SB 126 Summary

• Creates a new state exemption (AS 45.55.175) for intrastate securities offerings that comply with federal Regulation D Rule 147 requirements, allowing issuers to raise up to $1,000,000 from Alaska residents without full registration.

• Limits individual investor contributions to $10,000 per 12-month period unless the investor is accredited, requires escrow of all funds until minimum offering target is met, and mandates issuer licensing by the Department of Commerce, Community, and Economic Development.

• Requires sellers to obtain documentary evidence of purchaser residency in Alaska, prohibits general solicitation without advance notice to the administrator, and prohibits commissions except to registered broker-dealers or agents.

• Mandates purchasers sign acknowledgment that they are investing in a high-risk venture and may lose their entire investment; prohibits use of exemption for investment companies or broker-dealers.

• Maintains anti-fraud protections and bars persons with securities-related disqualifications (criminal convictions, fraud findings, or registration stop orders within five years) from using the exemption.