2023 Ohio Revised Code › Title 41 | Labor and Industry › Chapter 4121 | Industrial Commission; Bureau of Workers' Compensation › Section 4121.127 | Transactions by Fiduciary Involving Conflict of Interest.

Effective:
September 29, 2005
Latest Legislation:
House Bill 66 - 126th General Assembly
(A) Except as provided in division (B) of this section, a fiduciary shall not cause the bureau of workers' compensation to engage in a transaction, if the fiduciary knows or should know that such transaction constitutes any of the following, whether directly or indirectly:
(1) The sale, exchange, or leasing of any property between the bureau and a party in interest;
(2) Lending of money or other extension of credit between the bureau and a party in interest;
(3) Furnishing of goods, services, or facilities between the bureau and a party in interest;
(4) Transfer to, or use by or for the benefit of a party in interest, of any assets of the bureau;
(5) Acquisition, on behalf of the bureau, of any employer security or employer real property.
(B) Nothing in this section shall prohibit any transaction between the bureau and any fiduciary or party in interest if both of the following occur:
(1) All the terms and conditions of the transaction are comparable to the terms and conditions that might reasonably be expected in a similar transaction between similar parties who are not parties in interest.
(2) The transaction is consistent with fiduciary duties under this chapter and Chapters 4123., 4127., and 4131. of the Revised Code.
(C) A fiduciary shall not do any of the following:
(1) Deal with the assets of the bureau in the fiduciary's own interest or for the fiduciary's own account;
(2) In the fiduciary's individual capacity or in any other capacity, act in any transaction involving the bureau on behalf of a party, or represent a party, whose interests are adverse to the interests of the bureau or to the injured employees served by the bureau;
(3) Receive any consideration for the fiduciary's own personal account from any party dealing with the bureau in connection with a transaction involving the assets of the bureau.
(D) In addition to any liability that a fiduciary may have under any other provision, a fiduciary, with respect to bureau, shall be liable for a breach of fiduciary responsibility in any the following circumstances:
(1) If the fiduciary knowingly participates in or knowingly undertakes to conceal an act or omission of another fiduciary, knowing such act or omission is a breach;
(2) If, by the fiduciary's failure to comply with this chapter or Chapter 4123., 4127., or 4131. of the Revised Code, the fiduciary has enabled another fiduciary to commit a breach;
(3) If the fiduciary has knowledge of a breach by another fiduciary of that fiduciary's duties under this chapter and Chapters 4123., 4127., and 4131. of the Revised Code, unless the fiduciary makes reasonable efforts under the circumstances to remedy the breach.
(E) Every fiduciary of the bureau shall be bonded or insured for an amount of not less than one million dollars for loss by reason of acts of fraud or dishonesty.
(F) As used in this section, "fiduciary" means a person who does any of the following:
(1) Exercises discretionary authority or control with respect to the management of the bureau or with respect to the management or disposition of its assets;
(2) Renders investment advice for a fee, directly or indirectly, with respect to money or property of the bureau;
(3) Has discretionary authority or responsibility in the administration of the bureau.