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Bill Summary · HB 960

Overview

House Bill 960 (HB 960), introduced in the 136th Ohio General Assembly by Rep. Hiner, seeks to enhance fraud reporting and create a formal fraud-recovery incentive program. The bill amends existing law to establish an official fraud-reporting system, require training on fraud reporting, and authorize awards to individuals who report fraud that leads to recoveries, subject to funding and specific eligibility rules.

Main purpose and intent

  • Create a structured, state-run system for reporting fraud, waste, and abuse of public funds.
  • Encourage individuals to report fraud by offering monetary awards for those whose reports lead to recoveries, while protecting confidentiality and ensuring due process.
  • Provide training and awareness materials for public employees and elected officials about fraud reporting mechanisms and requirements.

Key provisions and changes

Fraud reporting system (amends section 117.103)

  • The Ohio Auditor of State must establish and maintain a system for reporting fraud, misuse, and misappropriation of public money by any public office or public official.
  • Reporting channels: toll-free phone line, Auditor of State’s website, or U.S. mail. Reporters may remain anonymous or identify themselves.
  • The Auditor must review complaints in a timely manner.
  • The Auditor must log all complaints as a public record, including date received, general description, targeted office, and status, with redactions allowed to protect exempt information.
  • Ongoing criminal investigations are not logged until after the investigation concludes (log due within 30 days post-completion).
  • If a complaint reveals probable fraud/theft, the Auditor must promptly notify relevant legal officials (prosecutor, director of law, village solicitor, etc.), with exceptions if those officials are the alleged perpetrators.

Fraud reporting training (amends section 117.103, new subdivisions)

  • The Auditor must develop training materials detailing the fraud-reporting system and reporting methods.
  • The Department of Administrative Services must distribute training to state employees, statewide elected officials, and General Assembly members.
  • Training also extended to employees and elected officials of political subdivisions.
  • Current public employees/elected officials (as of a specified date) must complete training within 90 days unless good cause exists; new personnel must acknowledge receipt within 30 days.
  • Training must be required every four years.
  • A model form will be provided on the Auditor’s website for signature and verification of receipt.
  • The Auditor must verify compliance with training during audits under section 117.11.

Fraud recovery awards (new section 117.104)

  • Definitions:
    • Misuse/misappropriation of public money terms align with existing law (R.C. 4113.52).
    • Fraud includes fraud, theft in office, or misuse/misappropriation by public offices/officials.
    • “Fraud recovery” means a judgment or settlement paid to and collected by the harmed public entity.
    • “Prosecutor” covers prosecutors and equivalent municipal/legal officers.
  • Eligibility to receive an award:
    • The reporter submits a qualifying fraud report under 117.103.
    • The report materially contributes to an audit, investigation, discovery, or filing of civil/criminal action.
    • The report results in a fraud recovery.
    • The reporter is not personally implicated or convicted of fraud, and did not participate in the fraud.
    • Any additional eligibility requirements set by the Attorney General.
  • Process and amount:
    • The Attorney General determines eligibility and whether the reporter should receive an award.
    • If awarded, the amount cannot exceed 10% of the fraud recovery and is subject to funds available in the fraud reporting fund.
    • The award is paid from the fraud reporting fund to the reporter.
  • Finality and limits:
    • Attorney General’s determinations are final and not subject to appeal.
    • Awards cannot interfere with restitution orders, recovery findings, audit-cost recovery, fines, or investigation costs.
    • Awards may not be made before the harmed entity is fully reimbursed unless the AG determines the award won’t impede full reimbursement.
  • Fraud reporting fund:
    • Created in the state treasury to hold money appropriated to it and other monies as allowed by law.
    • Used exclusively for paying awards to reporters of fraud as described.
  • Rulemaking:
    • The Attorney General may adopt rules regarding eligibility, award calculations, and protecting the confidentiality of reporters, in line with Chapter 119 of the Revised Code.

Repeal and sequencing

  • The bill repeals the existing section 117.103 and enacts new provisions that codify the above framework.

Who/what would be affected

  • Public offices, agencies, and officials across Ohio (as potential targets of fraud reporting and subsequent investigations).
  • Ohio residents and state/public employees who may report fraud.
  • State and local government entities that may benefit from disclosures leading to recoveries.
  • The Attorney General, Auditor of State, prosecutors, and other chief legal officers involved in handling fraud reports and determining awards.
  • Political subdivisions (cities, townships, villages) and their employees as recipients of the fraud-training requirements.

Procedural and timeline aspects

  • Training requirements: current officials must complete within 90 days of a specified date; new officials must complete within 30 days of taking office; training recurs every four years.
  • Fraud logs: complaints involving ongoing investigations are not logged until investigation completion, with a 30-day post-completion logging requirement.
  • Award process: the Attorney General determines eligibility and award amount (up to 10% of fraud recovery), subject to fund availability; final determinations are not appealable.
  • Funding: a dedicated fraud reporting fund finances awards; the fund’s existence and use are governed by specified rules.

Potential impact

  • Encourages timely, anonymous fraud reporting with formal oversight and accountability.
  • Creates financial incentives for whistleblowers, tied to actual recoveries and subject to strict eligibility and non-interference safeguards.
  • Improves transparency and traceability of fraud complaints through public logs (with appropriate redactions).
  • Enhances training and awareness among public servants, potentially improving detection and prevention of fraud.

Compiled from official sources — confirm details with the bill’s official record.

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