As Introduced

124th General Assembly
Regular Session
2001-2002
S. B. No. 193


SENATOR White



A BILL
To amend sections 122.011, 135.12, 135.143, 135.63,1
135.631, 3770.06, and 5739.18, to enact new2
sections 135.81, 135.82, 135.83, 135.84, 135.85,3
135.86, and 135.87, and to repeal sections 135.81,4
135.82, 135.83, 135.84, 135.85, 135.86, 135.87, and5
135.88 of the Revised Code to expand the investment6
authority of the Treasurer of State under the7
Uniform Depository Act; to modify the authority of8
the State Board of Deposit to designate public9
depositories; to increase the amount that may be10
invested in agricultural linked deposits; to11
authorize the Treasurer of State to establish and12
maintain a housing linked deposit program and to13
partner with a municipal corporation or county that14
has established a housing linked deposit program;15
and to modify licensed vendor reporting16
requirements of a county auditor.17


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 122.011, 135.12, 135.143, 135.63,18
135.631, 3770.06, and 5739.18 be amended and new sections 135.81,19
135.82, 135.83, 135.84, 135.85, 135.86, and 135.87 of the Revised20
Code be enacted to read as follows:21

       Sec. 122.011.  (A) The department of development shall22
develop and promote plans and programs designed to assure that23
state resources are efficiently used, economic growth is properly24
balanced, community growth is developed in an orderly manner, and25
local governments are coordinated with each other and the state,26
and for such purposes may do all of the following:27

       (1) Serve as a clearinghouse for information, data, and28
other materials that may be helpful or necessary to persons or29
local governments, as provided in section 122.07 of the Revised30
Code;31

       (2) Prepare and activate plans for the retention,32
development, expansion, and use of the resources and commerce of33
the state, as provided in section 122.04 of the Revised Code;34

       (3) Assist and cooperate with federal, state, and local35
governments and agencies of federal, state, and local governments36
in the coordination of programs to carry out the functions and37
duties of the department;38

       (4) Encourage and foster research and development39
activities, conduct studies related to the solution of community40
problems, and develop recommendations for administrative or41
legislative actions, as provided in section 122.03 of the Revised42
Code;43

       (5) Serve as the economic and community development planning44
agency, which shall prepare and recommend plans and programs for45
the orderly growth and development of this state and which shall46
provide planning assistance, as provided in section 122.06 of the47
Revised Code;48

       (6) Cooperate with and provide technical assistance to state49
departments, political subdivisions, regional and local planning50
commissions, tourist associations, councils of government,51
community development groups, community action agencies, and other52
appropriate organizations for carrying out the functions and53
duties of the department or for the solution of community54
problems;55

       (7) Coordinate the activities of state agencies that have an56
impact on carrying out the functions and duties of the department;57

       (8) Encourage and assist the efforts of and cooperate with58
local governments to develop mutual and cooperative solutions to59
their common problems that relate to carrying out the purposes of60
this section;61

       (9) Study existing structure, operations, and financing of62
regional or local government and those state activities that63
involve significant relations with regional or local governmental64
units, recommend to the governor and to the general assembly such65
changes in these provisions and activities as will improve the66
operations of regional or local government, and conduct other67
studies of legal provisions that affect problems related to68
carrying out the purposes of this section;69

       (10) Appoint, with the approval of the governor, technical70
and other advisory councils as it considers appropriate, as71
provided in section 122.09 of the Revised Code;72

       (11) Create and operate a division of community development73
to develop and administer programs and activities that are74
authorized by federal statute or the Revised Code;75

       (12) Until July 1, 2003, establish fees and charges, in76
consultation with the director of agriculture, for purchasing77
loans from financial institutions and providing loan guarantees78
under the family farm loan program created under sections 901.8079
to 901.83 of the Revised Code;80

       (13) Provide loan servicing for the loans purchased and loan81
guarantees provided under section 901.80 of the Revised Code as82
that section existed prior to July 1, 2003;83

       (14) Until July 1, 2003, and upon approval by the84
controlling board under division (A)(3) of section 901.82 of the85
Revised Code of the release of money to be used for purchasing a86
loan or providing a loan guarantee, request the release of that87
money in accordance with division (B) of section 166.03 of the88
Revised Code for use for the purposes of the fund created by89
section 166.031 of the Revised Code.90

       (B) The department, by rule, shall establish criteria91
defining nonprofit corporations that are eligible for appointment92
as qualified agents pursuant to sections 135.81 to 135.88 of the93
Revised Code. The criteria shall require that a corporation be94
organized pursuant to Chapter 1702. of the Revised Code and have95
as its primary purpose the promotion of economic development or96
the creation or retention of jobs and job opportunities. The97
criteria may include a specification as to the professional98
qualifications of the corporation employees, a minimum elapsed99
period of time since the corporation was organized, current and100
former activities of the corporation, and such other criteria101
reasonably related to the foregoing that relate to the ability of102
the corporation to act as a qualified agent for the purposes of103
sections 135.81 to 135.88 of the Revised Code.104

       (C) The director of development may request the attorney105
general to, and the attorney general, in accordance with section106
109.02 of the Revised Code, shall bring a civil action in any107
court of competent jurisdiction. The director may be sued in the108
director's official capacity, in connection with this chapter, in109
accordance with Chapter 2743. of the Revised Code.110

       Sec. 135.12.  (A) Beginning in 20002002, the state board of111
deposit shall meet on the third Monday of JuneMarch in the112
even-numbered years for the purpose of designating the public113
depositories of the public moneys of the state, and at such114
meeting or any adjourned session thereof shall designate such115
public depositories and award the public moneys of the state to116
and among the public depositories so designated for the period of117
two years commencing on the first Monday of July next following.118

       (B) Each governing board other than the state board of119
deposit shall meet every five years on the third Monday or such120
regularly scheduled meeting date of the month next preceding the121
date of the expiration of its designation of depositories for the122
purpose of designating the public depositories of the public123
moneys of the subdivision, and at such meeting or any adjourned124
session thereof, shall designate such public depositories and125
award the public moneys of the subdivision to and among the public126
depositories so designated for the period of five years commencing127
on the date of the expiration of the next preceding designation. 128
The designation and award shall be made in duplicate; one copy129
shall be retained by the governing board of the subdivision and130
one copy shall be certified to the treasurer.131

       (C) If a governing board other than the state board of132
deposit determines, during a designation period, that a public133
depository designated under this section is insolvent or operating134
in an unsound or unsafe manner, the governing board may meet and135
designate a different public depository of the public moneys of136
the state or of the subdivision for the remainder of the137
designation period.138

       (D) If a governing board other than the state board of139
deposit determines during a designation period that it is140
necessary and in the state's or subdivision's best interests to141
appoint additional depositories, the governing board may meet and142
designate one or more additional public depositories of the public143
moneys of the state or of the subdivision for the remainder of the144
designation period.145

       (E) Whenever, by amendment or enactment of any state or146
federal law or the amendment or adoption of any valid regulation147
thereunder, the terms of a designation or award, lawful at the148
beginning of any designation period, cease to be lawful during149
such period, and if the change of law or regulation requires, the150
designation period shall be limited so as not to extend beyond the151
date when that change becomes effective. In such case, the proper152
governing board shall meet and designate the public depositories153
of the public moneys of the state or of the subdivision for the154
remainder of the designation period.155

       Sec. 135.143.  (A) The treasurer of state may invest or156
execute transactions for any part or all of the interim funds of157
the state in the following classifications of obligations:158

       (1) United States treasury bills, notes, bonds, or any other159
obligations or securities issued by the United States treasury or160
any other obligation guaranteed as to principal and interest by161
the United States;162

       (2) Bonds, notes, debentures, or any other obligations or163
securities issued by any federal government agency or164
instrumentality;165

       (3) Bonds and other obligations of the sinking fund of the166
state of Ohio issued by the treasurer of state and of the Ohio167
public facilities commission;168

       (4)(a) Written repurchase agreements with any eligible Ohio169
financial institution that is a member of the federal reserve170
system or federal home loan bank or any recognized United States171
government securities dealer, under the terms of which agreement172
the treasurer of state purchases and the eligible financial173
institution or dealer agrees unconditionally to repurchase any of174
the securities that are listed in division (A)(1) or, (2), or (6)175
of this section and that will mature or are redeemable within ten176
years from the date of purchase. The market value of securities177
subject to these transactions must exceed the principal value of178
the repurchase agreement by an amount specified by the treasurer179
of state, and the securities must be delivered into the custody of180
the treasurer of state or the qualified trustee or agent181
designated by the treasurer of state. The agreement shall contain182
the requirement that for each transaction pursuant to the183
agreement, the participating institution or dealer shall provide184
all of the following information:185

       (i) The par value of the securities;186

       (ii) The type, rate, and maturity date of the securities;187

       (iii) A numerical identifier generally accepted in the188
securities industry that designates the securities.189

       (b) The treasurer of state also may sell any securities,190
listed in division (A)(1) or, (2), or (6) of this section,191
regardless of maturity or time of redemption of the securities,192
under the same terms and conditions for repurchase, provided that193
the securities have been fully paid for and are owned by the194
treasurer of state at the time of the sale.195

       (5) Securities lending agreements with any eligible196
financial institution that is a member of the federal reserve197
system or federal home loan bank or any recognized United States198
government securities dealer, under the terms of which agreement199
agreements the treasurer of state lends securities and the200
eligible financial institution or dealer agrees to simultaneously201
exchange similar securities or cash, equal value for equal value.202

       Securities and cash received as collateral for a securities203
lending agreement are not interim funds of the state. The204
investment of cash collateral received pursuant to a securities205
lending agreement may be invested only in such instruments206
specified by the treasurer of state in accordance with a written207
investment policy.208

       (6) Various forms of commercial paper issued by any209
corporation that is incorporated under the laws of the United210
States or a state, which such notes are rated at the time of211
purchase in the two highest categories by two nationally212
recognized rating agencies, provided that the total amount213
invested under this section in any commercial paper at any time214
shall not exceed fivetwenty-five per cent of the state's total215
average portfolio, as determined and calculated by the treasurer216
of state;217

       (7) Bankers acceptances, maturing in two hundred seventy218
days or less, which are eligible for purchase by the federal219
reserve system, provided that the total amount invested in bankers220
acceptances at any time shall not exceed ten per cent of the221
state's total average portfolio, as determined and calculated by222
the treasurer of state;223

       (8) Certificates of deposit in eligible institutions224
applying for interim moneys as provided in section 135.08 of the225
Revised Code, including linked deposits as provided in sections226
135.61 to 135.67 of the Revised Code, agricultural linked deposits227
as provided in sections 135.71 to 135.76 of the Revised Code, and228
depressed economic areahousing linked deposits as provided in229
sections 135.81 to 135.88135.87 of the Revised Code;230

       (9) The state treasurer's investment pool authorized under231
section 135.45 of the Revised Code;232

       (10) Debt interests, other than commercial paper described233
in division (A)(6) of this section, rated investment gradeat the234
time of purchase in the three highest categories by atwo235
nationally recognized rating agencyagencies and issued by236
corporations that are incorporated under the laws of the United237
States or a state, or issued by foreign nations diplomatically238
recognized by the United States government, or any instrument239
based on, derived from, or related to such interests. All240
interest and principal shall be denominated and payable in United241
States funds. The investments made under division (A)(10) of this242
section shall not exceed in the aggregate fivetwenty-five per243
cent of the state's total average portfolio, as determined and244
calculated by the treasurer of state. The investments made under245
division (A)(10) of this section in debt interests issued by246
foreign nations shall not exceed in the aggregate one per cent of247
the state's total average portfolio, as determined and calculated248
by the treasurer of state. The investments made under division249
(A)(10) of this section in the debt interests of a single issuer250
shall not exceed in the aggregate one-half of one per cent of the251
state's total average portfolio, as determined and calculated by252
the treasurer of state.253

       The treasurer of state shall invest under division (A)(10) of254
this section in a debt interest issued by a foreign nation only if255
the debt interest is backed by the full faith and credit of that256
foreign nation. For purposes of division (A)(10) of this section,257
a debt interest is rated investment gradein the three highest258
categories by atwo nationally recognized rating agencyagencies259
if either the debt interest itself or the issuer of the debt260
interest is rated, or is implicitly rated, investment gradeat the261
time of purchase in the three highest categories by atwo262
nationally recognized rating agencyagencies.263

       (11) No-load money market mutual funds consisting264
exclusively of obligations described in division (A)(1) or, (2),265
or (6) of this section and repurchase agreements secured by such266
obligations.267

       (12) Obligations of a board of education issued under268
authority of section 133.10 or 133.301 of the Revised Code.269

       (B) Whenever, during a period of designation, the treasurer270
of state classifies public moneys as interim moneys, the treasurer271
of state shall notify the state board of deposit of such action.272
SuchThe notification shall be given within thirty days after such273
classification and, in the event the state board of deposit does274
not concur in such classification or in the investments or275
deposits made under this section, the board may order the276
treasurer of state to sell or liquidate any of suchthe277
investments or deposits, and any such order shall specifically278
describe the investments or deposits and fix the date upon which279
they are to be sold or liquidated. Investments or deposits so280
ordered to be sold or liquidated shall be sold or liquidated for281
cash by the treasurer of state on the date fixed in such order at282
the then current market price. Neither the treasurer of state nor283
the members of the state board of deposit shall be held284
accountable for any loss occasioned by sales or liquidations of285
investments or deposits at prices lower than their cost. Any loss286
or expense incurred in making suchthese sales or liquidations is287
payable as other expenses of the treasurer's office.288

       (C) If any securities or obligations invested in by the289
treasurer of state pursuant to this section are registrable either290
as to principal or interest, or both, such securities or291
obligations shall be registered in the name of the treasurer of292
state.293

       (D) The treasurer of state is responsible for the294
safekeeping of all securities or obligations under this section.295
Any such securities or obligations may be deposited for296
safekeeping as provided in section 113.05 of the Revised Code.297

       (E) Interest earned on any investments or deposits298
authorized by this section shall be collected by the treasurer of299
state and credited by the treasurer of state to the proper fund of300
the state.301

       (F) Whenever investments or deposits acquired under this302
section mature and become due and payable, the treasurer of state303
shall present them for payment according to their tenor, and shall304
collect the moneys payable thereon. The moneys so collected shall305
be treated as public moneys subject to sections 135.01 to 135.21306
of the Revised Code.307

       (G) The treasurer of state and any board of education308
issuing obligations referred to in division (A)(12) of this309
section may enter into an agreement providing for:310

       (1) The purchase of those obligations by the treasurer of311
state on terms and subject to conditions set forth in the312
agreement;313

       (2) The payment by the board of education to the treasurer314
of state of a reasonable fee as consideration for the agreement of315
the treasurer of state to purchase those obligations; provided,316
however, that the treasurer of state shall not be authorized to317
enter into any such agreement with the board of education of a318
school district that has an outstanding obligation with respect to319
a loan received under authority of section 3313.483 of the Revised320
Code.321

       (H) For purposes of division (G) of this section, a fee322
shall not be considered reasonable unless it is set to recover323
only the direct costs and a reasonable estimate of the indirect324
costs associated with the purchasing of obligations of a school325
board under division (G) of this section and any reselling of the326
obligations or any interest in the obligations, including327
interests in a fund comprised of the obligations. No money from328
the general revenue fund shall be used to subsidize the purchase329
or resale of these obligations.330

       (I) All money collected by the treasurer of state from the331
fee imposed by division (G) of this section shall be deposited to332
the credit of the state school board obligations fund, which is333
hereby created in the state treasury. Money credited to the fund334
shall be used solely to pay the treasurer of state's direct and335
indirect costs associated with purchasing and reselling336
obligations of a board of education under division (G) of this337
section.338

       Sec. 135.63.  The treasurer of state may invest in linked339
deposits under sections 135.61 to 135.67, agricultural linked340
deposits under sections 135.71 to 135.76, housing linked deposits341
under sections 135.81 to 135.87, and assistive technology device342
linked deposits under sections 135.91 to 135.97 of the Revised343
Code, provided that at the time of placement of any linked deposit344
under sections 135.61 to 135.67 of the Revised Code, agricultural345
linked deposit, housing linked deposit, or assistive technology346
device linked depositsdeposit, the combined amount of investments347
in the linked deposits, agricultural linked deposits, housing348
linked deposits, and assistive technology device linked deposits349
is not more than twelve per cent of the state's total average350
investment portfolio as determined by the treasurer of state. When 351
deciding whether to invest in the linked deposits, agricultural 352
linked deposits, housing linked deposits, or assistive technology 353
device linked deposits, the treasurer of state shall give priority 354
to the investment, liquidity, and cash flow needs of the state.355

       Sec. 135.631.  The treasurer of state shall attempt to place356
up to one hundred twenty-five million dollars of the amount357
authorized to be invested under section 135.63 of the Revised Code358
in agricultural linked deposits, as defined in section 135.71 of359
the Revised Code, subject to the procedures set forth in sections360
135.71 to 135.76 of the Revised Code.361

       Sec. 135.81. As used in sections 135.81 to 135.87 of the362
Revised Code:363

       (A) "Eligible governmental subdivision" means a municipal364
corporation or county in this state.365

       (B) "Eligible governmental subdivision housing linked deposit366
program" means any program established pursuant to section 135.80367
of the Revised Code by the legislative authority of a municipal368
corporation or the board of county commissioners of a county, in369
which the program goals address specific housing issues relative370
to the geographic boundaries of that municipal corporation or371
county. These program goals include, but are not limited to, home372
improvement, home restoration, energy efficiency, retention of373
historic significance, controlling urban sprawl, neighborhood374
revitalization, affordable housing, home ownership for persons375
unable to secure conventional financing, urban development, or376
economic revitalization of a residential area as a result of a377
natural disaster or other catastrophic occurrence.378

       (C) "Eligible housing linked deposit participant" means any379
person or small business that meets the requirements set forth in380
an eligible governmental subdivision housing linked deposit381
program or set forth by the treasurer of state pursuant to382
division (B)(2) of section 135.82 of the Revised Code and that is383
a resident of this state.384

       (D) "Eligible lending institution" means a financial385
institution meeting all of the following:386

       (1) It is eligible to make commercial loans or residential387
loans.388

       (2) It is a public depository of state funds under section389
135.03 of the Revised Code.390

       (3) It agrees to participate in a program to provide housing391
linked deposits.392

       (E) "Housing linked deposit" means a certificate of deposit393
or other financial institution instrument, described in section394
135.85 of the Revised Code, placed by the treasurer of state with395
an eligible lending institution, in accordance with division (B)396
of section 135.84 of the Revised Code, provided that the397
institution agrees, at the time of the deposit of state funds and398
for the period of the deposit, to lend the value of the deposit399
according to the deposit agreement described in section 135.85 of400
the Revised Code to eligible housing linked deposit participants401
at a fixed interest rate of three hundred basis points below the402
present borrowing rate applicable to each participant in the403
absence of approval to participate in the programs described in404
division (B) of section 135.82 of the Revised Code.405

       (F) "Other financial institution instrument" means a fully406
collateralized product that otherwise would pay market rates of407
interest approved by the treasurer of state, for the purpose of408
providing eligible housing linked deposit participants with the409
benefits of a housing linked deposit.410

       Sec. 135.82. (A) The general assembly finds that there exists411
in this state a lack of affordable financing options to promote412
solutions to a number of housing issues including, but not limited413
to, home improvement, home restoration, energy efficiency,414
retention of historic significance, controlling urban sprawl,415
neighborhood revitalization, affordable housing, home ownership416
for persons unable to secure conventional financing, urban417
development, and economic revitalization of a residential area as418
a result of a natural disaster or other catastrophic occurrence.419
Accordingly, it is declared to be the public policy of the state420
through housing linked deposits to create an availability of lower421
cost funds to inject needed capital into local residential422
communities.423

       (B) Pursuant to the findings and declarations of division (A)424
of this section and subject to the amount authorized to be425
invested in linked deposits pursuant to sections 135.63 and426
135.631 of the Revised Code, both of the following apply:427

       (1) Housing linked deposits are authorized under which the428
state partners with eligible governmental subdivisions in429
accordance with section 135.83 of the Revised Code to provide,430
pursuant to section 135.84 of the Revised Code, an availability of431
lower cost funds for lending purposes that materially will432
contribute to the solutions addressing housing issues, described433
in division (A) of this section, across the state.434

       (2) In the absence of an eligible governmental subdivision435
linked deposit program, the treasurer of state may develop an436
application process and procedures and eligibility requirements437
for participation in a housing linked deposit program that438
provides, pursuant to section 135.84 of the Revised Code, an439
availability of lower cost funds for lending purposes that440
materially will contribute to the solutions addressing housing441
issues, described in division (A) of this section, across the442
state.443

       Sec. 135.83. (A) An eligible governmental subdivision that444
has established an eligible governmental subdivision housing445
linked deposit program may apply to the treasurer of state for446
consideration of the formation of a partnership with the treasurer447
of state for the purpose of providing additional funding for that448
eligible governmental subdivision housing linked deposit program.449

       (B) Both of the following apply to the application for the450
formation of a partnership with the treasurer of state described451
in division (A) of this section:452

       (1) The application made to the treasurer of state shall be453
in the form and manner prescribed by the treasurer of state.454

       (2) The application shall include any information required by455
the treasurer of state, including all of the following with456
respect to the eligible governmental subdivision housing linked457
deposit program:458

       (a) A copy of the eligible governmental subdivision's459
application for participation in the program;460

       (b) Eligibility requirements for participation in the461
eligible governmental subdivision program;462

       (c) The total eligible governmental subdivision deposit463
commitment or allocation limits of the eligible governmental464
subdivision in the program.465

       (C) The treasurer of state may accept or reject any466
application for the formation of a partnership described in467
division (B) of this section and submitted by an eligible468
governmental subdivision to the treasurer of state for reasons469
including, but not limited to, the cash flow needs of the state,470
level of participation by any or all eligible governmental471
subdivisions, and criteria set forth by the treasurer of state.472

       (D) If an eligible governmental subdivision has formed a473
partnership with the treasurer of state pursuant to this section,474
both of the following apply:475

       (1) The treasurer of state has final approval, in accordance476
with division (A) of section 135.84 of the Revised Code, of any477
application submitted by an applicant for participation in that478
eligible governmental housing linked deposit program.479

       (2) The eligible governmental subdivision shall comply with480
any monitoring requirements set forth by the treasurer of state.481

       Sec. 135.84. (A)(1) The treasurer of state may accept or482
reject a housing linked deposit application submitted by an483
applicant, or any portion thereof, based on the treasurer of484
state's evaluation of the applicant and the amount of state funds485
to be deposited.486

       (2) If applicable, when evaluating an application pursuant to487
division (A)(1) of this section, the treasurer of state shall give488
consideration to the criteria for acceptance or rejection of an489
application set forth by an eligible governmental subdivision in490
the eligible governmental subdivision housing linked deposit491
program.492

       (3) No fee shall be charged to any party for the preparation,493
processing, reporting, or monitoring of any application to the494
treasurer of state for a housing linked deposit.495

       (B)(1) Upon acceptance of a housing linked deposit496
application or any portion thereof, the treasurer of state may497
place certificates of deposit or other financial institution498
instruments described in section 135.85 of the Revised Code with499
an eligible lending institution at up to three hundred basis500
points below current market rates, as determined and calculated by501
the treasurer of state.502

       (2) When necessary, the treasurer of state may place503
certificates of deposit or other financial institution instruments504
described in section 135.85 of the Revised Code with an eligible505
lending institution prior to acceptance of a housing linked506
deposit application.507

       Sec. 135.85. (A) Upon placement of a housing linked deposit508
with an eligible lending institution pursuant to division (B) of509
section 135.84 of the Revised Code, the eligible lending510
institution shall do both of the following:511

       (1) Enter into a deposit agreement with the treasurer of512
state that includes all of the following:513

       (a) Any requirements necessary to carry out the purposes of514
sections 135.81 to 135.87 of the Revised Code;515

       (b) Provisions for any certificate of deposit or other516
financial institution instrument meeting the requirements517
described in division (B) of this section and placed for any518
maturity considered appropriate by the treasurer of state but not519
exceeding five years;520

       (c) A specification of the period of time in which the521
eligible lending institution is to provide the reduced interest522
rate to an approved applicant.523

       (2) Lend funds as provided in division (C) of this section524
and in accordance with the deposit agreement described in this525
section to each eligible housing linked deposit participant526
approved by the treasurer of state pursuant to division (A) of527
section 135.84 of the Revised Code.528

       (B) Both of the following apply to any certificate of deposit529
or other financial institution instrument described in division530
(A)(1)(b) of this section:531

       (1) The certificate of deposit or other financial institution532
instrument shall not be renewed upon final maturity.533

       (2) Interest shall be paid at the times and in the manner534
prescribed by the treasurer of state.535

       (C) The loan described in division (A)(2) of this section536
shall be at a fixed rate of three hundred basis points below the537
present borrowing rate that would apply to the eligible housing538
linked deposit participant in the absence of approval to539
participate in the programs described in division (B) of section540
135.82 of the Revised Code.541

       (D) A certificate of compliance with this section in the form542
and manner prescribed by the treasurer of state shall be provided543
by the eligible lending institution.544

       (E)(1) Any delay in payments or default on the part of the545
eligible housing linked deposit participant does not in any manner546
affect the deposit agreement between the eligible lending547
institution and the treasurer of state.548

       (2) If an eligible lending institution changes the terms of a549
loan to an eligible housing linked deposit participant because of550
a delay in payments or default, the housing linked deposit amount551
shall be returned to the treasurer of state by the eligible552
lending institution. In which case, the deposit amount plus553
interest and without early withdrawal penalties shall be returned554
in a timely manner as prescribed by the treasurer of state. 555

       (F) An eligible lending institution shall comply fully with556
sections 135.81 to 135.87 of the Revised Code.557

       Sec. 135.86. (A) The treasurer of state shall take any steps558
necessary to monitor compliance with sections 135.81 to 135.87 of559
the Revised Code by eligible lending institutions, eligible560
housing linked deposit participants, and eligible governmental561
subdivisions to which partnerships with the treasurer of state562
have been approved pursuant to section 135.83 of the Revised Code.563

       (B) The treasurer of state may develop guidelines to carry564
out the purposes of division (A) of this section.565

       Sec. 135.87. The state and the treasurer of state are not566
liable to any eligible lending institution in any manner for567
payment of principal or interest on a loan to an eligible housing568
linked deposit participant under sections 135.81 to 135.87 of the569
Revised Code.570

       Sec. 3770.06.  (A) There is hereby created the state lottery571
gross revenue fund, which shall be in the custody of the treasurer572
of state but shall not be part of the state treasury. All gross573
revenues received from sales of lottery tickets, fines, fees, and574
related proceeds shall be deposited into the fund. The treasurer575
of state shall invest any portion of the fund not needed for576
immediate use in the same manner as, and subject to all provisions577
of law with respect to the investment of, state funds. The578
treasurer of state shall disburse money from the fund on order of579
the director of the state lottery commission or the director's580
designee. All revenues of the state lottery gross revenue fund581
that are not paid to holders of winning lottery tickets, that are582
not required to meet short-term prize liabilities, that are not583
paid to lottery sales agents in the form of bonuses, commissions,584
or reimbursements, and that are not paid to financial institutions585
to reimburse those institutions for sales agent nonsufficient586
funds shall be transferred to the state lottery fund, which is587
hereby created in the state treasury. All investment earnings of588
the fund shall be credited to the fund. Moneys shall be disbursed589
from the fund pursuant to vouchers approved by the director. 590
Total disbursements for monetary prize awards to holders of591
winning lottery tickets and purchases of goods and services592
awarded as prizes to holders of winning lottery tickets shall be593
of an amount equal to at least fifty per cent of the total revenue594
accruing from the sale of lottery tickets.595

       (B) Pursuant to Section 6 of Article XV, Ohio Constitution,596
there is hereby established in the state treasury the lottery597
profits education fund. Whenever, in the judgment of the director598
of budget and management, the amount to the credit of the state599
lottery fund is in excess of that needed to meet the maturing600
obligations of the commission and as working capital for its601
further operations, the director shall transfer the excess to the602
lottery profits education fund. Investment earnings of the lottery603
profits education fund shall be credited to the fund. There shall604
also be credited to the fund any repayments of moneys loaned from605
the educational excellence investment fund. The lottery profits606
education fund shall be used solely for the support of elementary,607
secondary, vocational, and special education programs as608
determined in appropriations made by the general assembly, or as609
provided in applicable bond proceedings for the payment of debt610
service on obligations issued to pay costs of capital facilities,611
including those for a system of common schools throughout the612
state pursuant to section 2n of Article VIII, Ohio Constitution.613
When determining the availability of money in the lottery profits614
education fund, the director of budget and management may consider615
all balances and estimated revenues of the fund.616

       From the amounts that the director of budget and management617
transfers in any fiscal year from the state lottery fund to the618
lottery profits education fund, the director shall transfer the619
initial ten million dollars of those amounts from the lottery620
profits education fund to the school building program bond service621
fund created in division (Q) of section 3318.26 of the Revised622
Code to be pledged for the purpose of paying bond service charges623
as defined in division (C) of section 3318.21 of the Revised Code624
on one or more issuances of obligations, which obligations are625
issued to provide moneys for the school building program626
assistance fund created in section 3318.25 of the Revised Code.627

       (C) There is hereby established in the state treasury the628
deferred prizes trust fund. With the approval of the director of629
budget and management, an amount sufficient to fund annuity prizes630
shall be transferred from the state lottery fund and credited to631
the trust fund. The treasurer of state shall credit all earnings632
arising from investments purchased under this division to the633
fund. Within sixty days after the end of each fiscal year, the634
director of budget and management shall certify the amount of635
investment earnings necessary to have been credited to the trust636
fund during the fiscal year just ending to provide for continued637
funding of deferred prizes. Any earnings credited in excess of638
this certified amount shall be transferred to the lottery profits639
education fund. To provide all or a part of the amounts necessary640
to fund deferred prizes awarded by the commission, the treasurer641
of state, in consultation with the commission, may invest moneys642
contained in the deferred prizes trust fund in obligations of the643
type permitted for the investment of state funds but whose644
maturities are thirty years or less. Investments of the deferred645
prizes trust fund are not subject to the provisions of division646
(A)(10) of section 135.143 of the Revised Code limiting to647
twenty-five per cent the amount of the state's total average648
portfolio that may be invested in debt interests and limiting to649
one-half of one per cent the amount that may be invested in debt650
interests of a single issuer.651

       All purchases made under this division shall be effected on a652
delivery versus payment method and shall be in the custody of the653
treasurer of state.654

       The treasurer of state may retain an investment advisor, if655
necessary. The commission shall pay any costs incurred by the656
treasurer of state in retaining an investment advisor.657

       (D) The auditor of state shall conduct annual audits of all658
funds and any other audits as the auditor of state or the general659
assembly considers necessary. The auditor of state may examine660
all records, files, and other documents of the commission, and661
records of lottery sales agents that pertain to their activities662
as agents, for purposes of conducting authorized audits.663

       The state lottery commission shall establish an internal664
audit program before the beginning of each fiscal year, subject to665
the approval of the auditor of state. At the end of each fiscal666
year, the commission shall prepare and submit an annual report to667
the auditor of state for the auditor of state's review and668
approval, specifying the internal audit work completed by the end669
of that fiscal year and reporting on compliance with the annual670
internal audit program. The form and content of the report shall671
be prescribed by the auditor of state under division (C) of672
section 117.20 of the Revised Code.673

       (E) Whenever, in the judgment of the director of budget and674
management, an amount of net state lottery proceeds is necessary675
to be applied to the payment of debt service on obligations, all676
as defined in sections 151.01 and 151.03 of the Revised Code, the677
director shall transfer that amount directly from the state678
lottery fund or from the lottery profits education fund to the679
bond service fund defined in those sections. The provisions of680
this division are subject to any prior pledges or obligation of681
those amounts to the payment of bond service charges as defined in682
division (C) of section 3318.21 of the Revised Code, as referred683
to in division (B) of this section.684

       Sec. 5739.18.  On the first business day of each week, each685
county auditor shall make in triplicateduplicate a list showing686
the names of all vendors licensed in the auditor's county during687
the preceding week pursuant to sections 5739.01 to 5739.31 of the688
Revised Code, and such other information as to each, available689
from the records in the auditor's office, as the tax commissioner690
prescribes, and shall immediately certify one of suchthe lists to691
the commissioner, one to the treasurer of state, and one to the692
county treasurer. The tax commissioner shall keep an alphabetical693
index of such licensees so certified to the commissioner but may694
delete therefromfrom the index the names of those persons whose695
licenses have been cancelled.696

       Section 2. That existing sections 122.011, 135.12, 135.143,697
135.63, 135.631, 3770.06, and 5739.18 and sections 135.81,698
135.82, 135.83, 135.84, 135.85, 135.86, 135.87, and 135.88 of the699
Revised Code are hereby repealed.700