House Bill 2889 aims to amend the Code of West Virginia by introducing a new section, 32-4-402a, which empowers the Commissioner of the State Auditor, or their designee, to conduct fairness hearings for transactions involving the exchange of securities. This includes exchanges for outstanding securities, claims, property interests, or partly for cash. The bill outlines the definitions of terms related to reorganization, recapitalization, and refinancing, and establishes an application process for fairness hearings. It mandates that the Commissioner must hold a hearing within 30 days of receiving an application and issue a decision within 10 business days after the hearing.

Additionally, the bill specifies that securities issued under an approved plan will be exempt from registration requirements. It sets forth notice requirements for hearings, including a minimum of 10 days' notice to affected parties, and establishes filing fees and caps on investigation fees. The Commissioner is also authorized to create rules necessary for implementing these provisions, including classifying securities and defining terms relevant to the hearings. Overall, the bill seeks to ensure that the terms of securities exchanges are fair to participants while providing a structured process for oversight.

Statutes affected:
Introduced Version: 32-4-402a