HF444 Summary

• Updates federal regulatory reference from Rule 147 to Rule 147A for intrastate securities offerings, aligning Minnesota's MNvest exemption with current federal requirements.

• Establishes four alternative tests for determining whether an issuer qualifies as a MNvest issuer, including revenue from Minnesota business operations, in-state assets, use of proceeds in Minnesota, or majority employee base in Minnesota.

• Increases aggregate capital raising limits to $2,000,000 for offerings with audited/reviewed financial statements, or $1,000,000 for unaudited statements within a 12-month period.

• Requires portal operators to register with the state administrator, maintain detailed records for five years, and implement security measures to verify Minnesota residency; sets registration and renewal fees at $200 each.

• Adds comprehensive bad actor disqualification provisions barring securities offerings by individuals with certain felony convictions, regulatory orders, or cease-and-desist orders within specified timeframes before the offering.