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h. Be in, and remain in, compliance with state and federal securities laws, and invest only in in-state qualified businesses or an out-of-state qualified business that are issuing securities in compliance with state and federal securities laws. 4. On or before December 31, 2019, and every two calendar years thereafter, a minimum of fifty percent of an angel fund's investments, as defined under subdivision c of subsection 2, must be invested into an in-state qualified business. 5. An angel fund shall hold the investment in an in-state qualified business or an out-of-state qualified business for at least three years from the date of investment. The three-year period does not apply if, before the end of the three-year period: a. The investment becomes worthless; b. Eighty percent or more of the assets of the in-state qualified business or out-of-state qualified business are sold; c. The in-state qualified business or out-of-state qualified business is sold; d. The common stock of the in-state qualified business or out-of-state qualified business begins trading on a public exchange; or e. A partner, shareholder, or member of the angel fund dies, in which case the exception to the three-year holding period only applies to the deceased individual's portion of the investment and related credit. 6. Within thirty days after the date on which an angel fund makes an investment in an in-state qualified business or an out-of-state qualified business, the angel fund shall report the investment to the tax commissioner on forms and in the manner prescribed by the tax commissioner. The report must contain: a. The name, address, and federal employer identification number of the angel fund; b. The total amount of the investment from all angel investors investing in the in-state qualified business or out-of-state qualified business; c. The name, address, and social security or federal identification number of each angel investor investing in the in-state qualified business or out-of-state qualified business; d. The amount invested by each angel investor in the in-state qualified business or out-of-state qualified business; e. The type of security received by the angel fund in exchange for the investment; f. The name, address, and federal employer identification number of the in-state qualified business or out-of-state qualified business; g. The type of industry in which the in-state qualified business or out-of-state qualified business is engaged; and h. Any other information the tax commissioner determines is necessary for administration of this section. 7. An angel fund is subject to a penalty of one thousand dollars per month for each month, or fraction thereof, the report under subsection 6 is not filed. The tax commissioner, for good cause shown, may waive all or part of the penalty imposed under this subsection. 8. By January thirty-first of each year, the angel fund shall file with the tax commissioner a report showing: a. The name and address of each in-state qualified business or out-of-state qualified business in which the angel fund has made an investment; b. The principal place of business for each in-state qualified business or out-of-state qualified business reported under subdivision a; c. The total amount invested in each in-state qualified business or out-of-state qualified business; and d. Any other information the tax commissioner determines is necessary for administration of this section. 9. For an angel fund certified before July 1, 2017, within thirty days after the end of each calendar year, the angel fund shall file with the tax commissioner a report showing the name and principal place of business of each enterprise in which the angel fund has an investment and the amount of the investment. Page No. 17