CHAPTER 248

(SB 40)

Securities registration, Canadian broker-dealers exempt.

         ENTITLED, An Act to  exempt from registration certain Canadian broker-dealers and the securities offered by them.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 47-31A-401(c) be amended by adding thereto a NEW SUBSECTION to read as follows:

             (5)    A broker-dealer who is a resident of Canada, has no office or other physical presence in this state, and complies with the following conditions:

             (a)    Is a member of a self-regulatory organization or stock exchange in Canada;

             (b)    Maintains a provincial or territorial registration and a membership in a self- regulatory organization or stock exchange in good standing;

             (c)    Is not in violation of §  47-31A-101; and

             (d)    Only effects or attempts to effect transactions in securities:

             (i)    With or for a person from Canada who is temporarily present in this state, with whom the Canadian broker-dealer had a bona fide business-client relationship before the person entered this state; or

             (ii)    With or for a person from Canada who is present in this state, whose transactions are in a self-directed tax-advantaged retirement plan in Canada of which the person is the holder or contributor.

     Section  2.  That § 47-31A-402(b) be amended by adding thereto a NEW SUBSECTION to read as follows:

             (16)    An offer or sale of a security effected by a person excluded from the definition of broker- dealer under §  47-31A-401(c)(5).

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     Section  3.  That § 47-31A-201(g) be repealed.

     Section  4.  That § 47-31A-201 (h) be repealed.

     Signed February 27, 2001.

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