HOUSE LABOR AND COMMERCE STANDING COMMITTEE February 22, 1999 3:16 p.m. MEMBERS PRESENT Representative Norman Rokeberg, Chairman Representative Andrew Halcro, Vice Chairman Representative Jerry Sanders Representative Lisa Murkowski Representative John Harris Representative Tom Brice Representative Sharon Cissna MEMBERS ABSENT All members present COMMITTEE CALENDAR HOUSE BILL NO. 83 "An Act relating to the licensing of, acts and practices of, notice filings required of, duties of, registration of, capitalization of, financial requirements for, bonding of, coordinated securities examinations of, recordkeeping by, and documents filed by certain securities occupations; relating to public entity investment pools; relating to investment advisory contracts; relating to the examination of records of certain securities occupations; relating to federal covered securities; relating to the registration of securities; relating to the general exemptions for securities and transactions; relating to offers of securities on the Internet; relating to the confidentiality of investigative files under the Alaska Securities Act; relating to the payment by certain securities occupations of expenses and fees of investigations and examinations; relating to petitions to superior court by the administrator to reduce civil penalties to judgment; exempting certain violations of the Alaska Securities Act from criminal penalties; relating to time limitations in bringing court actions for violations of the Alaska Securities Act; relating to the affirmative defense of timeliness in court actions relating to securities; prohibiting certain lawsuits involving buyers of securities; relating to time limitations for bringing court actions involving the receipt of a written offer related to securities; relating to offers to repay buyers of securities; relating to notification of certain securities occupations regarding administrative hearings; relating to fees established by the administrator; relating to a sale, a purchase, or an offer to sell or purchase under the Alaska Securities Act; relating to the locations of offers to buy or sell; relating to consent to service; amending the Alaska Securities Act definitions of 'agent,' 'broker-dealer,' 'person,' 'Securities Act of 1933,' and 'security;' defining for purposes of the Alaska Securities Act 'advisory client,' 'advisory fee,' 'advisory services,' 'Bank Holding Company Act of 1956,' 'clients who are natural persons,' 'federal covered adviser,' 'federal covered security,' 'Federal Deposit Insurance Act,' 'Home Owners' Loan Act,' 'investment adviser representative,' 'Investment Advisers Act of 1940,' 'investment advisory business,' 'investment advisory contract,' 'Investment Company Act of 1940,' 'NASDAQ,' 'National Securities Markets Improvement Act of 1996,' 'notice filing,' 'place of business,' 'principal place of business,' 'Securities Exchange Act of 1934,' 'securities business,' 'state investment adviser,' 'substantial portion of the business,' 'supervised person,' and 'viatical settlement'; relating to the title of the Alaska Securities Act; relating to the definitions in the Alaska Securities Act of 'assignment' and 'investment adviser'; relating to implementation of the changes to the Alaska Securities Act; and providing for an effective date." - MOVED CSHB 83(L&C) OUT OF COMMITTEE (* First public hearing) PREVIOUS ACTION BILL: HB 83 SHORT TITLE: ALASKA SECURITIES ACT SPONSOR(S): LABOR & COMMERCE BY REQUEST Jrn-Date Jrn-Page Action 2/08/99 163 (H) READ THE FIRST TIME - REFERRAL(S) 2/08/99 164 (H) L&C, JUD 2/17/99 (H) L&C AT 3:15 PM CAPITOL 17 2/17/99 (H) HEARD AND HELD 2/17/99 (H) MINUTE(L&C) 2/19/99 (H) L&C AT 3:15 PM CAPITOL 17 2/19/99 (H) HEARD AND HELD 2/19/99 (H) MINUTE(L&C) 2/22/99 (H) L&C AT 3:15 PM CAPITOL 17 WITNESS REGISTER JANET SEITZ, Legislative Assistant to Representative Norman Rokeberg Alaska State Legislature Capitol Building, Room 24 Juneau, Alaska 99801 Telephone: (907) 465-4968 POSITION STATEMENT: As committee aide for the House Labor and Commerce Standing Committee, explained CSHB 83(L&C). ACTION NARRATIVE TAPE 99-12, SIDE A Number 0001 CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce Standing Committee meeting to order at 3:16 p.m. Members present at the call to order were Representatives Rokeberg, Halcro, Sanders, Murkowski, Harris, Brice and Cissna. HB 83 - ALASKA SECURITIES ACT CHAIRMAN ROKEBERG announced the committee would hear HB 83 [full title not provided here due to length]. He advised members that there was a proposed committee substitute [version 1-LS0253\G, Bannister, 2/20/99], created to address problems brought up at the last meeting. Number 0259 JANET SEITZ, Legislative Assistant to Representative Norman Rokeberg, Alaska State Legislature, serving as committee aide, explained that the two changes in the proposed committee substitute were in accordance with the two amendments adopted the previous Friday [February 19, 1999]. First, all references to "viatical settlements" have been removed. And second, on page 21, lines 2 and 3, reference to "dual agency capacity" has been deleted; the new language is, "disclose to a customer that the broker-dealer or agent is acting as an agent for both the customer and another person". CHAIRMAN ROKEBERG asked whether the drafter had decided to delete the dual agency language to avoid confusion. MS. SEITZ affirmed that. Number 0330 REPRESENTATIVE HALCRO made a motion to move CSHB 83, version 1-LS0253\G, Bannister, 2/20/99, out of committee with the attached zero fiscal note. There being no objection, CSHB 83(L&C) moved out of the House Labor and Commerce Standing Committee. Number 0366 CHAIRMAN ROKEBERG called a brief at-ease at 3:23 p.m. to prepare for the Mental Health Parity Task Force Report. [The minutes for that portion of the meeting are found in the 3:28 p.m. cover sheet for this same date.]