This bill amends existing West Virginia law to establish a framework for victim restitution in cases of securities violations and creates the Securities Restitution Operating Fund. It introduces new articles that define key terms, outline eligibility for restitution assistance, and detail the application process for victims. The bill allows for the Auditor to allocate up to three percent of collected securities fees to the newly created fund, which will provide financial assistance to victims who have not received the full restitution awarded in a final order. The bill also specifies the conditions under which restitution assistance may be denied, such as if the victim participated in the securities violation.

Additionally, the bill outlines the procedures for awarding restitution assistance, including limits on the amount that can be awarded based on the victim's status and the unpaid restitution amount. It establishes subrogation rights for the commissioner against the violator and includes provisions for liens on recoveries made by victims. The bill also allows for the suspension of claims if the fund's balance falls below a specified threshold and exempts restitution awards from certain legal processes. Overall, the legislation aims to enhance protections for victims of securities fraud and ensure they receive the restitution they are owed.

Statutes affected:
Introduced Version: 32-4-406, 32-4-407a, 32-7-701, 32-7-702, 32-7-703, 32-7-704, 32-7-705, 32-7-706, 32-7-707, 32-7-708, 32-7-709, 32-7-710, 32-7-711, 32-7-712