Bill Text: OH HB126 | 2009-2010 | 128th General Assembly | Engrossed

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Bill Title: To require the director of commerce to provide the office of budget and management with the proper data file to withhold from an unclaimed funds payment for any legal amount in an agreement to compensate a registered finder and to pay that amount directly to the finder and to make other changes in the Unclaimed Funds Law.

Spectrum: Strong Partisan Bill (Democrat 19-1)

Status: (Engrossed - Dead) 2009-12-22 - To Insurance, Commerce, & Labor [HB126 Detail]

Download: Ohio-2009-HB126-Engrossed.html

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As Passed by the House

128th General Assembly Regular Session 2009-2010

Sub. H. B. No. 126

Representative Williams, S. 

Cosponsors: Representatives Letson, Domenick, Murray, Hagan, Foley, Harwood, Mallory, Brown, Stewart, Boyd, DeBose, Dyer, Harris, Heard, Luckie, Pillich, Weddington, Williams, B., Winburn 

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A BILL

To amend sections 169.01, 169.02, 169.03, 169.06,

1

169.08, 169.13, 169.14, and 169.16 of the Revised

2

Code to require the director of commerce to

3

provide the office of budget and management with

4

the proper data file to withhold from an unclaimed

5

funds payment for any legal amount in an agreement

6

to compensate a registered finder and to pay that

7

amount directly to the finder and to make other

8

changes in the Unclaimed Funds Law.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 169.01, 169.02, 169.03, 169.06,	10
169.08, 169.13, 169.14, and 169.16 of the Revised Code be amended	11
to read as follows:	12

Sec. 169.01.  As used in this chapter, unless the context	13
otherwise requires:	14

(A) "Financial organization" means any bank, trust company,	15
savings bank, safe deposit company, mutual savings bank without	16
mutual stock, savings and loan association, credit union, or	17
investment company.	18

(B)(1) "Unclaimed funds""Property presumed abandoned" means	19
any moneys, rights to moneys, or intangible property, described in	20
section 169.02 of the Revised Code and reported to the director of	21
commerce as required by section 169.03 of the Revised Code, when,	22
as shown by the records of the holder, the owner has not, within	23
the times provided in section 169.02 of the Revised Code, done any	24
of the following:	25

(a) Increased, decreased, or adjusted the amount of such	26
fundsproperty;	27

(b) Assigned, paid premiums, or encumbered such funds	28
property;	29

(c) Presented an appropriate record for the crediting of such	30
fundsproperty or received payment of such fundsproperty by	31
check, draft, or otherwise;	32

(d) Corresponded with the holder concerning such funds	33
property;	34

(e) Otherwise indicated an interest in or knowledge of such	35
fundsproperty;	36

(f) Transacted business with the holder.

37

(2) "Unclaimed funds" means property presumed abandoned.

38

(3) "Property presumed abandoned" does not include any of the	39
following:	40

(a) Money received or collected under section 9.39 of the	41
Revised Code;	42

(b) Any payment or credit due to a business association from	43
a business association representing sums payable to suppliers, or	44
payment for services rendered, in the course of business,	45
including, but not limited to, checks or memoranda, overpayments,	46
unidentified remittances, nonrefunded overcharges, discounts,	47
refunds, and rebates;	48

(c) Any payment or credit received by a business association	49
from a business association for tangible goods sold, or services	50
performed, in the course of business, including, but not limited	51
to, checks or memoranda, overpayments, unidentified remittances,	52
nonrefunded overcharges, discounts, refunds, and rebates;	53

(d) Any credit due a retail customer that is represented by a	54
gift certificate, gift card, merchandise credit, or merchandise	55
credit card, redeemable only for merchandise.	56

For purposes of divisions (B)(2)(b) and (c) of this section,	57
"business association" means any corporation, joint venture,	58
business trust, limited liability company, partnership,	59
association, or other business entity composed of one or more	60
individuals, whether or not the entity is for profit.	61

(C) "Owner" means any person, or the person's legal	62
representative, entitled to receive or having a legal or equitable	63
interest in or claim against moneys, rights to moneys, or other	64
intangible property, subject to this chapter.	65

(D)(1) "Holder" means any person that has possession,	66
custody, or control of moneys, rights to moneys, or other	67
intangible property, or that is indebted to another, if any of the	68
following applies:	69

(a) Such person resides in this state;

70

(b) Such person is formed under the laws of this state;

71

(c) Such person is formed under the laws of the United States	72
and has an office or principal place of business in this state;	73

(d) The records of such person indicate that the last known	74
address of the owner of such moneys, rights to moneys, or other	75
intangible property is in this state;	76

(e) The records of such person do not indicate the last known	77
address of the owner of the moneys, rights to moneys, or other	78
intangible property and the entity originating or issuing the	79
moneys, rights to moneys, or other intangible property is this	80
state or any political subdivision of this state, or is	81
incorporated, organized, created, or otherwise located in this	82
state. Division (D)(1)(e) of this section applies to all moneys,	83
rights to moneys, or other intangible property that is in the	84
possession, custody, or control of such person on or after July	85
22, 1994, whether the moneys, rights to moneys, or other	86
intangible property becomes unclaimed fundsproperty presumed	87
abandoned prior to or on or after that date.	88

(2) "Holder" does not mean any hospital granted tax-exempt	89
status under section 501(c)(3) of the Internal Revenue Code or any	90
hospital owned or operated by the state or by any political	91
subdivision. Any entity in order to be exempt from the definition	92
of "holder" pursuant to this division shall make a reasonable,	93
good-faith effort to contact the owner of the unclaimed funds	94
property presumed abandoned.	95

(E) "Person" includes a natural person; corporation, whether	96
for profit or not for profit; copartnership; unincorporated	97
association or organization; public authority; estate; trust; two	98
or more persons having a joint or common interest; eleemosynary	99
organization; fraternal or cooperative association; other legal or	100
community entity; the United States government, including any	101
district, territory, possession, officer, agency, department,	102
authority, instrumentality, board, bureau, or court; or any state	103
or political subdivision thereof, including any officer, agency,	104
board, bureau, commission, division, department, authority, court,	105
or instrumentality.	106

(F) "Mortgage funds" means the mortgage insurance fund	107
created by section 122.561 of the Revised Code, and the housing	108
guaranteedevelopment fund created by division (D)(A) of section	109
128.11175.11 of the Revised Code.	110

(G) "Lawful claims" means any vested right a holder of	111
unclaimed fundsproperty presumed abandoned has against the owner	112
of such unclaimed fundsproperty.	113

(H) "Public utility" means any entity defined as such by	114
division (A) of section 745.01 or by section 4905.02 of the	115
Revised Code.	116

(I) "Deposit" means to place money in the custody of a	117
financial organization for the purpose of establishing an	118
income-bearing account by purchase or otherwise.	119

(J) "Income-bearing account" means a time or savings account,	120
whether or not evidenced by a certificate of deposit, or an	121
investment account through which investments are made solely in	122
obligations of the United States or its agencies or	123
instrumentalities or guaranteed as to principal and interest by	124
the United States or its agencies or instrumentalities, debt	125
securities rated as investment grade by at least two nationally	126
recognized rating services, debt securities which the director of	127
commerce has determined to have been issued for the safety and	128
welfare of the residents of this state, and equity interests in	129
mutual funds that invest solely in some or all of the above-listed	130
securities and involve no general liability, without regard to	131
whether income earned on such accounts, securities, or interests	132
is paid periodically or at the end of a term.	133

(K) "Director of commerce" may be read as the "division of	134
unclaimed funds" or the "superintendent of unclaimed funds."	135

Sec. 169.02.  Subject to division (B) of section 169.01 of	136
the Revised Code, the following constitute unclaimed funds	137
property presumed abandoned:	138

(A) Except as provided in division (R) of this section, any	139
demand, savings, or matured time deposit account, or matured	140
certificate of deposit, together with any interest or dividend on	141
it, less any lawful claims, that is held or owed by a holder which	142
is a financial organization, unclaimed for a period of five years;	143

(B) Any funds paid toward the purchase of withdrawable shares	144
or other interest in a financial organization, and any interest or	145
dividends on them, less any lawful claims, that is held or owed by	146
a holder which is a financial organization, unclaimed for a period	147
of five years;	148

(C) Except as provided in division (A) of section 3903.45 of	149
the Revised Code, moneys held or owed by a holder, including a	150
fraternal association, providing life insurance, including annuity	151
or endowment coverage, unclaimed for three years after becoming	152
payable as established from the records of such holder under any	153
life or endowment insurance policy or annuity contract that has	154
matured or terminated. An insurance policy, the proceeds of which	155
are payable on the death of the insured, not matured by proof of	156
death of the insured is deemed matured and the proceeds payable if	157
such policy was in force when the insured attained the limiting	158
age under the mortality table on which the reserve is based.	159

Moneys otherwise payable according to the records of such	160
holder are deemed payable although the policy or contract has not	161
been surrendered as required.	162

(D) Any deposit made to secure payment or any sum paid in	163
advance for utility services of a public utility and any amount	164
refundable from rates or charges collected by a public utility for	165
utility services held or owed by a holder, less any lawful claims,	166
that has remained unclaimed for one year after the termination of	167
the services for which the deposit or advance payment was made or	168
one year from the date the refund was payable, whichever is	169
earlier;	170

(E) Except as provided in division (R) of this section, any	171
certificates, securities as defined in section 1707.01 of the	172
Revised Code, nonwithdrawable shares, other instruments evidencing	173
ownership, or rights to them or funds paid toward the purchase of	174
them, or any dividend, capital credit, profit, distribution,	175
interest, or payment on principal or other sum, held or owed by a	176
holder, including funds deposited with a fiscal agent or fiduciary	177
for payment of them, and instruments representing an ownership	178
interest, unclaimed for five years. Any underlying share or other	179
intangible instrument representing an ownership interest in a	180
business association, in which the issuer has recorded on its	181
books the issuance of the share but has been unable to deliver the	182
certificate to the shareholder, constitutes unclaimed funds	183
property presumed abandoned if such underlying share is unclaimed	184
for five years. In addition, an underlying share constitutes	185
unclaimed fundsproperty presumed abandoned if a dividend,	186
distribution, or other sum payable as a result of the underlying	187
share has remained unclaimed by the owner for five years.	188

This division shall not prejudice the rights of fiscal agents	189
or fiduciaries for payment to return the items described in this	190
division to their principals, according to the terms of an agency	191
or fiduciary agreement, but such a return shall constitute the	192
principal as the holder of the items and shall not interrupt the	193
period for computing the time for which the items have remained	194
unclaimed.	195

In the case of any such funds accruing and held or owed by a	196
corporation under division (E) of section 1701.24 of the Revised	197
Code, such corporation shall comply with this chapter, subject to	198
the limitation contained in section 1701.34 of the Revised Code.	199
The period of time for which such funds have gone unclaimed	200
specified in section 1701.34 of the Revised Code shall be	201
computed, with respect to dividends or distributions, commencing	202
as of the dates when such dividends or distributions would have	203
been payable to the shareholder had such shareholder surrendered	204
the certificates for cancellation and exchange by the date	205
specified in the order relating to them.	206

Capital credits of a cooperative which after January 1, 1972,	207
have been allocated to members and which by agreement are	208
expressly required to be paid if claimed after death of the owner	209
are deemed payable, for the purpose of this chapter, fifteen years	210
after either the termination of service by the cooperative to the	211
owner or upon the nonactivity as provided in division (B) of	212
section 169.01 of the Revised Code, whichever occurs later,	213
provided that this provision does not apply if the payment is not	214
mandatory.	215

(F) Any sum payable on certified checks or other written	216
instruments certified or issued and representing funds held or	217
owed by a holder, less any lawful claims, that are unclaimed for	218
five years from the date payable or from the date of issuance if	219
payable on demand; except that the unclaimed period for money	220
orders that are not third party bank checks is seven years, and	221
the unclaimed period for traveler's checks is fifteen years, from	222
the date payable or from the date of issuance if payable on	223
demand.	224

As used in this division, "written instruments" include, but	225
are not limited to, certified checks, cashier's checks, bills of	226
exchange, letters of credit, drafts, money orders, and traveler's	227
checks.	228

If there is no address of record for the owner or other	229
person entitled to the funds, such address is presumed to be the	230
address where the instrument was certified or issued.	231

(G) Except as provided in division (R) of this section, all	232
moneys, rights to moneys, or other intangible property, arising	233
out of the business of engaging in the purchase or sale of	234
securities, or otherwise dealing in intangibles, less any lawful	235
claims, that are held or owed by a holder and are unclaimed for	236
five years from the date of transaction.	237

(H) Except as provided in division (A) of section 3903.45 of	238
the Revised Code, all moneys, rights to moneys, and other	239
intangible property distributable in the course of dissolution or	240
liquidation of a holder that are unclaimed for one year after the	241
date set by the holder for distribution;	242

(I) All moneys, rights to moneys, or other intangible	243
property removed from a safe-deposit box or other safekeeping	244
repository located in this state or removed from a safe-deposit	245
box or other safekeeping repository of a holder, on which the	246
lease or rental period has expired, or any amount arising from the	247
sale of such property, less any lawful claims, that are unclaimed	248
for three years from the date on which the lease or rental period	249
expired;	250

(J) Subject to division (M)(2) of this section, all moneys,	251
rights to moneys, or other intangible property, and any income or	252
increment on them, held or owed by a holder which is a fiduciary	253
for the benefit of another, or a fiduciary or custodian of a	254
qualified retirement plan or individual retirement arrangement	255
under section 401 or 408 of the Internal Revenue Code, unclaimed	256
for three years after the final date for distribution;	257

(K) All moneys, rights to moneys, or other intangible	258
property held or owed in this state or held for or owed to an	259
owner whose last known address is within this state, by the United	260
States government or any state, as those terms are described in	261
division (E) of section 169.01 of the Revised Code, unclaimed by	262
the owner for three years, excluding any property in the control	263
of any court in a proceeding in which a final adjudication has not	264
been made;	265

(L) Amounts payable pursuant to the terms of any policy of	266
insurance, other than life insurance, or any refund available	267
under such a policy, held or owed by any holder, unclaimed for	268
three years from the date payable or distributable;	269

(M)(1) Subject to division (M)(2) of this section, any funds	270
constituting rents or lease payments due, any deposit made to	271
secure payment of rents or leases, or any sum paid in advance for	272
rents, leases, possible damage to property, unused services,	273
performance requirements, or any other purpose, held or owed by a	274
holder unclaimed for one year;	275

(2) Any escrow funds, security deposits, or other moneys that	276
are received by a licensed broker in a fiduciary capacity and	277
that, pursuant to division (A)(26) of section 4735.18 of the	278
Revised Code, are required to be deposited into and maintained in	279
a special or trust, noninterest-bearing bank account separate and	280
distinct from any personal or other account of the licensed	281
broker, held or owed by the licensed broker unclaimed for two	282
years.	283

(N) Any sum greater than fifty dollars payable as wages, any	284
sum payable as salaries or commissions, any sum payable for	285
services rendered, funds owed or held as royalties, oil and	286
mineral proceeds, funds held for or owed to suppliers, and moneys	287
owed under pension and profit-sharing plans, held or owed by any	288
holder unclaimed for one year from date payable or distributable,	289
and all other credits held or owed, or to be refunded to a retail	290
customer, by any holder unclaimed for three years from date	291
payable or distributable;	292

(O) Amounts held in respect of or represented by lay-aways	293
sold after January 1, 1972, less any lawful claims, when such	294
lay-aways are unclaimed for three years after the sale of them;	295

(P) All moneys, rights to moneys, and other intangible	296
property not otherwise constituted as unclaimed fundsproperty	297
presumed abandoned by this section, including any income or	298
increment on them, less any lawful claims, which are held or owed	299
by any holder, other than a holder which holds a permit issued	300
pursuant to Chapter 3769. of the Revised Code, and which have	301
remained unclaimed for three years after becoming payable or	302
distributable;	303

(Q) All moneys that arise out of a sale held pursuant to	304
section 5322.03 of the Revised Code, that are held by a holder for	305
delivery on demand to the appropriate person pursuant to division	306
(I) of that section, and that are unclaimed for two years after	307
the date of the sale.	308

(R)(1) Any funds that are subject to an agreement between the	309
holder and owner providing for automatic reinvestment and that	310
constitute dividends, distributions, or other sums held or owed by	311
a holder in connection with a security as defined in section	312
1707.01 of the Revised Code, an ownership interest in an	313
investment company registered under the "Investment Company Act of	314
1940," 54 Stat. 789, 15 U.S.C. 80a-1, as amended, or a certificate	315
of deposit, unclaimed for a period of five years.	316

(2) The five-year period under division (R)(1) of this	317
section commences from the date a second shareholder notification	318
or communication mailing to the owner of the funds is returned to	319
the holder as undeliverable by the United States postal service or	320
other carrier. The notification or communication mailing by the	321
holder shall be no less frequent than quarterly.	322

All moneys in a personal allowance account, as defined by	323
rules adopted by the director of job and family services, up to	324
and including the maximum resource limitation, of a medicaid	325
patient who has died after receiving care in a long-term care	326
facility, and for whom there is no identifiable heir or sponsor,	327
are not subject to this chapter.	328

Sec. 169.03.  (A)(1) Every holder of unclaimed fundsproperty	329
presumed abandoned and, when requested, every person that could be	330
the holder of unclaimed fundsproperty presumed abandoned, under	331
this chapter shall report to the director of commerce with respect	332
to the unclaimed fundsproperty presumed abandoned as provided in	333
this section. The report shall be verified.	334

(2) With respect to items of unclaimed fundsproperty	335
presumed abandoned each having a value of fifty dollars or more,	336
the report required under division (A)(1) of this section shall	337
include the following:	338

(a) The full name, if known, and last known address, if any,	339
of each person appearing from the records of the holder to be the	340
owner of unclaimed fundsproperty presumed abandoned under this	341
chapter;	342

(b) In the case of unclaimed fundsproperty presumed	343
abandoned reported by holders providing life insurance coverage,	344
the full name of the insured or annuitant and beneficiary, if any,	345
and their last known addresses according to the holder's records;	346

(c) The nature and identifying number, if any, or description	347
of the fundsproperty and the amount appearing from the records to	348
be due;	349

(d) The date when the fundsproperty became payable,	350
demandable, or returnable and the date of the last transaction	351
with the owner with respect to the fundsproperty;	352

(e) Subject to division (I) of this section, the social	353
security number of the owner of the unclaimed fundsproperty	354
presumed abandoned, if it is available;	355

(f) If the item of unclaimed fundsproperty presumed	356
abandoned has a value of one thousand dollars or more and the	357
holder has verified that the last known address as shown by the	358
records of the holder is not accurate as provided in division (D)	359
of this section, a statement that efforts were undertaken by the	360
holder to verify that the address is not accurate. Any verifying	361
documentation shall be maintained by the holder for five years	362
from the date of the report and shall be available upon request to	363
the director or the director's designee.	364

(g) Other information that the director prescribes as	365
necessary for the administration of this chapter.	366

(3) With respect to items of unclaimed fundsproperty	367
presumed abandoned each having a value of less than fifty dollars,	368
the report required under division (A)(1) of this section shall	369
include the following:	370

(a) Each category of items of unclaimed fundsproperty	371
presumed abandoned as described in section 169.02 of the Revised	372
Code;	373

(b) The number of items of unclaimed fundsproperty presumed	374
abandoned within each category;	375

(c) The aggregated value of the items of unclaimed funds	376
property presumed abandoned within each category.	377

(B) If the holder of unclaimed fundsproperty presumed	378
abandoned is a successor to other organizations that previously	379
held the funds for the owner, or if the holder has changed its	380
name while holding the fundsproperty, it shall file with the	381
report all prior known names and addresses and date and state of	382
incorporation or formation of each holder of the fundsproperty.	383

(C) The report shall be filed before the first day of	384
November of each year as of the preceding thirtieth day of June,	385
but the report of holders providing life insurance coverage shall	386
be filed before the first day of May of each year as of the	387
preceding thirty-first day of December. The director may postpone,	388
for good cause shown, the reporting date upon written request by	389
any holder required to file a report.	390

(D) The holder of unclaimed fundsproperty presumed abandoned	391
under this chapter shall send notice to each owner of each item of	392
unclaimed fundsproperty presumed abandoned having a value of	393
fifty dollars or more at the last known address of the owner as	394
shown by the records of the holder before filing the annual	395
report. In case of holders providing life insurance coverage, this	396
notice shall also be mailed to each beneficiary at the last known	397
address of the beneficiary as shown by the records of the holder,	398
except that the notice to beneficiaries shall not be mailed if	399
that address is the same as that of the insured and the surname of	400
the beneficiary is the same as that of the insured. The holder	401
shall not report an item of unclaimed fundsproperty presumed	402
abandoned earlier than the thirtieth day after the mailing of	403
notice required by this division.	404

The notice required by this division shall set forth the	405
nature and identifying number, if any, or description of the funds	406
property and the amount appearing on the records of the holder to	407
be due the owner or beneficiary, and shall inform the owner or	408
beneficiary that the fundsproperty will, thirty days after the	409
mailing of the notice, be reported as unclaimed fundsproperty	410
presumed abandoned under this chapter. A self-addressed, stamped	411
envelope shall be included with the notice, with instructions that	412
the owner or beneficiary may use the envelope to inform the holder	413
of the owner's or beneficiary's continued interest in the funds	414
property, and, if so informed before the date for making the	415
report to the director, the holder shall not report the funds	416
property to the director. The notice shall be mailed by first	417
class mail if the item of unclaimed fundsproperty presumed	418
abandoned has a value of fifty dollars or more but less than one	419
thousand dollars and by certified mail, return receipt requested,	420
if the item of unclaimed fundsproperty presumed abandoned has a	421
value of one thousand dollars or more, unless the holder has	422
verified that the last known address of the owner or beneficiary	423
as shown by the records of the holder is not accurate. For	424
purposes of this section, a holder has verified that the last	425
known address of the owner or beneficiary is not accurate by	426
documenting at least two of the following:	427

(1) The owner or beneficiary failed to respond to a first	428
class mail notice sent to the last known address of the owner or	429
beneficiary.	430

(2) A first class mail notice sent by the holder to the last	431
known address of the owner or beneficiary was returned as	432
undeliverable.	433

(3) An electronic or manual search of available public	434
records failed to confirm that the last known address of the owner	435
or beneficiary is accurate. The holder shall maintain	436
documentation of its search efforts. If a search of public records	437
or databases identifies a more recent address for the owner or	438
beneficiary than the address in the holder's records, the holder	439
shall send notice to the owner or beneficiary at that more recent	440
address in accordance with this section.	441

A holder that sends a notice by certified mail, return	442
receipt requested, may charge the item of unclaimed fundsproperty	443
presumed abandoned up to twenty dollars for providing that notice.	444

If there is no address of record for the owner or	445
beneficiary, the holder is relieved of any responsibility of	446
sending notice, attempting to notify, or notifying the owner or	447
beneficiary. The mailing of notice pursuant to this section shall	448
discharge the holder from any further responsibility to give	449
notice.	450

(E) Verification of the report and of the mailing of notice,	451
where required, shall be executed by an officer of the reporting	452
holder.	453

(F)(1) The director may, at reasonable times and upon	454
reasonable notice, examine or cause to be examined, by auditors of	455
supervisory departments or divisions of the state, the records of	456
any holder to determine compliance with this chapter.	457

(2) Holders shall retain records, designated by the director	458
as applicable to unclaimed fundsproperty presumed abandoned, for	459
five years beyond the relevant time period provided in section	460
169.02 of the Revised Code, or until completion of an audit	461
conducted pursuant to division (F) of this section, whichever	462
occurs first. An audit conducted pursuant to division (F) of this	463
section shall not require a holder to make records available for a	464
period of time exceeding the records retention period set forth in	465
division (F) of this section, except for records pertaining to	466
instruments evidencing ownership, or rights to them or funds paid	467
toward the purchase of them, or any dividend, capital credit,	468
profit, distribution, interest, or payment on principal or other	469
sum, held or owed by a holder, including fundsproperty deposited	470
with a fiscal agent or fiduciary for payment of them, or	471
pertaining to debt of a publicly traded corporation. Any holder	472
that is audited pursuant to division (F) of this section shall	473
only be required to make available those records that are relevant	474
to an unclaimed funds audit of that holder as prescribed by the	475
director.	476

(3) The director may enter into contracts, pursuant to	477
procedures prescribed by the director, with persons for the sole	478
purpose of examining the records of holders, determining	479
compliance with this chapter, and collecting, taking possession	480
of, and remitting to the department's division of unclaimed funds,	481
in a timely manner, the amounts found and defined as unclaimed.	482
The director shall not enter into such a contract with a person	483
unless the person does all of the following:	484

(a) Agrees to maintain the confidentiality of the records	485
examined, as required under division (F)(4) of this section;	486

(b) Agrees to conduct the audit in accordance with rules	487
adopted under section 169.09 of the Revised Code;	488

(c) Obtains a corporate surety bond issued by a bonding	489
company or insurance company authorized to do business in this	490
state. The bond shall be in favor of the director and in the penal	491
sum determined by the director. The bond shall be for the benefit	492
of any holder of unclaimed fundsproperty presumed abandoned that	493
is audited by the principal and is injured by the principal's	494
failure to comply with division (F)(3)(a) or (b) of this section.	495

(4) Records audited pursuant to division (F) of this section	496
are confidential, and shall not be disclosed except as required by	497
section 169.06 of the Revised Code or as the director considers	498
necessary in the proper administration of this chapter.	499

(5) If a person with whom the director has entered into a	500
contract pursuant to division (F)(3) of this section intends to	501
conduct, in conjunction with an unclaimed funds audit under this	502
section, an unclaimed funds audit for the purpose of administering	503
another state's unclaimed or abandoned property laws, the person,	504
prior to commencing the audit, shall provide written notice to the	505
director of the person's intent to conduct such an audit, along	506
with documentation evidencing the person's express authorization	507
from the other state to conduct the audit on behalf of that state.	508

(6) Prior to the commencement of an audit conducted pursuant	509
to division (F) of this section, the director shall notify the	510
holder of unclaimed fundsproperty presumed abandoned of the	511
director's intent to audit the holder's records. If the audit will	512
be conducted in conjunction with an audit for one or more other	513
states, the director shall provide the holder with the name or	514
names of those states.	515

(7) Any holder of unclaimed fundsproperty presumed abandoned	516
may appeal the findings of an audit conducted pursuant to division	517
(F) of this section to the director. Pursuant to the authority	518
granted by section 169.09 of the Revised Code, the director shall	519
adopt rules establishing procedures for considering such an	520
appeal.	521

(G) All holders shall make sufficient investigation of their	522
records to ensure that the funds reported to the director are	523
unclaimed as set forth in division (B) of section 169.01 and	524
section 169.02 of the Revised Code.	525

(H) The expiration of any period of limitations on or after	526
March 1, 1968, within which a person entitled to any moneys,	527
rights to moneys, or intangible property could have commenced an	528
action or proceeding to obtain these items shall not prevent these	529
items from becoming unclaimed fundsproperty presumed abandoned or	530
relieve the holder of them of any duty to report and give notice	531
as provided in this section and deliver them in the manner	532
provided in section 169.05 of the Revised Code, provided that the	533
holder may comply with this section and section 169.05 of the	534
Revised Code with respect to any moneys, rights to moneys, or	535
intangible property as to which the applicable statute of	536
limitations has run prior to March 1, 1968, and in that event the	537
holder shall be entitled to the protective provisions of section	538
169.07 of the Revised Code.	539

(I) No social security number contained in a report made	540
pursuant to this section shall be used by the department of	541
commerce for any purpose other than to enable the division of	542
unclaimed funds to carry out the purposes of this chapter and for	543
child support purposes in response to a request made by the office	544
of child support in the department of job and family services made	545
pursuant to section 3123.88 of the Revised Code.	546

Sec. 169.06.  (A) Before the first day of November of each	547
year immediately following the calendar year in which the filing	548
of reports is required by section 169.03 of the Revised Code, the	549
director of commerce shall cause notice to be published once in an	550
English language newspaper of general circulation in the county in	551
this state in which is located the last known address of any	552
person to be named in the notice required by this section. If no	553
address is listed, the notice shall be published in the county in	554
which the holder of the unclaimed fundsproperty presumed	555
abandoned has its principal place of business within this state;	556
or if the holder has no principal place of business within this	557
state, or if the owner's address is outside this state,	558
publication shall be made as the director determines most	559
effectiveon the department's internet web site for a period of	560
time the director may reasonably select. If the address is outside	561
this state, notice shall be published in a newspaper of general	562
circulation in the county or parish of any state in the United	563
States in which such last known address is located. If the last	564
known address is in a foreign country, publication shall be made	565
as the director determines most effective.	566

If the name of the owner is not available, the director may	567
publish notice by class, identifying number, or as the director	568
determines most effective.	569

(B) The published notice shall be entitled "Notice of Names	570
of Persons Appearing to be Owners of Unclaimed FundsProperty	571
Presumed Abandoned," and shall contain:	572

(1) The names in alphabetical order and last known addresses,	573
if any, of each person appearing from the records of the holder to	574
be the owner of unclaimed fundsproperty presumed abandoned of a	575
value of fifty dollars or more and entitled to notice as specified	576
in division (A) of this section;	577

(2) A statement that information concerning the amount of the	578
funds and any necessary information concerning the presentment of	579
a claim therefor may be obtained by any persons possessing a	580
property interest in the unclaimed fundsproperty presumed	581
abandoned by addressing an inquiry to the director.	582

(C) With respect to items of unclaimed fundsproperty	583
presumed abandoned each having a value of tenfifty dollars or	584
more, the director shall have available in histhe director's	585
office during business hours an alphabetical list of owners and	586
where a holder is a person providing life insurance coverage,	587
beneficiaries, and their last known addresses, if any, whose funds	588
are being held by the state pursuant to this chapter.	589

(D) The director may give any additional notice hethe	590
director deems necessary to inform the owner of the whereabouts of	591
histhe owner's funds.	592

Sec. 169.08.  (A) Any person claiming a property interest in	593
unclaimed fundsproperty presumed abandoned delivered or reported	594
to the state under Chapter 169. of the Revised Code, including the	595
office of child support in the department of job and family	596
services, pursuant to section 3123.88 of the Revised Code, may	597
file a claim thereto on the form prescribed by the director of	598
commerce.	599

(B) The director shall consider matters relevant to any claim	600
filed under division (A) of this section and shall hold a formal	601
hearing if requested or considered necessary and receive evidence	602
concerning such claim. A finding and decision in writing on each	603
claim filed shall be prepared, stating the substance of any	604
evidence received or heard and the reasons for allowance or	605
disallowance of the claim. The evidence and decision shall be a	606
public record. No statute of limitations shall bar the allowance	607
of a claim.	608

(C) For the purpose of conducting any hearing, the director	609
may require the attendance of such witnesses and the production of	610
such books, records, and papers as the director desires, and the	611
director may take the depositions of witnesses residing within or	612
without this state in the same manner as is prescribed by law for	613
the taking of depositions in civil actions in the court of common	614
pleas, and for that purpose the director may issue a subpoena for	615
any witness or a subpoena duces tecum to compel the production of	616
any books, records, or papers, directed to the sheriff of the	617
county where such witness resides or is found, which shall be	618
served and returned. The fees of the sheriff shall be the same as	619
that allowed in the court of common pleas in criminal cases.	620
Witnesses shall be paid the fees and mileage provided for under	621
section 119.094 of the Revised Code. Fees and mileage shall be	622
paid from the unclaimed funds trust fund.	623

(D) Interest is not payable to claimants of unclaimed funds	624
held by the stateIf a claim is allowed, the director shall pay	625
over or deliver to the claimant the property presumed abandoned in	626
the amount the director actually received, or the net proceeds if	627
the securities or other intangible property delivered to the	628
director have been sold, together with any interest if required to	629
be paid pursuant to this section. With respect to any claim paid	630
on or after the effective date of this amendment, the director	631
shall pay simple interest on such claim at a rate to be determined	632
by the director, who shall adopt administrative rules governing	633
the payment of interest on property delivered to the director. Any	634
returns on investment or interest earned beyond what the director	635
shall pay as interest to the owner pursuant to this section shall	636
be retained by the director to fund the cost of the administration	637
of this chapter. Claims shall be paid from the trust fund. If the	638
amount available in the trust fund is not sufficient to pay	639
pending claims, or other amounts disbursable from the trust fund,	640
the treasurer of state shall certify such fact to the director,	641
who shall then withdraw such amount of funds from the mortgage	642
accounts as the director determines necessary to reestablish the	643
trust fund to a level required to pay anticipated claims but not	644
more than ten per cent of the net unclaimed funds reported to	645
date.	646

The director may withdraw the funds paid to the director by	647
the holders and deposited by the director with the treasurer of	648
state or in a financial institution as agent for such funds.	649
Whenever these funds are inadequate to meet the requirements for	650
the trust fund, the director shall provide for a withdrawal of	651
funds, within a reasonable time, in such amount as is necessary to	652
meet the requirements, from financial institutions in which such	653
funds were retained or placed by a holder and from other holders	654
who have retained funds, in an equitable manner as prescribed by	655
the director. In the event that the amount to be withdrawn from	656
any one such holder is less than five hundred dollars, the amount	657
to be withdrawn shall be at the discretion of the director. Such	658
funds may be reimbursed in the amounts withdrawn when the trust	659
fund has a surplus over the amount required to pay anticipated	660
claims. Whenever the trust fund has a surplus over the amount	661
required to pay anticipated claims, the director may transfer such	662
surplus to the mortgage accounts.	663

(E) If a claim which is allowed under this section relates to	664
funds which have been retained by the reporting holder, and if the	665
funds, on deposit with the treasurer of state pursuant to this	666
chapter, are insufficient to pay claims, the director may notify	667
such holder in writing of the payment of the claim and such holder	668
shall immediately reimburse the state in the amount of such claim.	669
The reimbursement shall be credited to the unclaimed funds trust	670
fund.	671

(F) Any person, including the office of child support,	672
adversely affected by a decision of the director may appeal such	673
decision in the manner provided in Chapter 119. of the Revised	674
Code.	675

In the event the claimant prevails, the claimant shall be	676
reimbursed for reasonable attorney's fees and costs.	677

(G) Notwithstanding anything to the contrary in this chapter,	678
any holder who has paid moneys to or entered into an agreement	679
with the director pursuant to section 169.05 of the Revised Code	680
on certified checks, cashiers' checks, bills of exchange, letters	681
of credit, drafts, money orders, or travelers' checks, may make	682
payment to any person entitled thereto, including the office of	683
child support, and upon surrender of the document, except in the	684
case of travelers' checks, and proof of such payment, the director	685
shall reimburse the holder for such payment without interest.	686

Sec. 169.13.  (A)(1) All agreements to pay a fee,	687
compensation, commission, or other remuneration to locate,	688
deliver, recover, or assist in the recovery of unclaimed funds	689
reported under section 169.03 of the Revised Code, entered into	690
within two years immediately after the date a report is filed	691
under division (C) of section 169.03 of the Revised Code, are	692
invalid.	693

(2) A person interested in entering into an agreement to	694
locate, deliver, recover, or assist in the recovery of unclaimed	695
funds for remuneration shall not initiate any contact with an	696
owner during the two-year period immediately after the date a	697
report is filed under division (C) of section 169.03 of the	698
Revised Code. Failure to comply with this requirement is grounds	699
for the invalidation of any such agreement between the person and	700
the owner.	701

(B) An agreement entered into any time after such two-year	702
period is valid only if all of the following conditions are met:	703

(1) The aggregate fee, compensation, commission, or other	704
remuneration agreed upon is not in excess of ten per cent of the	705
amount recovered and paid to the owner by the director of budget	706
and management;	707

(2) The agreement is in writing, signed by the owner, and	708
notarized and discloses all of the following items:	709

(a) The name, address, and telephone number of the owner, as	710
shown by the records of the person or entity in possession of the	711
unclaimed funds or contents of a safe deposit box;	712

(b) The name, address, and telephone number of the owner if	713
the owner's name, address, or telephone number are different from	714
the name, address, or telephone number of the owner as shown by	715
the records of the person or entity in possession of the unclaimed	716
funds or contents of a safe deposit box;	717

(c) The nature and value of the unclaimed funds or contents	718
of a safe deposit box;	719

(d) The amount the owner will receive after the fee or	720
compensation has been subtracted;	721

(e) The name and address of the person or entity in	722
possession of the unclaimed funds or contents of a safe deposit	723
box;	724

(f) That the auditor of statedirector of commerce will pay	725
thedirect the director of budget and management to pay from the	726
unclaimed funds any legal amount specified in the agreement to	727
compensate a person registered under section 169.16 of the Revised	728
Code for services performed pursuant to the agreement, will pay	729
the amount directly to the registrant, less any fee established	730
pursuant to division (D) of section 169.14 of the Revised Code,	731
and will pay any remaining unclaimed funds directly to the owner,	732
or the director of commerce shall deliver the contents of a safe	733
deposit box directly to the owner;	734

(g) That the person agreeing to locate, deliver, recover, or	735
assist in the recovery of the unclaimed funds or contents of a	736
safe deposit box is not an employee or agent of the director of	737
commerce;	738

(h) That the director of commerce is not a party to the	739
agreement;	740

(i) That the person agreeing to locate, deliver, recover, or	741
assist in the recovery of the unclaimed funds or contents of a	742
safe deposit box holds a valid certificate of registration issued	743
by the director under section 169.16 of the Revised Code;	744

(j) The number designated on that certificate of registration	745
and the date the certificate of registration expires.	746

(3) No agreement described in division (B)(2) of this section	747
shall include a power of attorney for the payment of the unclaimed	748
funds or delivery of the contents of a safe deposit box to any	749
person other than the owner of the unclaimed funds or contents of	750
a safe deposit box.	751

(4) If the agreement involves recovery of the contents of a	752
safe deposit box, the agreement stipulates that the person	753
receiving any fee, compensation, commission, or other remuneration	754
for engaging in any activity for the purpose of locating,	755
delivering, recovering, or assisting in the recovery of unclaimed	756
funds or other items stored in a safe deposit box on behalf of any	757
other person shall do all of the following:	758

(a) Make arrangements to have an appraiser and the director	759
of commerce view the contents of the safe deposit box together, at	760
a time mutually agreeable to the appraiser and director;	761

(b) State that the value of the property in the safe deposit	762
box is the amount established by the appraiser who viewed the safe	763
deposit box contents;	764

(c) Base the fee, compensation, commission, or other	765
remuneration for locating, delivering, recovering, or assisting in	766
the recovery of unclaimed funds or other items stored in a safe	767
deposit box on the appraised value established by the appraiser	768
who viewed the safe deposit box contents.	769

(C) No person shall receive a fee, compensation, commission,	770
or other remuneration, or engage in any activity for the purpose	771
of locating, delivering, recovering, or assisting in the recovery	772
of unclaimed funds or contents of a safe deposit box, under an	773
agreement that is invalid under this section.	774

(D) A person who receives any fee, compensation, commission,	775
or other remuneration for engaging in any activity for the purpose	776
of locating, delivering, recovering, or assisting in the recovery	777
of unclaimed funds or other items stored in a safe deposit box on	778
behalf of any other person cannot function as an appraiser of the	779
contents of the safe deposit box for purposes of division (B)(4)	780
of this section.	781

(E) The director of commerce shall not recognize or make any	782
delivery and the auditor of statedirector of budget and	783
management shall not make any payment pursuant to any power of	784
attorney between an owner of the unclaimed funds or contents of a	785
safe deposit box and the person with whom the owner entered into	786
an agreement pursuant to division (B)(2) of this section to	787
locate, deliver, recover, or assist in the recovery of the	788
unclaimed funds or contents of a safe deposit box if that power of	789
attorney is entered into on or after the effective date of this	790
amendmentMarch 23, 2007, and that power of attorney specifically	791
provides for the payment of unclaimed funds or delivery of the	792
contents of a safe deposit box to any person other than the owner	793
of the unclaimed funds or contents of a safe deposit box. Nothing	794
in this section shall be construed as prohibiting the payment of	795
unclaimed funds or delivery of the contents of a safe deposit box	796
to the legal representative of the owner of the unclaimed funds or	797
contents of the safe deposit box. Notwithstanding the definition	798
of "owner" specified in division (C) of section 169.01 of the	799
Revised Code, for purposes of the payment of unclaimed funds or	800
delivery of the contents of the safe deposit box, a person with	801
whom an owner entered into an agreement under division (B)(2) of	802
this section is not a legal representative.	803

Sec. 169.14. (A) Each person that files a claim with the	804
director of commerce, pursuant to an agreement entered into under	805
division (B) of section 169.13 of the Revised Code, shall include	806
with that claim a copy of the agreement and the number designated	807
on the certificate of registration that is issued to the person	808
under section 169.16 of the Revised Code.	809

(B) The division of unclaimed funds shall not process any	810
claim described in division (A) of this section that does not	811
include the required certificate of registration number.	812

(C) The director of budget and management shall pay from the	813
unclaimed funds any legal amount specified in an agreement entered	814
into under division (B) of section 169.13 of the Revised Code to	815
compensate a person registered under section 169.16 of the Revised	816
Code for services performed pursuant to the agreement, shall pay	817
the amount directly to the registrant, less any fee established	818
pursuant to division (D) of this section, and shall pay any	819
remaining unclaimed funds directly to the owner.	820

(D) The director of commerce may establish a reasonable fee	821
for the processing and delivery of any payment made to a	822
registrant pursuant to an agreement under division (B) of section	823
169.13 of the Revised Code.	824

Sec. 169.16. (A) No person, on behalf of any other person,	825
shall engage in any activity for the purpose of locating,	826
delivering, recovering, or assisting in the recovery of unclaimed	827
fundsproperty presumed abandoned or contents of a safe deposit	828
box, and receive a fee, compensation, commission, or other	829
remuneration for such activity, without first having obtained a	830
certificate of registration from the director of commerce in	831
accordance with this section.	832

(B) An application for a certificate of registration shall be	833
in writing and in the form prescribed by the director. The	834
application shall be accompanied by a recent full-face color	835
photograph of the applicant and notarized character reference	836
letters from two reputable character witnesses. The application	837
shall, at a minimum, provide all of the following:	838

(1) The applicant's full name, home address, and work	839
address;	840

(2) The name, address, and telephone number of the two	841
character witnesses who have provided the character reference	842
letters;	843

(3) A statement that the applicant has not, during the	844
ten-year period immediately preceding the submission of the	845
application, violated division (A) of this section on or after the	846
effective date of this section, or division (C) of section 169.13	847
of the Revised Code, or been convicted of, or pleaded guilty to,	848
any felony or any offense involving moral turpitude, including	849
theft, attempted theft, falsification, tampering with records,	850
securing writings by deception, fraud, forgery, and perjury;	851

(4) The notarized signature of the applicant immediately	852
following an acknowledgment that any false or perjured statement	853
subjects the applicant to criminal liability under section 2921.13	854
of the Revised Code.	855

(C) Upon the filing of the application with the division of	856
unclaimed funds, the division may investigate the applicant to	857
verify the information provided in the application and to	858
determine the applicant's eligibility for a certificate of	859
registration under this section. The superintendent of unclaimed	860
funds shall request the superintendent of the bureau of criminal	861
identification and investigation, or a vendor approved by the	862
bureau, to conduct a criminal records check based on the	863
applicant's fingerprints in accordance with division (A)(11) of	864
section 109.572 of the Revised Code. Notwithstanding division (K)	865
of section 121.08 of the Revised Code, the superintendent of	866
unclaimed funds shall request that criminal record information	867
from the federal bureau of investigation be obtained as part of	868
the criminal records check. Any fee required under division (C)(3)	869
of section 109.572 of the Revised Code shall be paid by the	870
applicant. False information on an application is grounds for the	871
denial or revocation of the applicant's certificate of	872
registration.	873

(D) The director shall issue a certificate of registration to	874
an applicant if the director finds that the following conditions	875
are met:	876

(1) The applicant has not, during the ten-year period	877
immediately preceding the submission of the application, violated	878
division (A) of this section on or after the effective date of	879
this section, or division (C) of section 169.13 of the Revised	880
Code, or been convicted of, or pleaded guilty to, any felony or	881
any offense involving moral turpitude, including theft, attempted	882
theft, falsification, tampering with records, securing writings by	883
deception, fraud, forgery, and perjury.	884

(2) The applicant's character and general fitness command the	885
confidence of the public and warrant the belief that the	886
applicant's business will be conducted honestly and fairly.	887

(E) The certificate of registration issued pursuant to	888
division (D) of this section may be renewed annually if the	889
director finds that the following conditions are met:	890

(1) The applicant submits a renewal application form	891
prescribed by the director.	892

(2) The applicant meets the conditions set forth in division	893
(D) of this section.	894

(3) The applicant's certificate of registration is not	895
subject to an order of revocation by the director.	896

Section 2. That existing sections 169.01, 169.02, 169.03,	897
169.06, 169.08, 169.13, 169.14, and 169.16 of the Revised Code are	898
hereby repealed.	899

Section 3.  Section 169.13 of the Revised Code is presented	900
in this act as a composite of the section as amended by both Am.	901
Sub. H.B. 699 and Am. Sub. S.B. 223 of the 126th General Assembly.	902
The General Assembly, applying the principle stated in division	903
(B) of section 1.52 of the Revised Code that amendments are to be	904
harmonized if reasonably capable of simultaneous operation, finds	905
that the composite is the resulting version of the section in	906
effect prior to the effective date of the section as presented in	907
this act.	908