As Introduced 1
123rd General Assembly 4
Regular Session S. B. No. 82 5
1999-2000 6
SENATORS JOHNSON-WACHTMANN-MUMPER-DRAKE-WHITE-KEARNS 8
_________________________________________________________________ 10
A B I L L
To amend sections 135.14, 135.22, 135.35, and 321.46 12
of the Revised Code to permit subdivision or 13
county treasurers to invest in certain no-load
money market mutual funds in the absence of a 14
written investment policy on behalf of the 15
subdivision or county or in the cases of
exemptions from or noncompliance with specified 16
initial or continuing education requirements by
the subdivision or county treasurer. 17
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 18
Section 1. That sections 135.14, 135.22, 135.35, and 20
321.46 of the Revised Code be amended to read as follows: 21
Sec. 135.14. (A) As used in this section, "treasurer" 30
does not include the treasurer of state, and "governing board" 31
does not include the state board of deposit. 32
(B) The treasurer or governing board may invest or deposit 34
any part or all of the interim moneys. The following 36
classifications of obligations shall be eligible for such 37
investment or deposit:
(1) United States treasury bills, notes, bonds, or any 39
other obligation or security issued by the United States treasury 40
or any other obligation guaranteed as to principal and interest 41
by the United States.
Nothing in the classification of eligible obligations set 43
forth in division (B)(1) of this section or in the 44
classifications of eligible obligations set forth in divisions 45
2
(B)(2) to (6) of this section shall be construed to authorize any 46
investment in stripped principal or interest obligations of such 47
eligible obligations.
(2) Bonds, notes, debentures, or any other obligations or 49
securities issued by any federal government agency or 50
instrumentality, including but not limited to, the federal 51
national mortgage association, federal home loan bank, federal 52
farm credit bank, federal home loan mortgage corporation, 53
government national mortgage association, and student loan
marketing association. All federal agency securities shall be 54
direct issuances of federal government agencies or 55
instrumentalities.
(3) Interim deposits in the eligible institutions applying 57
for interim moneys as provided in section 135.08 of the Revised 58
Code. The award of interim deposits shall be made in accordance 59
with section 135.09 of the Revised Code and the treasurer or the 60
governing board shall determine the periods for which such 61
interim deposits are to be made and shall award such interim 62
deposits for such periods, provided that any eligible institution 63
receiving an interim deposit award may, upon notification that 64
the award has been made, decline to accept the interim deposit in 65
which event the award shall be made as though such THE 66
institution had not applied for such interim deposit. 67
(4) Bonds and other obligations of this state; 69
(5) No-load money market mutual funds consisting 71
exclusively of obligations described in division (B)(1) or (2) of 73
this section and repurchase agreements secured by such
obligations, provided that investments in securities described in 75
this division are made only through eligible institutions
mentioned in section 135.03 of the Revised Code; 76
(6) The Ohio subdivision's fund as provided in section 78
135.45 of the Revised Code. 79
(C) Nothing in the classifications of eligible obligations 81
set forth in divisions (B)(1) to (6) of this section shall be 82
3
construed to authorize any investment in a derivative, and no 83
treasurer or governing board shall invest in a derivative. For 84
purposes of this division, "derivative" means a financial 85
instrument or contract or obligation whose value or return is 86
based upon or linked to another asset or index, or both, separate 87
from the financial instrument, contract, or obligation itself.
Any security, obligation, trust account, or other instrument that 88
is created from an issue of the United States treasury or is 89
created from an obligation of a federal agency or instrumentality 90
or is created from both is considered a derivative instrument. 91
An eligible investment described in this section with a variable 92
interest rate payment, based upon a single interest payment or 93
single index comprised of other eligible investments provided for 94
in division (B)(1) or (2) of this section, is not a derivative, 95
provided that such variable rate investment has a maximum
maturity of two years. 96
(D) Any investment made pursuant to this section must 98
mature within five years from the date of settlement, unless the 99
investment is matched to a specific obligation or debt of the 100
subdivision. 101
(E) The treasurer or governing board may also enter into a 103
written repurchase agreement with any eligible institution 104
mentioned in section 135.03 of the Revised Code or any eligible 105
dealer pursuant to division (M) of this section, under the terms 106
of which agreement the treasurer or governing board purchases, 107
and such institution or dealer agrees unconditionally to 108
repurchase any of the securities listed in division (B)(1) or (2) 109
of this section. The market value of securities subject to an 110
overnight repurchase agreement must exceed the principal value of 111
the overnight repurchase agreement by at least two per cent. A 112
term repurchase agreement shall not exceed thirty days and the 113
market value of securities subject to a term repurchase agreement 114
must exceed the principal value of the term repurchase agreement 115
by at least two per cent and be marked to market daily. All 116
4
securities purchased pursuant to this division shall be delivered 117
into the custody of the treasurer or governing board or an agent 118
designated by the treasurer or governing board. A repurchase 119
agreement with an eligible securities dealer shall be transacted 120
on a delivery versus payment basis. The agreement shall contain 121
the requirement that for each transaction pursuant to the 122
agreement the participating institution or dealer shall provide 123
all of the following information:
(1) The par value of the securities; 125
(2) The type, rate, and maturity date of the securities; 127
(3) A numerical identifier generally accepted in the 129
securities industry that designates the securities. 130
No treasurer or governing board shall enter into a written 132
repurchase agreement under the terms of which the treasurer or 133
governing board agrees to sell securities owned by the 134
subdivision to a purchaser and agrees with that purchaser to 135
unconditionally repurchase those securities.
(F) No treasurer or governing board shall make an 137
investment under this section, unless the treasurer or governing 138
board, at the time of making the investment, reasonably expects 139
that the investment can be held until its maturity. 140
(G) No treasurer or governing board shall pay interim 142
moneys into a fund established by another subdivision, treasurer, 143
governing board, or investing authority, if that fund was 144
established for the purpose of investing the public moneys of 145
other subdivisions. This division does not apply to the payment 146
of public moneys into either of the following:
(1) The Ohio subdivision's fund pursuant to division 149
(B)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 151
constructing, owning, leasing, or operating municipal utilities 152
pursuant to the authority provided under section 715.02 of the 153
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 154
For purposes of division (G) of this section, "subdivision" 156
5
includes a county. 157
(H) The use of leverage, in which the treasurer or 159
governing board uses its current investment assets as collateral 160
for the purpose of purchasing other assets, is prohibited. The 161
issuance of taxable notes for the purpose of arbitrage is 162
prohibited. Contracting to sell securities that have not yet 163
been acquired by the treasurer or governing board, for the
purpose of purchasing such securities on the speculation that 164
bond prices will decline, is prohibited. 165
(I) Whenever, during a period of designation, the 167
treasurer classifies public moneys as interim moneys, the 168
treasurer shall notify the governing board of such action. Such 169
THE notification shall be given within thirty days after such 170
classification and in the event the governing board does not 171
concur in such classification or in the investments or deposits 172
made under this section, the governing board may order the 173
treasurer to sell or liquidate any of such investments or 174
deposits, and any such order shall specifically describe the 175
investments or deposits and fix the date upon which they are to 176
be sold or liquidated. Investments or deposits so ordered to be 177
sold or liquidated shall be sold or liquidated for cash by the 178
treasurer on the date fixed in such order at the then current 179
market price. Neither the treasurer nor the members of the board 180
shall be held accountable for any loss occasioned by sales or 181
liquidations of investments or deposits at prices lower than 182
their cost. Any loss or expense incurred in making such sales or 183
liquidations is payable as other expenses of the treasurer's 184
office.
(J) If any investments or deposits purchased under the 186
authority of this section are issuable to a designated payee or 187
to the order of a designated payee, the name of the treasurer and 188
the title of the treasurer's office shall be so designated. If 189
any such securities are registrable either as to principal or 190
interest, or both, then such securities shall be registered in 191
6
the name of the treasurer as such. 192
(K) The treasurer is responsible for the safekeeping of 194
all documents evidencing a deposit or investment acquired by the 195
treasurer under this section. Any securities may be deposited 196
for safekeeping with a qualified trustee as provided in section 197
135.18 of the Revised Code, except the delivery of securities 198
acquired under any repurchase agreement under this section shall 199
be made to a qualified trustee, provided, however, that the 200
qualified trustee shall be required to report to the treasurer, 201
governing board, auditor of state, or an authorized outside 202
auditor at any time upon request as to the identity, market 203
value, and location of the document evidencing each security, and 204
that if the participating institution is a designated depository 205
of the subdivision for the current period of designation, the 206
securities that are the subject of the repurchase agreement may 207
be delivered to the treasurer or held in trust by the 208
participating institution on behalf of the subdivision. Interest 209
earned on any investments or deposits authorized by this section 210
shall be collected by the treasurer and credited by the treasurer 212
to the proper fund of the subdivision.
Upon the expiration of the term of office of a treasurer or 214
in the event of a vacancy in the office of treasurer by reason of 215
death, resignation, removal from office, or otherwise, the 216
treasurer or the treasurer's legal representative shall transfer 217
and deliver to the treasurer's successor all documents evidencing 218
a deposit or investment held by the treasurer. For the 219
investments and deposits so transferred and delivered, such 220
treasurer shall be credited with and the treasurer's successor 221
shall be charged with the amount of money held in such
investments and deposits. 222
(L) Whenever investments or deposits acquired under this 224
section mature and become due and payable, the treasurer shall 225
present them for payment according to their tenor, and shall 226
collect the moneys payable thereon. The moneys so collected 227
7
shall be treated as public moneys subject to sections 135.01 to 228
135.21 of the Revised Code. 229
(M)(1) All investments, except for investments in 231
securities described in divisions (B)(5) and (6) of this section 232
and for investments by a municipal corporation in the issues of 233
such municipal corporation, shall be made only through a member 234
of the national association of securities dealers, through a 235
bank, savings bank, or savings and loan association regulated by 236
the superintendent of financial institutions, or through an 237
institution regulated by the comptroller of the currency, federal 238
deposit insurance corporation, or board of governors of the 239
federal reserve system.
(2) Payment for investments shall be made only upon the 241
delivery of securities representing such investments to the 242
treasurer, governing board, or qualified trustee. If the 243
securities transferred are not represented by a certificate, 244
payment shall be made only upon receipt of confirmation of 245
transfer from the custodian by the treasurer, governing board, or 246
qualified trustee. 247
(N)(1) Except as otherwise provided in divisions (N)(2) 249
and (3) of this section, no treasurer or governing board shall 250
make an investment or deposit under this section, unless there is 252
on file with the auditor of state a written investment policy 253
approved by the treasurer or governing board. The policy shall 254
require that all entities conducting investment business with the 255
treasurer or governing board shall sign the investment policy of 256
that subdivision. All brokers, dealers, and financial 257
institutions, described in division (M)(1) of this section, 258
initiating transactions with the treasurer or governing board by 259
giving advice or making investment recommendations shall sign the 260
treasurer's or governing board's investment policy thereby
acknowledging their agreement to abide by the policy's contents. 261
All brokers, dealers, and financial institutions, described in 262
division (M)(1) of this section, executing transactions initiated 263
8
by the treasurer or governing board, having read the policy's 264
contents, shall sign the investment policy thereby acknowledging 265
their comprehension and receipt.
(2) If a written investment policy described in division 267
(N)(1) of this section is not filed on behalf of the subdivision 268
with the auditor of state, the treasurer or governing board of 269
that subdivision shall invest the subdivision's interim moneys 270
only in interim deposits pursuant to division (B)(3) of this 271
section, NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION 272
(B)(5) OF THIS SECTION, or the Ohio subdivision's fund pursuant 273
to division (B)(6) of this section.
(3) Divisions (N)(1) and (2) of this section do not apply 275
to a treasurer or governing board of a subdivision whose average 276
annual portfolio of investments held pursuant to this section is 277
one hundred thousand dollars or less, provided that the treasurer 278
or governing board certifies, on a form prescribed by the auditor 279
of state, that the treasurer or governing board will comply and 280
is in compliance with the provisions of sections 135.01 to 135.21 282
of the Revised Code.
(O) A treasurer or governing board may enter into a 285
written investment or deposit agreement that includes a provision 286
under which the parties agree to submit to nonbinding arbitration 287
to settle any controversy that may arise out of the agreement, 288
including any controversy pertaining to losses of public moneys 289
resulting from investment or deposit. The arbitration provision 290
shall be set forth entirely in the agreement, and the agreement 291
shall include a conspicuous notice to the parties that any party 293
to the arbitration may apply to the court of common pleas of the 294
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 295
the court for an order to change venue to a court of common pleas 296
located more than one hundred miles from the county in which the 297
treasurer or governing board is located. 298
For purposes of this division, "investment or deposit 300
9
agreement" means any agreement between a treasurer or governing 301
board and a person, under which agreement the person agrees to 302
invest, deposit, or otherwise manage a subdivision's interim 303
moneys on behalf of the treasurer or governing board, or agrees 304
to provide investment advice to the treasurer or governing board.
(P) An investment made by the treasurer or governing board 306
pursuant to this section prior to the effective date of this 307
amendment SEPTEMBER 27, 1996, that was a legal investment under 309
the law as it existed before the effective date of this amendment 311
SEPTEMBER 27, 1996, may be held until maturity, or if the 312
investment does not have a maturity date, it may be held until 313
five years from the effective date of this amendment SEPTEMBER 315
27, 1996, regardless of whether the investment would qualify as a 316
legal investment under the terms of this section as amended. 317
Sec. 135.22. (A) For purposes of this section: 326
(1) "Treasurer" has the same meaning as in section 135.01 328
of the Revised Code, but does not include the treasurer of state. 329
"Treasurer" includes any person whose duties include making 330
investment decisions with respect to the investment or deposit of 331
interim moneys.
(2) "Subdivision" has the same meaning as in section 333
135.01 of the Revised Code. 334
(B) To enhance the background and working knowledge of 336
treasurers in investments, cash management, and ethics, the 337
treasurer of state shall provide annual continuing education 338
programs for treasurers. A treasurer annually shall complete the 340
continuing education programs described in this section, unless 341
the treasurer annually provides a notice of exemption described 342
in division (E) of this section.
(C) The treasurer of state shall determine the manner, 344
content, and length of the continuing education programs after 345
consultation with appropriate statewide organizations of local 346
government officials.
(D) Upon successful completion of a continuing education 348
10
program required by this section, the treasurer of state shall 349
issue a certificate indicating that the treasurer has 350
successfully completed the continuing education program
prescribed by the treasurer of state. The treasurer of state 351
shall forward to the auditor of state any certificates issued 352
pursuant to this division by the treasurer of state. The auditor 353
of state shall maintain in the auditor's records any certificates 354
forwarded by the treasurer of state pursuant to this division. 355
As part of the auditor of state's audit of the subdivision
conducted in accordance with section 117.11 of the Revised Code, 356
the auditor of state shall report whether the treasurer is in 357
compliance with this section of the Revised Code. 358
(E) Division (B) of this section does not apply to any 361
treasurer who annually provides a notice of exemption to the 362
auditor of state. The notice shall be certified by the treasurer 363
of state and shall provide that the treasurer is not subject to
the continuing education requirements set forth in division (B) 364
of this section, because the treasurer invests or deposits public 365
moneys in the following investments only: 366
(1) Interim deposits pursuant to division (B)(3) of 368
section 135.14 of the Revised Code; 369
(2) NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION 371
(B)(5) OF SECTION 135.14 OF THE REVISED CODE; 372
(3) The Ohio subdivision's fund pursuant to division 374
(B)(6) of section 135.14 of the Revised Code. 376
(F) In carrying out the duties required by this section, 378
the treasurer of state may charge the subdivision served by the 379
treasurer a registration fee that will meet actual and necessary 380
expenses in connection with the training of the treasurer, 381
including instruction fees, site acquisition costs, and the cost 382
of course materials. Any necessary personal expenses of a
treasurer incurred as a result of attending the continuing 383
education courses shall be borne by the subdivision represented 384
by the treasurer.
11
(G) The treasurer of state may allow any other interested 386
person to attend any of the continuing education programs that 387
are held pursuant to this section, provided that before attending 388
any such continuing education program, the interested person has 389
paid to the treasurer of state the full registration fee set for 390
the continuing education program.
(H) All funds collected pursuant to this section shall be 392
paid into the county treasurer education fund created pursuant to 393
section 321.46 of the Revised Code, and the actual and necessary 395
expenses of the treasurer of state in conducting the continuing 396
education programs required by this section shall be paid from 397
this fund.
(I) The treasurer of state may adopt reasonable rules not 399
inconsistent with this section for the implementation of this 400
section.
Sec. 135.35. (A) The investing authority shall deposit or 409
invest any part or all of the county's inactive moneys and shall 410
invest all of the money in the county library and local 411
government support fund when required by section 135.352 of the 412
Revised Code. The following classifications of securities and 413
obligations are eligible for such deposit or investment: 414
(1) United States treasury bills, notes, bonds, or any 416
other obligation or security issued by the United States treasury 417
or any other obligation guaranteed as to principal or interest by 418
the United States.
Nothing in the classification of eligible securities and 420
obligations set forth in division (A)(1) of this section or in 421
the classifications of eligible securities and obligations set 422
forth in divisions (A)(2) to (9) of this section shall be 423
construed to authorize any investment in stripped principal or 424
interest obligations of such eligible securities and obligations.
(2) Bonds, notes, debentures, or any other obligations or 426
securities issued by any federal government agency or 427
instrumentality, including but not limited to, the federal 428
12
national mortgage association, federal home loan bank, federal 429
farm credit bank, federal home loan mortgage corporation, 430
government national mortgage association, and student loan 431
marketing association. All federal agency securities shall be 432
direct issuances of federal government agencies or
instrumentalities. 433
(3) Time certificates of deposit or savings or deposit 435
accounts, including, but not limited to, passbook accounts, in 436
any eligible institution mentioned in section 135.32 of the 437
Revised Code; 438
(4) Bonds and other obligations of this state or the 440
political subdivisions of this state, provided that such 441
political subdivisions are located wholly or partly within the 442
same county as the investing authority;
(5) No-load money market mutual funds consisting 444
exclusively of obligations described in division (A)(1) or (2) of 445
this section and repurchase agreements secured by such 446
obligations, provided that investments in securities described in 448
this division are made only through eligible institutions
mentioned in section 135.32 of the Revised Code; 449
(6) The Ohio subdivision's fund as provided in section 451
135.45 of the Revised Code.; 452
(7) Securities lending agreements with any eligible 454
institution mentioned in section 135.32 of the Revised Code that 455
is a member of the federal reserve system or federal home loan 456
bank, under the terms of which agreements the investing authority 458
lends securities and the eligible institution agrees to 459
simultaneously exchange either securities described in division
(A)(1) or (2) of this section or cash or both securities and 460
cash, equal value for equal value; 461
(8) Commercial paper issued by any corporation 463
incorporated under the laws of the United States or a state if 464
both of the following conditions apply: 465
(a) Two nationally recognized rating agencies rank the 467
13
commercial paper in either of their two highest categories; 468
(b) The total amount invested in commercial paper at any 470
time does not exceed five per cent of the county's total average 472
portfolio, as determined and calculated by the investing 473
authority.
(9) Bankers acceptances, if the following conditions are 475
met:
(a) The acceptances mature in two hundred seventy days or 477
fewer from the date of settlement; 478
(b) The acceptances are eligible for purchase by the 480
federal reserve system; 481
(c) The total amount invested in bankers acceptances at 483
any time does not exceed ten per cent of the county's total 484
average portfolio, as determined and calculated by the investing 485
authority.
(B) Nothing in the classifications of eligible obligations 487
and securities set forth in divisions (A)(1) to (9) of this 488
section shall be construed to authorize investment in a 489
derivative, and no investing authority shall invest any county 490
inactive moneys or any moneys in a county library and local 491
government support fund in a derivative. For purposes of this 492
division, "derivative" means a financial instrument or contract 493
or obligation whose value or return is based upon or linked to
another asset or index, or both, separate from the financial 494
instrument, contract, or obligation itself. Any security, 495
obligation, trust account, or other instrument that is created 496
from an issue of the United States treasury or is created from an 497
obligation of a federal agency or instrumentality or is created 498
from both is considered a derivative instrument. An eligible 499
investment described in this section with a variable interest 500
rate payment, based upon a single interest payment or single
index comprised of other eligible investments provided for in 501
division (A)(1) or (2) of this section, is not a derivative, 502
provided that such variable rate investment has a maximum 503
14
maturity of two years.
(C) Any investment made pursuant to this section must 505
mature within five years from the date of settlement, unless the 506
investment is matched to a specific obligation or debt of the 507
county, and the investment is specifically approved by the 508
investment advisory committee. 509
(D) The investing authority may also enter into a written 511
repurchase agreement with any eligible institution mentioned in 513
section 135.32 of the Revised Code or any eligible securities
dealer pursuant to division (J) of this section, under the terms 514
of which agreement the investing authority purchases and the 515
eligible institution or dealer agrees unconditionally to 517
repurchase any of the securities listed in division (A)(1) or (2) 518
of this section. The market value of securities subject to an 519
overnight repurchase agreement must exceed the principal value of 520
the overnight repurchase agreement by at least two per cent. A 521
term repurchase agreement must exceed the principal value of the
overnight repurchase agreement, by at least two per cent. A term 522
repurchase agreement shall not exceed thirty days, and the market 523
value of securities subject to a term repurchase agreement must 524
exceed the principal value of the term repurchase agreement by at 525
least two per cent and be marked to market daily. All securities 526
purchased pursuant to this division shall be delivered into the 527
custody of the investing authority or the qualified custodian of 528
the investing authority or an agent designated by the investing 529
authority. A repurchase agreement with an eligible securities 530
dealer shall be transacted on a delivery versus payment basis. 531
The agreement shall contain the requirement that for each 532
transaction pursuant to the agreement the participating 533
institution shall provide all of the following information: 534
(1) The par value of the securities; 536
(2) The type, rate, and maturity date of the securities; 538
(3) A numerical identifier generally accepted in the 540
securities industry that designates the securities. 541
15
No investing authority shall enter into a written 543
repurchase agreement under the terms of which the investing 544
authority agrees to sell securities owned by the county to a 546
purchaser and agrees with that purchaser to unconditionally
repurchase those securities. 547
(E) No investing authority shall make an investment under 550
this section, unless the investing authority, at the time of
making the investment, reasonably expects that the investment can 551
be held until its maturity. The investing authority's written 552
investment policy shall specify the conditions under which an 553
investment may be redeemed or sold prior to maturity. 554
(F) No investing authority shall pay a county's inactive 556
moneys or moneys of a county library and local government support 557
fund into a fund established by another subdivision, treasurer, 558
governing board, or investing authority, if that fund was 559
established by the subdivision, treasurer, governing board, or 560
investing authority for the purpose of investing or depositing 561
the public moneys of other subdivisions. This division does not
apply to the payment of public moneys into either of the 562
following:
(1) The Ohio subdivision's fund pursuant to division 564
(A)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 566
constructing, owning, leasing, or operating municipal utilities 567
pursuant to the authority provided under section 715.02 of the 568
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 569
For purposes of division (F) of this section, "subdivision" 571
includes a county. 572
(G) The use of leverage, in which the county uses its 574
current investment assets as collateral for the purpose of 575
purchasing other assets, is prohibited. The issuance of taxable 576
notes for the purpose of arbitrage is prohibited. Contracting to 577
sell securities not owned by the county, for the purpose of 578
purchasing such securities on the speculation that bond prices
16
will decline, is prohibited. 579
(H) Any securities, certificates of deposit, deposit 581
accounts, or any other documents evidencing deposits or 582
investments made under authority of this section shall be issued 583
in the name of the county with the county treasurer or investing 584
authority as the designated payee. If any such deposits or 585
investments are registrable either as to principal or interest, 586
or both, they shall be registered in the name of the treasurer. 587
(I) The investing authority shall be responsible for the 589
safekeeping of all documents evidencing a deposit or investment 590
acquired under this section including, but not limited to, 591
safekeeping receipts evidencing securities deposited with a 592
qualified trustee, as provided in section 135.37 of the Revised 593
Code, and documents confirming the purchase of securities under 594
any repurchase agreement under this section shall be deposited 595
with a qualified trustee, provided, however, that the qualified 596
trustee shall be required to report to the investing authority, 597
auditor of state, or an authorized outside auditor at any time 598
upon request as to the identity, market value, and location of 599
the document evidencing each security, and that if the 600
participating institution is a designated depository of the 601
county for the current period of designation, the securities that 602
are the subject of the repurchase agreement may be delivered to 603
the treasurer or held in trust by the participating institution 604
on behalf of the investing authority. 605
Upon the expiration of the term of office of an investing 607
authority or in the event of a vacancy in the office for any 608
reason, the officer or the officer's legal representative shall 610
transfer and deliver to the officer's successor all documents
mentioned in this division for which the officer has been 611
responsible for safekeeping. For all such documents transferred 613
and delivered, such officer shall be credited with, and the 614
officer's successor shall be charged with, the amount of moneys 615
so evidenced by such documents.
17
(J)(1) All investments, except for investments in 617
securities described in divisions (A)(5) and (6) of this section, 619
shall be made only through a member of the national association 620
of securities dealers, through a bank, savings bank, or savings 621
and loan association regulated by the superintendent of financial 623
institutions, or through an institution regulated by the 624
comptroller of the currency, federal deposit insurance 625
corporation, or board of governors of the federal reserve system. 626
(2) Payment for investments shall be made only upon the 628
delivery of securities representing such investments to the 630
treasurer, investing authority, or qualified trustee. If the 631
securities transferred are not represented by a certificate, 632
payment shall be made only upon receipt of confirmation of 633
transfer from the custodian by the treasurer, governing board, or 634
qualified trustee.
(K)(1) Except as otherwise provided in division (K)(2) of 636
this section, no investing authority shall make an investment or 637
deposit under this section, unless there is on file with the 638
auditor of state a written investment policy approved by the 639
investing authority. The policy shall require that all entities 640
conducting investment business with the investment authority 641
shall sign the investment policy of that investment authority.
All brokers, dealers, and financial institutions, described in 642
division (J)(1) of this section, initiating transactions with the 644
investment authority by giving advice or making investment 645
recommendations shall sign the investment authority's investment 646
policy thereby acknowledging their agreement to abide by the
policy's contents. All brokers, dealers, and financial 647
institutions, described in division (J)(1) of this section, 648
executing transactions initiated by the investment authority, 649
having read the policy's contents, shall sign the investment 650
policy thereby acknowledging their comprehension and receipt.
(2) If a written investment policy described in division 652
(K)(1) of this section is not filed on behalf of the county with 653
18
the auditor of state, the investing authority of that county 654
shall invest the county's inactive moneys and moneys of the 655
county library and local government support fund only in time 656
certificates of deposits or savings or deposit accounts pursuant 657
to division (A)(3) of this section, NO-LOAD MONEY MARKET MUTUAL 658
FUNDS PURSUANT TO DIVISION (A)(5) OF THIS SECTION, or the Ohio 659
subdivision's fund pursuant to division (A)(6) of this section.
(L)(1) The investing authority shall establish and 661
maintain an inventory of all obligations and securities acquired 662
by the investing authority pursuant to this section. The 663
inventory shall include a description of each obligation or 664
security, including type, cost, par value, maturity date, 665
settlement date, and any coupon rate.
(2) The investing authority shall also keep a complete 667
record of all purchases and sales of the obligations and 668
securities made pursuant to this section. 669
(3) The investing authority shall maintain a monthly 671
portfolio report and issue a quarterly investment report 672
describing such investments to the county investment advisory 673
committee, detailing the current inventory of all obligations and 674
securities, all transactions during the month that affected the 675
inventory, any income received from the obligations and
securities, and any investment expenses paid, and stating the 676
names of any persons effecting transactions on behalf of the 677
investing authority.
(4) The monthly portfolio report and the quarterly 679
investment report shall be public records and available for 680
inspection under section 149.43 of the Revised Code.
(5) The inventory, the monthly portfolio report, and the 682
quarterly investment report shall be on standard forms approved 683
by the auditor of state and shall be filed with the board of 684
county commissioners.
(M) An investing authority may enter into a written 687
investment or deposit agreement that includes a provision under 688
19
which the parties agree to submit to nonbinding arbitration to 689
settle any controversy that may arise out of the agreement, 690
including any controversy pertaining to losses of public moneys 691
resulting from investment or deposit. The arbitration provision 692
shall be set forth entirely in the agreement, and the agreement 693
shall include a conspicuous notice to the parties that any party 695
to the arbitration may apply to the court of common pleas of the 696
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 697
the court for an order to change venue to a court of common pleas 698
located more than one hundred miles from the county in which the 699
investing authority is located.
For purposes of this division, "investment or deposit 701
agreement" means any agreement between an investing authority and 702
a person, under which agreement the person agrees to invest, 703
deposit, or otherwise manage, on behalf of the investing 704
authority, a county's inactive moneys or moneys in a county
library and local government support fund, or agrees to provide 705
investment advice to the investing authority. 706
(N) An investment held in the county portfolio on the 708
effective date of this amendment SEPTEMBER 27, 1996, that was a 710
legal investment under the law as it existed before the effective 711
date of this amendment SEPTEMBER 27, 1996, may be held until 712
maturity, or if the investment does not have a maturity date the 713
investment may be held until five years from the effective date 714
of this amendment SEPTEMBER 27, 1996, regardless of whether the 716
investment would qualify as a legal investment under the terms of
this section as amended. 717
Sec. 321.46. (A) To enhance the background and working 727
knowledge of county treasurers in governmental accounting, 728
portfolio reporting and compliance, investments, and cash 729
management, the auditor of state and the treasurer of state shall 730
conduct education programs for persons elected for the first time 731
to the office of county treasurer and shall hold annual 732
20
continuing education programs for persons who continue to hold 733
the office of county treasurer. Education programs for newly 734
elected county treasurers shall be held between the first day of 735
December and the first Monday of September next following that 736
person's election to the office of county treasurer. Similar 737
initial training may also be provided to any county treasurer who 738
is appointed to fill a vacancy or who is elected at a special 739
election.
(B)(1) The auditor of state shall determine the manner and 741
content of the education programs in the subject areas of 743
governmental accounting and portfolio reporting and compliance. 744
In those areas, newly elected county treasurers shall be required 745
to take at least thirteen hours of education before taking 746
office.
(2) The treasurer of state shall determine the manner and 748
content of the education programs in the subject areas of 749
investments and cash management. In those areas, newly elected 750
county treasurers shall be required to take at least thirteen 751
hours of education before taking office. 752
(3) After completing one year in office, a county 754
treasurer shall be required to take not less than twelve hours 755
annually of continuing education. The treasurer of state shall 756
determine the manner and content of the education programs in the 757
subject areas of investments, cash management, the collection of 758
taxes, ethics, and any other subject area that the treasurer of
state determines is reasonably related to the duties of the 759
office of the county treasurer. The auditor of state shall 761
determine the manner and content of the education programs in the 762
subject areas of governmental accounting, portfolio reporting and 763
compliance, office management, and any other subject area that
the auditor of state determines is reasonably related to the 764
duties of the office of the county treasurer. 765
(C) The auditor of state and the treasurer of state may 768
each charge counties a registration fee that will meet actual and 769
21
necessary expenses of the training of county treasurers, 770
including instructor fees, site acquisition costs, and the cost 771
of course materials. The necessary personal expenses of county 772
treasurers as a result of attending the training programs shall 773
be borne by the counties the treasurers represent. 774
(D) The auditor of state and the treasurer of state may 777
allow any other interested person to attend any of the education 778
programs that are held pursuant to this section, provided that 779
before attending any such education program, the interested 780
person shall pay to either the auditor of state or the treasurer 781
of state, as appropriate, the full registration fee set for the 782
education program.
(E) A county treasurer who fails to complete the initial 785
or continuing education programs required by this section without 786
a valid health-related excuse or other special hardship shall be
restricted to investing in the Ohio subdivision's fund pursuant 787
to division (A)(6) of section 135.35 of the Revised Code, IN 789
NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION (A)(5) OF 790
SECTION 135.35 OF THE REVISED CODE, or in time certificate of
deposits or deposit accounts pursuant to division (A)(3) of 792
section 135.35 of the Revised Code. A county treasurer who has 793
failed to complete the initial or continuing education programs
and invests in other than the investments permitted by this 794
division shall be subject to removal from office upon complaint 796
and investigation by the county prosecuting attorney, a hearing,
and a resolution adopted by the board of county commissioners 797
approving the removal from office. 798
(F)(1) There is hereby created in the state treasury the 801
county treasurer education fund, to be used by the treasurer of 802
state for actual and necessary expenses of education programs 804
held pursuant to this section. All registration fees collected 805
by the treasurer of state under this section shall be paid into 806
that fund.
(2) All registration fees collected by the auditor of 808
22
state under this section shall be paid into the auditor of state 809
training program fund established under section 117.44 of the 810
Revised Code.
(G) The treasurer of state, with the advice and consent of 813
the auditor of state, may adopt reasonable rules not inconsistent 814
with this section for the implementation of this section. 815
Section 2. That existing sections 135.14, 135.22, 135.35, 817
and 321.46 of the Revised Code are hereby repealed. 818