Monday, December 30, 2013

Online Schools Operate Independently of School Districts in Ohio


Q:       What is an online school? 
A:        In Ohio, an online school (a.k.a. “virtual school” or “e-school”) is a type of community school, meaning that it is a non-profit, non-sectarian school that operates independently of any traditional school district. Online schools have existed in Ohio since 2000. These schools typically accept students from across the state because there are no district boundaries as with traditional schools. Students of online schools may attend class from a home computer or may use a local computer lab or classroom established by the online school. Like all community schools, online schools must operate under a contract with a non-profit sponsoring entity, which could be a traditional school district or an educational service center.

Q:       How are online schools approved to operate?
A:        Online schools must be approved to operate (“chartered”) by the Ohio Department of Education (ODE). As of 2013, the ODE approves no more than five new online schools each year. The ODE’s criteria for approval is based largely on the proposed sponsor’s experience in education and the quality of education that the ODE determines the school’s proposed sponsor and/or operator is able to provide. If approved, an online school must continue to comply with the standards for operation adopted by the ODE. The online school must also abide by the contract with its sponsoring entity. 

Q:       How are online schools funded?
A:        Online schools, like other community schools, are publically funded. They receive per-pupil foundation payments from the ODE for regular and special education students enrolled in the school. Online schools are also eligible for federal funding and private grants. Online schools do not receive real estate tax revenues like traditional school districts. 

Q:       Are online school teachers licensed?
A:        Yes. Online school teachers must comply with all of the ODE’s certification and licensing requirements, although teachers may teach outside of their areas of certification. Most online school administrators do not have to be licensed, however. 

Q:       Must online school students take the same tests Ohio requires for public school students?
A:        Yes. Online school students must take all state-required tests, including diagnostic assessments, proficiency tests, the Ohio Achievement Assessment (OAA) and the Ohio Graduation Test (OGT). 

Q:       How is online schooling different from home schooling?
A:        Although online school students may actually do the majority or even all of their school work at home, they are not considered to be “home schooled.” Rather, home schooled students are students excused from attending their traditional school district so they can receive instruction from a parent or guardian. To be approved for home instruction, the parent/guardian directing the home education must provide certain assurances to the superintendent of the traditional school district about his/her ability to teach effectively. The parent or guardian must teach certain core subjects, including but not limited to history, government, language, reading, writing, mathematics, science, health, physical education and the fine arts. Each home-schooled student must also be provided a minimum of 900 hours of education each school year.  Once approved for home schooling by the superintendent, the parent/guardian selects the educational materials and takes responsibility for educating the student.
            One important difference between online schooling and home schooling is that students who graduate from online schools receive diplomas that are recognized by the State Board of Education, while home-schooled students do not. This is not to say that home schooled students cannot receive credit for their previous education or continue to college. Colleges, universities and employers have discretion in deciding whether to accept credits or credentials issued by a home-schooled student. 
            Another difference surfaced with a law enacted in the fall of 2013 that requires traditional public school districts to give home-schooled students residing in the district the opportunity to participate in extracurricular activities offered by the district. This same opportunity to participate is currently not offered to students attending online schools. However, online schools may offer their own extracurricular activities and social opportunities for their students. 

This “Law You Can Use” column was provided by the Ohio State Bar Association. It was prepared by attorney Mark A. Weiker of the Columbus firm Means, Bichimer, Burkholder & Baker Co., LPA. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.

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Monday, December 23, 2013

The New Litigation Peril - Patent Trolls: What You Should Know


Q:       I got a threatening letter from an attorney’s office claiming my business violated someone else’s patent. Should I be concerned?
A:        Yes. Your letter may have come from a “non-practicing entity” (sometimes called a “patent troll”). Such a person or company attempts to collect licensing fees for patent violations, but does not actually manufacture products or supply services based on the patents in question. Patent law does not differentiate between non-practicing entities and companies that produce actual products or services.   The patent infringement case is still conducted as any other lawsuit in federal court, and the cost of defending such a lawsuit may cost several thousand dollars or more. If a “patent troll” brings a suit against your company, you will have to hire an attorney well versed in intellectual property law to advise you about your options and to respond properly to the lawsuit. The letter may also be from a firm or a company that actually utilizes the patent. In either case, you should contact an attorney with patent defense experience.

Q:       What, exactly, is patent infringement?
A:       
The United States Patent and Trademark Office ( USPTO) grants patents to give patent owners the right to exclude others from making, using, offering to sell or selling a patented invention (or a product made by the patented process) within the United States or from importing it into the United States. You might be “infringing” on a patent owned by someone else if you make, use, offer to sell or sell that patented invention (or a product derived from the patented process) before the term of the patent expires, unless you have received permission from the patent holder and/or provide compensation.

Q:       How might my company infringe someone’s patent?
A:        If your company markets, as its own, a product or method that includes each and every element or method step used in a patented product or method, then your company has literally infringed someone else’s patent rights. But, if there is even one element or method step that does not match the patented product or method, then you have not literally infringed that patent.
However, there is another way your company might be found guilty of patent infringement. Even though your product (or method) may not exactly match that of the patent-holder, there is a “doctrine of equivalents” in the law. This doctrine that says you still may be infringing if you have an “equivalent” for every element of the patented product or method that doesn’t exactly match. 
            The jury will ultimately decide if the patent claims are valid, and your company must prove that these claims are invalid “by clear and convincing evidence,” meaning that the evidence shows it is highly probable that the patent claims are invalid.

Q:       What happens if my small business is sued for infringing a patent?
A:        If that happens, a court can order you to stop infringing the patent, and may order you to pay an amount of money in damages. Because such a lawsuit can be significant enough to threaten your business, it is important to consult with a qualified patent attorney.

Q:       How would a patent holder prove infringement?
A:        The patent holder must bring a legal action and:
  • show proof of patent ownership, usually by providing the patent registration certificate from the USPTO;
  • prove that someone has imported, made, used, sold or offered to sell the patent holder’s invention or a product derived from the patented process;
  • prove that this infringement harmed the patent holder (by depriving the patent holder of revenue, for example).
                 
            However, a “non-practicing entity” or “patent troll” that does not actually produce a product or service, but still owns a legitimate patent for the product or service, also may bring a lawsuit against you.  The “troll” might have purchased the patents from the original inventor or may even have invented the product or service, even if it is not currently being produced or used.  The law does not discriminate against patent owners that have yet to produce a product; it is expected that production of a product or service may be limited or even non-existent for some time after it is patented. Some companies simply aggregate all types of patents, intending to sue parties that might be prone to settle quickly. 
            While the law is designed to protect the innovator (who might have limited funds), the non-practicing entity can be viewed as unfairly exploiting the law.  Also, because litigation in the area of patents and trademarks is extremely expensive, defendants are often inclined settle rather than take on the massive cost of a lawsuit.

The Ohio State Bar Association (OSBA) provided this “Law You Can Use” column. Columbus attorney Brice Recker of Okuley Smith LLC prepared it. The column offers general information about the law. Seek an attorney’s advice before applying this information to a legal problem.    

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Monday, December 16, 2013

Phone Scam Targets Taxpayers


Q:       I just got an upsetting phone call from someone who said I owe money to the IRS. He said if I didn’t pay it back right away using a pre-loaded debit card or a wire transfer, that I might be arrested or deported, or that I might lose my driver’s license. I hung up the phone, but now I’m worried. What if I’m arrested?
A:        The IRS is currently warning consumers about a scam that has hit taxpayers, including recent immigrants, in nearly every state in the country. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If victims refuse to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. In many cases, the caller becomes hostile and insulting.
            The IRS DOES NOT and WILL NOT ask for credit card numbers over the phone. Also, the IRS WILL NOT ask you for a pre-paid debit card or wire transfer. If you receive an unexpected call from someone claiming to be from the IRS, and person threatens you with police arrest, deportation or revocation of your license if you don’t pay immediately, those are signs that it really isn’t the IRS calling. If the IRS wants to contact you about a tax issue, you will probably receive your first notice through the mail.

Q:       What else should I know about this phone scam?
A:        You should know that:
·       scammers use fake names and IRS badge numbers, and generally use common names and surnames to identify themselves;
·       scammers may be able to recite the last four digits of your Social Security number;
·       scammers may spoof the IRS toll-free number on your caller ID to make it appear that it’s really the IRS calling;
·       scammers sometimes send bogus IRS emails to support their bogus calls;
·       you may hear background noise of other calls being conducted to mimic a call site;
·       after threatening you with jail time or driver’s license revocation, scammers may hang up, but then other scammers may soon call back pretending to be from the local police or DMV (and your caller ID may support this claim).

Q:       What should I do if I ever get a call like that again?
A:        If you get a phone call from someone claiming to be from the IRS, here’s what you should do:
  • If you know you owe taxes or you think you might owe taxes, call the IRS at 800-829-1040. The IRS employees at that line can help you with a payment issue, if one actually exists.
  • If you know you don’t owe taxes or have no reason to think that you owe any taxes (for example, you’ve never received a bill, or the caller made the threats described above), then call and report the incident to the Treasury Inspector General for Tax Administration at 800-366-4484.
  • If you’ve been targeted by this scam, you should also contact the Federal Trade Commission and use their “FTC Complaint Assistant” at FTC.gov. Please add “IRS Telephone Scam” to the comments of your complaint.

Q:       Are there other scams I should know about?
A:        Yes. You should be aware that there are other unrelated scams (such as a lottery sweepstakes) and solicitations (such as debt relief) that fraudulently claim to be from the IRS.
            The IRS encourages you to be vigilant against phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS also does not ask for PINs, passwords or similar confidential access information for credit card, bank or other financial accounts. If you receive such a communication, you should not open any attachments or click on any links contained in the message. Instead, forward the email to phishing@irs.gov.

Q:       Where can I get more information?
A:        For more information on how to report phishing scams involving the IRS, go to the genuine IRS website, IRS.gov.

The information for this “Law You Can Use” column was provided by the Internal Revenue Service. It was prepared by the Ohio State Bar Association. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.

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Monday, December 9, 2013

Consider Alternatives before Obtaining Auto Title Loan


Q:       What is an auto title loan?
A:       
When you apply for an “auto title” loan, the lender will use the title to your vehicle as security for a short-term loan—usually for a small amount ($500-$1,000). Typically, your vehicle must be paid off or you must have only a small balance left on your vehicle purchase loan to get an auto title loan.

Q:       How do I get an auto title loan?
A:       
Auto title lenders use your auto title rather than a post-dated check as collateral for the loan. To get an auto title loan, you would present identification, pay stubs, verification of your street address, a clear title to your car, your vehicle and an extra set of car keys (so the lender can repossess your car without having to tow it, in the event you do not pay back the loan). The lender will assess your vehicle to determine how large a loan your vehicle qualifies you to receive. Next, the auto title lender will put a lien on your vehicle’s title. The lender will keep your vehicle title, but will not transfer the title to the lender’s name. Then, the lender will give you a check, typically payable within 30 to 60 days. The lender will only return your vehicle title to you once you repay the loan in full.
            Some auto title lenders use the credit service organization (CSO) model for auto title lending. This method involves 1) the auto title lender with a CSO license, 2) a third-party lender and 3) the borrower. The auto title lender gets the CSO license from the Ohio Department of Commerce, and offers you an auto title loan provided by a third-party lender. The third-party lender is licensed by the Ohio Department of Commerce to lend under either the Small Loan Act or the Mortgage Loan Act. Under this CSO model, the auto title lender will charge you (the borrower) a brokering fee and the third-party lender will charge you fees and interest on the loan.

Q:       What happens if I cannot make the payment on my auto title loan?
A:       
Because you have given your vehicle title as security for the loan, the lender can repossess your vehicle if you do not repay the loan—or the lender may give you the option of refinancing or rolling over the loan.

Q:       What are some advantages and disadvantages of getting an auto title loan?
A:       
You can usually get an auto title loan quickly and easily, assuming you own a car and owe little or nothing on your original vehicle loan. There are also very few underwriting requirements, so you are likely to be approved for an auto title loan if you own your vehicle.
            Because you have to put your vehicle title up as collateral to get an auto title loan, your vehicle can be repossessed if you cannot pay back the loan. As long as you carry the loan, the lien will be in place on your vehicle. This means you cannot sell or transfer your vehicle or renew your license. Also, the interest rate for an auto title loan is high. This can be a problem, especially if you have to refinance or roll over the loan. The effective annual percentage rate for an auto title loan is typically 300 to 700 percent.

Q:       What’s the difference between a payday loan and an auto title loan?
A:        Security for a payday loan is a post-dated check, while security for an auto title loan is your vehicle. For both types of loan, the interest generally exceeds 300 percent.

Q:       I don’t want to pay a high loan rate and risk losing my car, but I need money fast. What are my options?
A:       
Think about doing the following:
  • Shop around for a loan with the lowest rate. Consider getting a small loan from your credit union, bank, family or friends. Even a pawn shop loan can be less expensive than an auto title loan.
  • Ask your creditors for an extension. If you are having cash-flow problems, many creditors will give you more time to pay your bills. Ask what they will charge for this service.
  • Make a realistic budget and cut expenses, especially if you run short every month.
  • Start a savings account.
  • Consider getting financial counseling from a nonprofit debt counseling service such as Apprisen (www.apprisen.com).

This “Law You Can Use” column was provided by the Ohio State Bar Association. It was prepared by Akron attorney Terry Zimmerman of Kaffen & Zimmerman, and Ram Mayeker of Apprisen, a nonprofit consumer credit counseling agency, with assistance from David Rothstein of NHS, Greater Cleveland. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.

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Monday, December 2, 2013

How Will Health Insurance Coverage Change in 2014?


Q:       If I have health insurance coverage, what changes can I expect?
A:        The changes made by the Affordable Care Act to health insurance differ depending on the type of insurance coverage you have. If you have individual or small employer group coverage, you will likely see more significant changes than if you have health insurance coverage through a large employer (one with more than 50 workers). 

Q:       I have coverage from a large employer. What changes can I expect?   
A:        In 2014, large group coverage must comply with these rules: (1) plans may not exclude coverage for pre-existing health conditions; (2) out-of-pocket spending by enrollees cannot exceed $6,350 for individual coverage and $12,700 for family coverage; and (3) plans may not impose annual or lifetime limits on the total amount a health plan is required to pay. Most large employers currently provide comprehensive coverage, so you may not see many changes.  

Q:       When do employers have to offer coverage to full-time workers?   
A:        In 2015 (not 2014), employers with more than 50 full time workers must offer coverage to full-time workers. Most large employers already satisfy this requirement, but large employers that don’t currently offer employee health insurance must begin providing coverage or face penalties. Some employers are considering dropping coverage and paying the resulting penalties or keeping employees at part-time status to avoid providing them with coverage. However, most employees are not likely to see significant changes in their health care coverage.   

Q:       If I have coverage from a small employer, what changes can I expect?
A:        Small employers (with 50 or fewer workers) may see significant changes to health benefits in 2014. Some requirements include: (1) no pre-existing condition exclusions; (2) coverage of essential health benefits that include coverage in 10 categories such as physician, hospital, prescription drug, mental health, maternity, preventive, wellness and pediatric services; (3) coverage with copays and deductibles that fall into “metal tiers” (bronze, silver, gold and platinum plans); and (4) no annual or lifetime limits. Also, the way insurers determine premium rates will change. Under the new law, insurers cannot consider the health condition of employees, and the age of employees will be only a limited factor. Therefore, small employers with healthy, younger workers are likely to pay more for insurance while small employers with older and less healthy workers likely will pay less. On average, the cost of small group coverage is expected to increase.

Q:       What if I bought my own individual health insurance policy?
A:        Ohio citizens with individual policies can expect to see many of the same changes as those covered by a small group employer, including: (1) no preexisting condition exclusions; (2) coverage of essential health benefits; (3) copay and deductibles that fall into metal tiers; and (4) no lifetime or annual limits. Your insurer will no longer consider your health status in setting your premium rate and your age will be a limited factor. Also, if you earn less than 400 percent of the federal poverty level ($45,960 for an individual; $94,200 for a family of four), you may get low-income subsidies to buy coverage through the federal government’s Health Insurance Marketplace (HealthCare.gov).  Generally, premium rates for people who are young, healthy and not eligible for subsidies may go up, while premium rates for older individuals, people with serious health conditions and lower-income families may go down. Whether premiums will go up on down for you will depend on the circumstances. 

Q:       If I don’t have coverage now, how will I be affected?
A:        Ohio recently announced it will expand Medicaid eligibility beginning on January 1, 2014 for Ohio citizens with incomes at or below 138 percent of the federal poverty level ($15,856 for an individual and $31,119 for a family of four). If your income level qualifies you, you can get Medicaid coverage without having to pay a premium. If your income is low, but not low enough to qualify you for Medicaid coverage, insurance companies can no longer deny you coverage, and the federal government will provide you with subsidies to buy affordable coverage if your income is at least 100 percent,  (and no higher than 400 percent, of the federal poverty level.
            If, however, you can afford health insurance, but decide not to buy it, you likely will have to pay a penalty on your tax return. For 2014, the penalty is $95 per adult, or 1percent of income, whichever is higher. The penalty for failure to insure children is $47.50 per child (up to $285 per family) or 1 percent of the family income, whichever is greater.
            Penalty amounts go up in 2015 to $325 per adult and $162.50 per child (up to $975 per family or 2 percent of family income, whichever is greater). In 2016 and beyond, the penalty is $695 per adult and $347 per child (up to 2.5 percent of family income, whichever is greater).
 
This “Law You Can Use” column was provided by the Ohio State Bar Association. It was prepared by Douglas L. Anderson, an attorney in the Columbus office of Bailey Cavalieri LLC. Articles appearing in this column are intended to provide broad, general information about the law. Before applying this information to a specific legal problem, readers are urged to seek advice from an attorney.

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