Allow awards for reports of fraud

hb960_00_IN

As Introduced

136th
General Assembly

Regular
Session
H. B. No. 960

2025-2026

Representative Hiner

To
amend section 117.103 and to enact section 117.104 of the Revised
Code
to
allow awards for reports of fraud.

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

Section
1.
That
section 117.103 be amended and section 117.104 of the Revised Code be
enacted to read as follows:

Sec.
117.103.
(A)(1)
The auditor of state shall establish and maintain a system for the
reporting of fraud, including misuse and misappropriation of public
money, by any public office or public official. The system shall
allow Ohio residents and the employees of any public office to make

anonymous

complaints
through a toll-free telephone number, the auditor of state's web
site, or the United States mail to the auditor of state's office.
The
person making the complaint may provide the complainant's name or
remain anonymous.
The
auditor of state shall review all complaints in a timely manner.

(2)(a)
Subject to division (A)(2)(b) of this section, the auditor of state
shall keep a log of all complaints filed under this section, which is
a public record under section 149.43 of the Revised Code. The log
shall include the date the complaint was received, a general
description of the nature of the complaint, the name of the public
office or agency with regard to which the complaint is directed, and
a general description of the status of the review by the auditor of
state. If section 149.43 of the Revised Code or another statute
provides for an applicable exemption from the definition of public
record for the information recorded on the log, that information may
be redacted.

(b)
The auditor shall not log a complaint regarding an ongoing criminal
investigation, but shall log the complaint not later than thirty days
after the investigation is complete.

(c)
If the auditor of state determines that a report made under division
(A)(1) of this section involves probable fraud or theft, including
misuse and misappropriation of public money by any public office or
public official, the auditor of state shall promptly notify the
prosecuting attorney, director of law, village solicitor, or similar
chief legal officer of the municipal corporation in whose
jurisdiction the probable fraud or theft occurred, unless the
prosecuting attorney, director of law, village solicitor, or similar
chief legal officer of the municipal corporation is identified in the
report as the alleged perpetrator of the fraud or theft.

(B)
The auditor of state shall create training material detailing Ohio's
fraud-reporting system and the means of reporting fraud, waste, and
abuse. The department of administrative services shall provide the
auditor of state's training material to each state employee,
statewide elected official, and member of the general assembly. Such
materials shall be as concise as practicable. The auditor of state
shall provide the training material to employees and elected
officials of a political subdivision. Current employees and elected
officials as of

the effective date of this amendment

October
3, 2023,

shall complete the training within ninety days of a date specified by
the auditor of state unless good cause exists for noncompliance. Each
new employee or elected official shall confirm receipt of this
material within thirty days after taking office or beginning
employment. The training shall be required every four years for each
employee or elected official. The auditor of state shall provide a
model form on the auditor of state's web site to be printed and used
by public employees and elected officials to sign and verify their
receipt of material as required by this section. The auditor of state
shall confirm, when conducting an audit under section 117.11 of the
Revised Code, that public employees and elected officials have been
provided material as required by this division.

Sec.
117.104.
(A)
As used in this section:

(1)
"Misappropriation of public money" and "misuse of
public money" have the same meanings as in section 4113.52 of
the Revised Code.

(2)
"Fraud" means fraud, theft in office, or the misuse or
misappropriation of public money by any public office or public
official.

(3)
"Fraud recovery" means a judgment or settlement that is
both of the following:

(a)
Awarded to a public office or other entity harmed by fraud;

(b)
Paid to and collected by the public office or other entity harmed by
fraud.

(4)
"Prosecutor" means a prosecuting attorney or a city
director of law, village solicitor, or similar chief legal officer of
a municipal corporation.

(B)
A person who satisfies all of the following criteria may be eligible
to receive an award for reporting fraud:

(1)
The person reports fraud to the auditor of state's fraud-reporting
system under section 117.103 of the Revised Code.

(2)
The report of fraud materially contributes to an audit for fraud, an
investigation of fraud, the discovery of fraud, or the filing of a
civil or criminal action for fraud.

(3)
The report of fraud results in a fraud recovery.

(4)
The person who reports fraud is not found liable for or convicted of,
and does not plead guilty to or otherwise is found to have
participated in, the fraud.

(5)
The person who reports fraud satisfies any additional eligibility
requirements established by the attorney general under division (G)
of this section.

(C)(1)
The attorney general shall determine whether the criteria in division
(B) of this section are satisfied. In making this determination, the
attorney general may consult with the auditor of state, the
prosecutor, the public office or entity harmed by the fraud, or any
other appropriate entity.

(2)
If the attorney general finds that the criteria in division (B) of
this section are satisfied, the attorney general shall determine
whether or not the person who reported the fraud shall receive an
award.

(3)
Subject to divisions (D) and (E) of this section, if the attorney
general determines that the person who reported the fraud shall
receive an award, the attorney general shall determine the amount of
the award. The amount of the award shall not exceed ten per cent of
the amount of the fraud recovery and shall be subject to the
availability of money in the fraud reporting fund created by division
(F) of this section. The award shall be paid to the person who
reported the fraud from the fraud reporting fund created by division
(F) of this section.

(4)
The attorney general's determinations under division (C) of this
section are final and not subject to appeal.

(D)
No award shall be made under division (C) of this section that will
reduce, redirect, delay, or otherwise interfere with any of the
following:

(1)
A restitution order;

(2)
A finding of recovery issued by the auditor of state;

(3)
The recovery of audit costs, including any costs owed to the auditor
of state;

(4)
Fines, courts costs, or attorney's fees;

(5)
Investigation costs.

(E)
No award shall be made under division (C) of this section before a
public office or other entity harmed by fraud is fully reimbursed for
harm caused by the fraud, unless the attorney general determines the
award will not reduce, redirect, delay, or otherwise interfere with
the public office or other entity being fully reimbursed for harm
caused by the fraud.

(F)
The fraud reporting fund is created in the state treasury. The fund
shall consist of all money appropriated to the fund and such other
money as may be provided by law. The attorney general shall use the
money in the fund only for the purposes of paying awards to persons
who report fraud as described in division (C)(3) of this section.

(G)
The attorney general may adopt, in accordance with Chapter 119. of
the Revised Code, rules establishing eligibility requirements for a
person to receive an award for reporting fraud, procedures for
determining award amounts for reporting fraud, and standards for
protecting the confidentiality of a person reporting fraud.

Section
2.
That
existing section 117.103 of the Revised Code is hereby repealed.