FOR AN ACT 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 person 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 person had a bona fide business-client relationship before the person entered this state; or

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  That § 47-31A-201(g) be repealed.

     (g) A broker-dealer that is resident in Canada and has no office or other physical presence in this state may, provided the broker-dealer is registered in accordance with this chapter, and any rules or orders as prescribed by the director, effect transactions in securities with or for, or induce or attempt to induce the purchase or sale of any security by: (1) A person from Canada who is temporarily resident in this state, with whom the Canadian broker-dealer had a bona fide broker-dealer client relationship before the person entered the United States; or (2) A person from Canada who is a resident in this state, whose transactions are in self- directed tax advantaged retirement plan in Canada of which the person is the holder or contributor.
     Section  4.  That § 47-31A-201 (h) be repealed.

     (h) An agent who will be representing a Canadian broker-dealer registered under this section may, provided the agent is registered in accordance with this chapter, effect transactions in securities in this state as permitted for the broker-dealer in subdivision 47-31A-201(g) and any rules or orders as prescribed by the director.