As Introduced

125th General Assembly
Regular Session
H. B. No. 108

Representatives Driehaus, Seitz, Redfern, Kearns, Hartnett, Skindell, Niehaus, Distel, Olman, Yates, S. Smith, Schneider, DePiero, Webster, Allen, DeBose, Harwood, Barrett, Raussen, Perry, Cirelli, Raga, Jerse, Domenick, Wilson, Hagan, Mason 

To amend section 169.03 of the Revised Code to 1
require that notice of unclaimed funds be mailed 2
to owners by holders of the funds either by 3
regular or certified mail depending upon the value 4
of the funds and to authorize charges for certain 5
mailings of notices.6


       Section 1. That section 169.03 of the Revised Code be amended7
to read as follows:8

       Sec. 169.03.  (A)(1) Every holder of unclaimed funds and,9
when requested, every person whichthat could be the holder of10
unclaimed funds, under this chapter shall report to the director11
of commerce with respect to the unclaimed funds as provided in12
this section. The report shall be verified.13

       (2) With respect to items of unclaimed funds each having a14
value of fifty dollars or more, the report required under division15
(A)(1) of this section shall include the following:16

       (a) The full name, if known, and last known address, if any,17
of each person appearing from the records of the holder to be the18
owner of unclaimed funds under this chapter;19

       (b) In the case of unclaimed funds reported by holders20
providing life insurance coverage, the full name of the insured or21
annuitant and beneficiary, if any, and their last known addresses22
according to suchthe holder's records;23

       (c) The nature and identifying number, if any, or description 24
of the funds and the amount appearing from the records to be due;25

       (d) The date when the funds became payable, demandable, or26
returnable and the date of the last transaction with the owner27
with respect to the funds;28

       (e) Subject to division (I) of this section, the social29
security number of the owner of the unclaimed funds, if it is30

       (f) Other information whichthat the director prescribes as32
necessary for the administration of this chapter.33

       (3) With respect to items of unclaimed funds each having a34
value of less than fifty dollars, the report required under35
division (A)(1) of this section shall include the following:36

       (a) Each category of items of unclaimed funds as described in 37
section 169.02 of the Revised Code;38

       (b) The number of items of unclaimed funds within each39

       (c) The aggregated value of the items of unclaimed funds41
within each category.42

       (B) If the holder of unclaimed funds is a successor to other43
organizations that previously held the funds for the owner, or if44
the holder has changed its name while holding the funds, it shall45
file with the report all prior known names and addresses and date46
and state of incorporation or formation of each holder of the47

       (C) The report shall be filed before the first day of49
November of each year as of the preceding thirtieth day of June,50
but the report of holders providing life insurance coverage shall51
be filed before the first day of May of each year as of the52
preceding thirty-first day of December. The director may postpone, 53
for good cause shown, the reporting date upon written request by 54
any holder required to file a report.55

       (D) The holder of unclaimed funds under this chapter shall56
send notice to each owner of each item of unclaimed funds having a57
value of fifty dollars or more at the last known address of the58
owner as shown by the records of the holder before filing the59
annual report. In case of holders providing life insurance60
coverage, suchthis notice shall also be mailed to each61
beneficiary at the last known address of suchthe beneficiary as62
shown by the records of suchthe holder, except that suchthe63
notice to beneficiaries shall not be mailed if suchthat address64
is the same as that of the insured and the surname of the65
beneficiary is the same as that of the insured. The holder shall66
not report an item of unclaimed funds earlier than the thirtieth67
day after the mailing of notice required by this division.68

       SuchThe notice required by this division shall set forth the69
nature and identifying number, if any, or description of the funds70
and the amount appearing on the records of the holder to be due71
the owner, and shall inform the owner that the funds will, thirty72
days after the mailing of suchthe notice, be reported as73
unclaimed funds under this chapter. A self-addressed, stamped74
envelope shall be included with the notice, with instructions that75
the owner may use suchthe envelope to inform the holder of the76
owner's continued interest in the funds, and, if so informed77
before the date for making the report to the director, the holder78
shall not report saidthe funds to the director. The notice shall79
be mailed by first class mail if the item of unclaimed funds has a80
value of fifty dollars or more but less than one thousand dollars81
and by certified mail, return receipt requested, if the item of82
unclaimed funds has a value of one thousand dollars or more. A83
holder that sends a notice by certified mail, return receipt84
requested, may charge the item of unclaimed funds up to twenty85
dollars for providing that notice. If there is no address of86
record for the owner or other person entitled to the unclaimed87
funds, the holder is relieved of any responsibility of sending88
notice, attempting to notify, or notifying the owner. The mailing89
of notice pursuant to this section shall discharge the holder from90
any further responsibility to give notice.91

       (E) Verification of the report and of the mailing of notice,92
where required, shall be executed by an officer of the reporting93

       (F)(1) The director may, at reasonable times and upon95
reasonable notice, examine or cause to be examined, by auditors of96
supervisory departments or divisions of the state, the records of97
any holder to determine compliance with this chapter.98

       (2) Holders shall retain records, designated by the director99
as applicable to unclaimed funds, for five years beyond the100
relevant time period provided in section 169.02 of the Revised101
Code, or until completion of an audit conducted pursuant to102
division (F) of this section, whichever occurs first. An audit103
conducted pursuant to division (F) of this section shall not104
require a holder to make records available for a period of time105
exceeding the records retention period set forth in division (F)106
of this section, except for records pertaining to instruments107
evidencing ownership, or rights to them or funds paid toward the108
purchase of them, or any dividend, capital credit, profit,109
distribution, interest, or payment on principal or other sum, held110
or owed by a holder, including funds deposited with a fiscal agent111
or fiduciary for payment of them, or pertaining to debt of a112
publicly traded corporation. Any holder that is audited pursuant113
to division (F) of this section shall only be required to make114
available those records that are relevant to an unclaimed funds115
audit of that holder as prescribed by the director.116

       (3) The director may enter into contracts, pursuant to117
procedures prescribed by the director, with persons for the sole118
purpose of examining the records of holders, determining119
compliance with this chapter, and collecting, taking possession120
of, and remitting to the department's division of unclaimed funds,121
in a timely manner, the amounts found and defined as unclaimed.122
The director shall not enter into such a contract with a person123
unless the person does all of the following:124

       (a) Agrees to maintain the confidentiality of the records125
examined, as required under division (F)(4) of this section;126

       (b) Agrees to conduct the audit in accordance with rules127
adopted under section 169.09 of the Revised Code;128

       (c) Obtains a corporate surety bond issued by a bonding129
company or insurance company authorized to do business in this130
state. The bond shall be in favor of the director and in the penal 131
sum determined by the director. The bond shall be for the benefit 132
of any holder of unclaimed funds that is audited by the principal 133
and is injured by the principal's failure to comply with division 134
(F)(3)(a) or (b) of this section.135

       (4) Records audited pursuant to division (F) of this section136
are confidential, and shall not be disclosed except as required by137
section 169.06 of the Revised Code or as the director considers138
necessary in the proper administration of this chapter.139

       (5) If a person with whom the director has entered into a140
contract pursuant to division (F)(3) of this section intends to141
conduct, in conjunction with an unclaimed funds audit under this142
section, an unclaimed funds audit for the purpose of administering143
another state's unclaimed or abandoned property laws, the person,144
prior to commencing the audit, shall provide written notice to the145
director of the person's intent to conduct such an audit, along146
with documentation evidencing the person's express authorization147
from the other state to conduct the audit on behalf of that state.148

       (6) Prior to the commencement of an audit conducted pursuant149
to division (F) of this section, the director shall notify the150
holder of unclaimed funds of the director's intent to audit the151
holder's records. If the audit will be conducted in conjunction152
with an audit for one or more other states, the director shall153
provide the holder with the name or names of those states.154

       (7) Any holder of unclaimed funds may appeal the findings of155
an audit conducted pursuant to division (F) of this section to the156
director. Pursuant to the authority granted by section 169.09 of157
the Revised Code, the director shall adopt rules establishing158
procedures for considering such an appeal.159

       (G) All holders shall make sufficient investigation of their160
records to ensure that the funds reported to the director are161
unclaimed as set forth in division (B) of section 169.01 and162
section 169.02 of the Revised Code.163

       (H) The expiration of any period of limitations on or after164
March 1, 1968, within which a person entitled to any moneys,165
rights to moneys, or intangible property could have commenced an166
action or proceeding to obtain the samethese items shall not167
prevent suchthese items from becoming unclaimed funds or relieve168
the holder thereofof them of any duty to report and give notice169
as provided in this section and deliver the samethem in the170
manner provided in section 169.05 of the Revised Code, provided171
that the holder may comply with the provisions of this section and172
section 169.05 of the Revised Code with respect to any moneys,173
rights to moneys, or intangible property as to which the174
applicable statute of limitations has run prior to March 1, 1968,175
and in suchthat event the holder shall be entitled to the176
protective provisions of section 169.07 of the Revised Code.177

       (I) No social security number contained in a report made178
pursuant to this section shall be used by the department of179
commerce for any purpose other than to enable the division of180
unclaimed funds to carry out the purposes of this chapter and for181
child support purposes in response to a request made by the office182
of child support in the department of job and family services made183
pursuant to section 3123.88 of the Revised Code.184

       Section 2. That existing section 169.03 of the Revised Code185
is hereby repealed.186