Hearings of Interest. SB 143-Fraud Damages

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1 Below is an update on legislative happenings this week in the Ohio General Assembly that are of interest to property and casualty insurance companies. Please let us know if you have questions on any of the issues. Hearings of Interest SB 143-Fraud Damages The Senate Judiciary-Civil Justice Committee heard proponent testimony on SB 143, legislation sponsored by Sen. Jim Hughes (R-Columbus), which would provide for the recovery of damages and civil penalties for defrauding the state of money or property and authorize private persons to bring qui tam civil actions in the name of the state to remedy the frauds. The legislation would permit the Attorney General to intervene on behalf of the state in the action or pursue an alternative remedy. Ohio Attorney General Mike DeWine, whose testimony is attached, said the bill would allow his office to go after abuse that it otherwise would not find out about. Based on experiences of other states, DeWine said the measure would save Ohio taxpayers millions of dollars annually. He said that Texas has recouped $126 million since 2001 and California has recouped $170 million since 1992, as a result of their state false claims act and he added that 27 states now have similar laws. DeWine said, "I understand that there are concerns about this bill - that it will, for example, cause frivolous lawsuits against businesses and create a 'feeding frenzy' for the trial lawyers, but said that is not what has been found in other states. DeWine said there are safeguards in the legislation including requiring a whistle-blower to have specific, actual knowledge in order for a case to move forward and requiring that complaints be filed under seal until the attorney general determines whether the allegations are sufficient to move forward in court. He said ultimately SB 143 is a good government, pro-business piece of legislation. Randy Smith, a state employee who testified as a private citizen, said he has firsthand experience with the federal false claims act as the lead plaintiff in a 2002 case which involved $100 million the state paid to a contractor to develop a computer system. Smith said that almost all of the funds paid were considered state money as a result of the federal block grant process, and almost none of it could be recovered under the federal false claims act. "We eventually settled our case for less than a million dollars, which I firmly believe was a tiny fraction of what was improperly billed," he said. "If there had been an Ohio False Claims Act, the situation would have been very different." We will continue to follow this legislation. Click here to view SB 143 as introduced

2 HB 107-Single License Plate The House Transportation, Public Safety and Homeland Security Committee heard testimony on HB 107, legislation sponsored by Reps. Rex Damschroder (R-Fremont) and Stephen Slesnick (D-Canton), which would require that motor vehicles carry only one license plate, to be displayed on the rear of the vehicle. Antique and unique auto enthusiast Garry Beltz testified in support of the measure and said it would be detrimental to the style and value of his 1999 Plymouth Prowler to attempt to retrofit any aftermarket front bracket on the vehicle. He added that many car shows are sponsored as charity fundraisers and if the current two plate law was enforced uniformly, many car show attendees would no longer participate and charities would suffer. Beltz told Rep. Joe Uecker (R-Miami Twp) he has talked with a police officer, a state trooper and a deputy sheriff about the issue, and said that they all personally "saw no value" in a front plate. Rep. Ross McGregor (R-Springfield) said that law enforcement expressed concerns during budget deliberations, even though there would be a definite savings to the state, and he questioned the possibility of removing the failure to display a front plate from the primary offense category. We will continue to follow this bill. Click here to view HB 107 as introduced ODNR Offers Digital Underground Mines Map The Ohio Department of Natural Resources (ODNR) has unveiled a new digital map that details the locations of abandoned underground mines in the state. Map EG-3 offers information on mine names, locations, elevations, and more. The map can be printed or ordered on paper for $15. A CD-ROM version is available for $25 at

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