Senate Passes Schaffer Bill Expanding Anti-Fraud Protections

COLUMBUS - State Senator Tim Schaffer (R-Lancaster) today announced that the Ohio Senate passed Senate Bill 91, which would expand anti-fraud protections over taxpayer funds in the public sector.

"I'm proud my colleagues and I took a major step in preventing fraud and abuse of public funds in Ohio," Schaffer said. "This bill takes major steps in ensuring those who seek to defraud the People of Ohio are caught sooner with less damage done to our taxpayers."

Senate Bill 91 requires the Auditor of State to create training material for state employees detailing Ohio’s fraud-reporting system and requires that the Department of Administrative Services administer this training within 30 days of employment and every four years for existing public employees and officials.

In addition, this legislation creates "mandatory reporters" in public offices such as elected officials, appointed officials, and those who have a fiduciary duty to a public office. A mandatory reporter is someone who is required by law to report a crime to the proper authorities immediately upon finding out a crime was or may have been committed. Those individuals who are classified as mandatory reporters in the bill must report in a timely manner upon becoming aware of any theft in office, fraud, or misuse of public funds to the Auditor of State’s office or local law enforcement.

The bill requires the Auditor of State to promptly notify the local chief legal officer such as the local prosecuting attorney or if a report that the Auditor of State has received included probable theft or fraud. The only exception to this is if the local chief legal officer is the alleged offender being reported.
 
Language in the bill also notes that a person who serves as legal counsel for a public office is not required to report a violation to the Auditor of State if it concerns communication from a client in an attorney-client relationship. The only exception to this is if it is the local chief legal officer, who is still required to file a report to the Auditor of State.
 
The bill specifies that the Office of Internal Audit within the Ohio Office of Budget Management may consult and share with the Auditor of State any written report regarding the misuse of public resources and is not considered a public record.
 
Senate Bill 91 also ensures that anyone reporting fraud under the bill is covered by existing whistleblower protections. Any employer found to violate these whistleblower protections may be subject to civil action by the whistleblower within 180 days of an improper disciplinary action.
 
“This legislation is an opportunity for the legislature to take part in ensuring that public funds are used appropriately, and taxpayers’ money is protected,” Schaffer said.

Senate Bill 91 will now be sent to the Ohio House of Representatives for consideration.