FISCAL NOTE
Date Requested: February 18, 2025
Time Requested: 04:57 PM |
| Agency: |
Auditor, State of WV |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3073 |
Introduced |
SB511 |
|
|---|
| CBD Subject: |
Constitutional Officers; 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 Senate Bill 511 is to increase certain fees under the Uniform Securities provisions. The proposed legislation also changes the allocation or split of the fee collections between the Securities Regulation Fund of the West Virginia State Auditor and the State General Revenue Fund.
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 legislation, 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 70% for the State General Revenue Fund and 30% for the State Auditor’s Securities Fund. Applying all the proposed provisions of the Bill, the State General Revenue Fund would receive $20,609,978.89 annually and the State Auditor’s Securities Fund would receive $8,832,848.10 annually. Our analysis of the proposed Bill indicates the allocation of fees to the State General Revenue Fund would decline by approximately $1,318,661.10 per year ($21,928,639.99 - $20,609,978.89). We understand the financial realities currently facing the State General Revenue Fund and we have proposed a different allocation of fee collections in the Additional Comments Section below for the Legislature to consider which we believe would result in an actual increase in total fee collections into the State General Revenue Fund and still allow the State Auditor the financial ability to continue to operate and administer the Securities Fund.
Memorandum
Our analysis indicates if the provisions of the proposed Bill were amended to provide for all of the proposed changes in fees and to allocate 75% of the collections to the State General Revenue Fund, rather than 70% and 25% of the fee collections to the State Auditor’s Securities Regulation Fund, rather than the 30% set out in the Bill, the total fee dollars received by the State General Revenue Fund compared to Fiscal Year 2024 would show an increase of $153,480.31 and would grow from $21,928639.99 to $22,082,120.30 annually. As stated above, we believe this potential amendment to the proposed Bill would not negatively impact the ability of the State Auditor to carry out his oversight obligations with respect to Securities Dealers, etc.
Person submitting Fiscal Note: Michael E. Sizemore, CPA
Email Address: Mike.Sizemore@wvsao.gov