Ohio Administrative Code 1301 — Department of Commerce

Chapter 1301-1 Notice of Rules

Ohio Adm.Code 1301-1-01 Notice of promulgation of rules and regulations.

(A) Whenever the director of the department of commerce proposes to adopt, amend or rescind any rule or regulation which the director is authorized by law to do, the department of commerce will hold a public hearing. The hearing will be held at least thirty days after the proposed rule changes have been filed pursuant to section 119.03 of the Revised Code and after reasonable public notice has been given pursuant to this rule.

(B) Public notice shall consist of a statement of the department's intention to adopt, amend or rescind a rule, a general statement of the subject matter to which the proposed rule adoption, amendment, or rescission relates, a statement of the purpose for adopting, amending, or rescinding the rule, and a statement designating the date, time and place of the hearing.

(C) Pursuant to section 119.037 of the Revised Code, at least thirty days prior to the date of the hearing, public notice shall be published in the register of Ohio on the internet at http://www.registerofohio.state.oh.us. Public notice may also be published on the department's web site, however, such department web site notice shall not be mandatory, and failure to give such additional notice shall not invalidate any action that may be taken by the director.

Last updated July 16, 2024 at 2:53 PM

History

• Effective: December 26, 2003
• Promulgated Under: 119.03

Ohio Adm.Code 1301-1-02 Financial literacy education fund.

(A) Pursuant to section 1321.21 of the Revised Code, five per cent of all charges, penalties and forfeitures received into the consumer finance fund of the division of financial institutions shall be transferred to the financial literacy education fund created under the provisions of section 121.085 of the Revised Code. Transfers shall be made at least quarterly within thirty days of the end of each fiscal quarter.

(B) At least one-half of the financial literacy education programs developed or implemented pursuant to section 121.085 of the Revised Code and offered to the public must be presented by or available at public community colleges or state institutions throughout the state.

(C) Adult financial literacy education programs may be open to individuals of all ages.

(D) The director of commerce may accept applications for the receipt of financial literacy education funds for adult financial literacy programs. An application for receipt of financial literacy education funds shall be in writing, under oath, and in the form prescribed by the director of commerce and shall include, at minimum, the following:

(1) The name and address of the applicant;

(2) Evidence that the applicant maintains all necessary filings and approvals required by the secretary of state;

(3) An audited financial statement. If more than ninety days have passed since the date of the most recent audited financial statement, the applicant shall provide an unaudited financial statement dated within sixty days of application to supplement its most recent audited financial statement;

(4) A detailed description of the program explaining all content, including but not limited to, proposed program materials, method of presentation to include whether the program will be available online, expected duration of the presentation, proposed dates of presentation, and how the program is applicable to financial literacy;

(5) The method of verification of attendance and the method used to ensure students master the material, such as a quiz;

(6) The names, addresses, and resumes for all program instructors;

(7) Materials that will be used to market the financial literacy program;

(8) A proposed budget indicating how a grant award would be spent; and

(9) Any other information the director requires.

(E) Financial literacy education programs shall be designed to assure that students actively participate in the instructional process while completing the program by utilizing techniques that require substantial student interaction with the instructor, other students, written course materials, or a computer program.

(F)

(1) All financial literacy education fund recipients shall file with the director quarterly performance reports within thirty days of the end of the quarter. Quarterly performance reports shall include a list of program titles offered with program descriptions. Program descriptions should describe content offered, including but not limited to, program materials, expected duration, and dates of offering. Reports should also identify instructors, number of participating students with attendance sheets, and a to-date accounting for all financial literacy education funds received and expended during the preceding quarter.

(2) All financial literacy education fund recipients shall also file with the director a final report no later than ninety days after the completion of the program with a full accounting of how the grant funds were spent, the number of individuals served, curricula used, challenges faced, and lessons the fund recipient learned in implementing the program that could be addressed to improve similar programs in the future.

(G) Applications for financial literacy education funds will be accepted annually and must be submitted to the director no later than the thirtieth of April for consideration for the next fiscal year, which begins on the first day of July of each year. All financial literacy education fund program approvals expire on the thirtieth of June of each year.

(H) Applicants will be notified by the director in writing if the application is approved.

(I) Applicants shall not represent to the public that a financial literacy education program is approved until formal acceptance has been received from the director.

(J) The director may designate an employee from within the department of commerce to administer and oversee the financial literacy education fund and the application process.

Last updated March 21, 2022 at 12:37 PM

History

• Effective: March 21, 2022
• Promulgated Under: 119.03

Ohio Adm.Code 1301-1-03 Procedures for accessing confidential personal information.

(A) For the purposes of this rule promulgated in accordance with section 1347.15 of the Revised Code, the following definitions apply:

(1) "Access" as a noun means an opportunity to copy, view, or otherwise perceive whereas "access" as a verb means to copy, view, or otherwise perceive.

(2) "Acquisition of a new computer system" means the purchase of a "computer system," as defined in this rule, that is not a computer system currently in place nor one for which the acquisition process has been initiated as of the effective date of the this rule.

(3) "Agency" means the department of commerce and includes the divisions thereof.

(4) "Computer system" means a "system," as defined by section 1347.01 of the Revised Code, that stores, maintains, or retrieves personal information using electronic data processing equipment.

(5) "Confidential personal information" (CPI) has the meaning as division (A)(1) of section 1347.15 of the Revised Code and as identified by this rule promulgated in accordance with division (B)(3) of section 1347.15 of the Revised Code, which includes references to the federal or state statutes or administrative rules that make personal information maintained by the agency confidential.

(6) "Employee of the state agency" means each employee of the agency regardless of whether he/she holds an elected or appointed office or position within the agency.

(7) "Incidental contact" means contact with the information that is secondary or tangential to the primary purpose of the activity that resulted in the contact.

(8) "Individual" means natural person or the natural person's authorized representative, legal counsel, legal custodian, or legal guardian.

(9) "Information owner" means the individual appointed in accordance with division (A) of section 1347.05 of the Revised Code to be directly responsible for a system.

(10) "Person" means natural person.

(11) "Personal information" has the same meaning as defined in division (E) of section 1347.01 of the Revised Code.

(12) "Personal information system" means a system that maintains personal information as those terms are defined in section 1347.01 of the Revised Code. "System" includes manual and computer systems.

(13) "Research" means a methodical investigation into a subject.

(14) "Routine" means common place, regular, habitual, or ordinary.

(15) "Routine information that is maintained for the purpose of internal office administration, the use of which would not adversely affect a person" as that phrase is used in division (F) of section 1347.01 of the Revised Code means personal information relating to the agency's employees that is maintained by the agency for administrative and human resource purposes.

(16) "System" has the same meaning as defined by division (F) of section 1347.01 of the Revised Code.

(17) "Upgrade" means a substantial redesign of an existing system for the purpose of providing a substantial amount of new application functionality, or application modifications that would involve substantial administrative or fiscal resources to implement, but would not include maintenance, minor updates and patches, or modifications that entail a limited addition of functionality due to changes in business or legal requirements.

(B) For personal information systems, whether manual or computer systems, that contain confidential personal information, the agency shall do the following:

(1) Criteria for accessing confidential personal information. Personal information systems of the agency are managed on a "need-to-know" basis whereby the information owner determines the level of access required for an employee of the agency to fulfill his/her job duties. The determination of access to confidential personal information shall be approved by the employee's supervisor and the information owner prior to providing the employee with access to confidential personal information within a personal information system. The agency shall establish procedures for determining a revision to an employee's access to confidential personal information upon a change to that employee's job duties including, but not limited to, transfer or termination. Whenever an employee's job duties no longer require access to confidential personal information in a personal information system, the employee's access to confidential personal information shall be removed.

(2) Individual's request for a list of confidential personal information. Upon the signed written request of any individual for a list of confidential personal information about the individual maintained by the agency, the agency shall do all of the following:

(a) Verify the identity of the individual by a method that provides safeguards commensurate with the risk associated with the confidential personal information;

(b) Provide to the individual the list of confidential personal information that does not relate to an investigation about the individual or is otherwise not excluded from the scope of Chapter 1347. of the Revised Code; and

(c) If all information relates to an investigation about that individual, inform the individual that the agency has no confidential personal information about the individual that is responsive to the individual's request.

(3) Notice of invalid access.

(a) Upon discovery or notification that confidential personal information of a person has been accessed by an employee for an invalid reason, the agency shall notify the person whose information was invalidly accessed as soon as practical and to the extent known at the time. However, the agency shall delay notification for a period of time necessary to ensure that the notification would not delay or impede an investigation or jeopardize homeland or national security. Additionally, the agency may delay the notification consistent with any measurers necessary to determine the scope of the invalid access, including which individuals' confidential personal information invalidly was accessed, and to restore the reasonable integrity of the system. For purposes of this paragraph, "Investigation" means the investigation of the circumstances and involvement of an employee surrounding the invalid access of the confidential personal information. Once the agency determines that notification would not delay or impede an investigation, the agency shall disclose the access to confidential personal information made for an invalid reason to the person.

(b) Notification provided by the agency shall inform the person of the type of confidential personal information accessed and the date(s) of the invalid access.

(c) Notification may be made by any method reasonably designed to accurately inform the person of the invalid access, including written, electronic, or telephone notice.

(4) Appointment of a data privacy point of contact. The director of the agency shall designate an employee of the agency to serve as the data privacy point of contact. The data privacy point of contact shall work with both the implementation of privacy protections for confidential personal information that the agency maintains and compliance with section 1347.15 of the Revised Code and this rule.

(5) Completion of a privacy impact assessment. The data privacy point of contact shall timely complete the privacy impact assessment form developed by the office of information technology.

(C) Pursuant to the requirements of division (B)(2) of section 1347.15 of the Revised Code, this rule contains a list of valid reasons directly related to the agency's exercise of its powers or duties for which only employees of the agency may access confidential personal information (CPI) regardless of whether the personal information system is a manual system or a computer system:

(1) Performing the following functions constitute valid reasons for authorized employees of the agency to access confidential personal information:

(a) Responding to a public records request;

(b) Responding to a request from an individual for the list of CPI the agency maintains on that individual;

(c) Administering a constitutional provision or duty;

(d) Administering a statutory provision or duty;

(e) Complying with any state or federal program requirements;

(f) Processing or payment of claims or otherwise administering a program with individual participants or beneficiaries;

(g) Auditing purposes;

(h) Licensure, registration, permitting, etc., processes;

(i) Investigation or law enforcement purposes;

(j) Administrative hearings;

(k) Litigation, complying with an order of a court, or subpoena;

(l) Human resource matters (e.g., hiring, promotion, demotion, discharge, salary/compensation issues, leave requests/issues, training, time card approvals/issues);

(m) Complying with an executive order or policy;

(n) Complying with an agency policy or a state administrative policy issued by the department of administrative services, the office of budget and management or other similar state agency; or

(o) Complying with a collective bargaining agreement provision.

(2) For employees of the division of liquor control, in addition to the reasons specified in paragraph (C)(1) of this rule, the following functions also constitute valid reasons for authorized employees of the agency to access confidential personal information:

(a) Carrying out duties and responsibilities for the operation, management, and control of the division of liquor control's spirituous liquor agency stores;

(b) Carrying out duties and responsibilities to maintain a state monopoly of the distribution of spirituous liquor.

(D) The following federal statutes or regulations or state statutes and administrative rules make personal information maintained by the agency confidential and identify the confidential personal information within the scope of the rules promulgated by this agency in accordance with section 1347.15 of the Revised Code:

(1) 5 U.S.C. 552a, for social security numbers unless the individual was told that the number would be disclosed.

(2) Divisions (A) and (D) of section 109.57 and section 4776.04 of the Revised Code and 42 U.S.C. 3789(g).

(3) 26 U.S.C. 6103

(4) 20 U.S.C. 1232 (g)(b)(1).

(5) Divisions (F)(3)(a), (F)(4), and (I) of section 169.03, sections 1121.11, 1121.18, 1121.25, 1155.091, 1155.16, 1163.20, 1163.121, 1315.03, 1315.122, division (A) of section 1321.09, sections 1321.44, 1321.48, 1321.55, division (B) of section 1321.55, section 1321.76, divisions (A) and (B) of section 1322.061, divisions (Q) and (W) of section 1707.03, sections 1733.32, 1733.327, 1765.21, 2710.03, 2710.07, 3319.321, 3737.16, 4727.18, division (D) of section 4735.05, division (D) of section 4763.03, and division (A)(1) of section 4763.05 of the Revised Code.

(6) Rules 109:5-1-01 and 1301:9-3-09, and paragraphs (B)(1), (B)(2), and (H) of rule 1301:10-3-04 of the Administrative Code.

(E) For personal information systems that are computer systems and contain confidential personal information, the agency shall do the following:

(1) Access restrictions. Access to confidential personal information that is kept electronically shall require a password or other authentication measure.

(2) Acquisition of a new computer system. When the agency acquires a new computer system that stores, manages, or contains confidential personal information, the agency shall include a mechanism for recording specific access by employees of the agency to confidential personal information in the system.

(3) Upgrading existing computer systems. When the agency modifies an existing computer system that stores, manages, or contains confidential personal information, the agency shall make a determination whether the modification constitutes an upgrade. Any upgrades to a computer system shall include a mechanism for recording specific access by employees of the agency to confidential personal information in the system.

(4) Logging requirements regarding confidential personal information in existing computer systems.

(a) The agency shall require employees of the agency who access confidential personal information within computer systems to maintain a log that records that access.

(b) Access to confidential information is not required to be entered into the log under the following circumstances:

(i) The employee of the agency is accessing confidential personal information for official agency purposes; including research, and the access is not specifically directed toward a specifically named individual or a group of specifically named individuals.

(ii) The employee of the agency comes into incidental contact with confidential personal information and the access of the information is not specifically directed toward a specifically named individual or a group of specifically named individuals.

(iii) The employee of the agency accesses confidential personal information about an individual based upon a request made under either of the following circumstances:

(a) The individual requests confidential personal information about himself/herself.

(b) The individual makes a request that the agency takes some action on that individual's behalf and accessing the confidential personal information is required in order to consider or process that request.

(c) For purposes of this paragraph, the agency may choose the form or forms of logging, whether in electronic or paper formats.

(5) Log management. The agency shall issue a policy that specifies the following with regard to the log that is required to be maintained pursuant to division (B) of section 1347.15 of the Revised Code and paragraph (E)(4) of this rule:

(a) Who shall maintain the log;

(b) What information shall be captured in the log;

(c) How the log is to be stored; and

(d) How long information kept in the log is to be retained.

(6) Nothing in this rule limits the agency from requiring logging in any circumstances that it deems necessary.

Last updated July 16, 2024 at 2:54 PM

History

• Effective: November 22, 2010
• Promulgated Under: 119.03

Ohio Adm.Code 109:5-1-01

(A) Any person may obtain information concerning the criminal record of any other person maintained at the bureau of criminal identification and investigation by submitting the following:

(1) The complete name, current address, and other identifying characteristics of the individual whose records are sought;

(2) A complete set of fingerprints of the individual whose records are sought;

(3) The signed consent of the individual whose records are sought;

(4) A check, money order, or electronic payment in the amount of twenty-two dollars made payable to the "Treasurer of State of Ohio." Law enforcement officers as defined in section 2901.01 of the Revised Code will be exempt from this fee.

(B) The foregoing shall be submitted to the bureau of criminal identification and investigation in one of the following ways:

(1) Through the mail to the "Bureau of Criminal Identification and Investigation, P.O. Box 365, London, Ohio 43140."

(2) Electronically in a format designated by the superintendent.

(C) "Other identifying characteristics" means date of birth, social security number, height, weight, sex, race, and nationality.

Last updated July 6, 2023 at 11:18 AM

History

• Effective: November 20, 2015
• Promulgated Under: 119.03

Ohio Adm.Code 1301:9-3-09

The financial statements, examination reports, analyses and other information submitted by the superintendent of credit unions or other credit union supervisory authority, the national credit union administration or by participating credit unions to the credit union share guaranty corporation, pursuant to section 1761.08 of the Revised Code, are and shall remain privileged and confidential while in the custody of the credit union share guaranty corporation and as shared with credit union supervisory authorities provided however, that financial statements submitted to the credit union share guaranty corporation pursuant to division (B) of section 1761.08 of the Revised Code are public documents.

Last updated September 8, 2023 at 11:19 AM

History

• Effective: March 24, 2016
• Promulgated Under: 119.03

Ohio Adm.Code 1301:10-3-04

(A) The director may, at reasonable times and upon reasonable notice, examine or cause to be examined by auditors of supervisory departments or examiners of the divisions of the state, the records of any holder or person which could be the holder of unclaimed funds, to determine compliance with Chapter 169. of the Revised Code. The director may enter into contracts, pursuant to procedures prescribed by the director, with persons for the sole purpose of examining the records of holders, determining compliance with Chapter 169. of the Revised Code, and collecting, taking possession of, and remitting to the department's division of unclaimed funds, in a timely manner, the amounts found and defined as unclaimed. Said amounts due to the state will be remitted directly to the state by the holders subject to an involuntary examination initiated by the state. Said persons, hereinafter referred to as contract auditors, certify that they are knowledgeable of Chapter 169. of the Revised Code, relevant United States and Ohio supreme court rulings, generally accepted accounting principles (GAAP), generally accepted auditing standards (GAAS), and any relevant examination/auditing procedures promulgated pursuant to section 169.09 of the Revised Code, as they relate to the identification and collection of unclaimed funds from holders. Except as provided herein, a contract auditor conducting a state-initiated involuntary examination within the borders of the state of Ohio will not be compensated by the state on a contingency fee basis, but will be compensated pursuant to a fixed fee arrangement. State may compensate a contract auditor on a contingency fee basis when the state of Ohio has joined in an involuntary audit examination initiated by another state, regardless of whether the holder is incorporated in Ohio, or has its principal place of business or records within Ohio.

(B) The confidentiality of records and a confidentiality agreement

(1) Records audited pursuant to division (G) of section 169.03 of the Revised Code are confidential, and cannot be disclosed except as stated in section 169.06 of the Revised Code or as the director considers necessary in the proper administration of Chapter 169. of the Revised Code. The identity of a holder approved for an involuntary examination is public record pursuant to Chapter 149. of the Revised Code.

(2) The contract auditor and division auditor agree that they cannot disclose information obtained during the involuntary examination to anyone other than a participating state, unless pursuant to or required by law.

(3) The contract auditor, upon the written request of the holder, will sign a confidentiality agreement to which the holder is a signator. The confidentiality agreement will be entered into in the manner specified in paragraph (H) of this rule.

(C) Working papers and related documentation

(1) All working papers and other documentation prepared by division auditors or contract auditors during the performance of the involuntary examination will meet, at a minimum, professional auditing standards. The division auditor and contract auditor will comply with Rule 202 "Compliance With Standards" of the AICPA's (American institute of certified public accountants) code of professional ethics and adhere to generally accepted auditing standards (GAAS) and the statements on auditing standards issued by the auditing standards board, as both relate to the identification and collection of unclaimed funds from holders. These standards include, but are not limited to, general standards, standards for field work, and standards for reporting.

(2) The documentation of such funds owing to the state will contain such information as may be needed by the state to collect the amount discovered by the involuntary examination. Such information cannot include trade secrets or proprietary data having no relevancy to the unclaimed funds involuntary examination.

(D) Holders of funds of such a nature as may potentially become unclaimed funds, are responsible for maintaining these accounts on the records of the holder in such an identifiable manner that, if they become unclaimed, they may be identified and reported in conformity with the law.

(1) The contract auditor and division auditor are authorized to review records in the course of an involuntary examination covering the records review period as defined in paragraph (J) of rule 1301:10-1-01 of the Administrative Code. The records review period may be extended to include any year subsequent to the years initially included if the involuntary examination is completed after additional reporting years have elapsed.

(2) If the holder consolidates check issuances for sums payable to suppliers, or for services rendered, with other dormant accounts in the same demand deposit or ledger account, the holder will have to maintain controls to identify each type of dormant account.

(E) The factors considered by the director in determining whether reasonable cause exists to believe that a holder has failed to comply with Chapter 169. of the Revised Code and, therefore, may be subject to an involuntary examination, include, but are not limited to the following:

(1) The asset size and/or the annual sales volume of the holder;

(2) The types and amounts of accounts reported by the holder to the director in the last five years;

(3) The past reporting history of the holder, relative to other entities of the same size or industry;

(4) Mergers, take-overs, and stock splits which the holder has incurred;

(5) Evidence or complaints of failure by holder to conduct due diligence pursuant to division (E) of section 169.03 of the Revised Code;

(6) Evidence of failure by the holder to report complete owner information pursuant to division (A) of section 169.03 of the Revised Code;

(7) Filing by holder of "none" reports in consecutive reporting years;

(8) The holder has never been subject to an involuntary examination by the state of Ohio or its contract auditors.

Holders will be selected for a state-initiated involuntary examination, conducted by a contract auditor or a division auditor, on a random basis and subsequent application of the above listed factors. Said random selection process shall be based on generally accepted auditing standards (GAAS). Holders may be subject to a state-initiated involuntary examination on a non-random basis solely if they are part of an examination initiated by another state in which the state of Ohio joins; the director initiates an investigation of a holder after receiving a complaint of its non-compliance with Chapter 169. of the Revised Code; or a holder has records that are subject to the records review period, as defined in this chapter, and located outside the physical borders of the state of Ohio.

An auditor will be assigned a state-initiated involuntary examination of a holder selected by the above process. Should the auditor be a contract auditor that believes that it cannot conduct an assigned state-initiated involuntary examination due to a conflict of interest or other such reason, the contract auditor will notify the state of such. The state will then determine whether recusal of the contract auditor from the assignment is appropriate or necessary. If the contract auditor is recused from conducting the state-initiated involuntary examination of holder, another contract auditor will be assigned. If the subsequently assigned contract auditor is also recused, a division auditor may conduct the state-initiated involuntary examination.

(F) After selection of a holder for an involuntary examination, an examination entrance letter signed by the state administrator or the administrator's representative will be sent to the holder. The letter will contain the following:

(1) Notification that an involuntary examination has been authorized;

(2) Identification of the division auditor or contract auditor authorized to conduct the involuntary examination;

(3) Identification of the scope of the involuntary examination including the examination period;

(4) The identity of all participating states pursuant to division (G)(6) of section 169.03 of the Revised Code;

(5) Disclosure that involuntary examination findings may be appealed in accordance with paragraph (K) of this rule;

(6) The name and telephone number of the compliance supervisor who is available to answer questions and address concerns of holders under an involuntary examination; and

(7) Notification that a copy of the contract between the state and the contract auditor is available upon request.

(G) The initial records request

(1) Following the notification referenced in paragraph (F) of this rule, the division auditor or contract auditor will supply the holder with an examination records request prior to or at the examination entrance conference for a state-initiated involuntary examination.

(2) The initial records request should identify records that the division auditor or contract auditor needs to review to determine compliance with Chapter 169. of the Revised Code.

(3) The requested records to be made available for review by the division auditor or contract auditor within sixty calendar days of the date of the request. If the holder is unable to compile and make available for review the requested records within the sixty-calendar day period, it is necessary the holder contact the division auditor or contract auditor prior to the expiration of the sixty calendar day period to schedule a mutually agreeable time in which to make available the requested records. Said extension of time is not to exceed an additional thirty calendar days except at the discretion of the director. Holders that fail to provide the requested records within sixty calendar days of the date requested, or within the agreed upon extension of time, may be subject to penalties and interest as provided for in Chapter 169. of the Revised Code on any unclaimed funds identified as reportable during the examination. The penalties and interest will be applied from the date of expiration of the sixty-calendar day period or extension of time until the records are received by the division auditor or contract auditor.

(4) Attorney and law firm holders are permitted to redact, and should redact, from all records provided to auditors for review, the client name, address, tax identification numbers and other information that would identify the attorney's client in order to protect attorney-client confidentiality.

(H) The division auditor or contract auditor will conduct an examination entrance conference with the holder prior to the commencement of a state-initiated involuntary examination at which the division auditor or contract auditor will identify the examination period and describe the general examination methods, including estimation techniques that may be utilized during the state-initiated involuntary examination. The selection of the estimation technique to be utilized will be made prior to the closing review.

The contract auditor also will inform the holder that, pursuant to paragraph (B)(3) of this rule and at the option of, and upon the written request of, the holder, the contract auditor will enter into an additional confidentiality agreement for a state-initiated involuntary examination. The contract auditor and holder will be given thirty calendar days from the date of the examination entrance conference to reach and enter into a mutually agreeable confidentiality agreement, a copy of which will be provided to the state. However, if the contract auditor and holder fail to reach and enter into a mutually agreeable confidentiality agreement within the allotted time, and holder still wishes the contract auditor to enter into an additional confidentiality agreement, the contract auditor and holder will enter into the confidentiality agreement prepared by the state and to which the state will also be a signatory. Said confidentiality agreement will be entered into within ten calendar days of expiration of the original thirty calendar days given for the contract auditor and holder to reach a mutually agreeable confidentiality agreement. Upon written request, the contract auditor shall provide the holder with the state-prepared confidentiality agreement which will first be signed by the contract auditor. If the holder intends to enter into the confidentiality agreement, it is the responsibility of the holder to sign the confidentiality agreement and forward the original to the state administrator within ten calendar days of expiration of the original thirty calendar day period. The state administrator will then need to sign the confidentiality agreement and distribute copies of the confidentiality agreement to the signatories. The aforementioned thirty-calendar day period for submission of a mutually agreeable confidentiality agreement and ten-calendar day period for submission of the state-prepared confidentiality agreement shall run concurrently with the sixty-calendar day requirement, or extension thereof, for production of records as specified in paragraph (G)(3) of this rule.

(I) After the compilation of the preliminary findings from the state-initiated involuntary examination, the division auditor or contract auditor will conduct a presentation of, and provide a copy of, said findings with the holder at which the division auditor or contract auditor will do the following:

(1) Obtain the holder's signature on the receipt for the delivery of working papers to holder identifying the preliminary findings of dormant accounts. The holder's signature will not constitute agreement with the findings and if the holder refuses to sign, said refusal will be noted;

(2) Explain the due diligence requirement as set forth in division (E) of section 169.03 of the Revised Code;

(3) Advise how the current annual holder report of unclaimed funds and accompanying forms, instructions, and information can be obtained;

(4) Notify the holder that preliminary findings of dormant accounts may be eliminated from actual annual reportable unclaimed funds by providing documentation at the closing review that includes one or more of the following:

(a) Documentation of accounting error;

(b) Documentation that the last known owner address is in a non-participating state or that the owner address is unknown and the holder is not incorporated or formed in Ohio;

(c) Signed returned notice of unclaimed funds form;

(d) Other signed correspondence from the owner indicating knowledge of the dormant account and/or that the funds are not owed to the owner;

(e) Documentation of owner transaction on the account;

Said documentation is to be provided to the state auditor or contract auditor conducting the state-initiated involuntary examination within one hundred twenty calendar days of the presentation of the preliminary findings of dormant accounts;

(5) Inform the holder that within thirty, but no more than forty-five calendar days of the expiration of the one hundred twenty calendar day period referred to above in this paragraph, a closing review will be held between the division auditor or contract auditor and the holder at which time the total unclaimed funds reporting liability resulting from the state-initiated involuntary examination will be calculated;

(6) Inform the holder of the right to appeal the findings of the examination pursuant to division (G)(7) of section 169.03 of the Revised Code after the closing review.

(7) Notify attorney and law firm holders that they will not be compelled to identify their clients or to provide documentation that would identify their clients to eliminate or rebut the preliminary findings of dormant accounts. To enable attorneys and law firms to maintain the confidentiality of their clients prior to the determination of total unclaimed funds liability and the filing of the unclaimed funds report pursuant to section 169.03 of the Revised Code, attorneys and law firms may eliminate or rebut the auditor's preliminary findings by providing documentation at the closing review that will include one or more of the following:

(a) Documentation of accounting error;

(b) An original affidavit stating all relevant facts supporting the attorney's or law firm's request for elimination for each account included in the preliminary findings of unclaimed funds, signed by the sole practitioner attorney or managing partner of the law firm, and certifying that the attorney or law firm is in possession of one or more of the following:

(i) Documentation that the last known address of the client-owner is outside Ohio or that the address is unknown and the holder of the funds is not incorporated or formed in Ohio;

(ii) A notice of unclaimed funds form signed by the client-owner and dated after the applicable dormancy period specified in section 169.02 of the Revised Code;

(iii) Other correspondence signed by the client-owner indicating knowledge of the dormant account and/or that the funds are not owed to the client-owner, and dated after the applicable dormancy period specified in section 169.02 of the Revised Code;

(iv) Documentation of the client-owner's transaction on the account, dated after the applicable dormancy period specified in section 169.02 of the Revised Code.

The affidavit may be submitted by the attorney or law firm holder in lieu of providing records, with client identifiers redacted, and is to be provided within the time limitations otherwise specified in this rule for the submission of documentation at the closing review.

(J) The closing review and calculation of unclaimed funds

(1) A closing review conducted by the division auditor or contract auditor with the holder, at which time documentation provided by the holder, as outlined in paragraph (I)(4) of this rule, will be reviewed to eliminate accounts from the preliminary findings of dormant accounts and to calculate the total unclaimed funds reporting liability of the holder resulting from the state-initiated involuntary examination. The closing review may be conducted face-to-face, by telephone, mail or delivery service, or by electronic means. At the completion of the closing review, the auditor will inform the holder of its right to appeal the findings of the examination pursuant to division (G)(7) of section 169.03 of the Revised Code, and supply the holder with the notice of appeal in a form prescribed by the state. The holder may file an appeal of the audit findings only after completion of the closing review.

(2) The calculation of the holder's total unclaimed funds reporting liability may include the utilization of estimation techniques. Estimation techniques may be necessary if the examination of the records review period fails to identify dormant accounts reported or due in each year of the examination period and a review of the reporting history of the holder maintained by the state and the holder shows that the holder failed to report, or underreported, the type(s) of account(s) in question during the examination period. The selection of the estimation technique to be utilized will be made prior to the closing review. The division auditor or contract auditor will use one of the following methods to calculate the holder's estimated unclaimed funds reporting liability for those years requiring estimation:

(a) The asset method which utilizes the average of actual annual reportable unclaimed funds with Ohio addresses as a percentage of the total end of year assets of the company. The average of actual annual reportable unclaimed funds with Ohio addresses as a percentage of total end of year assets will be calculated by adding the actual annual reportable unclaimed funds with Ohio addresses as a percentage of the total end of year assets for each year and dividing by the number of years for which actual reportable unclaimed funds were identified. The total assets at the end of the year(s) corresponding to the reporting cycle(s) subject to estimation techniques, are then multiplied by the average of actual annual reportable unclaimed funds with Ohio addresses as a percentage of the total end of year assets. The sum of the calculated amounts is the estimated unclaimed funds reporting liability for the examination period;

(b) The sales method which utilizes the average of actual annual reportable unclaimed funds with Ohio addresses as a percentage of the gross end of year sales of the company. The average of actual annual reportable unclaimed funds with Ohio addresses as a percentage of gross end of year sales will be calculated by adding the actual annual reportable unclaimed funds with Ohio addresses as a percentage of gross end of year sales for each year and dividing by the number of years for which actual reportable unclaimed funds were identified. The gross sales at the end of the year(s) corresponding to the reporting cycle(s) subject to estimation techniques, are then multiplied by the average of actual annual reportable unclaimed funds with Ohio addresses as a percentage of gross end of year sales. The sum of the calculated amounts is the estimated unclaimed funds reporting liability for the examination period;

(c) Other estimation technique that is mutually agreeable to the holder, the state, and the contract auditor.

(3) The total unclaimed funds reporting liability of the holder for the examination period will be the sum of the actual annual reportable unclaimed funds involuntary examination findings plus the estimated unclaimed funds reporting liability using one of the methods described in this paragraph, if applicable.

(4) An annual holder report, reflecting the total unclaimed funds reporting liability or, if any amount thereof is disputed, the undisputed portion of the total unclaimed funds reporting liability, will be filed and the amount remitted by the holder or contract auditor within thirty calendar days.

(K) Pursuant to division (G)(7) of section 169.03 of the Revised Code, a holder may appeal the disputed findings of an involuntary examination. The appeals process may only be utilized by the holder after completion of the closing review. The purpose of the appeals process is to give the state administrator and the holder the opportunity to reach mutually agreeable findings. The following process will be used for appeals.

(1) The holder completes a notice of appeal in the form prescribed by the division and provided by the state administrator and submits the form along with all appropriate documentation to the state administrator; the notice of appeal must be postmarked or received within thirty calendar days of the closing review. Failure to file the notice of appeal within the specified time constitutes an acceptance of the total unclaimed funds reporting liability;

(2) The state administrator will contact the holder and the division auditor or contract auditor to schedule an appeal meeting at which the examination findings and holder's appeal will be reviewed. The appeal meeting will be scheduled at a mutually agreeable time within thirty calendar days of the receipt of the notice of appeal. The holder will be prepared at the appeal meeting to discuss the position of the holder and provide documentation supporting the grounds for the appeal. The division auditor or contract auditor will also be given the opportunity to support the examination findings. The state administrator may question both parties;

(3) The state administrator, within thirty calendar days of the appeal meeting or receipt of any additional documentation requested at the meeting, will render a decision in writing to the holder and the division auditor or contract auditor;

(4) The holder may appeal the decision of the state administrator, within thirty calendar days of the decision, in the manner provided in Chapter 119. of the Revised Code;

(5) Within thirty calendar days of the decision of the state administrator, unless the holder files an appeal of said decision pursuant to Chapter 119. of the Revised Code, it is necessary for the holder to file an annual holder report reflecting the unclaimed funds reporting liability as determined by the state administrator subsequent to the appeal meeting and remit said unclaimed funds;

(6) During the appeals process, the holder will not be subject to interest on unclaimed funds found to be due and reportable, until expiration of the thirty calendar days referenced in this paragraph or thirty calendar days after a final decision has been rendered pursuant to Chapter 119. of the Revised Code, whichever is later.

(L) Holder's release from liability

(1) Upon completion of an examination and payment of the total unclaimed funds reporting liability to the director, the holder will be relieved of further responsibility for the safekeeping thereof and will be held harmless by the state from any and all liabilities for any claim arising out of the transfer of such funds to the state.

(2) The state releases the holder from further liability for reporting and payment of unclaimed funds of those types of property reviewed during the examination, through and including the most current reporting cycle. Further, the holder will not be subject to an involuntary examination of the same types of property by the state for the reporting cycles covered in a prior involuntary examination.

(3) Upon receipt of the annual holder report and remittance of the unclaimed funds resulting from the involuntary examination, the state shall issue an examination closure letter informing the holder that the involuntary examination is closed.

(M) At any time before a holder is selected for an examination, a holder, at the administrator's discretion, may comply voluntarily with the reporting requirements of section 169.03 of the Revised Code. Holders participating in the voluntary compliance program will enter into an agreement with the state to report and remit all past and currently due unclaimed funds and comply with the reporting requirements of Chapter 169. of the Revised Code and agree to comply with the annual reporting requirements imposed by Chapter 169. of the Revised Code going forward. The administrator will not unreasonably withhold permission for a holder not selected for examination to participate in the voluntary compliance program.

Last updated September 8, 2023 at 11:28 AM

History

• Effective: July 10, 2023
• Promulgated Under: 119.03

Ohio Adm.Code 1301-1-04 Military provisions related to licensure.

(A) Definitions.

(1) "Veteran" means for the purpose of this rule anyone who is serving or has served under honorable conditions in any component of the armed forces of the United States including the national guard and reserve.

(2) "Licensure or license" means for the purpose of this rule a license or certification issued in accordance with Chapters 1321., 1322., 4301., 4303., 4712., 4727., 4728., and 4781. of the Revised Code or sections 169.16, 169.17, 1315.21 to 1315.30, 1332.21 to 1332.34, 1707.15, 1707.151, 1707.16, 1707.161, 1707.163, 1707.165, 3703.01, 3703.21, 3737.22, 3737.65, 3737.83, 3737.88, 3737.881, 3743.50, 3743.51, 3743.52, 3743.56, 4104.07, 4104.101, 4104.19, and 4105.02 of the Revised Code.

(3) "Department" means the Ohio department of commerce and its divisions and superintendents.

(B) Eligibility for licensure.

(1) In accordance with section 5903.03 of the Revised Code, there are no military programs of training, military primary specialties, and lengths of service that are substantially equivalent to or exceed the educational and experience requirements for licensure.

(2) A veteran's relevant military experience, education, and training will be considered when determining whether the veteran has met all or part of the requirements for licensure. A veteran shall provide all relevant military documentation demonstrating his or her military experience, education, and training to assist the department in its determination.

(C) License renewal.

(1) In accordance with section 5903.10 of the Revised Code, a veteran, whose license or certificate was not renewed due to his or her military service, shall be eligible for renewal of the expired license if the following conditions are met:

(a) The veteran presents the department with satisfactory evidence that, not more than six months prior to the date the evidence is submitted to the department, the veteran was honorably discharged or separated from the military under honorable conditions;

(b) The veteran is not disqualified because of a mental or physical disability which would preclude the veteran from meeting the license requirements; and

(c) The veteran otherwise meets the requirements for license renewal.

(2) In accordance with section 5903.10 of the Revised Code, a veteran's spouse whose license or certificae was not renewed due to the veteran's military service shall be eligible for renewal of the expired license if the following conditions are met:

(a) The veteran's spouse presents the department with satisfactory evidence that, not more than six months prior to the date the evidence is submitted to the department, the veteran was honorably discharged or separated from the military under honorable conditions and as a result of the veteran's military duty the veteran's spouse was absent from this state;

(b) The veteran's spouse is not disqualified because of a mental or physical disability wich would preclude the veteran's spouse from meeting the license requirements; and

(c) The veteran's spouse otherwise meets the requirements for license renewal.

(3) A veteran or veteran's spouse who meets the conditions in paragraph (C)(1) or (C)(2) of this rule shall not be assessed a penalty for submitting a late renewal application and shall not be required to take a re-examination unless all licensees for renewal are required to successfully complete an examination prior to being renewed.

(4) In the case of licenses issued pursuant to section 1707.15, 1707.151, 1707.16, 1707.161, 1707.163, or 1707.165 of the Revised Code, the provisions of this subsection do not relieve the veteran or veteran's spouse from meeting the licensing requirements under applicable federal law or rule, or rules of the "Financial Industry Regulatory Authority."

(D) Continuing education.

(1) A veteran may request an extension of the current continuing education reporting requirement if the following conditions are met:

(a) The veteran served on active duty inside or outside the United States for a period in excess of thirty-one days during the current or prior continuing education reporting period; and

(b) The veteran submitted an application and proper documentation certifying the active duty service and the length of the active duty service.

(2) Upon receiving the completed application and proper documentation, the department shall extend the current continuing education reporting period by an amount of time equal to the total number of months that the veteran spent on active duty during the current continuing education reporting period. Any portion of a month served shall be considered one full month.

(3) The department shall consider relevant education, training, or service completed by the veteran while on active duty in determining whether the veteran has fulfilled the continuing education requirement.

Last updated November 1, 2024 at 1:43 PM

History

• Effective: November 1, 2024
• Promulgated Under: 119.03