As Passed by the Senate

128th General Assembly Regular Session 2009-2010

Am. S. B. No. 7

Senator Wagoner 

Cosponsors: Senators Gibbs, Buehrer, Fedor, Miller, D., Morano, Niehaus, Schaffer, Schuler, Turner, Faber, Patton, Hughes, Schiavoni, Wilson, Strahorn, Sawyer, Harris, Schuring, Stewart, Husted, Cates 

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A BILL

To amend section 124.341 and to enact section 117.103

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of the Revised Code to require the Auditor of

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State to establish a fraud-reporting system for

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residents and public employees to file anonymous

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complaints of fraud and misuse of public funds by

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public offices or officials.

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

Section 1. That section 124.341 be amended and section	7
117.103 of the Revised Code be enacted to read as follows:	8

Sec. 117.103. (A) The auditor of state shall establish and	9
maintain a system for the reporting of fraud, including misuse and	10
misappropriation of public money, by any public office or public	11
official. The system shall allow Ohio residents and the employees	12
of any public office to make anonymous complaints through a	13
toll-free telephone number, the auditor of state's web site, or	14
the United States mail to the auditor of state's office. The	15
auditor of state shall review all complaints in a timely manner.	16

Any complaint resulting in an audit report will be a public	17
record upon the issuance of the audit report in accordance with	18
section 117.26 of the Revised Code, subject to any applicable	19
privileges, including, but not limited to, the attorney-client	20
privilege.	21

(B)(1) A public office shall provide information about the	22
Ohio fraud-reporting system and the means of reporting fraud to	23
each new employee upon employment with the public office. Each	24
new employee shall confirm receipt of this information within	25
thirty days after beginning employment. The auditor of state	26
shall provide a model form on the auditor of state's web site to	27
be printed and used by new public employees to sign and verify	28
their receipt of information as required by this section. The	29
auditor of state shall confirm, when conducting an audit under	30
section 117.11 of the Revised Code, that new employees have been	31
provided information as required by this division.	32

(2) On the effective date of this section, each public office	33
shall make all its employees aware of the fraud-reporting system	34
required by this section.	35

Sec. 124.341.  (A) If an employee in the classified or	36
unclassified civil service becomes aware in the course of	37
employment of a violation of state or federal statutes, rules, or	38
regulations or the misuse of public resources, and the employee's	39
supervisor or appointing authority has authority to correct the	40
violation or misuse, the employee may file a written report	41
identifying the violation or misuse with the supervisor or	42
appointing authority. In addition to or instead of filing a	43
written report with the supervisor or appointing authority, the	44
employee may file a written report with the office of internal	45
auditing created under section 126.45 of the Revised Code or file	46
a complaint with the auditor of state's fraud-reporting system	47
under section 117.103 of the Revised Code.	48

If the employee reasonably believes that a violation or	49
misuse of public resources is a criminal offense, the employee, in	50
addition to or instead of filing a written report or complaint	51
with the supervisor, appointing authority, or the office of	52
internal auditing, or the auditor of state's fraud-reporting	53
system, may report it to a prosecuting attorney, director of law,	54
village solicitor, or similar chief legal officer of a municipal	55
corporation, to a peace officer, as defined in section 2935.01 of	56
the Revised Code, or, if the violation or misuse of public	57
resources is within the jurisdiction of the inspector general, to	58
the inspector general in accordance with section 121.46 of the	59
Revised Code. In addition to that report, if the employee	60
reasonably believes the violation or misuse is also a violation	61
of Chapter 102., section 2921.42, or section 2921.43 of the	62
Revised Code, the employee may report it to the appropriate	63
ethics commission.	64

(B) Except as otherwise provided in division (C) of this	65
section, no officer or employee in the classified or unclassified	66
civil service shall take any disciplinary action against an	67
employee in the classified or unclassified civil service for	68
making any report or filing a complaint as authorized by division	69
(A) of this section, including, without limitation, doing any of	70
the following:	71

(1) Removing or suspending the employee from employment;

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(2) Withholding from the employee salary increases or	73
employee benefits to which the employee is otherwise entitled;	74

(3) Transferring or reassigning the employee;

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(4) Denying the employee promotion that otherwise would have	76
been received;	77

(5) Reducing the employee in pay or position.

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(C) An employee in the classified or unclassified civil	79
service shall make a reasonable effort to determine the accuracy	80
of any information reported under division (A) of this section.	81
The employee is subject to disciplinary action, including	82
suspension or removal, as determined by the employee's appointing	83
authority, for purposely, knowingly, or recklessly reporting false	84
information under division (A) of this section.	85

(D) If an appointing authority takes any disciplinary or	86
retaliatory action against a classified or unclassified employee	87
as a result of the employee's having filed a report or complaint	88
under division (A) of this section, the employee's sole and	89
exclusive remedy, notwithstanding any other provision of law, is	90
to file an appeal with the state personnel board of review within	91
thirty days after receiving actual notice of the appointing	92
authority's action. If the employee files such an appeal, the	93
board shall immediately notify the employee's appointing authority	94
and shall hear the appeal. The board may affirm or disaffirm the	95
action of the appointing authority or may issue any other order as	96
is appropriate. The order of the board is appealable in accordance	97
with Chapter 119. of the Revised Code.	98

(E) As used in this section:

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(1) "Purposely," "knowingly," and "recklessly" have the same	100
meanings as in section 2901.22 of the Revised Code.	101

(2) "Appropriate ethics commission" has the same meaning as	102
in section 102.01 of the Revised Code.	103

(3) "Inspector general" means the inspector general appointed	104
under section 121.48 of the Revised Code.	105

Section 2. That existing section 124.341 of the Revised Code	106
is hereby repealed.	107