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Commerce
News January /
February 2010 Edition
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MESSAGE FROM THE DIRECTOR
As Director of the
Department of Commerce, I view the agency as one of the economic
drivers in our state, as we license and regulate over two dozen
different industry levels. The agency comprises eight different
divisions: Real Estate & Professional Licensing, Unclaimed Funds,
Financial Institutions, Securities, Video Servicing, Industrial
Compliance & Labor, Liquor Control and the State Fire Marshal. Fair
and efficient regulation of these industries is extremely important and
helps keep Ohio
business moving.
We are
focused on providing excellent customer service and working together
with our partners to find solutions to obstacles or issues that we
encounter. Whether it is licensing a new real estate broker, issuing a
new liquor permit, approving a new building plan or inspecting an
elevator, the issuance of each new license brings a new economic
opportunity in our state.
I am
confident that working together as partners, we can further assist the
State of Ohio
in advancing economic growth and development. I encourage you to share
this newsletter with your colleagues and look forward to working with
you on future matters.
Director,
Ohio Department of Commerce
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FINANCIAL INSTITUTIONS
DFI Joins Nationwide
Mortgage Licensing System
The Division
of Financial Institutions (DFI) initiated Ohio's use of the Nationwide
Mortgage Licensing System (NMLS) on January 4, 2010. The new system
allows Ohio
mortgage companies to renew, amend, surrender, or apply for their licenses
through a single national licensing database. This change was
enabled by the Ohio SAFE Act, which added consumer protections and
expanded individual licensing requirements, while maintaining Ohio's
existing high licensing standards.
DFI encourages
anyone who needs to obtain a company registration or
individual license for the first time to apply as soon as
possible. The applicable deadlines for entities and individuals
to obtain a registration or license can be found on DFI's NMLS webpage.
Depository institutions and their subsidiaries must register their
loan originators pursuant to federal law. For more information,
depository institutions should contact their primary federal
regulator.
DFI to Offer
"Shelf Charters" for Private Equity Firms
The Ohio
Division of Financial Institutions (DFI) is streamlining
the process for chartering a bank so private equity and
other firms may bid in FDIC auctions for failing banks. DFI
plans to offer new "shelf charters" by pre-approving conditional
charters, so equity investment may be infused quickly into troubled
institutions, either through an open bank transaction or through
FDIC's bid process.
Upon receipt of an application for a shelf charter, DFI will
evaluate the qualifications of the proposed management team, sources
and amount of capital available to the proposed institution and the
streamlined business plan that describes how the acquired bank will
operate. At the end of this process, DFI may grant preliminary
approval of a charter, subject to certain conditions, including but
not limited to a requirement that more detailed operating plans be
submitted if the new charter targets a specific institution for
acquisition. Through the imposed oversight conditions, DFI will
retain the ability to oversee how the shelf charter functions and
operates.
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INDUSTRIAL
COMPLIANCE AND LABOR
New Law Means
Changes for Building Owners
The Division
of Industrial Compliance and Labor is reminding building owners and
volunteers of a new Ohio law that requires them to be licensed if
they plan to perform electrical, plumbing, hydronics,
HVAC and refrigeration work in commercial buildings. Now, all
commercial buildings in the State of Ohio must have a licensed
contractor in the five specialty trades mentioned above.
Additionally, the law allows the trade sections of the Ohio
Construction Industry Licensing Board to impose penalties against
unlicensed contractors of up to $1,000 per day per
violation. Prior to this law change, the board's only recourse
against unlicensed contractors was to file a complaint with the local
prosecutor. To learn about obtaining or renewing a license or to
find out whether your contractors are licensed, contact the Division
of Industrial Compliance and Labor at (614) 644-3493 or visit http://www.com.ohio.gov/dico/OCILB.aspx#lic.
LAWS
Bureau Offers Training on Prevailing Wage
The
Bureau of Labor & Worker Safety (LAWS) is offering information to
public entities on how prevailing wage impacts their publicly funded
construction projects. LAWS also offers training and seminars for Ohio
businesses, employers and contractors to explain how prevailing wage
regulations work and how your entity can comply with state law to
avoid future complaints. Businesses, employers and public
entities interested in setting up training programs should
contact LAWS at 614-644-2239.
Businesses and public entities that lack knowledge of prevailing wage
laws sometimes find themselves financially liable in a complaint. The
best thing an Ohio
public entity or business may do to avoid financial liability is to
contact LAWS beforehand for training. LAWS investigators are
ready and willing to work with Ohio's
public entities and businesses to help them comply with state laws.
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LIQUOR CONTROL
Division of Liquor
Control Sales Top $734 Million
The Ohio
Division of Liquor Control has announced a record level of $734.8
million in sales of spirituous liquor in calendar year 2009.
The 2009 dollar sales exceeded the last year's total by $15.7 million
or 2.18 percent. Increased dollar sales, combined with efficient
management by Division of Liquor Control, resulted in a record net
profit of $224.2 million and an all-time high profit margin of 30.1
percent and allowed for a total contribution of more than $299
million to the state's treasury.
Liquor sales continue to benefit mostly from increases in product
prices, a continuation of the trend of consumers buying more
premium-priced products and a rise in the level of consumption.
Other factors that contributed to the record sales include better
inventory management and product selection and better management of
contract liquor agency locations.
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REAL ESTATE &
PROFESSIONAL LICENSING
Ohio Home Sales Rise
in Last Quarter of 2009
Optimism may
be growing in the real estate marketplace, according to new statistics---reported by
the Ohio Association of Realtors---that show home sales rose 10.9
percent in the last quarter of 2009 compared to the fourth quarter of
2008. This uptick follows an extended period of decline, and this
improvement was due in part to services provided by Ohio's real estate licensees and
the efforts of the Division of Real Estate & Professional Licensing.
The division has worked hard to assist the more than 45,500 real
estate professionals keep their business and personal licenses up to
date.
During the fourth quarter of 2009, the Division welcomed 521 new
licensees into the profession---an increase of 23 percent over the
last quarter of 2008. Additionally, the Division provided guidance
and support to 38 new real estate companies that opened during the
fourth quarter, which is a 42 percent increase over the last three
months of 2008. With 2010 underway, the Division of Real Estate
& Professional Licensing remains committed to helping Ohio's real
estate professionals succeed, knowing that the turnaround in the real
estate market will provide a foundation for economic growth and job
expansion in the coming year.
Real Estate Division
Warns Against Predatory Practices
The Division
of Real Estate & Professional Licensing is continuing its efforts
to combat predatory practices in the real estate industry. Since
2007, the Ohio Real Estate Appraiser Board has revoked 14 appraiser
licenses and required the permanent surrender of 21 appraiser
licenses for improper appraisal practices. In addition, the Ohio
Real Estate Commission cracked down on unlicensed real estate
activity and other unethical conduct including land-trust
and investor scams. Since 2004, the commission has assessed 3.6
million dollars in unlicensed civil penalties, sending a message that
such conduct will not be tolerated by the State of Ohio.
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SECURITIES
Con Artist Campaign
Warns Ohioans of Investment Fraud
On February
1, the Division of Securities launched the "Con
Artist" public awareness campaign. The multi-media campaign
warns Ohioans to be on guard for potential con artists in their
life. Radio, television, billboard, newspaper and Internet
advertisements will run statewide and focus on how con artists
befriend potential investors at work, church, charities, schools, in
the neighborhood and at "free lunch" seminars. As soon as
he or she gains your trust, the con artist is "going to take you
for everything you've got."
The ads
encourage Ohioans to call the Division of Securities Investor
Protection Hotline at 1-877-NVEST411 (1-877-683-7841) to ask whether
a seller is licensed or an investment product is registered.
Ohioans also may visit www.conartist.ohio.gov
for additional information.
Division of
Securities Offers Tips for Avoiding "Ponzi"
Schemes
The Division
of Securities continues to caution potential investors to
check the validity of investment professionals and opportunities to
avoid scams and Ponzi schemes. The
"Ponzi" scheme, named after
the 1920's swindler Charles Ponzi, is a
ploy whereby a con artist pays early investors with the funds of
later investors. Often, Ponzi scheme con
artists make bogus claims of underlying investments. Eventually, Ponzi schemes fall apart as the number of total
investors grows and the supply of new investors dwindles, leading to
a shortage of money to pay off promised returns. A recent
example of a famous Ponzi scheme is
the Bernie Madoff investment scandal. To
avoid such schemes, the Division of Securities warns potential
investors to:
- Be
skeptical when promised unusually high or unrealistic returns.
- Take
the time to understand what you are purchasing.
- Always
stay in charge of your money.
- Keep
detailed notes on conversations about your investments.
- Receive
confirmation of trades and carefully review your account
statements.
- Call the
Investor Protection Hotline at 1-800-788-1194 to learn
whether a professional is licensed and whether they
have had enforcement actions taken against
them.
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Lack of Smoke
Detectors Contributes to Fire-Related Fatalities
Since the
beginning of 2010, there have been 13 fire-related deaths in Ohio, and in
each case, investigators have reported that the home had no active,
working smoke detectors. Interim State Fire Marshal Donald C. Cooper
continues to encourage everyone to do their part and help spread the
message of the need for smoke detectors.
"No single device has the potential to save more lives in Ohio's homes
than a smoke detector," said Marshal Cooper. "In light of
the recent tragedies throughout the state, I encourage everyone to
check the smoke detectors in their home or apartment." During
the winter months, there is greater opportunity for fires in homes
because of heating devices, cooking and, in general, the increased
time spent indoors. If a fire does occur in your home, a working
smoke detector can double your chances of escaping. Smoke detector
information and winter fire safety are available at http://www.com.ohio.gov/fire/.
Fire Marshal, Regents,
ODPS Launch New Fire Education Program
The Division of State Fire Marshal is spearheading a unique effort
with the Ohio Board of Regents and the Ohio Department of Public
Safety to develop a standardized fire training and education system
for the State of Ohio's
firefighters. The mission of this effort is to create pathways to
lifelong learning for firefighters, while reducing firefighter
injuries and deaths. This collaborative effort, based on national
educational standards developed by the United States Fire
Administration, has the attention of fire educators across the
country and may serve as a template for other states in the
future.
"If you want to become a lawyer there is a clearly defined path
one must follow," said Interim State Fire Marshal Donald Cooper.
"The path to becoming an executive fire officer is nowhere near
as clearly defined and we are striving to change this." Cooper
says there is a need for consistency, coordination and cooperation in
these efforts that the three regulatory agencies working together can
meet.
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UNCLAIMED FUNDS
Businesses,
Individuals Urged to Watch for Unclaimed Funds In 2010
The Ohio
Department of Commerce Division of Unclaimed Funds is reminding
businesses, organizations and individuals to watch for 2010 unclaimed
funds newspaper notices, starting in March. The Division of Unclaimed
Funds places annual newspaper notices of unclaimed property valued at
$50 or more reported to the state in the last year. The notices
appear in newspapers in the counties of the owners' last known
addresses. Click on the attached schedule to see when 2010 ads
are planned for the Ohio
counties where you have lived, worked or conducted business.
Meanwhile, anyone can check for unclaimed funds any day of the year
using the Division's Online Treasure
Hunt. The Online Treasure Hunt searches all unclaimed funds
accounts reported over the years. Persons without Internet access can
request research assistance by writing the Division of Unclaimed
Funds at 77 South High
Street, 20th Floor, Columbus, OH, 43215. The request must
include the full name(s) to be researched, along with the counties in
which the person(s) might have resided. Anyone with questions about
unclaimed funds can call the Division toll free at 1-877-644-6823
(OHIO UCF).
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SAVE
THE DREAM OHIO
REACHES OUT TO HOMEOWNERS
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Save the Dream
Ohio (SDO), the official state foreclosure prevention
effort, is reaching out to homeowners to let them know about free
foreclosure prevention resources available through the SDO hotline,
1.888.404.4674, and website.
As part of
this effort, SDO is launching a grassroots effort to blanket the
state with information for homeowners on what they can do to avoid
foreclosure. SDO is assembling
outreach toolkits for local
groups who want to help spread to word. If your agency is interested
in participating, click here to request toolkit.
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HOTLINE
OFFERS HELP TO CABLE SUBSCRIBERS
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The ODOC's Cable TV Consumer Hotline, 1-800-686-7826,
is available to help Ohioans resolve issues with their cable
companies. The Public Utilities Commission of Ohio (PUCO) Call Center answers consumer calls
made to the hotline and forwards the information they obtain to the
ODOC.
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Since 2007,
ODOC has received more than 4,700 consumer complaints concerning
billing disputes, poor picture quality, equipment malfunctions and
cancelled or missed service appointments. ODOC encourages Ohioans to
call the hotline or email VSA@com.state.oh.us to report
issues with cable companies.
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UPCOMING
EVENTS
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Ohio Real Estate
Commission
February 3,
9:00 a.m.
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Ohio Real Estate
Commission
Ohio Cemetery Dispute
Resolution Commission
March 18, 10:00 a.m.
Ohio Real Estate
Appraiser Board
March 25, 10:00 a.m.
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The Ohio Department of Commerce is charged
with the fair and efficient regulation of more than two dozen industries,
including:
- state-chartered
financial institutions
- consumer finance
companies
- real estate
professionals
- appraisers
- securities
professionals
Commerce
is involved in the review and approval of building plans for the
construction and renovation of commercial and public building projects.
Commerce
issues more than 300,000
licenses each year.
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