Prohibit fraudulent use of state funds

136th Legislature (2025-2026) Introduced by Josh Williams

HB 932 makes knowingly false claims to obtain state funding or grants a second-degree felony with at least 5 years in prison and 5 years post-release for $50,000+, and ban offender

Referred to committee

#crimeandpunishment #crimes #corrections #andlawenforcement #healthandhumanservices #publicassistance

Summary of HB 932 (Ohio, 136th General Assembly)

Purpose

HB 932 aims to protect state funds by prohibiting fraudulent statements or representations used to obtain reimbursement or funding from state funding programs or grant programs. The bill classifies such actions as public assistance fraud and imposes severe penalties, with specific restrictions on entities connected to offenders.

Key provisions

Prohibited conduct (Section 2913.50(A))
It is unlawful for any person to knowingly make or cause to be made a false or misleading statement or representation to obtain reimbursement or funding from state funding or grant programs.

Classification and penalties (Section 2913.50(B))
Violation constitutes public assistance fraud, a felony of the second degree. The court must impose:

A mandatory minimum sentence of 5 years imprisonment, and
A mandatory period of 5 years post-release control (supervision) if the amount of reimbursement or funding involved is $50,000 or more.

Disqualification for offenders’ entities (Section 2913.50(C))
A business owned and controlled by an offender convicted of, or who has pleaded guilty to, a violation of this section is prohibited from receiving state funding or grants.

Affected parties

Individuals who knowingly submit false or misleading statements to obtain state funds or grants.

Offenders and their related businesses: if convicted or pleading guilty, their businesses face exclusion from state funding or grant opportunities.

State funding and grant programs: subject to enhanced fraud prevention, investigation, and enforcement under this section.

Procedural and timeline aspects

Effective language: The bill establishes the new section 2913.50 of the Revised Code, with explicit definitions of prohibited conduct and penalties.

Penalties timeline: For qualifying fraud (≥$50,000), there is a mandatory 5-year prison term and 5 years of post-release control. The statute does not specify alternative sentences for amounts under $50,000 beyond the general felony classification, but confirms the minimums apply specifically when the amount is $50,000 or more.

Eligibility restriction: The provision barring offenders’ businesses from state funding/grants is prospective and applies to entities owned or controlled by those convicted or who pled guilty under this section.

Practical impact and considerations

The bill creates a higher-stakes deterrent against fraud in state funding programs by:

Elevating the offense to a second-degree felony with substantial mandatory minimums for large-fraud cases.
Tying exclusion from state funding to convictions, potentially limiting re-entry for offenders.

Enforcement emphasis likely to include investigations of claims for reimbursement and funding, with strong penalties for evidence of falsification or misrepresentation.

The provision targeting offender-owned businesses could affect procurement and grant processes, necessitating due diligence by state agencies to ensure compliance and exclude noncompliant entities.

Overall, HB 932 strengthens Ohio’s framework against fraudulent claims in state funding and grants by mandating stiff criminal penalties and restricting disqualified entities from accessing state funds.