As Reported by the Senate Ways and Means Committee 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 9
_________________________________________________________________ 11
A B I L L
To amend sections 135.14, 135.22, 135.35, and 321.46 13
of the Revised Code to permit subdivision or 14
county treasurers to invest in certain no-load
money market mutual funds in the absence of a 15
written investment policy on behalf of the 16
subdivision or county or in the cases of
exemptions from or noncompliance with specified 17
initial or continuing education requirements by
the subdivision or county treasurer. 18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That sections 135.14, 135.22, 135.35, and 21
321.46 of the Revised Code be amended to read as follows: 22
Sec. 135.14. (A) As used in this section, "treasurer" 31
does not include the treasurer of state, and "governing board" 32
does not include the state board of deposit. 33
(B) The treasurer or governing board may invest or deposit 35
any part or all of the interim moneys. The following 37
classifications of obligations shall be eligible for such 38
investment or deposit:
(1) United States treasury bills, notes, bonds, or any 40
other obligation or security issued by the United States treasury 41
or any other obligation guaranteed as to principal and interest 42
by the United States.
Nothing in the classification of eligible obligations set 44
forth in division (B)(1) of this section or in the 45
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classifications of eligible obligations set forth in divisions 46
(B)(2) to (6) of this section shall be construed to authorize any 47
investment in stripped principal or interest obligations of such 48
eligible obligations.
(2) Bonds, notes, debentures, or any other obligations or 50
securities issued by any federal government agency or 51
instrumentality, including but not limited to, the federal 52
national mortgage association, federal home loan bank, federal 53
farm credit bank, federal home loan mortgage corporation, 54
government national mortgage association, and student loan
marketing association. All federal agency securities shall be 55
direct issuances of federal government agencies or 56
instrumentalities.
(3) Interim deposits in the eligible institutions applying 58
for interim moneys as provided in section 135.08 of the Revised 59
Code. The award of interim deposits shall be made in accordance 60
with section 135.09 of the Revised Code and the treasurer or the 61
governing board shall determine the periods for which such 62
interim deposits are to be made and shall award such interim 63
deposits for such periods, provided that any eligible institution 64
receiving an interim deposit award may, upon notification that 65
the award has been made, decline to accept the interim deposit in 66
which event the award shall be made as though such THE 67
institution had not applied for such interim deposit. 68
(4) Bonds and other obligations of this state; 70
(5) No-load money market mutual funds consisting 72
exclusively of obligations described in division (B)(1) or (2) of 74
this section and repurchase agreements secured by such
obligations, provided that investments in securities described in 76
this division are made only through eligible institutions
mentioned in section 135.03 of the Revised Code; 77
(6) The Ohio subdivision's fund as provided in section 79
135.45 of the Revised Code. 80
(C) Nothing in the classifications of eligible obligations 82
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set forth in divisions (B)(1) to (6) of this section shall be 83
construed to authorize any investment in a derivative, and no 84
treasurer or governing board shall invest in a derivative. For 85
purposes of this division, "derivative" means a financial 86
instrument or contract or obligation whose value or return is 87
based upon or linked to another asset or index, or both, separate 88
from the financial instrument, contract, or obligation itself.
Any security, obligation, trust account, or other instrument that 89
is created from an issue of the United States treasury or is 90
created from an obligation of a federal agency or instrumentality 91
or is created from both is considered a derivative instrument. 92
An eligible investment described in this section with a variable 93
interest rate payment, based upon a single interest payment or 94
single index comprised of other eligible investments provided for 95
in division (B)(1) or (2) of this section, is not a derivative, 96
provided that such variable rate investment has a maximum
maturity of two years. 97
(D) Any investment made pursuant to this section must 99
mature within five years from the date of settlement, unless the 100
investment is matched to a specific obligation or debt of the 101
subdivision. 102
(E) The treasurer or governing board may also enter into a 104
written repurchase agreement with any eligible institution 105
mentioned in section 135.03 of the Revised Code or any eligible 106
dealer pursuant to division (M) of this section, under the terms 107
of which agreement the treasurer or governing board purchases, 108
and such institution or dealer agrees unconditionally to 109
repurchase any of the securities listed in division (B)(1) or (2) 110
of this section. The market value of securities subject to an 111
overnight repurchase agreement must exceed the principal value of 112
the overnight repurchase agreement by at least two per cent. A 113
term repurchase agreement shall not exceed thirty days and the 114
market value of securities subject to a term repurchase agreement 115
must exceed the principal value of the term repurchase agreement 116
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by at least two per cent and be marked to market daily. All 117
securities purchased pursuant to this division shall be delivered 118
into the custody of the treasurer or governing board or an agent 119
designated by the treasurer or governing board. A repurchase 120
agreement with an eligible securities dealer shall be transacted 121
on a delivery versus payment basis. The agreement shall contain 122
the requirement that for each transaction pursuant to the 123
agreement the participating institution or dealer shall provide 124
all of the following information:
(1) The par value of the securities; 126
(2) The type, rate, and maturity date of the securities; 128
(3) A numerical identifier generally accepted in the 130
securities industry that designates the securities. 131
No treasurer or governing board shall enter into a written 133
repurchase agreement under the terms of which the treasurer or 134
governing board agrees to sell securities owned by the 135
subdivision to a purchaser and agrees with that purchaser to 136
unconditionally repurchase those securities.
(F) No treasurer or governing board shall make an 138
investment under this section, unless the treasurer or governing 139
board, at the time of making the investment, reasonably expects 140
that the investment can be held until its maturity. 141
(G) No treasurer or governing board shall pay interim 143
moneys into a fund established by another subdivision, treasurer, 144
governing board, or investing authority, if that fund was 145
established for the purpose of investing the public moneys of 146
other subdivisions. This division does not apply to the payment 147
of public moneys into either of the following:
(1) The Ohio subdivision's fund pursuant to division 150
(B)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 152
constructing, owning, leasing, or operating municipal utilities 153
pursuant to the authority provided under section 715.02 of the 154
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 155
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For purposes of division (G) of this section, "subdivision" 157
includes a county. 158
(H) The use of leverage, in which the treasurer or 160
governing board uses its current investment assets as collateral 161
for the purpose of purchasing other assets, is prohibited. The 162
issuance of taxable notes for the purpose of arbitrage is 163
prohibited. Contracting to sell securities that have not yet 164
been acquired by the treasurer or governing board, for the
purpose of purchasing such securities on the speculation that 165
bond prices will decline, is prohibited. 166
(I) Whenever, during a period of designation, the 168
treasurer classifies public moneys as interim moneys, the 169
treasurer shall notify the governing board of such action. Such 170
THE notification shall be given within thirty days after such 171
classification and in the event the governing board does not 172
concur in such classification or in the investments or deposits 173
made under this section, the governing board may order the 174
treasurer to sell or liquidate any of such investments or 175
deposits, and any such order shall specifically describe the 176
investments or deposits and fix the date upon which they are to 177
be sold or liquidated. Investments or deposits so ordered to be 178
sold or liquidated shall be sold or liquidated for cash by the 179
treasurer on the date fixed in such order at the then current 180
market price. Neither the treasurer nor the members of the board 181
shall be held accountable for any loss occasioned by sales or 182
liquidations of investments or deposits at prices lower than 183
their cost. Any loss or expense incurred in making such sales or 184
liquidations is payable as other expenses of the treasurer's 185
office.
(J) If any investments or deposits purchased under the 187
authority of this section are issuable to a designated payee or 188
to the order of a designated payee, the name of the treasurer and 189
the title of the treasurer's office shall be so designated. If 190
any such securities are registrable either as to principal or 191
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interest, or both, then such securities shall be registered in 192
the name of the treasurer as such. 193
(K) The treasurer is responsible for the safekeeping of 195
all documents evidencing a deposit or investment acquired by the 196
treasurer under this section. Any securities may be deposited 197
for safekeeping with a qualified trustee as provided in section 198
135.18 of the Revised Code, except the delivery of securities 199
acquired under any repurchase agreement under this section shall 200
be made to a qualified trustee, provided, however, that the 201
qualified trustee shall be required to report to the treasurer, 202
governing board, auditor of state, or an authorized outside 203
auditor at any time upon request as to the identity, market 204
value, and location of the document evidencing each security, and 205
that if the participating institution is a designated depository 206
of the subdivision for the current period of designation, the 207
securities that are the subject of the repurchase agreement may 208
be delivered to the treasurer or held in trust by the 209
participating institution on behalf of the subdivision. Interest 210
earned on any investments or deposits authorized by this section 211
shall be collected by the treasurer and credited by the treasurer 213
to the proper fund of the subdivision.
Upon the expiration of the term of office of a treasurer or 215
in the event of a vacancy in the office of treasurer by reason of 216
death, resignation, removal from office, or otherwise, the 217
treasurer or the treasurer's legal representative shall transfer 218
and deliver to the treasurer's successor all documents evidencing 219
a deposit or investment held by the treasurer. For the 220
investments and deposits so transferred and delivered, such 221
treasurer shall be credited with and the treasurer's successor 222
shall be charged with the amount of money held in such
investments and deposits. 223
(L) Whenever investments or deposits acquired under this 225
section mature and become due and payable, the treasurer shall 226
present them for payment according to their tenor, and shall 227
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collect the moneys payable thereon. The moneys so collected 228
shall be treated as public moneys subject to sections 135.01 to 229
135.21 of the Revised Code. 230
(M)(1) All investments, except for investments in 232
securities described in divisions (B)(5) and (6) of this section 233
and for investments by a municipal corporation in the issues of 234
such municipal corporation, shall be made only through a member 235
of the national association of securities dealers, through a 236
bank, savings bank, or savings and loan association regulated by 237
the superintendent of financial institutions, or through an 238
institution regulated by the comptroller of the currency, federal 239
deposit insurance corporation, or board of governors of the 240
federal reserve system.
(2) Payment for investments shall be made only upon the 242
delivery of securities representing such investments to the 243
treasurer, governing board, or qualified trustee. If the 244
securities transferred are not represented by a certificate, 245
payment shall be made only upon receipt of confirmation of 246
transfer from the custodian by the treasurer, governing board, or 247
qualified trustee. 248
(N)(1) Except as otherwise provided in divisions (N)(2) 250
and (3) of this section, no treasurer or governing board shall 251
make an investment or deposit under this section, unless there is 253
on file with the auditor of state a written investment policy 254
approved by the treasurer or governing board. The policy shall 255
require that all entities conducting investment business with the 256
treasurer or governing board shall sign the investment policy of 257
that subdivision. All brokers, dealers, and financial 258
institutions, described in division (M)(1) of this section, 259
initiating transactions with the treasurer or governing board by 260
giving advice or making investment recommendations shall sign the 261
treasurer's or governing board's investment policy thereby
acknowledging their agreement to abide by the policy's contents. 262
All brokers, dealers, and financial institutions, described in 263
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division (M)(1) of this section, executing transactions initiated 264
by the treasurer or governing board, having read the policy's 265
contents, shall sign the investment policy thereby acknowledging 266
their comprehension and receipt.
(2) If a written investment policy described in division 268
(N)(1) of this section is not filed on behalf of the subdivision 269
with the auditor of state, the treasurer or governing board of 270
that subdivision shall invest the subdivision's interim moneys 271
only in interim deposits pursuant to division (B)(3) of this 272
section, NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION 273
(B)(5) OF THIS SECTION, or the Ohio subdivision's fund pursuant 274
to division (B)(6) of this section.
(3) Divisions (N)(1) and (2) of this section do not apply 276
to a treasurer or governing board of a subdivision whose average 277
annual portfolio of investments held pursuant to this section is 278
one hundred thousand dollars or less, provided that the treasurer 279
or governing board certifies, on a form prescribed by the auditor 280
of state, that the treasurer or governing board will comply and 281
is in compliance with the provisions of sections 135.01 to 135.21 283
of the Revised Code.
(O) A treasurer or governing board may enter into a 286
written investment or deposit agreement that includes a provision 287
under which the parties agree to submit to nonbinding arbitration 288
to settle any controversy that may arise out of the agreement, 289
including any controversy pertaining to losses of public moneys 290
resulting from investment or deposit. The arbitration provision 291
shall be set forth entirely in the agreement, and the agreement 292
shall include a conspicuous notice to the parties that any party 294
to the arbitration may apply to the court of common pleas of the 295
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 296
the court for an order to change venue to a court of common pleas 297
located more than one hundred miles from the county in which the 298
treasurer or governing board is located. 299
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For purposes of this division, "investment or deposit 301
agreement" means any agreement between a treasurer or governing 302
board and a person, under which agreement the person agrees to 303
invest, deposit, or otherwise manage a subdivision's interim 304
moneys on behalf of the treasurer or governing board, or agrees 305
to provide investment advice to the treasurer or governing board.
(P) An investment made by the treasurer or governing board 307
pursuant to this section prior to the effective date of this 308
amendment SEPTEMBER 27, 1996, that was a legal investment under 310
the law as it existed before the effective date of this amendment 312
SEPTEMBER 27, 1996, may be held until maturity, or if the 313
investment does not have a maturity date, it may be held until 314
five years from the effective date of this amendment SEPTEMBER 316
27, 1996, regardless of whether the investment would qualify as a 317
legal investment under the terms of this section as amended. 318
Sec. 135.22. (A) For purposes of this section: 327
(1) "Treasurer" has the same meaning as in section 135.01 329
of the Revised Code, but does not include the treasurer of state. 330
"Treasurer" includes any person whose duties include making 331
investment decisions with respect to the investment or deposit of 332
interim moneys.
(2) "Subdivision" has the same meaning as in section 334
135.01 of the Revised Code. 335
(B) To enhance the background and working knowledge of 337
treasurers in investments, cash management, and ethics, the 338
treasurer of state shall provide annual continuing education 339
programs for treasurers. A treasurer annually shall complete the 341
continuing education programs described in this section, unless 342
the treasurer annually provides a notice of exemption described 343
in division (E) of this section.
(C) The treasurer of state shall determine the manner, 345
content, and length of the continuing education programs after 346
consultation with appropriate statewide organizations of local 347
government officials.
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(D) Upon successful completion of a continuing education 349
program required by this section, the treasurer of state shall 350
issue a certificate indicating that the treasurer has 351
successfully completed the continuing education program
prescribed by the treasurer of state. The treasurer of state 352
shall forward to the auditor of state any certificates issued 353
pursuant to this division by the treasurer of state. The auditor 354
of state shall maintain in the auditor's records any certificates 355
forwarded by the treasurer of state pursuant to this division. 356
As part of the auditor of state's audit of the subdivision
conducted in accordance with section 117.11 of the Revised Code, 357
the auditor of state shall report whether the treasurer is in 358
compliance with this section of the Revised Code. 359
(E) Division (B) of this section does not apply to any 362
treasurer who annually provides a notice of exemption to the 363
auditor of state. The notice shall be certified by the treasurer 364
of state and shall provide that the treasurer is not subject to
the continuing education requirements set forth in division (B) 365
of this section, because the treasurer invests or deposits public 366
moneys in the following investments only: 367
(1) Interim deposits pursuant to division (B)(3) of 369
section 135.14 of the Revised Code; 370
(2) NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION 372
(B)(5) OF SECTION 135.14 OF THE REVISED CODE; 373
(3) The Ohio subdivision's fund pursuant to division 375
(B)(6) of section 135.14 of the Revised Code. 377
(F) In carrying out the duties required by this section, 379
the treasurer of state may charge the subdivision served by the 380
treasurer a registration fee that will meet actual and necessary 381
expenses in connection with the training of the treasurer, 382
including instruction fees, site acquisition costs, and the cost 383
of course materials. Any necessary personal expenses of a
treasurer incurred as a result of attending the continuing 384
education courses shall be borne by the subdivision represented 385
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by the treasurer.
(G) The treasurer of state may allow any other interested 387
person to attend any of the continuing education programs that 388
are held pursuant to this section, provided that before attending 389
any such continuing education program, the interested person has 390
paid to the treasurer of state the full registration fee set for 391
the continuing education program.
(H) All funds collected pursuant to this section shall be 393
paid into the county treasurer education fund created pursuant to 394
section 321.46 of the Revised Code, and the actual and necessary 396
expenses of the treasurer of state in conducting the continuing 397
education programs required by this section shall be paid from 398
this fund.
(I) The treasurer of state may adopt reasonable rules not 400
inconsistent with this section for the implementation of this 401
section.
Sec. 135.35. (A) The investing authority shall deposit or 410
invest any part or all of the county's inactive moneys and shall 411
invest all of the money in the county library and local 412
government support fund when required by section 135.352 of the 413
Revised Code. The following classifications of securities and 414
obligations are eligible for such deposit or investment: 415
(1) United States treasury bills, notes, bonds, or any 417
other obligation or security issued by the United States treasury 418
or any other obligation guaranteed as to principal or interest by 419
the United States.
Nothing in the classification of eligible securities and 421
obligations set forth in division (A)(1) of this section or in 422
the classifications of eligible securities and obligations set 423
forth in divisions (A)(2) to (9) of this section shall be 424
construed to authorize any investment in stripped principal or 425
interest obligations of such eligible securities and obligations.
(2) Bonds, notes, debentures, or any other obligations or 427
securities issued by any federal government agency or 428
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instrumentality, including but not limited to, the federal 429
national mortgage association, federal home loan bank, federal 430
farm credit bank, federal home loan mortgage corporation, 431
government national mortgage association, and student loan 432
marketing association. All federal agency securities shall be 433
direct issuances of federal government agencies or
instrumentalities. 434
(3) Time certificates of deposit or savings or deposit 436
accounts, including, but not limited to, passbook accounts, in 437
any eligible institution mentioned in section 135.32 of the 438
Revised Code; 439
(4) Bonds and other obligations of this state or the 441
political subdivisions of this state, provided that such 442
political subdivisions are located wholly or partly within the 443
same county as the investing authority;
(5) No-load money market mutual funds consisting 445
exclusively of obligations described in division (A)(1) or (2) of 446
this section and repurchase agreements secured by such 447
obligations, provided that investments in securities described in 449
this division are made only through eligible institutions
mentioned in section 135.32 of the Revised Code; 450
(6) The Ohio subdivision's fund as provided in section 452
135.45 of the Revised Code.; 453
(7) Securities lending agreements with any eligible 455
institution mentioned in section 135.32 of the Revised Code that 456
is a member of the federal reserve system or federal home loan 457
bank, under the terms of which agreements the investing authority 459
lends securities and the eligible institution agrees to 460
simultaneously exchange either securities described in division
(A)(1) or (2) of this section or cash or both securities and 461
cash, equal value for equal value; 462
(8) Commercial paper issued by any corporation 464
incorporated under the laws of the United States or a state if 465
both of the following conditions apply: 466
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(a) Two nationally recognized rating agencies rank the 468
commercial paper in either of their two highest categories; 469
(b) The total amount invested in commercial paper at any 471
time does not exceed five per cent of the county's total average 473
portfolio, as determined and calculated by the investing 474
authority.
(9) Bankers acceptances, if the following conditions are 476
met:
(a) The acceptances mature in two hundred seventy days or 478
fewer from the date of settlement; 479
(b) The acceptances are eligible for purchase by the 481
federal reserve system; 482
(c) The total amount invested in bankers acceptances at 484
any time does not exceed ten per cent of the county's total 485
average portfolio, as determined and calculated by the investing 486
authority.
(B) Nothing in the classifications of eligible obligations 488
and securities set forth in divisions (A)(1) to (9) of this 489
section shall be construed to authorize investment in a 490
derivative, and no investing authority shall invest any county 491
inactive moneys or any moneys in a county library and local 492
government support fund in a derivative. For purposes of this 493
division, "derivative" means a financial instrument or contract 494
or obligation whose value or return is based upon or linked to
another asset or index, or both, separate from the financial 495
instrument, contract, or obligation itself. Any security, 496
obligation, trust account, or other instrument that is created 497
from an issue of the United States treasury or is created from an 498
obligation of a federal agency or instrumentality or is created 499
from both is considered a derivative instrument. An eligible 500
investment described in this section with a variable interest 501
rate payment, based upon a single interest payment or single
index comprised of other eligible investments provided for in 502
division (A)(1) or (2) of this section, is not a derivative, 503
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provided that such variable rate investment has a maximum 504
maturity of two years.
(C) Any investment made pursuant to this section must 506
mature within five years from the date of settlement, unless the 507
investment is matched to a specific obligation or debt of the 508
county, and the investment is specifically approved by the 509
investment advisory committee. 510
(D) The investing authority may also enter into a written 512
repurchase agreement with any eligible institution mentioned in 514
section 135.32 of the Revised Code or any eligible securities
dealer pursuant to division (J) of this section, under the terms 515
of which agreement the investing authority purchases and the 516
eligible institution or dealer agrees unconditionally to 518
repurchase any of the securities listed in division (A)(1) or (2) 519
of this section. The market value of securities subject to an 520
overnight repurchase agreement must exceed the principal value of 521
the overnight repurchase agreement by at least two per cent. A 522
term repurchase agreement must exceed the principal value of the
overnight repurchase agreement, by at least two per cent. A term 523
repurchase agreement shall not exceed thirty days, and the market 524
value of securities subject to a term repurchase agreement must 525
exceed the principal value of the term repurchase agreement by at 526
least two per cent and be marked to market daily. All securities 527
purchased pursuant to this division shall be delivered into the 528
custody of the investing authority or the qualified custodian of 529
the investing authority or an agent designated by the investing 530
authority. A repurchase agreement with an eligible securities 531
dealer shall be transacted on a delivery versus payment basis. 532
The agreement shall contain the requirement that for each 533
transaction pursuant to the agreement the participating 534
institution shall provide all of the following information: 535
(1) The par value of the securities; 537
(2) The type, rate, and maturity date of the securities; 539
(3) A numerical identifier generally accepted in the 541
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securities industry that designates the securities. 542
No investing authority shall enter into a written 544
repurchase agreement under the terms of which the investing 545
authority agrees to sell securities owned by the county to a 547
purchaser and agrees with that purchaser to unconditionally
repurchase those securities. 548
(E) No investing authority shall make an investment under 551
this section, unless the investing authority, at the time of
making the investment, reasonably expects that the investment can 552
be held until its maturity. The investing authority's written 553
investment policy shall specify the conditions under which an 554
investment may be redeemed or sold prior to maturity. 555
(F) No investing authority shall pay a county's inactive 557
moneys or moneys of a county library and local government support 558
fund into a fund established by another subdivision, treasurer, 559
governing board, or investing authority, if that fund was 560
established by the subdivision, treasurer, governing board, or 561
investing authority for the purpose of investing or depositing 562
the public moneys of other subdivisions. This division does not
apply to the payment of public moneys into either of the 563
following:
(1) The Ohio subdivision's fund pursuant to division 565
(A)(6) of this section;
(2) A fund created solely for the purpose of acquiring, 567
constructing, owning, leasing, or operating municipal utilities 568
pursuant to the authority provided under section 715.02 of the 569
Revised Code or Section 4 of Article XVIII, Ohio Constitution. 570
For purposes of division (F) of this section, "subdivision" 572
includes a county. 573
(G) The use of leverage, in which the county uses its 575
current investment assets as collateral for the purpose of 576
purchasing other assets, is prohibited. The issuance of taxable 577
notes for the purpose of arbitrage is prohibited. Contracting to 578
sell securities not owned by the county, for the purpose of 579
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purchasing such securities on the speculation that bond prices
will decline, is prohibited. 580
(H) Any securities, certificates of deposit, deposit 582
accounts, or any other documents evidencing deposits or 583
investments made under authority of this section shall be issued 584
in the name of the county with the county treasurer or investing 585
authority as the designated payee. If any such deposits or 586
investments are registrable either as to principal or interest, 587
or both, they shall be registered in the name of the treasurer. 588
(I) The investing authority shall be responsible for the 590
safekeeping of all documents evidencing a deposit or investment 591
acquired under this section including, but not limited to, 592
safekeeping receipts evidencing securities deposited with a 593
qualified trustee, as provided in section 135.37 of the Revised 594
Code, and documents confirming the purchase of securities under 595
any repurchase agreement under this section shall be deposited 596
with a qualified trustee, provided, however, that the qualified 597
trustee shall be required to report to the investing authority, 598
auditor of state, or an authorized outside auditor at any time 599
upon request as to the identity, market value, and location of 600
the document evidencing each security, and that if the 601
participating institution is a designated depository of the 602
county for the current period of designation, the securities that 603
are the subject of the repurchase agreement may be delivered to 604
the treasurer or held in trust by the participating institution 605
on behalf of the investing authority. 606
Upon the expiration of the term of office of an investing 608
authority or in the event of a vacancy in the office for any 609
reason, the officer or the officer's legal representative shall 611
transfer and deliver to the officer's successor all documents
mentioned in this division for which the officer has been 612
responsible for safekeeping. For all such documents transferred 614
and delivered, such officer shall be credited with, and the 615
officer's successor shall be charged with, the amount of moneys 616
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so evidenced by such documents.
(J)(1) All investments, except for investments in 618
securities described in divisions (A)(5) and (6) of this section, 620
shall be made only through a member of the national association 621
of securities dealers, through a bank, savings bank, or savings 622
and loan association regulated by the superintendent of financial 624
institutions, or through an institution regulated by the 625
comptroller of the currency, federal deposit insurance 626
corporation, or board of governors of the federal reserve system. 627
(2) Payment for investments shall be made only upon the 629
delivery of securities representing such investments to the 631
treasurer, investing authority, or qualified trustee. If the 632
securities transferred are not represented by a certificate, 633
payment shall be made only upon receipt of confirmation of 634
transfer from the custodian by the treasurer, governing board, or 635
qualified trustee.
(K)(1) Except as otherwise provided in division (K)(2) of 637
this section, no investing authority shall make an investment or 638
deposit under this section, unless there is on file with the 639
auditor of state a written investment policy approved by the 640
investing authority. The policy shall require that all entities 641
conducting investment business with the investment authority 642
shall sign the investment policy of that investment authority.
All brokers, dealers, and financial institutions, described in 643
division (J)(1) of this section, initiating transactions with the 645
investment authority by giving advice or making investment 646
recommendations shall sign the investment authority's investment 647
policy thereby acknowledging their agreement to abide by the
policy's contents. All brokers, dealers, and financial 648
institutions, described in division (J)(1) of this section, 649
executing transactions initiated by the investment authority, 650
having read the policy's contents, shall sign the investment 651
policy thereby acknowledging their comprehension and receipt.
(2) If a written investment policy described in division 653
18
(K)(1) of this section is not filed on behalf of the county with 654
the auditor of state, the investing authority of that county 655
shall invest the county's inactive moneys and moneys of the 656
county library and local government support fund only in time 657
certificates of deposits or savings or deposit accounts pursuant 658
to division (A)(3) of this section, NO-LOAD MONEY MARKET MUTUAL 659
FUNDS PURSUANT TO DIVISION (A)(5) OF THIS SECTION, or the Ohio 660
subdivision's fund pursuant to division (A)(6) of this section.
(L)(1) The investing authority shall establish and 662
maintain an inventory of all obligations and securities acquired 663
by the investing authority pursuant to this section. The 664
inventory shall include a description of each obligation or 665
security, including type, cost, par value, maturity date, 666
settlement date, and any coupon rate.
(2) The investing authority shall also keep a complete 668
record of all purchases and sales of the obligations and 669
securities made pursuant to this section. 670
(3) The investing authority shall maintain a monthly 672
portfolio report and issue a quarterly investment report 673
describing such investments to the county investment advisory 674
committee, detailing the current inventory of all obligations and 675
securities, all transactions during the month that affected the 676
inventory, any income received from the obligations and
securities, and any investment expenses paid, and stating the 677
names of any persons effecting transactions on behalf of the 678
investing authority.
(4) The monthly portfolio report and the quarterly 680
investment report shall be public records and available for 681
inspection under section 149.43 of the Revised Code.
(5) The inventory, the monthly portfolio report, and the 683
quarterly investment report shall be on standard forms approved 684
by the auditor of state and shall be filed with the board of 685
county commissioners.
(M) An investing authority may enter into a written 688
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investment or deposit agreement that includes a provision under 689
which the parties agree to submit to nonbinding arbitration to 690
settle any controversy that may arise out of the agreement, 691
including any controversy pertaining to losses of public moneys 692
resulting from investment or deposit. The arbitration provision 693
shall be set forth entirely in the agreement, and the agreement 694
shall include a conspicuous notice to the parties that any party 696
to the arbitration may apply to the court of common pleas of the 697
county in which the arbitration was held for an order to vacate,
modify, or correct the award. Any such party may also apply to 698
the court for an order to change venue to a court of common pleas 699
located more than one hundred miles from the county in which the 700
investing authority is located.
For purposes of this division, "investment or deposit 702
agreement" means any agreement between an investing authority and 703
a person, under which agreement the person agrees to invest, 704
deposit, or otherwise manage, on behalf of the investing 705
authority, a county's inactive moneys or moneys in a county
library and local government support fund, or agrees to provide 706
investment advice to the investing authority. 707
(N) An investment held in the county portfolio on the 709
effective date of this amendment SEPTEMBER 27, 1996, that was a 711
legal investment under the law as it existed before the effective 712
date of this amendment SEPTEMBER 27, 1996, may be held until 713
maturity, or if the investment does not have a maturity date the 714
investment may be held until five years from the effective date 715
of this amendment SEPTEMBER 27, 1996, regardless of whether the 717
investment would qualify as a legal investment under the terms of
this section as amended. 718
Sec. 321.46. (A) To enhance the background and working 728
knowledge of county treasurers in governmental accounting, 729
portfolio reporting and compliance, investments, and cash 730
management, the auditor of state and the treasurer of state shall 731
conduct education programs for persons elected for the first time 732
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to the office of county treasurer and shall hold annual 733
continuing education programs for persons who continue to hold 734
the office of county treasurer. Education programs for newly 735
elected county treasurers shall be held between the first day of 736
December and the first Monday of September next following that 737
person's election to the office of county treasurer. Similar 738
initial training may also be provided to any county treasurer who 739
is appointed to fill a vacancy or who is elected at a special 740
election.
(B)(1) The auditor of state shall determine the manner and 742
content of the education programs in the subject areas of 744
governmental accounting and portfolio reporting and compliance. 745
In those areas, newly elected county treasurers shall be required 746
to take at least thirteen hours of education before taking 747
office.
(2) The treasurer of state shall determine the manner and 749
content of the education programs in the subject areas of 750
investments and cash management. In those areas, newly elected 751
county treasurers shall be required to take at least thirteen 752
hours of education before taking office. 753
(3) After completing one year in office, a county 755
treasurer shall be required to take not less than twelve hours 756
annually of continuing education. The treasurer of state shall 757
determine the manner and content of the education programs in the 758
subject areas of investments, cash management, the collection of 759
taxes, ethics, and any other subject area that the treasurer of
state determines is reasonably related to the duties of the 760
office of the county treasurer. The auditor of state shall 762
determine the manner and content of the education programs in the 763
subject areas of governmental accounting, portfolio reporting and 764
compliance, office management, and any other subject area that
the auditor of state determines is reasonably related to the 765
duties of the office of the county treasurer. 766
(C) The auditor of state and the treasurer of state may 769
21
each charge counties a registration fee that will meet actual and 770
necessary expenses of the training of county treasurers, 771
including instructor fees, site acquisition costs, and the cost 772
of course materials. The necessary personal expenses of county 773
treasurers as a result of attending the training programs shall 774
be borne by the counties the treasurers represent. 775
(D) The auditor of state and the treasurer of state may 778
allow any other interested person to attend any of the education 779
programs that are held pursuant to this section, provided that 780
before attending any such education program, the interested 781
person shall pay to either the auditor of state or the treasurer 782
of state, as appropriate, the full registration fee set for the 783
education program.
(E) A county treasurer who fails to complete the initial 786
or continuing education programs required by this section without 787
a valid health-related excuse or other special hardship shall be
restricted to investing in the Ohio subdivision's fund pursuant 788
to division (A)(6) of section 135.35 of the Revised Code, IN 790
NO-LOAD MONEY MARKET MUTUAL FUNDS PURSUANT TO DIVISION (A)(5) OF 791
SECTION 135.35 OF THE REVISED CODE, or in time certificate of
deposits or deposit accounts pursuant to division (A)(3) of 793
section 135.35 of the Revised Code. A county treasurer who has 794
failed to complete the initial or continuing education programs
and invests in other than the investments permitted by this 795
division shall be subject to removal from office upon complaint 797
and investigation by the county prosecuting attorney, a hearing,
and a resolution adopted by the board of county commissioners 798
approving the removal from office. 799
(F)(1) There is hereby created in the state treasury the 802
county treasurer education fund, to be used by the treasurer of 803
state for actual and necessary expenses of education programs 805
held pursuant to this section. All registration fees collected 806
by the treasurer of state under this section shall be paid into 807
that fund.
22
(2) All registration fees collected by the auditor of 809
state under this section shall be paid into the auditor of state 810
training program fund established under section 117.44 of the 811
Revised Code.
(G) The treasurer of state, with the advice and consent of 814
the auditor of state, may adopt reasonable rules not inconsistent 815
with this section for the implementation of this section. 816
Section 2. That existing sections 135.14, 135.22, 135.35, 818
and 321.46 of the Revised Code are hereby repealed. 819