SB 2060 Summary

• Amends accredited investor offering exemptions to restrict sales to accredited investors only, require issuer disclosures about prior fraud/criminal history, and establish filing requirements with a $100-$250 fee within 15 days of first sale in North Dakota.

• Creates new filing option to increase registered security amounts by filing notice and paying a fee of one-tenth of one percent of the additional amount (maximum $500).

• Establishes federal crowdfunding offering requirements including $150 initial filing fee and $100 renewal fee for issuers with principal place of business in North Dakota or selling 50% or more to state residents.

• Expands investment adviser custody rules to require client assets be held by qualified custodians and clarifies definition of "custody" to include possession, authority to withdraw funds, and certain ownership positions.

• Amends postregistration recordkeeping requirements and exempts professional services contracted for department investigations from competitive bidding requirements under chapter 54-44.4.