As Reported by the Senate State and Local Government and Veterans Affairs Committee

125th General Assembly
Regular Session
Sub. 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, Key, Book, Brown, Carano, Chandler, Collier, Daniels, Fessler, Flowers, Hollister, Hughes, Miller, Otterman, T. Patton, Price, Reidelbach, Schmidt, Seaver, Sferra, D. Stewart, J. Stewart, Strahorn, Widowfield, Woodard

SENATORS Roberts, Mumper, Schuler, Robert Gardner, Schuring

To amend section 169.03 of the Revised Code to 1
generally require that notice of unclaimed funds 2
be mailed to owners by holders of the funds either 3
by regular or certified mail depending upon the 4
value of the funds and to authorize charges for 5
certain 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) 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 as41
necessary for the administration of this chapter.42

       (3) With respect to items of unclaimed funds each having a43
value of less than fifty dollars, the report required under44
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 each48

       (c) The aggregated value of the items of unclaimed funds50
within each category.51

       (B) If the holder of unclaimed funds is a successor to other52
organizations that previously held the funds for the owner, or if53
the holder has changed its name while holding the funds, it shall54
file with the report all prior known names and addresses and date55
and state of incorporation or formation of each holder of the56

       (C) The report shall be filed before the first day of58
November of each year as of the preceding thirtieth day of June,59
but the report of holders providing life insurance coverage shall60
be filed before the first day of May of each year as of the61
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 shall65
send notice to each owner of each item of unclaimed funds having a66
value of fifty dollars or more at the last known address of the67
owner as shown by the records of the holder before filing the68
annual report. In case of holders providing life insurance69
coverage, suchthis notice shall also be mailed to each70
beneficiary at the last known address of suchthe beneficiary as71
shown by the records of suchthe holder, except that suchthe72
notice to beneficiaries shall not be mailed if suchthat address73
is the same as that of the insured and the surname of the74
beneficiary is the same as that of the insured. The holder shall75
not report an item of unclaimed funds earlier than the thirtieth76
day after the mailing of notice required by this division.77

       SuchThe notice required by this division shall set forth the78
nature and identifying number, if any, or description of the funds79
and the amount appearing on the records of the holder to be due80
the owner or beneficiary, and shall inform the owner or 81
beneficiary that the funds will, thirty days after the mailing of82
suchthe notice, be reported as unclaimed funds under this83
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 informed87
before the date for making the report to the director, the holder88
shall not report saidthe funds to the director. The notice shall89
be mailed by first class mail if the item of unclaimed funds has a90
value of fifty dollars or more but less than one thousand dollars91
and by certified mail, return receipt requested, if the item of92
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

        (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

        (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. If112

       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 of119
notice pursuant to this section shall discharge the holder from120
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 reporting123

       (F)(1) The director may, at reasonable times and upon125
reasonable notice, examine or cause to be examined, by auditors of126
supervisory departments or divisions of the state, the records of127
any holder to determine compliance with this chapter.128

       (2) Holders shall retain records, designated by the director129
as applicable to unclaimed funds, for five years beyond the130
relevant time period provided in section 169.02 of the Revised131
Code, or until completion of an audit conducted pursuant to132
division (F) of this section, whichever occurs first. An audit133
conducted pursuant to division (F) of this section shall not134
require a holder to make records available for a period of time135
exceeding the records retention period set forth in division (F)136
of this section, except for records pertaining to instruments137
evidencing ownership, or rights to them or funds paid toward the138
purchase of them, or any dividend, capital credit, profit,139
distribution, interest, or payment on principal or other sum, held140
or owed by a holder, including funds deposited with a fiscal agent141
or fiduciary for payment of them, or pertaining to debt of a142
publicly traded corporation. Any holder that is audited pursuant143
to division (F) of this section shall only be required to make144
available those records that are relevant to an unclaimed funds145
audit of that holder as prescribed by the director.146

       (3) The director may enter into contracts, pursuant to147
procedures prescribed by the director, with persons for the sole148
purpose of examining the records of holders, determining149
compliance with this chapter, and collecting, taking possession150
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 person153
unless the person does all of the following:154

       (a) Agrees to maintain the confidentiality of the records155
examined, as required under division (F)(4) of this section;156

       (b) Agrees to conduct the audit in accordance with rules157
adopted under section 169.09 of the Revised Code;158

       (c) Obtains a corporate surety bond issued by a bonding159
company or insurance company authorized to do business in this160
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 section166
are confidential, and shall not be disclosed except as required by167
section 169.06 of the Revised Code or as the director considers168
necessary in the proper administration of this chapter.169

       (5) If a person with whom the director has entered into a170
contract pursuant to division (F)(3) of this section intends to171
conduct, in conjunction with an unclaimed funds audit under this172
section, an unclaimed funds audit for the purpose of administering173
another state's unclaimed or abandoned property laws, the person,174
prior to commencing the audit, shall provide written notice to the175
director of the person's intent to conduct such an audit, along176
with documentation evidencing the person's express authorization177
from the other state to conduct the audit on behalf of that state.178

       (6) Prior to the commencement of an audit conducted pursuant179
to division (F) of this section, the director shall notify the180
holder of unclaimed funds of the director's intent to audit the181
holder's records. If the audit will be conducted in conjunction182
with an audit for one or more other states, the director shall183
provide the holder with the name or names of those states.184

       (7) Any holder of unclaimed funds may appeal the findings of185
an audit conducted pursuant to division (F) of this section to the186
director. Pursuant to the authority granted by section 169.09 of187
the Revised Code, the director shall adopt rules establishing188
procedures for considering such an appeal.189

       (G) All holders shall make sufficient investigation of their190
records to ensure that the funds reported to the director are191
unclaimed as set forth in division (B) of section 169.01 and192
section 169.02 of the Revised Code.193

       (H) The expiration of any period of limitations on or after194
March 1, 1968, within which a person entitled to any moneys,195
rights to moneys, or intangible property could have commenced an196
action or proceeding to obtain the samethese items shall not197
prevent suchthese items from becoming unclaimed funds or relieve198
the holder thereofof them of any duty to report and give notice199
as provided in this section and deliver the samethem in the200
manner provided in section 169.05 of the Revised Code, provided201
that the holder may comply with the provisions of this section and202
section 169.05 of the Revised Code with respect to any moneys,203
rights to moneys, or intangible property as to which the204
applicable statute of limitations has run prior to March 1, 1968,205
and in suchthat event the holder shall be entitled to the206
protective provisions of section 169.07 of the Revised Code.207

       (I) No social security number contained in a report made208
pursuant to this section shall be used by the department of209
commerce for any purpose other than to enable the division of210
unclaimed funds to carry out the purposes of this chapter and for211
child support purposes in response to a request made by the office212
of child support in the department of job and family services made213
pursuant to section 3123.88 of the Revised Code.214

       Section 2. That existing section 169.03 of the Revised Code215
is hereby repealed.216