Committee backs increase in securities filing fees; auditor projects $2 million boost

The Senate Finance Committee voted March 27 to report the committee substitute for Senate Bill 677 to the full Senate with a recommendation that it pass.

Senate Bill 677 would raise fees charged by the state auditor in his role as securities commissioner under the Uniform Securities Act. Committee counsel told the committee the bill increases several application and renewal fees—including raising an agent of a broker-dealer application and renewal fee from $66 to $70—and increases the minimum portion of certain fees deposited into the auditor's operating fund from 20% to 25%. The substitute also adds filing requirements for some issuers of federal covered securities where offerings do not exceed $75 million.

Mark Hunt, West Virginia state auditor, testified before the committee and described current collections and the estimated revenue impact. Hunt said the auditor's office currently collects about $27.5 million annually in securities-related fees and returns roughly $22 million to the state. He estimated the committee substitute would produce a modest overall increase of approximately $2 million.

Hunt also described the review work performed by his office—examining offerings for signs of fraud or incorrect disclosures—and said the office is considering use of an AI tool as a preliminary screening measure to flag keywords for staff review.

Committee members asked questions about who pays the fees and comparative fees in neighboring states; counsel confirmed the measure combines provisions from two previous bills and that representatives from the auditor's office were present. The committee agreed to the language of the committee substitute and then approved a motion to report the bill to the full Senate; the action was recorded as a voice vote in which the chair said "the ayes have it."