HB 170-AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                     
                                                                                                                                
3:46:03 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  HB 170, related  to the Alaska  Securities Act.                                                               
She  requested   a  motion  to   adopt  the   proposed  committee                                                               
substitute (CS).                                                                                                                
                                                                                                                                
3:46:22 PM                                                                                                                    
SENATOR MEYER  moved to adopt the  work draft Senate CS  for CSHB                                                               
170, labeled 30-LS0333\R, as the working document.                                                                              
                                                                                                                                
CHAIR COSTELLO objected for an explanation of changes.                                                                          
                                                                                                                                
3:46:43 PM                                                                                                                    
CRYSTAL  KOENEMAN, Staff,  Representative  Sam  Kito III,  Alaska                                                               
State  Legislature,   Juneau,  Alaska,  reviewed   the  following                                                               
changes from version O to version R of HB 170:                                                                                  
                                                                                                                                
        • Page 15, line 6 A definition for "person"                                                                             
          (located  in   AS  45.56.900)  was  added   to  AS                                                                    
          45.55.990 for clarity purposes.                                                                                       
        • Page 48, lines 17-19 Sec. 45.56.420(c)(3) has                                                                         
          been   rewritten   for  clarification   that   the                                                                    
          provision references  rules adopted by  the United                                                                    
          States  Securities and  Exchange Commission  under                                                                    
          the  Dodd-Frank Wall  Street  Reform and  Consumer                                                                    
          Protection Act.                                                                                                       
        • Page 94 State securities laws are intricately                                                                         
          related to  federal laws on securities  but making                                                                    
          provisions of the bill subject  to the adoption of                                                                    
          future amendments  to the federal  statutes raised                                                                    
          the  issue of  improper delegation  of legislative                                                                    
          authority to the  federal government. This version                                                                    
          removes  language "or  as later  amended" in  Sec.                                                                    
          45.56.730.                                                                                                            
                                                                                                                                
MS.  KOENEMAN  advised that  the  foregoing  changes address  the                                                               
issues raised during the last hearing.                                                                                          
                                                                                                                                
CHAIR COSTELLO noted  who was available to  answer questions. She                                                               
asked the sponsor if he had any final comments.                                                                                 
                                                                                                                                
3:48:41 PM                                                                                                                    
REPRESENTATIVE  KITO  III,   Alaska  State  Legislature,  Juneau,                                                               
Alaska,  sponsor of  HB  170, said  the  department brought  this                                                               
matter  to his  attention as  the Chair  of the  House Labor  and                                                               
Commerce Committee. He  noted that a lot of work  was done on the                                                               
bill last  year and that  he appreciated the changes  proposed in                                                               
the  committee substitute  to provide  further clarification.  He                                                               
opined that  it was important  to update Alaska's  securities law                                                               
                 st                                                                                                             
to reflect the 21 century.                                                                                                      
                                                                                                                                
CHAIR COSTELLO agreed with his comments.                                                                                        
                                                                                                                                
SENATOR MEYER observed that changes in  the Senate CS made a good                                                               
bill even better.                                                                                                               
                                                                                                                                
3:49:34 PM                                                                                                                    
SENATOR MEYER  moved to report  the Senate CS for  CSHB 170(L&C),                                                               
version  R, from  committee with  individual recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
3:49:59 PM                                                                                                                    
CHAIR COSTELLO  removed her objection and  announced that without                                                               
objection,  SCS CSHB  170(L&C) moved  from the  Senate Labor  and                                                               
Commerce Standing Committee.