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.