SENATORS Roberts, Mumper, Schuler, Robert Gardner, Schuring

To amend section 169.03 of the Revised Code to

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generally require that notice of unclaimed funds

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be mailed to owners by holders of the funds either

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by regular or certified mail depending upon the

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value of the funds and to authorize charges for

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certain mailings of notices.

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

Section 1. That section 169.03 of the Revised Code be amended	7
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 of	10
unclaimed funds, under this chapter shall report to the director	11
of commerce with respect to the unclaimed funds as provided in	12
this section. The report shall be verified.	13

(2) With respect to items of unclaimed funds each having a	14
value of fifty dollars or more, the report required under division	15
(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 the	18
owner of unclaimed funds under this chapter;	19

(b) In the case of unclaimed funds reported by holders	20
providing life insurance coverage, the full name of the insured or	21
annuitant and beneficiary, if any, and their last known addresses	22
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, or	26
returnable and the date of the last transaction with the owner	27
with respect to the funds;	28

(e) Subject to division (I) of this section, the social	29
security number of the owner of the unclaimed funds, if it is	30
available;	31

(f) If the item of unclaimed funds has a value of one	32
thousand dollars or more and the holder has verified that the last	33
known address as shown by the records of the holder is not	34
accurate as provided in division (D) of this section, a statement	35
that efforts were undertaken by the holder to verify that the	36
address is not accurate. Any verifying documentation shall be	37
maintained by the holder for five years from the date of the	38
report and shall be available upon request to the director or the	39
director's designee.	40

(g) Other information whichthat the director prescribes as	41
necessary for the administration of this chapter.	42

(3) With respect to items of unclaimed funds each having a	43
value of less than fifty dollars, the report required under	44
division (A)(1) of this section shall include the following:	45

(a) Each category of items of unclaimed funds as described in	46
section 169.02 of the Revised Code;	47

(b) The number of items of unclaimed funds within each	48
category;	49

(c) The aggregated value of the items of unclaimed funds	50
within each category.	51

(B) If the holder of unclaimed funds is a successor to other	52
organizations that previously held the funds for the owner, or if	53
the holder has changed its name while holding the funds, it shall	54
file with the report all prior known names and addresses and date	55
and state of incorporation or formation of each holder of the	56
funds.	57

(C) The report shall be filed before the first day of	58
November of each year as of the preceding thirtieth day of June,	59
but the report of holders providing life insurance coverage shall	60
be filed before the first day of May of each year as of the	61
preceding thirty-first day of December. The director may postpone,	62
for good cause shown, the reporting date upon written request by	63
any holder required to file a report.	64

(D) The holder of unclaimed funds under this chapter shall	65
send notice to each owner of each item of unclaimed funds having a	66
value of fifty dollars or more at the last known address of the	67
owner as shown by the records of the holder before filing the	68
annual report. In case of holders providing life insurance	69
coverage, suchthis notice shall also be mailed to each	70
beneficiary at the last known address of suchthe beneficiary as	71
shown by the records of suchthe holder, except that suchthe	72
notice to beneficiaries shall not be mailed if suchthat address	73
is the same as that of the insured and the surname of the	74
beneficiary is the same as that of the insured. The holder shall	75
not report an item of unclaimed funds earlier than the thirtieth	76
day after the mailing of notice required by this division.	77

SuchThe notice required by this division shall set forth the	78
nature and identifying number, if any, or description of the funds	79
and the amount appearing on the records of the holder to be due	80
the owner or beneficiary, and shall inform the owner or	81
beneficiary that the funds will, thirty days after the mailing of	82
suchthe notice, be reported as unclaimed funds under this	83
chapter. A self-addressed, stamped envelope shall be included with	84
the notice, with instructions that the owner or beneficiary may	85
use suchthe envelope to inform the holder of the owner's or	86
beneficiary's continued interest in the funds, and, if so informed	87
before the date for making the report to the director, the holder	88
shall not report saidthe funds to the director. The notice shall	89
be mailed by first class mail if the item of unclaimed funds has a	90
value of fifty dollars or more but less than one thousand dollars	91
and by certified mail, return receipt requested, if the item of	92
unclaimed funds has a value of one thousand dollars or more,	93
unless the holder has verified that the last known address of the	94
owner or beneficiary as shown by the records of the holder is not	95
accurate. For purposes of this section, a holder has verified that	96
the last known address of the owner or beneficiary is not accurate	97
by documenting at least two of the following:	98

(1) The owner or beneficiary failed to respond to a first	99
class mail notice sent to the last known address of the owner or	100
beneficiary.	101

(2) A first class mail notice sent by the holder to the last	102
known address of the owner or beneficiary was returned as	103
undeliverable.	104

(3) An electronic or manual search of available public	105
records failed to confirm that the last known address of the owner	106
or beneficiary is accurate. The holder shall maintain	107
documentation of its search efforts. If a search of public records	108
or databases identifies a more recent address for the owner or	109
beneficiary than the address in the holder's records, the holder	110
shall send notice to the owner or beneficiary at that more recent	111
address in accordance with this section. If	112

A holder that sends a notice by certified mail, return	113
receipt requested, may charge the item of unclaimed funds up to	114
twenty dollars for providing that notice.	115

If there is no address of record for the owner or other	116
person entitled to the unclaimed fundsbeneficiary, the holder is	117
relieved of any responsibility of sending notice, attempting to	118
notify, or notifying the owner or beneficiary. The mailing of	119
notice pursuant to this section shall discharge the holder from	120
any further responsibility to give notice.	121

(E) Verification of the report and of the mailing of notice,	122
where required, shall be executed by an officer of the reporting	123
holder.	124

(F)(1) The director may, at reasonable times and upon	125
reasonable notice, examine or cause to be examined, by auditors of	126
supervisory departments or divisions of the state, the records of	127
any holder to determine compliance with this chapter.	128

(2) Holders shall retain records, designated by the director	129
as applicable to unclaimed funds, for five years beyond the	130
relevant time period provided in section 169.02 of the Revised	131
Code, or until completion of an audit conducted pursuant to	132
division (F) of this section, whichever occurs first. An audit	133
conducted pursuant to division (F) of this section shall not	134
require a holder to make records available for a period of time	135
exceeding the records retention period set forth in division (F)	136
of this section, except for records pertaining to instruments	137
evidencing ownership, or rights to them or funds paid toward the	138
purchase of them, or any dividend, capital credit, profit,	139
distribution, interest, or payment on principal or other sum, held	140
or owed by a holder, including funds deposited with a fiscal agent	141
or fiduciary for payment of them, or pertaining to debt of a	142
publicly traded corporation. Any holder that is audited pursuant	143
to division (F) of this section shall only be required to make	144
available those records that are relevant to an unclaimed funds	145
audit of that holder as prescribed by the director.	146

(3) The director may enter into contracts, pursuant to	147
procedures prescribed by the director, with persons for the sole	148
purpose of examining the records of holders, determining	149
compliance with this chapter, and collecting, taking possession	150
of, and remitting to the department's division of unclaimed funds,	151
in a timely manner, the amounts found and defined as unclaimed.	152
The director shall not enter into such a contract with a person	153
unless the person does all of the following:	154

(a) Agrees to maintain the confidentiality of the records	155
examined, as required under division (F)(4) of this section;	156

(b) Agrees to conduct the audit in accordance with rules	157
adopted under section 169.09 of the Revised Code;	158

(c) Obtains a corporate surety bond issued by a bonding	159
company or insurance company authorized to do business in this	160
state. The bond shall be in favor of the director and in the penal	161
sum determined by the director. The bond shall be for the benefit	162
of any holder of unclaimed funds that is audited by the principal	163
and is injured by the principal's failure to comply with division	164
(F)(3)(a) or (b) of this section.	165

(4) Records audited pursuant to division (F) of this section	166
are confidential, and shall not be disclosed except as required by	167
section 169.06 of the Revised Code or as the director considers	168
necessary in the proper administration of this chapter.	169

(5) If a person with whom the director has entered into a	170
contract pursuant to division (F)(3) of this section intends to	171
conduct, in conjunction with an unclaimed funds audit under this	172
section, an unclaimed funds audit for the purpose of administering	173
another state's unclaimed or abandoned property laws, the person,	174
prior to commencing the audit, shall provide written notice to the	175
director of the person's intent to conduct such an audit, along	176
with documentation evidencing the person's express authorization	177
from the other state to conduct the audit on behalf of that state.	178

(6) Prior to the commencement of an audit conducted pursuant	179
to division (F) of this section, the director shall notify the	180
holder of unclaimed funds of the director's intent to audit the	181
holder's records. If the audit will be conducted in conjunction	182
with an audit for one or more other states, the director shall	183
provide the holder with the name or names of those states.	184

(7) Any holder of unclaimed funds may appeal the findings of	185
an audit conducted pursuant to division (F) of this section to the	186
director. Pursuant to the authority granted by section 169.09 of	187
the Revised Code, the director shall adopt rules establishing	188
procedures for considering such an appeal.	189

(G) All holders shall make sufficient investigation of their	190
records to ensure that the funds reported to the director are	191
unclaimed as set forth in division (B) of section 169.01 and	192
section 169.02 of the Revised Code.	193

(H) The expiration of any period of limitations on or after	194
March 1, 1968, within which a person entitled to any moneys,	195
rights to moneys, or intangible property could have commenced an	196
action or proceeding to obtain the samethese items shall not	197
prevent suchthese items from becoming unclaimed funds or relieve	198
the holder thereofof them of any duty to report and give notice	199
as provided in this section and deliver the samethem in the	200
manner provided in section 169.05 of the Revised Code, provided	201
that the holder may comply with the provisions of this section and	202
section 169.05 of the Revised Code with respect to any moneys,	203
rights to moneys, or intangible property as to which the	204
applicable statute of limitations has run prior to March 1, 1968,	205
and in suchthat event the holder shall be entitled to the	206
protective provisions of section 169.07 of the Revised Code.	207

(I) No social security number contained in a report made	208
pursuant to this section shall be used by the department of	209
commerce for any purpose other than to enable the division of	210
unclaimed funds to carry out the purposes of this chapter and for	211
child support purposes in response to a request made by the office	212
of child support in the department of job and family services made	213
pursuant to section 3123.88 of the Revised Code.	214

Section 2. That existing section 169.03 of the Revised Code	215
is hereby repealed.	216