Ohio Regulator’s Arbitrary Process for Issuing Processor Licenses

Ohio’s Department of Commerce has sent applicants for the remaining 27 processor licenses a letter requesting additional clarifying information that will be used in the scoring process for issuing the remaining licenses. The letter has requested information on two scoring factors, a facility plot plan drawn to scale and affirmations of compliance with security plan requirements, which will be used in determining the final recipients.

The Department will be able to objectively score the effectiveness of the security controls represented by the scaled facility plot plan. The Department’s request for affirmations of an applicants intention to comply with requirements is more troubling. The Department should be asking the applicants for evidence that the requirements within the security plan can be operationalized when the license is granted. Evidence could be provided through the processes, procedures and other documentation that outlines the controls that are intended to be used to comply with the regulatory requirements. The design of these processes, procedures and controls should be assessed to determine whether they will be effective. Scoring an applicant’s intention to comply is arbitrary and lacks regulatory integrity.