N.D. Cent. Code § 10-04-03

10-04-03. Administration of chapter

1. a. It is the duty of the commissioner to administer this chapter.

b. The commissioner may employ such employees as are necessary for the

administration of this chapter. In the absence of the commissioner, the deputy or

designee of the commissioner may administer this chapter as acting

commissioner.

c. The commissioner may not:

(1) Own or control any security required to be registered under this chapter or

any security that is exempt based on the approval of the department; or

(2) Be an officer, director, or employee of any broker-dealer, agent, investment

adviser, or investment adviser representative required to be registered

under this chapter, or of a federal covered adviser required to be notice-filed

under this chapter.

2. The commissioner may:

a. Administer oaths in, and prescribe forms for, all matters arising under this

chapter; and

b. Adopt, amend, and rescind such rules, forms, and orders as are necessary under

this chapter, including rules and forms governing registration statements,

applications and reports, and defining any terms, whether or not used in this

chapter, if the definitions are consistent with this chapter.

3. The commissioner shall cooperate with the administrators of the securities laws of

other states and of the United States with a view toward achieving maximum

uniformity in the interpretation of like provisions of the laws administered by them and

in the forms which are required to be filed under such law.

4. a. A special fund is established in the state treasury and designated as the investor

education and technology fund. The commissioner may deposit the following

moneys into the investor education and technology fund:

(1) Payments for tuition or other costs associated with educational services or

materials provided by the department.

(2) Grants or donations for the purpose of investor education received by the

commissioner from any public or private source.

(3) Civil penalties assessed by the commissioner under the Securities Act of

1951, if the commissioner finds the violations or alleged violations

underlying the assessment of civil penalties:

(a) Involve repeat violations, involve numerous investors, or appear to

have been perpetrated on a systematic basis; and

(b) Could have been prevented or significantly curtailed had the individual

investors involved in the matter been more knowledgeable about

financial concepts in general, or about any specific laws, practices, or

procedures relating to the securities industry.

b. The commissioner shall maintain and administer the investor education and

technology fund. The moneys in the fund are appropriated to provide education

services to the public relating to any of the financial services industries, including

the securities industry, and to provide for the technology needs of the department,

including the purchase or rental of equipment or software, servicing of the

equipment or software, and training the commissioner's staff in the use of the

equipment or software.

5. A special fund is established in the state treasury and designated as the securities

special fund. All fees, civil penalties, or other moneys collected under this chapter must

be deposited in the securities special fund, except funds permitted to be deposited into

the investor education and technology fund under subsection 4 or civil penalties

collected from enforcement actions for the purpose of distribution to aggrieved

investors, which may be deposited in the investor restitution fund. Funds in the

investor restitution fund are appropriated to the commissioner on a continuing basis for

distribution to aggrieved investors.

a. The moneys deposited in the securities special fund are reserved for use by the

commissioner to defray the expenses of the department in the discharge of

administrative and regulatory powers and duties of the department under this
stor restitution fund. Funds in the

investor restitution fund are appropriated to the commissioner on a continuing basis for

distribution to aggrieved investors.

a. The moneys deposited in the securities special fund are reserved for use by the

commissioner to defray the expenses of the department in the discharge of

administrative and regulatory powers and duties of the department under this

chapter. Deposits under this subdivision are subject to the applicable laws

relating to the appropriations of state funds and to the deposit and expenditure of

state moneys. The commissioner is responsible for the proper expenditure of

these moneys as provided by law.

b. Except as otherwise provided by law, after the fiscal year has been closed and all

expenses relating to the fiscal year have been accounted for, the office of

management and budget shall transfer any balance remaining in the securities

special fund that exceeds one million dollars to the general fund.

6. The commissioner may honor requests from interested persons for the issuance of a

statement or opinion concerning the applicability of this chapter or the rules adopted

under this chapter to any transaction or proposed transaction that may be subject to

this chapter. Any such request must be accompanied by a nonrefundable fee of one

hundred fifty dollars.