8, of version A. The administration requested this change so variable annuities will continue to be regulated by the Division of Insurance. The second substantive change removes the entire Sec. 45.56.220 starting on page 13, line 24 through page 16, line 12. That is inherently crowd funding, which is advancing through SB 126. CHAIR COSTELLO removed her objection. Finding no further objection, version W was adopted. She asked Ms. Anselm to give the committee the 30 thousand foot rationale for the bill. 2:20:08 PM KEVIN ANSELM, Director, Division of Banking and Securities, Department of Commerce, Community and Economic Development (DCCED), recapped the reasons to modernize the Alaska Securities Act: to recognize and incorporate current securities industry terms and standards; synthesize with other state laws to make it easier for businesses, entrepreneurs and investors to understand their rights, responsibilities and opportunities in Alaska; deter investment scams; enhance penalties for harming older Alaskans; and separate the securities statutes from the Alaska Native Claims Settlement Act statutes to reduce confusion and improve understanding of both the Securities Act and the ANCSA Proxy Settlement Act. CHAIR COSTELLO thanked Ms. Anselm for her diligent work. SENATOR GIESSEL moved to report the CS for SB 108, labeled [29- GS1060\W], from committee with individual recommendations and attached fiscal note(s). CHAIR COSTELLO announced that without objection, CSSB 108(L&C) is reported from the Senate Labor and Commerce Standing Committee.