130th Ohio General Assembly
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S. B. No. 275  As Introduced
As Introduced

126th General Assembly
Regular Session
2005-2006
S. B. No. 275


Senators Stivers, Niehaus, Jordan 



A BILL
To amend sections 1322.04, 1322.041, 1322.051, 1322.052, 1322.06, 1322.061, 1322.062, 1322.07, 1322.072, 1322.10, 1322.11, 1322.12, 3313.603, 4735.05, 4735.64, 4735.66, 4763.03, 4763.11, and 4763.13 and to enact sections 109.88, 1121.022, 1155.012, 1163.021, 1181.081, 1322.063, 1322.064, 1349.53, 1349.55, and 1733.328 of the Revised Code to create the Ohio Consumer Mortgage Commission, to transfer enforcement authority for the Mortgage Broker's Act from the superintendent of financial institutions to the Attorney General, to authorize the attorney general to create predatory lending strike forces, to permit state regulatory authorities to share confidential information, to require first-time home buyers to receive pre-purchase home buyer counseling, to add financial literacy instruction to high school graduation requirements, to establish additional prohibitions and requirements for financial institutions, real estate appraisers, and mortgage brokers, and to make an appropriation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1322.04, 1322.041, 1322.051, 1322.052, 1322.06, 1322.061, 1322.062, 1322.07, 1322.072, 1322.10, 1322.11, 1322.12, 3313.603, 4735.05, 4735.64, 4735.66, 4763.03, 4763.11, and 4763.13 be amended and sections 109.88, 1121.022, 1155.012, 1163.021, 1181.081, 1322.063, 1322.064, 1349.53, 1349.55, and 1733.328 of the Revised Code be enacted to read as follows:
Sec. 109.88. (A) If the attorney general, as a result of a complaint or the attorney general's own inquiry, has reason to believe that a lender has engaged, is engaging in, or is preparing to engage in a violation or failure of compliance with any provision of the Revised Code, criminal or otherwise, related to any extension of credit, or any violation or failure of compliance with the "Home Ownership Equity Protection Act of 1994," 108 Stat. 2190, 15 U.S.C.A section 1602 et seq., as amended, the attorney general may investigate the alleged violation. For purposes of an investigation under this section, the attorney general may administer oaths, issue subpoenas and subpoenas duces tecum, adduce evidence, and require the production of any relevant books, papers, or records of all kinds.
(B) The attorney general may create a predatory lending strike force to conduct an investigation pursuant to division (A) of this section and to report the results to the attorney general. The investigation may focus upon any financial institution or mortgage broker in any county of the state. If the attorney general establishes a strike force the attorney general shall appoint a strike force director to supervise the investigation. If the strike force is established to investigate a criminal activity, the strike force director either shall be the sheriff or a deputy sheriff of any county in the state or the chief law enforcement officer or a member of a law enforcement agency of any municipal corporation or township in the state. If the strike force is established to investigate a non-criminal activity, the strike force director shall be an employee of the state agency that licenses, registers, or regulates the institution under investigation. No person shall be appointed as a strike force director without the person's consent and, if applicable, the consent of the person's employing sheriff or law enforcement agency or the superintendent of the division wherein the person is employed.
Upon appointment of a strike force director, the attorney general shall meet with the director and establish the scope and limits of the investigation to be conducted by the strike force and the size of the strike force investigatory staff to be appointed by the strike force director. The attorney general, at any time, may remove a strike force director appointed under this section and may replace any director so removed according to the guidelines for the initial appointment of a director.
(C) Nothing in this section shall be deemed to provide a law enforcement official or government regulatory examiner with authority to commit an act, in the course of an investigation, that is not otherwise permitted by law.
(D) The attorney general shall evaluate the report of any strike force established pursuant to this section and take whatever direct action the attorney general is authorized to take under law or refer the matter to the appropriate county prosecuting attorney for prosecution.
Sec. 1121.022. The superintendent of financial institutions shall accept written complaints filed against any person regulated under Chapters 1101. to 1127. of the Revised Code. Upon receipt of a complaint, the superintendent shall review the complaint in detail, acknowledge in writing receipt of the complaint, and forward the complaint to a senior officer at the licensee's place of business. The superintendent shall request the licensee to respond directly to the complainant within thirty days and to send a copy of its response to the superintendent. The written complaint, and the written licensee response, if one is submitted, is a public record, as defined in section 149.43 of the Revised Code, after final resolution or disposition of the complaint.
Nothing in this section shall be construed to authorize the disclosure of information obtained in any examination, investigation, or audit that is conducted pursuant to Chapter 1121. of the Revised Code, or the disclosure of information otherwise deemed privileged or confidential by law.
Sec. 1155.012. The superintendent of financial institutions shall accept written complaints filed against any person regulated under Chapters 1151. to 1157. of the Revised Code. Upon receipt of a complaint, the superintendent shall review the complaint in detail, acknowledge in writing receipt of the complaint, and forward the complaint to a senior officer at the licensee's place of business. The superintendent shall request the licensee to respond directly to the complainant within thirty days, and to send a copy of its response to the superintendent. The written complaint, and the written licensee response if one is submitted, are a public record, as defined in section 149.43 of the Revised Code, after final resolution or disposition of the complaint.
Nothing in this section shall be construed to authorize the disclosure of information obtained in any examination, investigation, or audit that is conducted pursuant to Chapter 1155. of the Revised Code, or the disclosure of information otherwise deemed privileged or confidential by law.
Sec. 1163.021. The superintendent of financial institutions shall accept written complaints filed against any person regulated under Chapters 1161. to 1165. of the Revised Code. Upon receipt of a complaint, the superintendent shall review the complaint in detail, acknowledge in writing receipt of the complaint, and forward the complaint to a senior officer at the licensee's place of business. The superintendent shall request the licensee to respond directly to the complainant within thirty days, and to send a copy of its response to the superintendent. The written complaint, and the written licensee response if one is submitted, is a public record, as defined in section 149.43 of the Revised Code, after final resolution or disposition of the complaint.
Nothing in this section shall be construed to authorize the disclosure of information obtained in any examination, investigation, or audit that is conducted pursuant to Chapter 1163. of the Revised Code, or the disclosure of information otherwise deemed privileged or confidential by law.
Sec. 1181.081. The superintendent of financial institutions shall adopt rules necessary to ensure that Ohio chartered and licensed institutions comply with the requirements of the "Truth in Lending Act," 82 Stat. 146, 15 U.S.C.A. 1601 et seq.
Sec. 1322.04.  (A) Upon the conclusion of the investigation required under division (B) of section 1322.03 of the Revised Code, the superintendent of financial institutions shall issue a certificate of registration to the applicant if the superintendent finds that the following conditions are met:
(1) Except as otherwise provided in division (A) of section 1322.03 of the Revise Revised Code, the application is accompanied by the application fee. If a check or other draft instrument is returned to the superintendent for insufficient funds, the superintendent shall notify the registrant by certified mail, return receipt requested, that the certificate of registration issued in reliance on the check or other draft instrument will be canceled unless the registrant, within thirty days after receipt of the notice, submits the application fee and a one-hundred-dollar penalty to the superintendent. If the registrant does not submit the application fee and penalty within that time period, or if any check or other draft instrument used to pay the fee or penalty is returned to the superintendent for insufficient funds, the certificate of registration shall be canceled immediately without a hearing and the registrant shall cease activity as a mortgage broker.
(2) If the application is for a location that is a residence, that the applicant has obtained a valid zoning permit authorizing the use of the residence for commercial purposes, or has obtained a valid written opinion or other document issued by the county or political subdivision where the residence is located certifying that the use of the residence to transact business as a mortgage broker is not prohibited by the county or political subdivision. The application also is accompanied by a photograph of each location at which the mortgage broker's business will be transacted.
(3) The sole proprietor or the person designated on the application pursuant to division (A)(3) of section 1322.03 of the Revised Code, as applicable, meets the experience requirements provided in division (A)(4) of section 1322.03 of the Revised Code.
(4) The applicant maintains all licenses and registrations required by the secretary of state.
(5) The applicant complies with the surety bond requirements of section 1322.05 of the Revised Code.
(6) The applicant complies with sections 1322.01 to 1322.12 of the Revised Code.
(7) Neither the applicant nor any shareholder, member, partner, operations manager, or employee of the applicant has pleaded guilty to or been convicted of any criminal offense described in division (A)(7) of section 1322.03 of the Revised Code, or, if the applicant or any of those other persons has pleaded guilty to or been convicted of such an offense, the applicant has proven to the superintendent, by a preponderance of the evidence, that the applicant's or other person's activities and employment record since the conviction show that the applicant or other person is honest, truthful, and of good reputation, and there is no basis in fact for believing that the applicant or other person will commit such an offense again.
(8) Neither the applicant nor any shareholder, member, partner, operations manager, or employee of the applicant has been subject to any adverse judgment for conversion, embezzlement, misappropriation of funds, fraud, misfeasance or malfeasance, or breach of fiduciary duty, or, if the applicant or any of those other persons has been subject to such a judgment, the applicant has proven to the superintendent, by a preponderance of the evidence, that the applicant's or other person's activities and employment record since the judgment show that the applicant or other person is honest, truthful, and of good reputation, and there is no basis in fact for believing that the applicant or other person will be subject to such a judgment again.
(9) The applicant's operations manager successfully completed the examination required under division (A) of section 1322.051 of the Revised Code.
(10) The applicant's financial responsibility, experience, character, and general fitness command the confidence of the public and warrant the belief that the business will be operated honestly and fairly in compliance with the purposes of sections 1322.01 to 1322.12 of the Revised Code.
For purposes of determining whether an applicant that is a partnership, corporation, or other business entity or association has met the conditions set forth in divisions (A)(7), (A)(8), and (A)(10) of this section, the superintendent shall determine which partners, shareholders, or persons named in the application pursuant to division (A)(2) of section 1322.03 of the Revised Code must meet the conditions set forth in divisions (A)(7), (A)(8), and (A)(10) of this section. This determination shall be based on the extent and nature of the partner's, shareholder's, or person's ownership interest in the partnership, corporation, or other business entity or association that is the applicant.
(B) The certificate of registration issued pursuant to division (A) of this section may be renewed annually on or before the thirtieth day of April if the superintendent finds that all of the following conditions are met:
(1) The renewal application is accompanied by a nonrefundable renewal fee of three hundred fifty dollars for each location of an office to be maintained by the applicant in accordance with division (A) of section 1322.02 of the Revised Code; however, an applicant that is registered under sections 1321.51 to 1321.60 of the Revised Code shall not be required to pay a renewal fee. If a check or other draft instrument is returned to the superintendent for insufficient funds, the superintendent shall notify the registrant by certified mail, return receipt requested, that the certificate of registration renewed in reliance on the check or other draft instrument will be canceled unless the registrant, within thirty days after receipt of the notice, submits the renewal fee and a one-hundred-dollar penalty to the superintendent. If the registrant does not submit the renewal fee and penalty within that time period, or if any check or other draft instrument used to pay the fee or penalty is returned to the superintendent for insufficient funds, the certificate of registration shall be canceled immediately without a hearing and the registrant shall cease activity as a mortgage broker.
(2) On and after January 1, 2003, the The operations manager designated under division (A)(3) of section 1322.03 of the Revised Code has completed, during the immediately preceding calendar year, at least six hours of met the continuing education as required under requirements of section 1322.052 of the Revised Code.
(3) The applicant meets the conditions set forth in divisions (A)(2) to (10) of this section.
(4) The applicant's certificate of registration is not subject to an order of suspension or revocation by the superintendent.
(C)(1) Subject to division (C)(2) of this section, if a renewal fee is received by the superintendent after the thirtieth day of April, the certificate of registration shall not be considered renewed, and the applicant shall cease activity as a mortgage broker and apply for a certificate of registration as a mortgage broker.
(2) Division (C)(1) of this section shall not apply if the applicant, no later than the thirty-first day of May, submits the renewal fee and a one-hundred-dollar penalty to the superintendent.
(D) If the person designated as the operations manager pursuant to division (A)(3) of section 1322.03 of the Revised Code is no longer the operations manager, the registrant shall do all of the following:
(1) Designate another person as the operations manager;
(2) Within ten days after the designation described in division (D)(1) of this section, notify the superintendent in writing of the designation;
(3) Submit any additional information that the superintendent requires to establish that the newly designated operations manager complies with the experience requirements set forth in division (A)(4) of section 1322.03 of the Revised Code.
Sec. 1322.041. (A) Upon the conclusion of the investigation required under division (B) of section 1322.031 of the Revised Code, the superintendent of financial institutions shall issue a loan officer license to the applicant if the superintendent finds that the following conditions are met:
(1) The application is accompanied by the application fee. If a check or other draft instrument is returned to the superintendent for insufficient funds, the superintendent shall notify the licensee by certified mail, return receipt requested, that the license issued in reliance on the check or other draft instrument will be canceled unless the licensee, within thirty days after receipt of the notice, submits the application fee and a one-hundred-dollar penalty to the superintendent. If the licensee does not submit the application fee and penalty within that time period, or if any check or other draft instrument used to pay the fee or penalty is returned to the superintendent for insufficient funds, the license shall be canceled immediately without a hearing and the licensee shall cease activity as a loan officer.
(2) The applicant complies with sections 1322.01 to 1322.12 of the Revised Code.
(3) The applicant has not been convicted of or pleaded guilty to any criminal offense described in division (A)(2) of section 1322.031 of the Revised Code, or, if the applicant has been convicted of or pleaded guilty to such an offense, the applicant has proven to the superintendent, by a preponderance of the evidence, that the applicant's activities and employment record since the conviction show that the applicant is honest, truthful, and of good reputation, and there is no basis in fact for believing that the applicant will commit such an offense again.
(4) The applicant has not been subject to an adverse judgment for conversion, embezzlement, misappropriation of funds, fraud, misfeasance or malfeasance, or breach of fiduciary duty, or, if the applicant has been subject to such a judgment, the applicant has proven to the superintendent, by a preponderance of the evidence, that the applicant's activities and employment record since the judgment show that the applicant is honest, truthful, and of good reputation, and there is no basis in fact for believing that the applicant will be subject to such a judgment again.
(5) The applicant's character and general fitness command the confidence of the public and warrant the belief that the business will be operated honestly and fairly in compliance with the purposes of sections 1322.01 to 1322.12 of the Revised Code.
(B) The license issued under division (A) of this section may be renewed annually on or before the thirtieth day of April if the superintendent finds that all of the following conditions are met:
(1) The renewal application is accompanied by a nonrefundable renewal fee of one hundred dollars. If a check or other draft instrument is returned to the superintendent for insufficient funds, the superintendent shall notify the licensee by certified mail, return receipt requested, that the license renewed in reliance on the check or other draft instrument will be canceled unless the licensee, within thirty days after receipt of the notice, submits the renewal fee and a one-hundred-dollar penalty to the superintendent. If the licensee does not submit the renewal fee and penalty within that time period, or if any check or other draft instrument used to pay the fee or penalty is returned to the superintendent for insufficient funds, the license shall be canceled immediately without a hearing and the licensee shall cease activity as a loan officer.
(2) On and after January 1, 2003, the The loan officer has completed, during the immediately preceding calendar year, at least six hours of met the continuing education as required under requirements of section 1322.052 of the Revised Code.
(3) The applicant meets the conditions set forth in divisions (A)(2) to (5) of this section.
(4) The applicant's license is not subject to an order of suspension or revocation by the superintendent.
(C)(1) Subject to division (C)(2) of this section, if a license renewal application or renewal fee is received by the superintendent after the thirtieth day of April, the license shall not be considered renewed, and the applicant shall cease activity as a loan officer.
(2) Division (C)(1) of this section shall not apply if the applicant, no later than the thirty-first day of May, submits the renewal application and fee and a one-hundred-dollar penalty to the superintendent.
Sec. 1322.051.  (A) Each person designated under division (A)(3) of section 1322.03 of the Revised Code to act as operations manager for a mortgage broker business shall submit to an examination approved by the superintendent of financial institutions.
(B) Each licensee, within ninety days after the original prior to the issuance of the loan officer license, shall successfully complete an examination approved by the superintendent. Failure to comply with this division results in the termination of the license by operation of law.
Sec. 1322.052. On and after January 1, 2002, each Each licensee and each person designated under division (A)(3) of section 1322.03 of the Revised Code to act as operations manager for a mortgage broker business shall complete at least six eight hours of continuing education every calendar year. To fulfill this requirement, the six eight hours of continuing education must be offered in a course or program of study approved by the superintendent of financial institutions.
The content of the course or program of study required in this section shall include not less than four hours of instruction regarding the obligations and requirements placed on the person by sections 1322.01 to 1322.12 of the Revised Code.
Sec. 1322.06.  (A) As often as the superintendent of financial institutions attorney general considers it necessary, the superintendent attorney general may examine the registrant's records pertaining to business transacted pursuant to sections 1322.01 to 1322.12 of the Revised Code.
(B) A registrant shall maintain records pertaining to business transacted pursuant to sections 1322.01 to 1322.12 of the Revised Code for four years. No registrant shall fail to comply with this division.
Sec. 1322.061. (A)(1) The following information is privileged and confidential:
(a) Examination information, and any information leading to or arising from an examination;
(b) Investigation information, and any information arising from or leading to an investigation.
(2) The information described in division (A)(1) of this section shall remain privileged and confidential for all purposes except when it is necessary for the superintendent of financial institutions or the attorney general to take official action regarding the affairs of a registrant or licensee, or in connection with criminal proceedings. This information may also be introduced into evidence or disclosed when and in the manner authorized by section 1181.25 of the Revised Code.
(B) All application information, except social security numbers, employer identification numbers, financial account numbers, the identity of the institution where financial accounts are maintained, personal financial information, fingerprint cards and the information contained on such cards, and criminal background information, is a public record as defined in section 149.43 of the Revised Code.
(C) This section does not prevent the division of financial institutions from releasing to or exchanging The superintendent of financial institutions or the attorney general shall release or exchange with other financial institution regulatory authorities, upon request, information relating to registrants and licensees. For this purpose, a "financial institution regulatory authority" includes a regulator of a business activity in which a registrant or licensee is engaged, or has applied to engage in, to the extent that the regulator has jurisdiction over a registrant or licensee engaged in that business activity or a regulator of a business activity that is conducting an investigation of a registrant or licensee that falls under its jurisdiction, and when the information to be released is relevant to the investigation. A registrant or licensee is engaged in a business activity, and a regulator of that business activity has jurisdiction over the registrant or licensee, whether the registrant or licensee conducts the activity directly or a subsidiary or affiliate of the registrant or licensee conducts the activity.
(D) This section does not prevent the division from releasing The superintendent shall make available all information relating to registrants and licensees to the attorney general for purposes relating to the attorney general's administration enforcement of sections 1322.01 to 1322.12 and Chapter 1345. of the Revised Code. Information the division releases to the attorney general pursuant to this section remains privileged and confidential, and the attorney general may not disclose the information or introduce the information into evidence unless the superintendent authorizes the disclosure or introduction into evidence in connection with the attorney general's administration of Chapter 1345. of the Revised Code.
Sec. 1322.062. (A)(1) Within three business days after taking an application for a loan from a buyer, a registrant shall deliver to the buyer a mortgage loan origination disclosure statement that contains all of the following:
(a) The name, address, and telephone number of the buyer;
(b) The typewritten name of the loan officer and the number designated on the loan officer's license;
(c) The street address, telephone number, and facsimile number of the registrant and the number designated on the registrant's certificate of registration;
(d) The signature of the loan officer or registrant;
(e) A statement indicating whether the buyer is to pay for the services of a bona fide third party if the registrant is unable to assist the buyer in obtaining a mortgage;
(f) A statement that describes the method by which the fee to be paid by the buyer to the registrant will be calculated;
(g) A statement that the lender may pay compensation to the registrant;
(h) A description of all the services the registrant has agreed to perform for the buyer;
(i) A statement that the buyer has not entered into an exclusive agreement for brokerage services.
(2) If the loan is a covered loan as defined in section 1349.25 of the Revised Code, the registrant shall also deliver a copy of the mortgage loan origination disclosure statement to the lender.
(B) If there is any change in the information provided under division (A)(1)(f) or (h) of this section, the registrant shall provide the buyer with the revised mortgage loan origination disclosure statement no later than three days after the change occurs, or the date twenty-four hours before the loan is closed, whichever is earlier.
(C) No registrant shall fail to comply with this section.
Sec. 1322.063. (A) Within twenty-four hours before the loan is closed, a registrant shall deliver to the buyer a written statement outlining the type of loan, the term of the loan, the interest rate, the annual percentage rate, the timing and amount of installment payments, and the amount to be placed in escrow.
(B) If there is any change in the information provided under division (A) of this section, the registrant shall provide the buyer with a revised written statement not later than twenty-four hours before the loan is closed.
Sec. 1322.064. The superintendent of financial institutions shall accept written complaints filed against any person registered or licensed under sections 1322.01 to 1322.12 of the Revised Code. Upon receipt of a complaint, the superintendent shall review the complaint in detail, acknowledge in writing receipt of the complaint and forward the complaint to a senior officer at the registrant's or licensee's place of business. The superintendent shall require the registrant or licensee to respond directly to the complainant within thirty days, and to send a copy of the response to the superintendent. The written complaint, and the written registrant or licensee response if one is submitted, is a public record, as defined in section 149.43 of the Revised Code, after final resolution or disposition of the complaint.
Nothing in this section shall be construed to authorize the disclosure of information obtained in an investigation pursuant to section 1322.10 of the Revised Code, or the disclosure of information otherwise deemed privileged or confidential by law.
Sec. 1322.07.  No mortgage broker, registrant, licensee, or applicant for a certificate of registration or license under sections 1322.01 to 1322.12 of the Revised Code shall do any of the following:
(A) Obtain a certificate of registration or license through any false or fraudulent representation of a material fact or any omission of a material fact required by state law, or make any substantial misrepresentation in any registration or license application;
(B) Make false or misleading statements of a material fact, omissions of statements required by state law, or false promises regarding a material fact, including, but not limited to, any violation of 15 U.S.C.A. 52 as amended, regarding unfair and deceptive acts or practices in the dissemination of false advertisements, through advertising or other means, or engage in a continued course of misrepresentations;
(C) Engage in conduct that constitutes improper, fraudulent, or dishonest dealings;
(D) Fail to notify the division of financial institutions within thirty days after the registrant, licensee, or applicant, in a court of competent jurisdiction of this state or any other state, is convicted of or pleads guilty to any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, or drug trafficking, or any criminal offense involving money or securities;
(E) Knowingly make, propose, or solicit fraudulent, false, or misleading statements on any mortgage document or on any document related to a mortgage, including a mortgage application, real estate appraisal, or real estate settlement or closing document. For purposes of this division, "fraudulent, false, or misleading statements" does not include mathematical errors, inadvertent transposition of numbers, typographical errors, or any other bona fide error.
(F) Knowingly instruct, solicit, propose, or otherwise cause a buyer to sign in blank a mortgage related document.;
(G) Accept or receive compensation for mortgage broker services when also receiving compensation for real estate broker services with respect to the same transaction;
(H) Make any promises regarding the terms of a mortgage loan by any means other than in writing.
Sec. 1322.072. No person, in connection with any examination or investigation conducted by the attorney general or the superintendent of financial institutions under sections 1322.01 to 1322.12 of the Revised Code, shall knowingly do either of the following:
(A) Circumvent, interfere with, obstruct, or fail to cooperate, including making a false or misleading statement, failing to produce records, or intimidating or suborning any witness;
(B) Tamper with, alter, or manufacture any evidence.
Sec. 1322.10.  (A) After notice and opportunity for a hearing conducted in accordance with Chapter 119. of the Revised Code, the superintendent of financial institutions attorney general may do the following:
(1) Suspend Deliver to the superintendent of financial institutions a written order requiring the superintendent to suspend, revoke, or refuse to issue or renew a certificate of registration or license if the superintendent attorney general finds either of the following:
(a) A a violation of or failure to comply with any provision of sections 1322.01 to 1322.12 of the Revised Code or the rules adopted under those sections or any other law applicable to the business conducted under a certificate of registration;
(b) A conviction of or guilty plea to any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, or drug trafficking, or any criminal offense involving money or securities.
(2) Impose a fine of not more than one thousand dollars, for each day a violation of a law or rule is committed, repeated, or continued. If the registrant or licensee engages in a pattern of repeated violations of a law or rule, the superintendent attorney general may impose a fine of not more than two thousand dollars for each day the violation is committed, repeated, or continued. All fines collected pursuant to this division shall be paid to the treasurer of state to the credit of the consumer finance fund created in section 1321.21 of the Revised Code. In determining the amount of a fine to be imposed pursuant to this division, the superintendent attorney general shall consider all of the following:
(a) The seriousness of the violation;
(b) The registrant's or licensee's good faith efforts to prevent the violation;
(c) The registrant's or licensee's history regarding violations and compliance with division orders;
(d) The registrant's or licensee's financial resources;
(e) Any other matters the superintendent attorney general considers appropriate in enforcing sections 1322.01 to 1322.12 of the Revised Code.
(B) The superintendent attorney general may investigate alleged violations of sections 1322.01 to 1322.12 of the Revised Code or the rules adopted under those sections or complaints concerning any such violation. The superintendent attorney general may make application to the court of common pleas for an order enjoining any such violation, and, upon a showing by the superintendent attorney general that a person has committed or is about to commit such a violation, the court shall grant an injunction, restraining order, or other appropriate relief.
(C) In conducting any investigation pursuant to this section, the superintendent attorney general may compel, by subpoena, witnesses to testify in relation to any matter over which the superintendent attorney general has jurisdiction and may require the production of any book, record, or other document pertaining to that matter. If a person fails to file any statement or report, obey any subpoena, give testimony, produce any book, record, or other document as required by a subpoena, or permit photocopying of any book, record, or other document subpoenaed, the court of common pleas of any county in this state, upon application made to it by the superintendent attorney general, shall compel obedience by attachment proceedings for contempt, as in the case of disobedience of the requirements of a subpoena issued from the court or a refusal to testify therein.
(D) If the superintendent attorney general determines that a person is engaged in or is believed to be engaged in activities that may constitute a violation of sections 1322.01 to 1322.12 of the Revised Code, the superintendent attorney general, after notice and a hearing conducted in accordance with Chapter 119. of the Revised Code, may issue a cease and desist order. Such an order shall be enforceable in the court of common pleas.
(E) If the superintendent of financial institutions revokes the certificate of registration or license of a registrant or licensee who is convicted of or pleads guilty to a criminal violation of any provision of sections 1322.01 to 1322.12 of the Revised Code or any criminal offense described in division (A)(1)(b) of this section, the revocation shall be is permanent.
(F) After notice and opportunity for a hearing conducted in accordance with Chapter 119. of the Revised Code, the attorney general shall deliver to the superintendent a written order requiring the superintendent to suspend, revoke, or refuse to issue or renew a certificate of registration or license if the attorney general finds that the registrant or licensee has been convicted of or plead guilty to any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, or drug trafficking, or any criminal offense involving money or securities.
(G) Notwithstanding other provisions of this section, the superintendent shall suspend, revoke, or refuse to issue or renew a certificate of registration or license if a registrant or licensee fails to comply with the continuing education requirements of section 1322.052 of the Revised Code.
Sec. 1322.11.  (A)(1) A buyer injured by a violation of section 1322.02, 1322.062, 1322.07, 1322.071, 1322.08, or 1322.09 of the Revised Code may bring an action for recovery of damages.
(2) Damages awarded under division (A)(1) of this section shall not be less than the amount paid by the buyer to the mortgage broker, plus reasonable attorney's fees and court costs.
(3) The buyer may be awarded punitive damages.
(B)(1) The superintendent of financial institutions, the attorney general, or a buyer may bring an action to enjoin a violation of sections 1322.01 to 1322.12 of the Revised Code.
(2) The superintendent attorney general may initiate criminal proceedings under sections 1322.01 to 1322.12 of the Revised Code by presenting any evidence of criminal violation to the prosecuting attorney of the county in which the offense may be prosecuted. If the prosecuting attorney does not prosecute the violations, or at the request of the prosecuting attorney, the superintendent shall present any evidence of criminal violations to the attorney general, who may proceed in the prosecution with all the rights, privileges, and powers conferred by law on prosecuting attorneys, including the power to appear before grand juries and to interrogate witnesses before such grand juries. These powers of the attorney general shall be in addition to any other applicable powers of the attorney general.
(C) The remedies provided by this section are in addition to any other remedy provided by law.
(D) In any proceeding or action brought under sections 1322.01 to 1322.12 of the Revised Code, the burden of proving an exemption under those sections is on the person claiming the benefit of the exemption.
(E) No person shall be deemed to violate sections 1322.01 to 1322.12 of the Revised Code with respect to any act taken or omission made in reliance on a written notice, written interpretation, or written report from the superintendent, unless there is a subsequent amendment to those sections, or rules promulgated thereunder, that affects the superintendent's notice, interpretation, or report.
(F) Upon disbursement of mortgage loan proceeds to or on behalf of the buyer, the registrant that assisted the buyer to obtain the mortgage loan is deemed to have completed the performance of the registrant's services for the buyer and owes no additional duties or obligations to the buyer with respect to the mortgage loan. However, nothing in this division shall be construed to limit or preclude the civil or criminal liability of a registrant for failing to comply with sections 1322.01 to 1322.12 of the Revised Code or any rule adopted under those sections, for failing to comply with any provision of or duty arising under an agreement with a buyer or lender under sections 1322.01 to 1322.12 of the Revised Code, or for violating any other provision of state or federal law.
Sec. 1322.12.  The superintendent of financial institutions, in accordance with Chapter 119. of the Revised Code, may adopt reasonable rules to administer and enforce sections 1322.01 to 1322.12 of the Revised Code. The attorney general, in accordance with Chapter 119. of the Revised Code, may adopt reasonable rules to enforce sections 1322.01 to 1322.12 of the Revised Code and to carry out the purposes of those sections.
Sec. 1349.53. (A) No creditor shall provide a residential mortgage, for the initial acquisition of real property by a first-time buyer, unless one of the following qualifications is met:
(1) The buyer produces a down payment of not less than twenty per cent of the total sale price of the property; or
(2) The buyer demonstrates that the buyer has received not less than eight hours of pre-purchase buyer counseling from a housing counseling agency approved by the United States department of housing and urban development.
(B) As used in this section:
(1) "Residential mortgage" has the same meaning as in section 1343.011 of the Revised Code.
(2) "Creditor" has the same meaning as in section 152(c) of the "Home Ownership and Equity Protection Act of 1994," 108 Stat. 2190, 15 U.S.C.A. 1602(f), as amended, and the regulations adopted by the federal reserve board, as amended.
Sec. 1349.55. (A) There is hereby created the Ohio consumer mortgage commission to provide, supervise, and coordinate financial grants for programs that educate consumers in financial decision-making, mortgage borrowing, and predatory lending practices. The commission shall consist of six members, appointed as follows, with the advice and consent of the senate. Two members shall be appointed by the governor, two members shall be appointed by the president of the senate, and two members shall be appointed by the speaker of the house of representatives. The governor shall appoint one member to chair the commission.
Within thirty days after the effective date of this section, the governor, the president of the senate, and the speaker of the house of representatives shall make initial appointments to the commission. Of the initial appointments made to the commission by the governor, the appointment of the chairperson shall be for a term of two years and the other appointment shall be for a term of one year. Of the initial appointments made by the president of the senate and the speaker of the house of representatives, one appointment from each will be for a term of two years and the other will be for a term of one year. All terms commence thirty days after the effective date of this section. Thereafter, terms of office shall be for two years, each term ending on the same day of the same month of the year as did the term for which it succeeds. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed shall hold office for the remainder of the predecessor's term. Any member shall continue in office subsequent to the expiration date of the member's term until a successor takes office or until a period of sixty days has elapsed, whichever occurs first.
(B) No person who has been convicted of, or has pleaded guilty to a felony, shall take or hold office as a member of the commission.
(C) The members of the commission shall receive no salary, but their expenses incurred in the performance of their duties shall be paid from funds appropriated for that purpose.
(D) For all administration purposes, the commission is located under the office of the attorney general.
(E) The commission shall meet at least quarterly and shall meet at other times pursuant to the call of the chairperson or at the request of the attorney general.
Sec. 1733.328. The superintendent of financial institutions shall accept written complaints filed against any person regulated under Chapter 1733. of the Revised Code. Upon receipt of a complaint, the superintendent shall review the complaint in detail, acknowledge in writing receipt of the complaint, and forward the complaint to a senior officer at the licensee's place of business. The superintendent shall request the licensee to respond directly to the complainant within thirty days, and to send a copy of their response to the superintendent. The written complaint, and the written licensee response if one is submitted, is a public record, as defined in section 149.43 of the Revised Code, after final resolution or disposition of the complaint.
Nothing in this section shall be construed to authorize the disclosure of information obtained in any examination, investigation, or audit that is conducted pursuant to Chapter 1733. of the Revised Code, or the disclosure of information otherwise deemed privileged or confidential by law.
Sec. 3313.603.  (A) As used in this section:
(1) "One unit" means a minimum of one hundred twenty hours of course instruction, except that for a laboratory course, "one unit" means a minimum of one hundred fifty hours of course instruction.
(2) "One-half unit" means a minimum of sixty hours of course instruction, except that for physical education courses, "one-half unit" means a minimum of one hundred twenty hours of course instruction.
(B) Beginning September 15, 2001, except as required in division (C) of section 3313.614 of the Revised Code, the requirements for graduation from every high school shall include twenty units earned in grades nine through twelve and shall be distributed as follows:
(1) English language arts, four units;
(2) Health, one-half unit;
(3) Mathematics, three units;
(4) Physical education, one-half unit;
(5) Science, two units until September 15, 2003, and three units thereafter, which at all times shall include both of the following:
(a) Biological sciences, one unit;
(b) Physical sciences, one unit.
(6) Social studies, three units, which shall include both of the following:
(a) American history, one-half unit;
(b) American government, one-half unit.
(7) Elective units, seven units until September 15, 2003, and six units thereafter.
Each student's electives shall include at least one unit, or two half units, chosen from among the areas of business/technology, fine arts, and/or foreign language.
Within the content of the courses included in the twenty units of instruction required under division (B) of this section, every high school student shall be required to complete not less than ten cumulative hours of instruction in the area of personal economics, including, but not limited to, instruction in financial planning, financial decision-making, and consumer credit. In developing that content, a school district board of education or the curriculum planner for any nonpublic school may use any part of the packet of high school instructional materials on personal financial responsibility developed by the department of education under section 3301.0726 of the Revised Code.
(C) Every high school may permit students below the ninth grade to take advanced work for credit. A high school shall count such advanced work toward the graduation requirements of division (B) of this section if the advanced work was both:
(1) Taught by a person who possesses a license or certificate issued under section 3301.071, 3319.22, or 3319.222 of the Revised Code that is valid for teaching high school;
(2) Designated by the board of education of the city, local, or exempted village school district, the board of the cooperative education school district, or the governing authority of the chartered nonpublic school as meeting the high school curriculum requirements.
(D) Units earned in English language arts, mathematics, science, and social studies that are delivered through integrated academic and technical instruction are eligible to meet the graduation requirements of division (B) of this section.
Sec. 4735.05.  (A) The Ohio real estate commission is a part of the department of commerce for administrative purposes. The director of commerce is ex officio the executive officer of the commission, or the director may designate any employee of the department as superintendent of real estate and professional licensing to act as executive officer of the commission.
The commission and the real estate appraiser board created pursuant to section 4763.02 of the Revised Code shall each submit to the director a list of three persons whom the commission and the board consider qualified to be superintendent within sixty days after the office of superintendent becomes vacant. The director shall appoint a superintendent from the lists submitted by the commission and the board, and the superintendent shall serve at the pleasure of the director.
(B) The superintendent, except as otherwise provided, shall do all of the following in regard to this chapter:
(1) Administer this chapter;
(2) Issue all orders necessary to implement this chapter;
(3) Investigate complaints concerning the violation of this chapter or the conduct of any licensee;
(4) Establish and maintain an investigation and audit section to investigate complaints and conduct inspections, audits, and other inquiries as in the judgment of the superintendent are appropriate to enforce this chapter. The investigators or auditors have the right to review and audit the business records of licensees and continuing education course providers during normal business hours.
(5) Appoint a hearing examiner for any proceeding involving disciplinary action under section 3123.47 or 4735.18 of the Revised Code;
(6) Administer the real estate recovery fund.
(C) The superintendent may do all of the following:
(1) In connection with investigations and audits under division (B) of this section, subpoena witnesses as provided in section 4735.04 of the Revised Code;
(2) Apply to the appropriate court to enjoin any violation of this chapter. Upon a showing by the superintendent that any person has violated or is about to violate any provision of this chapter, the court shall grant an injunction, restraining order, or other appropriate order.
(3) Upon the death of a licensed broker or the revocation or suspension of the broker's license, if there is no other licensed broker within the business entity of the broker, appoint upon application by any interested party, or, in the case of a deceased broker, subject to the approval by the appropriate probate court, recommend the appointment of, an ancillary trustee who is qualified as determined by the superintendent to conclude the business transactions of the deceased, revoked, or suspended broker;
(4) In conjunction with the enforcement of this chapter, when the superintendent of real estate has reasonable cause to believe that an applicant or licensee has committed a criminal offense, the superintendent of real estate may request the superintendent of the bureau of criminal identification and investigation to conduct a criminal records check of the applicant or licensee. The superintendent of the bureau of criminal identification and investigation shall obtain information from the federal bureau of investigation as part of the criminal records check of the applicant or licensee. The superintendent of real estate may assess the applicant or licensee a fee equal to the fee assessed for the criminal records check.
(D) All information that is obtained by investigators and auditors performing investigations or conducting inspections, audits, and other inquiries pursuant to division (B)(4) of this section, from licensees, complainants, or other persons, and all reports, documents, and other work products that arise from that information and that are prepared by the investigators, auditors, or other personnel of the department, shall be held in confidence by the superintendent, the investigators and auditors, and other personnel of the department. Notwithstanding division (D) of section 2317.023 of the Revised Code, all information obtained by investigators or auditors from an informal mediation meeting held pursuant to section 4735.051 of the Revised Code, including but not limited to the agreement to mediate and the accommodation agreement, shall be held in confidence by the superintendent, investigators, auditors, and other personnel of the department.
(E) The division of real estate shall release or exchange, with other state regulatory authorities upon their request, information relating to registrants and licensees. For this purpose, a "state regulatory authority" includes the attorney general, a regulator of a business activity in which a registrant or licensee is engaged or has applied to engage in, to the extent that the regulator has jurisdiction over a registrant or licensee engaged in that business activity, or a regulator of a business activity that is conducting an investigation of a registrant or licensee that falls under its jurisdiction, and when the information to be released is relevant to the investigation. A registrant or licensee is engaged in a business activity, and a regulator of that business activity has jurisdiction over the registrant or licensee, whether the registrant or licensee conducts the activity directly or a subsidiary or affiliate of the registrant or licensee conducts the activity.
Sec. 4735.64.  In representing a seller in an agency relationship, no licensee shall accept or receive compensation for real estate broker services when also receiving compensation for mortgage broker services with respect to the same transaction, or do either of the following without the knowledge and consent of the seller:
(A) Extend an offer of subagency to other licensees;
(B) Offer compensation to a broker who represents a purchaser.
Sec. 4735.66.  In representing a purchaser in an agency relationship, no licensee shall accept or receive compensation for real estate broker services when also receiving compensation for mortgage broker services with respect to the same transaction, or do either of the following without the knowledge and consent of the purchaser:
(A) Extend an offer of subagency to other licensees;
(B) Accept compensation from a broker who represents a seller.
Sec. 4763.03.  (A) In addition to any other duties imposed on the real estate appraiser board under this chapter, the board shall:
(1) Adopt rules, in accordance with Chapter 119. of the Revised Code, in furtherance of this chapter, including, but not limited to, all of the following:
(a) Defining, with respect to state-certified general real estate appraisers, state-certified residential real estate appraisers, and state-licensed residential real estate appraisers, the type of educational experience, appraisal experience, and other equivalent experience that satisfy the requirements of this chapter. The rules shall require that all appraisal experience performed after January 1, 1996, meet the uniform standards of professional practice established by the appraisal foundation.
(b) Establishing the examination specifications for state-certified general real estate appraisers, state-certified residential real estate appraisers, and state-licensed residential real estate appraisers;
(c) Relating to disciplinary proceedings conducted in accordance with section 4763.11 of the Revised Code, including rules governing the reinstatement of certificates, registrations, and licenses that have been suspended pursuant to those proceedings;
(d) Identifying any additional information to be included on the forms specified in division (C) of section 4763.12 of the Revised Code, provided that the rules shall not require any less information than is required in that division;
(e) Establishing the fees set forth in section 4763.09 of the Revised Code;
(f) Establishing the amount of the assessment required by division (A)(2) of section 4763.05 of the Revised Code. The board annually shall determine the amount due from each applicant for an initial certificate, registration, and license in an amount that will maintain the real estate appraiser recovery fund at the level specified in division (A) of section 4763.16 of the Revised Code. The board may, if the fund falls below that amount, require current certificate holders, registrants, and licensees to pay an additional assessment.
(g) Defining, with respect to state-registered real estate appraiser assistants, the educational and experience requirements of division (C)(1)(d) of section 4763.05 of the Revised Code;
(h) Establishing a real estate appraiser assistant program for the registration of real estate appraiser assistants.
(2) Provide or procure appropriate examination questions and answers for the examinations required by division (D) of section 4763.05 of the Revised Code, and establish the criteria for successful completion of those examinations;
(3) Periodically review the standards for preparation and reporting of real estate appraisals provided in this chapter and adopt rules explaining and interpreting those standards;
(4) Hear appeals, pursuant to Chapter 119. of the Revised Code, from decisions and orders the superintendent of real estate issues pursuant to this chapter;
(5) Request the initiation by the superintendent of investigations of violations of this chapter or the rules adopted pursuant thereto, as the board determines appropriate;
(6) Determine the appropriate disciplinary actions to be taken against certificate holders, registrants, and licensees under this chapter as provided in section 4763.11 of the Revised Code.
(B) In addition to any other duties imposed on the superintendent of real estate under this chapter, the superintendent shall:
(1) Prescribe the form and content of all applications required by this chapter;
(2) Receive applications for certifications, registrations, and licenses and renewal thereof under this chapter and establish the procedures for processing, approving, and disapproving those applications;
(3) Retain records and all application materials submitted to the superintendent;
(4) Establish the time and place for conducting the examinations required by division (D) of section 4763.05 of the Revised Code;
(5) Issue certificates, registrations, and licenses and maintain a register of the names and addresses of all persons issued a certificate, registration, or license under this chapter;
(6) Perform any other functions and duties, including the employment of staff, necessary to administer this chapter;
(7) Administer this chapter;
(8) Issue all orders necessary to implement this chapter;
(9) Investigate complaints, upon the superintendent's own motion or upon receipt of a complaint or upon a request of the board, concerning any violation of this chapter or the rules adopted pursuant thereto or the conduct of any person holding a certificate, registration, or license issued pursuant to this chapter;
(10) Establish and maintain an investigation and audit section to investigate complaints and conduct inspections, audits, and other inquiries as in the judgment of the superintendent are appropriate to enforce this chapter. The investigators and auditors have the right to review and audit the business records of certificate holders, registrants, and licensees during normal business hours. The superintendent may utilize the investigators and auditors employed pursuant to division (B)(4) of section 4735.05 of the Revised Code or currently licensed certificate holders or licensees to assist in performing the duties of this division.
(11) Appoint a referee or examiner for any proceeding involving the revocation or suspension of a certificate, registration, or license under section 3123.47 or 4763.11 of the Revised Code;
(12) Administer the real estate appraiser recovery fund;
(13) Conduct the examinations required by division (D) of section 4763.05 of the Revised Code at least four times per year.
(C) The superintendent may do all of the following:
(1) In connection with investigations and audits under division (B) of this section, subpoena witnesses as provided in section 4763.04 of the Revised Code;
(2) Apply to the appropriate court to enjoin any violation of this chapter. Upon a showing by the superintendent that any person has violated or is about to violate this chapter, the court shall grant an injunction, restraining order, or other appropriate relief, or any combination thereof.
(D) All information that is obtained by investigators and auditors performing investigations or conducting inspections, audits, and other inquiries pursuant to division (B)(10) of this section, from certificate holders, registrants, licensees, complainants, or other persons, and all reports, documents, and other work products that arise from that information and that are prepared by the investigators, auditors, or other personnel of the department of commerce, shall be held in confidence by the superintendent, the investigators and auditors, and other personnel of the department.
(E) The division of real estate shall release or exchange, with other state regulatory authorities upon their request, information relating to registrants and licensees. For this purpose, a "state regulatory authority" includes the attorney general, a regulator of a business activity in which a registrant or licensee is engaged or has applied to engage in, to the extent that the regulator has jurisdiction over a registrant or licensee engaged in that business activity, or a regulator of a business activity that is conducting an investigation of a registrant or licensee that falls under its jurisdiction, and when the information to be released is relevant to the investigation. A registrant or licensee is engaged in a business activity, and a regulator of that business activity has jurisdiction over the registrant or licensee, whether the registrant or licensee conducts the activity directly or a subsidiary or affiliate of the registrant or licensee conducts the activity.
Sec. 4763.11.  (A) Within five business days after a person files a signed written complaint against a person certified, registered, or licensed under this chapter with the division of real estate, the superintendent of real estate shall acknowledge receipt of the complaint or request and send a notice to the certificate holder, registrant, or licensee describing the acts of which there is a complaint. The acknowledgement to the complainant and the notice to the certificate holder, registrant, or licensee shall state that an informal meeting will be held with the complainant, the certificate holder, registrant, or licensee, and an investigator from the investigation and audit section of the division, if the complainant and certificate holder, registrant, or licensee both file a request for such a meeting within ten business days thereafter on a form the superintendent provides.
(B) If the complainant and certificate holder, registrant, or licensee both file with the division requests for an informal meeting, the superintendent shall notify the complainant and certificate holder, registrant, or licensee of the date of the meeting, which shall be within twenty business days thereafter, except that the complainant, certificate holder, registrant, or licensee may request an extension of up to fifteen business days for good cause shown. If the complainant and certificate holder, registrant, or licensee reach an accommodation at an informal meeting, the investigator shall so report to the superintendent and to the complainant and certificate holder, registrant, or licensee and the complaint file shall be closed, unless, based upon the investigator's report, the superintendent finds evidence that the certificate holder, registrant, or licensee has violated division (G) of this section.
(C) If the complainant and certificate holder, registrant, or licensee fail to agree to an informal meeting or fail to reach an accommodation, or if the superintendent finds evidence of a violation of division (G) of this section pursuant to an investigation conducted pursuant to division (B)(9) of section 4763.03 of the Revised Code, the superintendent shall, within five business days of such determination, notify the complainant and certificate holder, registrant, or licensee and investigate the conduct of the certificate holder, registrant, or licensee against whom the complaint is filed.
(D) Within sixty business days after receipt of the complaint, or, if an informal meeting is held, within sixty days after such meeting, the investigator shall file a written report of the results of the investigation with the superintendent. Within ten business days thereafter, the superintendent shall review the report and determine whether there exists reasonable and substantial evidence of a violation of division (G) of this section by the certificate holder, registrant, or licensee. If the superintendent finds such evidence exists, within five business days of that determination, the superintendent shall notify the complainant and certificate holder, registrant, or licensee of the determination. The certificate holder, registrant, or licensee may request a hearing pursuant to Chapter 119. of the Revised Code. If the superintendent finds that such evidence does not exist, within five business days thereafter, the superintendent shall notify the complainant and certificate holder, registrant, or licensee of that determination and the basis for the determination. Within fifteen business days after the superintendent notifies the complainant and certificate holder, registrant, or licensee that such evidence does not exist, the complainant may file with the division a request that the real estate appraiser board review the determination. If the complainant files such request, the board shall review the determination at the next regularly scheduled meeting held at least fifteen business days after the request is filed but no longer than six months after the request is filed. The board may hear the testimony of the complainant, certificate holder, registrant, or licensee at the meeting upon the request of that party. If the board affirms the determination of the superintendent, the superintendent shall notify the complainant and the certificate holder, registrant, or licensee within five business days thereafter. If the board reverses the determination of the superintendent, a hearing shall be held and the complainant and certificate holder, registrant, or licensee notified as provided in this division.
(E) The board shall review the referee's or examiner's report and the evidence at the next regularly scheduled board meeting held at least fifteen business days after receipt of the referee's or examiner's report. The board may hear the testimony of the complainant, certificate holder, registrant, or licensee upon request. If the complainant is the Ohio civil rights commission, the board shall review the complaint
(F) If the board determines that a licensee, registrant, or certificate holder has violated this chapter for which disciplinary action may be taken under division (G) of this section, after review of the referee's or examiner's report and the evidence as provided in division (E) of this section, the board shall order the disciplinary action the board considers appropriate, which may include, but is not limited to, any of the following:
(1) Reprimand of the certificate holder, registrant, or licensee;
(2) Suspension of the certificate, registration, or license for a specific period of time;
(3) Suspension of the certificate, registration, or license until the certificate holder, registrant, or licensee complies with conditions the board sets, including but not limited to, successful completion of the real estate appraiser examination described in division (D) of section 4763.05 of the Revised Code or completion of a specific number of hours of continuing education instruction in courses or seminars approved by the board;
(4) Revocation of the certificate, registration, or license.
The decision and order of the board is final, subject to review in the manner provided for in Chapter 119. of the Revised Code and appeal to any court of common pleas.
(G) The board shall take any disciplinary action authorized by this section against a certificate holder, registrant, or licensee who is found to have committed any of the following acts, omissions, or violations during the appraiser's certification, registration, or licensure:
(1) Procuring or attempting to procure a certificate, registration, or license pursuant to this chapter by knowingly making a false statement, submitting false information, refusing to provide complete information in response to a question in an application for certification, registration, or licensure, or by any means of fraud or misrepresentation;
(2) Paying, or attempting to pay, anything of value, other than the fees or assessments required by this chapter, to any member or employee of the board for the purpose of procuring a certificate, registration, or license;
(3) Being convicted in a criminal proceeding for a felony or a crime involving moral turpitude;
(4) Dishonesty, fraud, or misrepresentation, with the intent to either benefit the certificate holder, registrant, or licensee or another person or injure another person;
(5) Violation of any of the standards for the development or communication of real estate appraisals set forth in this chapter and rules of the board;
(6) Failure or refusal to exercise reasonable diligence in developing an appraisal, preparing an appraisal report, or communicating an appraisal;
(7) Negligence or incompetence in developing an appraisal, in preparing an appraisal report, or in communicating an appraisal;
(8) Willfully disregarding or violating this chapter or the rules adopted thereunder;
(9) Accepting an appraisal assignment where the employment is contingent upon the appraiser preparing or reporting a predetermined estimate, analysis, or opinion, or where the fee to be paid for the appraisal is contingent upon the opinion, conclusion, or valuation attained or upon the consequences resulting from the appraisal assignment;
(10) Violating the confidential nature of governmental records to which the certificate holder, registrant, or licensee gained access through employment or engagement as an appraiser by a governmental agency;
(11) Entry of final judgment against the certificate holder, registrant, or licensee on the grounds of fraud, deceit, misrepresentation, or gross negligence in the making of any appraisal of real estate;
(12) Violating any federal or state civil rights law;
(13) Having published advertising, whether printed, radio, display, or of any other nature, which was misleading or inaccurate in any material particular, or in any way having misrepresented any appraisal or specialized service;
(14) Failing to maintain records for five years as required by section 4763.14 of the Revised Code.
(H) The board immediately shall notify the superintendent of real estate of any disciplinary action taken under this section against a certificate holder, registrant, or licensee who also is licensed under Chapter 4735. of the Revised Code, and also shall notify any other federal, state, or local agency and any other public or private association that the board determines is responsible for licensing or otherwise regulating the professional or business activity of the appraiser. Additionally, the board shall notify the complainant and any other party who may have suffered financial loss because of the certificate holder's, registrant's, or licensee's violations, that the complainant or other party may sue for recovery under section 4763.16 of the Revised Code. The notice provided under this division shall specify the conduct for which the certificate holder, registrant, or licensee was disciplined and the disciplinary action taken by the board and the result of that conduct.
(I) A certificate holder, registrant, or licensee shall notify the board of the existence of a criminal conviction of the type described in division (G)(3) of this section within fifteen days of the conviction.
(J) If the board determines that a certificate holder, registrant, or licensee has violated this chapter for which disciplinary action may be taken under division (G) of this section as a result of an investigation conducted by the superintendent upon the superintendent's own motion or upon the request of the board, the superintendent shall notify the certificate holder, registrant, or licensee of the certificate holder's, registrant's, or licensee's right to a hearing pursuant to Chapter 119. of the Revised Code and to an appeal of a final determination of such administrative proceedings to any court of common pleas.
(K) A complaint made pursuant to this section is a public record, as defined in section 149.43 of the Revised Code, after final resolution or disposition of the complaint. Nothing in this division shall be construed to authorize the disclosure of information obtained in any examination or investigation that is conducted pursuant to Chapter 4763. of the Revised Code, or the disclosure of information otherwise deemed privileged or confidential by law.
Sec. 4763.13.  (A) In engaging in appraisal activities, a person certified, registered, or licensed under this chapter shall comply with the applicable standards prescribed by the board of governors of the federal reserve system, the federal deposit insurance corporation, the comptroller of the currency, the office of thrift supervision, the national credit union administration, and the resolution trust corporation in connection with federally related transactions under the jurisdiction of the applicable agency or instrumentality. A certificate holder, registrant, and licensee also shall comply with the uniform standards of professional appraisal practice, as adopted by the appraisal standards board of the appraisal foundation and such other standards adopted by the real estate appraiser board, to the extent that those standards do not conflict with applicable federal standards in connection with a particular federally related transaction.
(B) The terms "state-licensed residential real estate appraiser," "state-certified residential real estate appraiser," "state-certified general real estate appraiser," and "state-registered real estate appraiser assistant" shall be used to refer only to those persons who have been issued the applicable certificate, registration, or license or renewal certificate, registration, or license pursuant to this chapter. None of these terms shall be used following or in connection with the name or signature of a partnership, corporation, or association or in a manner that could be interpreted as referring to a person other than the person to whom the certificate, registration, or license has been issued.
(C) No person, other than a certificate holder, a registrant, or a licensee, shall assume or use a title, designation, or abbreviation that is likely to create the impression that the person possesses certification, registration, or licensure under this chapter, provided that professional designations containing the term "certified appraiser" and being used on or before July 26, 1989, shall not be construed as being misleading under this division. No person other than a person certified or licensed under this chapter shall describe or refer to an appraisal or other evaluation of real estate located in this state as being certified.
(D) The terms "state-certified or state-licensed real estate appraisal report," "state-certified or state-licensed appraisal report," or "state-certified or state-licensed appraisal" shall be used to refer only to those real estate appraisals conducted by a certificate holder or licensee as a disinterested and unbiased third party provided that the certificate holder or licensee provides certification with the appraisal and provided further that if a licensee is providing the appraisal, such terms shall only be used if the licensee is acting within the scope of the licensee's license.
(E) Nothing in this chapter shall preclude a partnership, corporation, or association which employs or retains the services of a certificate holder or licensee to advertise that the partnership, corporation, or association offers state-certified or state-licensed appraisals through a certificate holder or licensee if the advertisement clearly states such fact in accordance with guidelines for such advertisements established by rule of the real estate appraiser board.
(F) Nothing in this chapter shall preclude a person who is not licensed or certified under this chapter from appraising real estate for compensation, however, no person shall provide a real estate appraisal that will be used in the approval process for a residential mortgage unless the person is licensed under this chapter. For the purpose of this division, "residential mortgage" has the same meaning as in section 1343.011 of the Revised Code.
Section 2. That existing sections 1322.04, 1322.041, 1322.051, 1322.052, 1322.06, 1322.061, 1322.062, 1322.07, 1322.072, 1322.10, 1322.11, 1322.12, 3313.603, 4735.05, 4735.64, 4735.66, 4763.03, 4763.11, and 4763.13 of the Revised Code are hereby repealed.
Section 3. Section 1322.052 of the Revised Code, as amended by this act, shall take effect on the first day of the first calendar year after the effective date of this act.
Section 4. All items in this section are hereby appropriated as designated out of any moneys in the state treasury to the credit of the General Revenue Fund. For all appropriations made in this act, those in the first column are for fiscal year 2006 and those in the second column are for fiscal year 2007. The appropriations made in this act are in addition to any other appropriations made for the FY 2006-2007 biennium.
AGO ATTORNEY GENERAL
Appropriations
GRF 055-417 Ohio Consumer Mortgage Commission $ 5,000,000 $ 0
TOTAL GRF General Revenue Fund $ 5,000,000 $ 0
TOTAL ALL BUDGET FUND GROUPS $ 5,000,000 $ 0

OHIO CONSUMER MORTGAGE COMMISSION
The foregoing appropriation item 055-417, Ohio Consumer Mortgage Commission, shall be used to provide, supervise, and coordinate grants for programs that educate consumers in financial decision-making, mortgage borrowing, and predatory lending in accordance with section 1349.55 of the Revised Code, as enacted in this act. An amount equal to the unexpended, unencumbered portion of the foregoing appropriation item 055-417, Ohio Consumer Mortgage Commission, at the end of fiscal year 2006 is hereby reappropriated to the Attorney General for the same purpose for fiscal year 2007.
Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the form and manner in which appropriation accounts shall be maintained. Expenditures from appropriations contained in this act shall be accounted for as though made in Am. Sub. H.B. 66 of the 126th General Assembly.
The appropriations made in this act are subject to all provisions of Am. Sub. H.B. 66 of the 126th General Assembly that are generally applicable to such appropriations.
Section 5. Sections 4 and 5 of this act, and the items of law of which those sections are composed, are not subject to the referendum. Therefore, under Ohio Constitution, Article II, Section 1d and section 1.471 of the Revised Code, Sections 4 and 5 of this act, and the items of law of which those sections are composed, go into immediate effect when this act becomes law.
Section 6.  Section 3313.603 of the Revised Code is presented in this act as a composite of the section as amended by both Am. Sub. H.B. 94 and Am. Sub. S.B. 1 of the 124th General Assembly. The General Assembly, applying the principle stated in division (B) of section 1.52 of the Revised Code that amendments are to be harmonized if reasonably capable of simultaneous operation, finds that the composite is the resulting version of the section in effect prior to the effective date of the section as presented in this act.
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