FISCAL NOTE
Date Requested: April 03, 2025
Time Requested: 09:59 AM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3050 |
Comm. Sub. |
SB677 |
|
|---|
| CBD Subject: |
Finance and Administration |
|---|
|
FUND(S):
State Funds
Sources of Revenue:
Special Fund State Auditor Securities Regulation Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of proposed Committee Substitute for Senate Bill 677 is to affect changes in fees charged under the Uniform Securities Act, adjust fees to be remitted to the State Auditor; place submission requirements on certain issuers of securities; and adjust fund distributions made by the State Auditor.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
2,032,027 |
2,032,027 |
Explanation of above estimates (including long-range effect):
The West Virginia State Auditor’s Office notes the total collections of fees covered under the proposed legislation amounted to $27,410,799.99 for the year ended June 30, 2024 (Fiscal Year 2024). In addition, the fees set forth in Chapter 32, Article 2, Section 202; Chapter 32, Article 3, Section 304a and Chapter 32, Article 3, Section 305 of the West Virginia Code have not changed or increased since July 1, 2017 and we believe the proposed fee changes in the Bill are still highly competitive with similar fees charged in our neighboring States. We believe under the provisions of the proposed Bill, the total fee collections would increase by $2,032,027.00 to approximately $29,442,827.00 annually. Under current law, the total fees collected are split between the State General Revenue Fund (80%) and the State Auditor’s Securities Fund (20%). Under the provisions of the proposed changes to Chapter 32, Article 4, Section 406, the sharing allocation would become 75% for the State General Revenue Fund and 25% for the State Auditor’s Securities Fund. Applying all the proposed provisions of the Bill, the State General Revenue Fund would receive $22,082,120.30 annually or an increase of $153,480.31 as compared to Fiscal Year 2024 collections and distributions under existing law and the State Auditor’s Securities Fund would receive $7,360,706.70 annually.
Memorandum
We have no additional comments to the proposed legislation.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov