As Passed by the Senate 1
123rd General Assembly 4
Regular Session S. B. No. 82 5
1999-2000 6
SENATORS JOHNSON-WACHTMANN-MUMPER-DRAKE-WHITE-KEARNS- 8
BLESSING-HERINGTON-SPADA-LATELL-DiDONATO-HOTTINGER-FINAN- 9
RAY-WATTS-HORN-GARDNER-ARMBRUSTER-NEIN 10
_________________________________________________________________ 12
A B I L L
To amend sections 135.14, 135.22, 135.35, and 321.46 14
of the Revised Code to permit subdivision or 15
county treasurers to invest in certain no-load
money market mutual funds in the absence of a 16
written investment policy on behalf of the 17
subdivision or county or in the cases of
exemptions from or noncompliance with specified 18
initial or continuing education requirements by
the subdivision or county treasurer. 19
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20
Section 1. That sections 135.14, 135.22, 135.35, and 22
321.46 of the Revised Code be amended to read as follows: 23
Sec. 135.14. (A) As used in this section, "treasurer" 32
does not include the treasurer of state, and "governing board" 33
does not include the state board of deposit. 34
(B) The treasurer or governing board may invest or deposit 36
any part or all of the interim moneys. The following 38
classifications of obligations shall be eligible for such 39
investment or deposit:
(1) United States treasury bills, notes, bonds, or any 41
other obligation or security issued by the United States treasury 42
or any other obligation guaranteed as to principal and interest 43
by the United States.
Nothing in the classification of eligible obligations set 45
2
forth in division (B)(1) of this section or in the 46
classifications of eligible obligations set forth in divisions 47
(B)(2) to (6) of this section shall be construed to authorize any 48
investment in stripped principal or interest obligations of such 49
eligible obligations.
(2) Bonds, notes, debentures, or any other obligations or 51
securities issued by any federal government agency or 52
instrumentality, including but not limited to, the federal 53
national mortgage association, federal home loan bank, federal 54
farm credit bank, federal home loan mortgage corporation, 55
government national mortgage association, and student loan
marketing association. All federal agency securities shall be 56
direct issuances of federal government agencies or 57
instrumentalities.
(3) Interim deposits in the eligible institutions applying 59
for interim moneys as provided in section 135.08 of the Revised 60
Code. The award of interim deposits shall be made in accordance 61
with section 135.09 of the Revised Code and the treasurer or the 62
governing board shall determine the periods for which such 63
interim deposits are to be made and shall award such interim 64
deposits for such periods, provided that any eligible institution 65
receiving an interim deposit award may, upon notification that 66
the award has been made, decline to accept the interim deposit in 67
which event the award shall be made as though such THE 68
institution had not applied for such interim deposit. 69
(4) Bonds and other obligations of this state; 71
(5) No-load money market mutual funds consisting 73
exclusively of obligations described in division (B)(1) or (2) of 75
this section and repurchase agreements secured by such
obligations, provided that investments in securities described in 77
this division are made only through eligible institutions
mentioned in section 135.03 of the Revised Code; 78
(6) The Ohio subdivision's fund as provided in section 80
135.45 of the Revised Code. 81
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(C) Nothing in the classifications of eligible obligations 83
set forth in divisions (B)(1) to (6) of this section shall be 84
construed to authorize any investment in a derivative, and no 85
treasurer or governing board shall invest in a derivative. For 86
purposes of this division, "derivative" means a financial 87
instrument or contract or obligation whose value or return is 88
based upon or linked to another asset or index, or both, separate 89
from the financial instrument, contract, or obligation itself.
Any security, obligation, trust account, or other instrument that 90
is created from an issue of the United States treasury or is 91
created from an obligation of a federal agency or instrumentality 92
or is created from both is considered a derivative instrument. 93
An eligible investment described in this section with a variable 94
interest rate payment, based upon a single interest payment or 95
single index comprised of other eligible investments provided for 96
in division (B)(1) or (2) of this section, is not a derivative, 97
provided that such variable rate investment has a maximum
maturity of two years. 98
(D) Any investment made pursuant to this section must 100
mature within five years from the date of settlement, unless the 101
investment is matched to a specific obligation or debt of the 102
subdivision. 103
(E) The treasurer or governing board may also enter into a 105
written repurchase agreement with any eligible institution 106
mentioned in section 135.03 of the Revised Code or any eligible 107
dealer pursuant to division (M) of this section, under the terms 108
of which agreement the treasurer or governing board purchases, 109
and such institution or dealer agrees unconditionally to 110
repurchase any of the securities listed in division (B)(1) or (2) 111
of this section. The market value of securities subject to an 112
overnight repurchase agreement must exceed the principal value of 113
the overnight repurchase agreement by at least two per cent. A 114
term repurchase agreement shall not exceed thirty days and the 115
market value of securities subject to a term repurchase agreement 116
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must exceed the principal value of the term repurchase agreement 117
by at least two per cent and be marked to market daily. All 118
securities purchased pursuant to this division shall be delivered 119
into the custody of the treasurer or governing board or an agent 120
designated by the treasurer or governing board. A repurchase 121
agreement with an eligible securities dealer shall be transacted 122
on a delivery versus payment basis. The agreement shall contain 123
the requirement that for each transaction pursuant to the 124
agreement the participating institution or dealer shall provide 125
all of the following information:
(1) The par value of the securities; 127
(2) The type, rate, and maturity date of the securities; 129
(3) A numerical identifier generally accepted in the 131
securities industry that designates the securities. 132
No treasurer or governing board shall enter into a written 134
repurchase agreement under the terms of which the treasurer or 135
governing board agrees to sell securities owned by the 136
subdivision to a purchaser and agrees with that purchaser to 137
unconditionally repurchase those securities.
(F) No treasurer or governing board shall make an 139
investment under this section, unless the treasurer or governing 140
board, at the time of making the investment, reasonably expects 141
that the investment can be held until its maturity. 142
(G) No treasurer or governing board shall pay interim 144
moneys into a fund established by another subdivision, treasurer, 145
governing board, or investing authority, if that fund was 146
established for the purpose of investing the public moneys of 147
other subdivisions. This division does not apply to the payment 148
of public moneys into either of the following:
(1) The Ohio subdivision's fund pursuant to division 151
(B)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 153
constructing, owning, leasing, or operating municipal utilities 154
pursuant to the authority provided under section 715.02 of the 155
5
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 156
For purposes of division (G) of this section, "subdivision" 158
includes a county. 159
(H) The use of leverage, in which the treasurer or 161
governing board uses its current investment assets as collateral 162
for the purpose of purchasing other assets, is prohibited. The 163
issuance of taxable notes for the purpose of arbitrage is 164
prohibited. Contracting to sell securities that have not yet 165
been acquired by the treasurer or governing board, for the
purpose of purchasing such securities on the speculation that 166
bond prices will decline, is prohibited. 167
(I) Whenever, during a period of designation, the 169
treasurer classifies public moneys as interim moneys, the 170
treasurer shall notify the governing board of such action. Such 171
THE notification shall be given within thirty days after such 172
classification and in the event the governing board does not 173
concur in such classification or in the investments or deposits 174
made under this section, the governing board may order the 175
treasurer to sell or liquidate any of such investments or 176
deposits, and any such order shall specifically describe the 177
investments or deposits and fix the date upon which they are to 178
be sold or liquidated. Investments or deposits so ordered to be 179
sold or liquidated shall be sold or liquidated for cash by the 180
treasurer on the date fixed in such order at the then current 181
market price. Neither the treasurer nor the members of the board 182
shall be held accountable for any loss occasioned by sales or 183
liquidations of investments or deposits at prices lower than 184
their cost. Any loss or expense incurred in making such sales or 185
liquidations is payable as other expenses of the treasurer's 186
office.
(J) If any investments or deposits purchased under the 188
authority of this section are issuable to a designated payee or 189
to the order of a designated payee, the name of the treasurer and 190
the title of the treasurer's office shall be so designated. If 191
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any such securities are registrable either as to principal or 192
interest, or both, then such securities shall be registered in 193
the name of the treasurer as such. 194
(K) The treasurer is responsible for the safekeeping of 196
all documents evidencing a deposit or investment acquired by the 197
treasurer under this section. Any securities may be deposited 198
for safekeeping with a qualified trustee as provided in section 199
135.18 of the Revised Code, except the delivery of securities 200
acquired under any repurchase agreement under this section shall 201
be made to a qualified trustee, provided, however, that the 202
qualified trustee shall be required to report to the treasurer, 203
governing board, auditor of state, or an authorized outside 204
auditor at any time upon request as to the identity, market 205
value, and location of the document evidencing each security, and 206
that if the participating institution is a designated depository 207
of the subdivision for the current period of designation, the 208
securities that are the subject of the repurchase agreement may 209
be delivered to the treasurer or held in trust by the 210
participating institution on behalf of the subdivision. Interest 211
earned on any investments or deposits authorized by this section 212
shall be collected by the treasurer and credited by the treasurer 214
to the proper fund of the subdivision.
Upon the expiration of the term of office of a treasurer or 216
in the event of a vacancy in the office of treasurer by reason of 217
death, resignation, removal from office, or otherwise, the 218
treasurer or the treasurer's legal representative shall transfer 219
and deliver to the treasurer's successor all documents evidencing 220
a deposit or investment held by the treasurer. For the 221
investments and deposits so transferred and delivered, such 222
treasurer shall be credited with and the treasurer's successor 223
shall be charged with the amount of money held in such
investments and deposits. 224
(L) Whenever investments or deposits acquired under this 226
section mature and become due and payable, the treasurer shall 227
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present them for payment according to their tenor, and shall 228
collect the moneys payable thereon. The moneys so collected 229
shall be treated as public moneys subject to sections 135.01 to 230
135.21 of the Revised Code. 231
(M)(1) All investments, except for investments in 233
securities described in divisions (B)(5) and (6) of this section 234
and for investments by a municipal corporation in the issues of 235
such municipal corporation, shall be made only through a member 236
of the national association of securities dealers, through a 237
bank, savings bank, or savings and loan association regulated by 238
the superintendent of financial institutions, or through an 239
institution regulated by the comptroller of the currency, federal 240
deposit insurance corporation, or board of governors of the 241
federal reserve system.
(2) Payment for investments shall be made only upon the 243
delivery of securities representing such investments to the 244
treasurer, governing board, or qualified trustee. If the 245
securities transferred are not represented by a certificate, 246
payment shall be made only upon receipt of confirmation of 247
transfer from the custodian by the treasurer, governing board, or 248
qualified trustee. 249
(N)(1) Except as otherwise provided in divisions (N)(2) 251
and (3) of this section, no treasurer or governing board shall 252
make an investment or deposit under this section, unless there is 254
on file with the auditor of state a written investment policy 255
approved by the treasurer or governing board. The policy shall 256
require that all entities conducting investment business with the 257
treasurer or governing board shall sign the investment policy of 258
that subdivision. All brokers, dealers, and financial 259
institutions, described in division (M)(1) of this section, 260
initiating transactions with the treasurer or governing board by 261
giving advice or making investment recommendations shall sign the 262
treasurer's or governing board's investment policy thereby
acknowledging their agreement to abide by the policy's contents. 263
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All brokers, dealers, and financial institutions, described in 264
division (M)(1) of this section, executing transactions initiated 265
by the treasurer or governing board, having read the policy's 266
contents, shall sign the investment policy thereby acknowledging 267
their comprehension and receipt.
(2) If a written investment policy described in division 269
(N)(1) of this section is not filed on behalf of the subdivision 270
with the auditor of state, the treasurer or governing board of 271
that subdivision shall invest the subdivision's interim moneys 272
only in interim deposits pursuant to division (B)(3) of this 273
section, NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION 274
(B)(5) OF THIS SECTION, or the Ohio subdivision's fund pursuant 275
to division (B)(6) of this section.
(3) Divisions (N)(1) and (2) of this section do not apply 277
to a treasurer or governing board of a subdivision whose average 278
annual portfolio of investments held pursuant to this section is 279
one hundred thousand dollars or less, provided that the treasurer 280
or governing board certifies, on a form prescribed by the auditor 281
of state, that the treasurer or governing board will comply and 282
is in compliance with the provisions of sections 135.01 to 135.21 284
of the Revised Code.
(O) A treasurer or governing board may enter into a 287
written investment or deposit agreement that includes a provision 288
under which the parties agree to submit to nonbinding arbitration 289
to settle any controversy that may arise out of the agreement, 290
including any controversy pertaining to losses of public moneys 291
resulting from investment or deposit. The arbitration provision 292
shall be set forth entirely in the agreement, and the agreement 293
shall include a conspicuous notice to the parties that any party 295
to the arbitration may apply to the court of common pleas of the 296
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 297
the court for an order to change venue to a court of common pleas 298
located more than one hundred miles from the county in which the 299
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treasurer or governing board is located. 300
For purposes of this division, "investment or deposit 302
agreement" means any agreement between a treasurer or governing 303
board and a person, under which agreement the person agrees to 304
invest, deposit, or otherwise manage a subdivision's interim 305
moneys on behalf of the treasurer or governing board, or agrees 306
to provide investment advice to the treasurer or governing board.
(P) An investment made by the treasurer or governing board 308
pursuant to this section prior to the effective date of this 309
amendment SEPTEMBER 27, 1996, that was a legal investment under 311
the law as it existed before the effective date of this amendment 313
SEPTEMBER 27, 1996, may be held until maturity, or if the 314
investment does not have a maturity date, it may be held until 315
five years from the effective date of this amendment SEPTEMBER 317
27, 1996, regardless of whether the investment would qualify as a 318
legal investment under the terms of this section as amended. 319
Sec. 135.22. (A) For purposes of this section: 328
(1) "Treasurer" has the same meaning as in section 135.01 330
of the Revised Code, but does not include the treasurer of state. 331
"Treasurer" includes any person whose duties include making 332
investment decisions with respect to the investment or deposit of 333
interim moneys.
(2) "Subdivision" has the same meaning as in section 335
135.01 of the Revised Code. 336
(B) To enhance the background and working knowledge of 338
treasurers in investments, cash management, and ethics, the 339
treasurer of state shall provide annual continuing education 340
programs for treasurers. A treasurer annually shall complete the 342
continuing education programs described in this section, unless 343
the treasurer annually provides a notice of exemption described 344
in division (E) of this section.
(C) The treasurer of state shall determine the manner, 346
content, and length of the continuing education programs after 347
consultation with appropriate statewide organizations of local 348
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government officials.
(D) Upon successful completion of a continuing education 350
program required by this section, the treasurer of state shall 351
issue a certificate indicating that the treasurer has 352
successfully completed the continuing education program
prescribed by the treasurer of state. The treasurer of state 353
shall forward to the auditor of state any certificates issued 354
pursuant to this division by the treasurer of state. The auditor 355
of state shall maintain in the auditor's records any certificates 356
forwarded by the treasurer of state pursuant to this division. 357
As part of the auditor of state's audit of the subdivision
conducted in accordance with section 117.11 of the Revised Code, 358
the auditor of state shall report whether the treasurer is in 359
compliance with this section of the Revised Code. 360
(E) Division (B) of this section does not apply to any 363
treasurer who annually provides a notice of exemption to the 364
auditor of state. The notice shall be certified by the treasurer 365
of state and shall provide that the treasurer is not subject to
the continuing education requirements set forth in division (B) 366
of this section, because the treasurer invests or deposits public 367
moneys in the following investments only: 368
(1) Interim deposits pursuant to division (B)(3) of 370
section 135.14 of the Revised Code; 371
(2) NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION 373
(B)(5) OF SECTION 135.14 OF THE REVISED CODE; 374
(3) The Ohio subdivision's fund pursuant to division 376
(B)(6) of section 135.14 of the Revised Code. 378
(F) In carrying out the duties required by this section, 380
the treasurer of state may charge the subdivision served by the 381
treasurer a registration fee that will meet actual and necessary 382
expenses in connection with the training of the treasurer, 383
including instruction fees, site acquisition costs, and the cost 384
of course materials. Any necessary personal expenses of a
treasurer incurred as a result of attending the continuing 385
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education courses shall be borne by the subdivision represented 386
by the treasurer.
(G) The treasurer of state may allow any other interested 388
person to attend any of the continuing education programs that 389
are held pursuant to this section, provided that before attending 390
any such continuing education program, the interested person has 391
paid to the treasurer of state the full registration fee set for 392
the continuing education program.
(H) All funds collected pursuant to this section shall be 394
paid into the county treasurer education fund created pursuant to 395
section 321.46 of the Revised Code, and the actual and necessary 397
expenses of the treasurer of state in conducting the continuing 398
education programs required by this section shall be paid from 399
this fund.
(I) The treasurer of state may adopt reasonable rules not 401
inconsistent with this section for the implementation of this 402
section.
Sec. 135.35. (A) The investing authority shall deposit or 411
invest any part or all of the county's inactive moneys and shall 412
invest all of the money in the county library and local 413
government support fund when required by section 135.352 of the 414
Revised Code. The following classifications of securities and 415
obligations are eligible for such deposit or investment: 416
(1) United States treasury bills, notes, bonds, or any 418
other obligation or security issued by the United States treasury 419
or any other obligation guaranteed as to principal or interest by 420
the United States.
Nothing in the classification of eligible securities and 422
obligations set forth in division (A)(1) of this section or in 423
the classifications of eligible securities and obligations set 424
forth in divisions (A)(2) to (9) of this section shall be 425
construed to authorize any investment in stripped principal or 426
interest obligations of such eligible securities and obligations.
(2) Bonds, notes, debentures, or any other obligations or 428
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securities issued by any federal government agency or 429
instrumentality, including but not limited to, the federal 430
national mortgage association, federal home loan bank, federal 431
farm credit bank, federal home loan mortgage corporation, 432
government national mortgage association, and student loan 433
marketing association. All federal agency securities shall be 434
direct issuances of federal government agencies or
instrumentalities. 435
(3) Time certificates of deposit or savings or deposit 437
accounts, including, but not limited to, passbook accounts, in 438
any eligible institution mentioned in section 135.32 of the 439
Revised Code; 440
(4) Bonds and other obligations of this state or the 442
political subdivisions of this state, provided that such 443
political subdivisions are located wholly or partly within the 444
same county as the investing authority;
(5) No-load money market mutual funds consisting 446
exclusively of obligations described in division (A)(1) or (2) of 447
this section and repurchase agreements secured by such 448
obligations, provided that investments in securities described in 450
this division are made only through eligible institutions
mentioned in section 135.32 of the Revised Code; 451
(6) The Ohio subdivision's fund as provided in section 453
135.45 of the Revised Code.; 454
(7) Securities lending agreements with any eligible 456
institution mentioned in section 135.32 of the Revised Code that 457
is a member of the federal reserve system or federal home loan 458
bank, under the terms of which agreements the investing authority 460
lends securities and the eligible institution agrees to 461
simultaneously exchange either securities described in division
(A)(1) or (2) of this section or cash or both securities and 462
cash, equal value for equal value; 463
(8) Commercial paper issued by any corporation 465
incorporated under the laws of the United States or a state if 466
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both of the following conditions apply: 467
(a) Two nationally recognized rating agencies rank the 469
commercial paper in either of their two highest categories; 470
(b) The total amount invested in commercial paper at any 472
time does not exceed five per cent of the county's total average 474
portfolio, as determined and calculated by the investing 475
authority.
(9) Bankers acceptances, if the following conditions are 477
met:
(a) The acceptances mature in two hundred seventy days or 479
fewer from the date of settlement; 480
(b) The acceptances are eligible for purchase by the 482
federal reserve system; 483
(c) The total amount invested in bankers acceptances at 485
any time does not exceed ten per cent of the county's total 486
average portfolio, as determined and calculated by the investing 487
authority.
(B) Nothing in the classifications of eligible obligations 489
and securities set forth in divisions (A)(1) to (9) of this 490
section shall be construed to authorize investment in a 491
derivative, and no investing authority shall invest any county 492
inactive moneys or any moneys in a county library and local 493
government support fund in a derivative. For purposes of this 494
division, "derivative" means a financial instrument or contract 495
or obligation whose value or return is based upon or linked to
another asset or index, or both, separate from the financial 496
instrument, contract, or obligation itself. Any security, 497
obligation, trust account, or other instrument that is created 498
from an issue of the United States treasury or is created from an 499
obligation of a federal agency or instrumentality or is created 500
from both is considered a derivative instrument. An eligible 501
investment described in this section with a variable interest 502
rate payment, based upon a single interest payment or single
index comprised of other eligible investments provided for in 503
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division (A)(1) or (2) of this section, is not a derivative, 504
provided that such variable rate investment has a maximum 505
maturity of two years.
(C) Any investment made pursuant to this section must 507
mature within five years from the date of settlement, unless the 508
investment is matched to a specific obligation or debt of the 509
county, and the investment is specifically approved by the 510
investment advisory committee. 511
(D) The investing authority may also enter into a written 513
repurchase agreement with any eligible institution mentioned in 515
section 135.32 of the Revised Code or any eligible securities
dealer pursuant to division (J) of this section, under the terms 516
of which agreement the investing authority purchases and the 517
eligible institution or dealer agrees unconditionally to 519
repurchase any of the securities listed in division (A)(1) or (2) 520
of this section. The market value of securities subject to an 521
overnight repurchase agreement must exceed the principal value of 522
the overnight repurchase agreement by at least two per cent. A 523
term repurchase agreement must exceed the principal value of the
overnight repurchase agreement, by at least two per cent. A term 524
repurchase agreement shall not exceed thirty days, and the market 525
value of securities subject to a term repurchase agreement must 526
exceed the principal value of the term repurchase agreement by at 527
least two per cent and be marked to market daily. All securities 528
purchased pursuant to this division shall be delivered into the 529
custody of the investing authority or the qualified custodian of 530
the investing authority or an agent designated by the investing 531
authority. A repurchase agreement with an eligible securities 532
dealer shall be transacted on a delivery versus payment basis. 533
The agreement shall contain the requirement that for each 534
transaction pursuant to the agreement the participating 535
institution shall provide all of the following information: 536
(1) The par value of the securities; 538
(2) The type, rate, and maturity date of the securities; 540
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(3) A numerical identifier generally accepted in the 542
securities industry that designates the securities. 543
No investing authority shall enter into a written 545
repurchase agreement under the terms of which the investing 546
authority agrees to sell securities owned by the county to a 548
purchaser and agrees with that purchaser to unconditionally
repurchase those securities. 549
(E) No investing authority shall make an investment under 552
this section, unless the investing authority, at the time of
making the investment, reasonably expects that the investment can 553
be held until its maturity. The investing authority's written 554
investment policy shall specify the conditions under which an 555
investment may be redeemed or sold prior to maturity. 556
(F) No investing authority shall pay a county's inactive 558
moneys or moneys of a county library and local government support 559
fund into a fund established by another subdivision, treasurer, 560
governing board, or investing authority, if that fund was 561
established by the subdivision, treasurer, governing board, or 562
investing authority for the purpose of investing or depositing 563
the public moneys of other subdivisions. This division does not
apply to the payment of public moneys into either of the 564
following:
(1) The Ohio subdivision's fund pursuant to division 566
(A)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 568
constructing, owning, leasing, or operating municipal utilities 569
pursuant to the authority provided under section 715.02 of the 570
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 571
For purposes of division (F) of this section, "subdivision" 573
includes a county. 574
(G) The use of leverage, in which the county uses its 576
current investment assets as collateral for the purpose of 577
purchasing other assets, is prohibited. The issuance of taxable 578
notes for the purpose of arbitrage is prohibited. Contracting to 579
16
sell securities not owned by the county, for the purpose of 580
purchasing such securities on the speculation that bond prices
will decline, is prohibited. 581
(H) Any securities, certificates of deposit, deposit 583
accounts, or any other documents evidencing deposits or 584
investments made under authority of this section shall be issued 585
in the name of the county with the county treasurer or investing 586
authority as the designated payee. If any such deposits or 587
investments are registrable either as to principal or interest, 588
or both, they shall be registered in the name of the treasurer. 589
(I) The investing authority shall be responsible for the 591
safekeeping of all documents evidencing a deposit or investment 592
acquired under this section including, but not limited to, 593
safekeeping receipts evidencing securities deposited with a 594
qualified trustee, as provided in section 135.37 of the Revised 595
Code, and documents confirming the purchase of securities under 596
any repurchase agreement under this section shall be deposited 597
with a qualified trustee, provided, however, that the qualified 598
trustee shall be required to report to the investing authority, 599
auditor of state, or an authorized outside auditor at any time 600
upon request as to the identity, market value, and location of 601
the document evidencing each security, and that if the 602
participating institution is a designated depository of the 603
county for the current period of designation, the securities that 604
are the subject of the repurchase agreement may be delivered to 605
the treasurer or held in trust by the participating institution 606
on behalf of the investing authority. 607
Upon the expiration of the term of office of an investing 609
authority or in the event of a vacancy in the office for any 610
reason, the officer or the officer's legal representative shall 612
transfer and deliver to the officer's successor all documents
mentioned in this division for which the officer has been 613
responsible for safekeeping. For all such documents transferred 615
and delivered, such officer shall be credited with, and the 616
17
officer's successor shall be charged with, the amount of moneys 617
so evidenced by such documents.
(J)(1) All investments, except for investments in 619
securities described in divisions (A)(5) and (6) of this section, 621
shall be made only through a member of the national association 622
of securities dealers, through a bank, savings bank, or savings 623
and loan association regulated by the superintendent of financial 625
institutions, or through an institution regulated by the 626
comptroller of the currency, federal deposit insurance 627
corporation, or board of governors of the federal reserve system. 628
(2) Payment for investments shall be made only upon the 630
delivery of securities representing such investments to the 632
treasurer, investing authority, or qualified trustee. If the 633
securities transferred are not represented by a certificate, 634
payment shall be made only upon receipt of confirmation of 635
transfer from the custodian by the treasurer, governing board, or 636
qualified trustee.
(K)(1) Except as otherwise provided in division (K)(2) of 638
this section, no investing authority shall make an investment or 639
deposit under this section, unless there is on file with the 640
auditor of state a written investment policy approved by the 641
investing authority. The policy shall require that all entities 642
conducting investment business with the investment authority 643
shall sign the investment policy of that investment authority.
All brokers, dealers, and financial institutions, described in 644
division (J)(1) of this section, initiating transactions with the 646
investment authority by giving advice or making investment 647
recommendations shall sign the investment authority's investment 648
policy thereby acknowledging their agreement to abide by the
policy's contents. All brokers, dealers, and financial 649
institutions, described in division (J)(1) of this section, 650
executing transactions initiated by the investment authority, 651
having read the policy's contents, shall sign the investment 652
policy thereby acknowledging their comprehension and receipt.
18
(2) If a written investment policy described in division 654
(K)(1) of this section is not filed on behalf of the county with 655
the auditor of state, the investing authority of that county 656
shall invest the county's inactive moneys and moneys of the 657
county library and local government support fund only in time 658
certificates of deposits or savings or deposit accounts pursuant 659
to division (A)(3) of this section, NO-LOAD MONEY MARKET MUTUAL 660
FUNDS PURSUANT TO DIVISION (A)(5) OF THIS SECTION, or the Ohio 661
subdivision's fund pursuant to division (A)(6) of this section.
(L)(1) The investing authority shall establish and 663
maintain an inventory of all obligations and securities acquired 664
by the investing authority pursuant to this section. The 665
inventory shall include a description of each obligation or 666
security, including type, cost, par value, maturity date, 667
settlement date, and any coupon rate.
(2) The investing authority shall also keep a complete 669
record of all purchases and sales of the obligations and 670
securities made pursuant to this section. 671
(3) The investing authority shall maintain a monthly 673
portfolio report and issue a quarterly investment report 674
describing such investments to the county investment advisory 675
committee, detailing the current inventory of all obligations and 676
securities, all transactions during the month that affected the 677
inventory, any income received from the obligations and
securities, and any investment expenses paid, and stating the 678
names of any persons effecting transactions on behalf of the 679
investing authority.
(4) The monthly portfolio report and the quarterly 681
investment report shall be public records and available for 682
inspection under section 149.43 of the Revised Code.
(5) The inventory, the monthly portfolio report, and the 684
quarterly investment report shall be on standard forms approved 685
by the auditor of state and shall be filed with the board of 686
county commissioners.
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(M) An investing authority may enter into a written 689
investment or deposit agreement that includes a provision under 690
which the parties agree to submit to nonbinding arbitration to 691
settle any controversy that may arise out of the agreement, 692
including any controversy pertaining to losses of public moneys 693
resulting from investment or deposit. The arbitration provision 694
shall be set forth entirely in the agreement, and the agreement 695
shall include a conspicuous notice to the parties that any party 697
to the arbitration may apply to the court of common pleas of the 698
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 699
the court for an order to change venue to a court of common pleas 700
located more than one hundred miles from the county in which the 701
investing authority is located.
For purposes of this division, "investment or deposit 703
agreement" means any agreement between an investing authority and 704
a person, under which agreement the person agrees to invest, 705
deposit, or otherwise manage, on behalf of the investing 706
authority, a county's inactive moneys or moneys in a county
library and local government support fund, or agrees to provide 707
investment advice to the investing authority. 708
(N) An investment held in the county portfolio on the 710
effective date of this amendment SEPTEMBER 27, 1996, that was a 712
legal investment under the law as it existed before the effective 713
date of this amendment SEPTEMBER 27, 1996, may be held until 714
maturity, or if the investment does not have a maturity date the 715
investment may be held until five years from the effective date 716
of this amendment SEPTEMBER 27, 1996, regardless of whether the 718
investment would qualify as a legal investment under the terms of
this section as amended. 719
Sec. 321.46. (A) To enhance the background and working 729
knowledge of county treasurers in governmental accounting, 730
portfolio reporting and compliance, investments, and cash 731
management, the auditor of state and the treasurer of state shall 732
20
conduct education programs for persons elected for the first time 733
to the office of county treasurer and shall hold annual 734
continuing education programs for persons who continue to hold 735
the office of county treasurer. Education programs for newly 736
elected county treasurers shall be held between the first day of 737
December and the first Monday of September next following that 738
person's election to the office of county treasurer. Similar 739
initial training may also be provided to any county treasurer who 740
is appointed to fill a vacancy or who is elected at a special 741
election.
(B)(1) The auditor of state shall determine the manner and 743
content of the education programs in the subject areas of 745
governmental accounting and portfolio reporting and compliance. 746
In those areas, newly elected county treasurers shall be required 747
to take at least thirteen hours of education before taking 748
office.
(2) The treasurer of state shall determine the manner and 750
content of the education programs in the subject areas of 751
investments and cash management. In those areas, newly elected 752
county treasurers shall be required to take at least thirteen 753
hours of education before taking office. 754
(3) After completing one year in office, a county 756
treasurer shall be required to take not less than twelve hours 757
annually of continuing education. The treasurer of state shall 758
determine the manner and content of the education programs in the 759
subject areas of investments, cash management, the collection of 760
taxes, ethics, and any other subject area that the treasurer of
state determines is reasonably related to the duties of the 761
office of the county treasurer. The auditor of state shall 763
determine the manner and content of the education programs in the 764
subject areas of governmental accounting, portfolio reporting and 765
compliance, office management, and any other subject area that
the auditor of state determines is reasonably related to the 766
duties of the office of the county treasurer. 767
21
(C) The auditor of state and the treasurer of state may 770
each charge counties a registration fee that will meet actual and 771
necessary expenses of the training of county treasurers, 772
including instructor fees, site acquisition costs, and the cost 773
of course materials. The necessary personal expenses of county 774
treasurers as a result of attending the training programs shall 775
be borne by the counties the treasurers represent. 776
(D) The auditor of state and the treasurer of state may 779
allow any other interested person to attend any of the education 780
programs that are held pursuant to this section, provided that 781
before attending any such education program, the interested 782
person shall pay to either the auditor of state or the treasurer 783
of state, as appropriate, the full registration fee set for the 784
education program.
(E) A county treasurer who fails to complete the initial 787
or continuing education programs required by this section without 788
a valid health-related excuse or other special hardship shall be
restricted to investing in the Ohio subdivision's fund pursuant 789
to division (A)(6) of section 135.35 of the Revised Code, IN 791
NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION (A)(5) OF 792
SECTION 135.35 OF THE REVISED CODE, or in time certificate of
deposits or deposit accounts pursuant to division (A)(3) of 794
section 135.35 of the Revised Code. A county treasurer who has 795
failed to complete the initial or continuing education programs
and invests in other than the investments permitted by this 796
division shall be subject to removal from office upon complaint 798
and investigation by the county prosecuting attorney, a hearing,
and a resolution adopted by the board of county commissioners 799
approving the removal from office. 800
(F)(1) There is hereby created in the state treasury the 803
county treasurer education fund, to be used by the treasurer of 804
state for actual and necessary expenses of education programs 806
held pursuant to this section. All registration fees collected 807
by the treasurer of state under this section shall be paid into 808
22
that fund.
(2) All registration fees collected by the auditor of 810
state under this section shall be paid into the auditor of state 811
training program fund established under section 117.44 of the 812
Revised Code.
(G) The treasurer of state, with the advice and consent of 815
the auditor of state, may adopt reasonable rules not inconsistent 816
with this section for the implementation of this section. 817
Section 2. That existing sections 135.14, 135.22, 135.35, 819
and 321.46 of the Revised Code are hereby repealed. 820