§ 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
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.