Section 1. That sections 135.143, 148.04, 3305.01, 3305.02, | 13 |
and 3334.02 be amended and sections 137.01, 137.02, 137.03, | 14 |
137.04, 137.05, 137.06, 137.07, 137.08, and 137.09 of the Revised | 15 |
Code be enacted to read as follows: | 16 |
(4)(a) Written repurchase agreements with any eligible
Ohio | 31 |
financial institution that is a member of the federal
reserve | 32 |
system or federal home loan bank or any recognized United
States | 33 |
government securities dealer, under the terms of which
agreement | 34 |
the treasurer of state purchases and the eligible
financial | 35 |
institution or dealer agrees unconditionally to
repurchase any of | 36 |
the securities that are listed in division
(A)(1), (2), or (6)
of | 37 |
this section and that will mature or are
redeemable within ten | 38 |
years from the date of purchase. The
market value of securities | 39 |
subject to these transactions must
exceed the principal value of | 40 |
the repurchase agreement by an
amount specified by the treasurer | 41 |
of state, and the securities
must be delivered into the custody of | 42 |
the treasurer of state or
the qualified trustee or agent | 43 |
designated by the treasurer of
state. The agreement shall contain | 44 |
the requirement that for each
transaction pursuant to the | 45 |
agreement, the participating
institution or dealer shall provide | 46 |
all of the following
information: | 47 |
(b) The treasurer of state also may sell any securities, | 52 |
listed in division (A)(1), (2), or (6) of this section,
regardless | 53 |
of
maturity or time of redemption of the securities,
under the | 54 |
same
terms and conditions for repurchase, provided that
the | 55 |
securities
have been fully paid for and are owned by the
treasurer | 56 |
of state
at the time of the sale. | 57 |
(5) Securities lending agreements with any eligible
financial | 58 |
institution that is a member of the federal reserve
system or | 59 |
federal home loan bank or any recognized United States
government | 60 |
securities dealer, under the terms of which
agreements
the | 61 |
treasurer of state lends securities and the
eligible
financial | 62 |
institution or dealer agrees to simultaneously
exchange
similar | 63 |
securities or cash, equal value for equal value. | 64 |
(6) Various forms of commercial paper issued by any | 71 |
corporation that is incorporated under the laws of the United | 72 |
States or a state, which
notes are rated
at the time of
purchase | 73 |
in the
two
highest
categories by
two
nationally
recognized rating | 74 |
agencies, provided
that the
total amount
invested
under this | 75 |
section in
any commercial paper
at any time
shall not exceed
| 76 |
twenty-five per cent of the
state's total
average
portfolio, as | 77 |
determined and calculated by
the treasurer
of
state; | 78 |
(10) DebtExcept as provided in Chapter 137. of the Revised | 94 |
Code, debt interests, other than commercial paper described
in | 95 |
division (A)(6) of this section, rated
at the
time of purchase
in | 96 |
the three highest categories by
two
nationally
recognized
rating
| 97 |
agencies and issued by
corporations that are
incorporated
under | 98 |
the laws of the United
States or a state, or
issued by
foreign | 99 |
nations diplomatically
recognized by the United
States
government, | 100 |
or any instrument
based on, derived from, or
related
to such | 101 |
interests. All
interest and principal shall be
denominated and | 102 |
payable in United
States funds. The investments
made under | 103 |
division (A)(10) of this
section shall not exceed in
the aggregate
| 104 |
twenty-five per
cent of the state's total average
portfolio, as | 105 |
determined and
calculated by the treasurer of
state.
The | 106 |
investments made under
division (A)(10) of this
section in
debt | 107 |
interests issued by
foreign nations shall not
exceed in the | 108 |
aggregate one per cent of
the state's total average
portfolio, as | 109 |
determined and calculated
by the treasurer of state.
The | 110 |
investments made under division
(A)(10) of this
section in the | 111 |
debt interests of a single issuer
shall not exceed
in the | 112 |
aggregate one-half of one per cent of the
state's total
average | 113 |
portfolio, as determined and calculated by
the treasurer of state. | 114 |
The treasurer of state shall invest under division (A)(10)
of | 115 |
this section in a debt interest issued by a foreign nation
only if | 116 |
the debt interest is backed by the full faith and credit
of that | 117 |
foreign nation. For purposes of division (A)(10) of this
section, | 118 |
a debt interest is rated
in the three
highest
categories by
two | 119 |
nationally
recognized rating
agencies
if either the debt interest | 120 |
itself or the
issuer of the
debt
interest is rated, or is | 121 |
implicitly rated,
at the
time of purchase in the three highest | 122 |
categories by
two
nationally recognized
rating
agencies. | 123 |
(B) Whenever, during a period of designation, the
treasurer | 129 |
of state classifies public moneys as interim moneys, the treasurer | 130 |
of state shall notify the state board of deposit of such action.
| 131 |
The
notification shall be given within thirty days after such | 132 |
classification and, in the event the state board of deposit does | 133 |
not concur in such classification or in the investments or | 134 |
deposits made under this section, the board may order the | 135 |
treasurer of state to sell or liquidate any of
the
investments
or | 136 |
deposits, and any such order shall specifically
describe the | 137 |
investments or deposits and fix the date upon which
they are to
be | 138 |
sold or liquidated. Investments or deposits so
ordered to be
sold | 139 |
or liquidated shall be sold or liquidated for
cash by the | 140 |
treasurer of state on the date fixed in such order at
the then | 141 |
current market price. Neither the treasurer of state nor
the | 142 |
members of the state board of deposit shall be held
accountable | 143 |
for any loss occasioned by sales or liquidations of
investments
or | 144 |
deposits at prices lower than their cost. Any loss
or expense | 145 |
incurred in making
these sales or liquidations is
payable as
other | 146 |
expenses of the treasurer's office. | 147 |
(2) The payment by the board of education to the treasurer
of | 173 |
state of
a reasonable fee
as consideration for the agreement of | 174 |
the treasurer of state to purchase those
obligations; provided, | 175 |
however, that the treasurer of state shall not be
authorized to | 176 |
enter into any such agreement with the board of education of a | 177 |
school district that has an outstanding obligation with respect to | 178 |
a loan
received under authority of section 3313.483 of the Revised | 179 |
Code. | 180 |
(H) For purposes of division
(G) of this section, a fee
shall | 181 |
not be considered reasonable unless it is set to recover
only
the | 182 |
direct costs and a reasonable estimate of the indirect
costs | 183 |
associated with the purchasing of obligations of a school
board | 184 |
under division (G) of this section and any reselling of the | 185 |
obligations or any interest in the obligations, including | 186 |
interests in a fund comprised of the obligations. No money from | 187 |
the general revenue fund shall be used to subsidize the purchase | 188 |
or resale of these obligations. | 189 |
(B) "Business operations" means engaging in commerce in any | 201 |
form in Sudan or Iran, including by maintaining, selling, | 202 |
acquiring, developing, owning, possessing, operating, or leasing | 203 |
equipment, facilities, personnel, products, services, personal or | 204 |
real property, or any other apparatus of business or commerce. | 205 |
(C) "Company" means a sole proprietorship, organization, | 206 |
association, corporation, partnership, joint venture, limited | 207 |
partnership, limited liability partnership, limited liability | 208 |
company, business association, or other entity, including any | 209 |
wholly-owned subsidiary, majority-owned subsidiary, parent | 210 |
company, or affiliate of any of those types of entities, that | 211 |
exists for the purpose of making a profit. | 212 |
(D) "Complicit" means taking actions during any preceding | 213 |
twenty-month period that directly support or promote the genocidal | 214 |
campaign in the Darfur region of Sudan, including, but not limited | 215 |
to, preventing members of the population of the Darfur region of | 216 |
Sudan negatively affected by genocide from communicating with each | 217 |
other; encouraging Sudanese citizens to speak against the | 218 |
internationally approved security force that provides aide to the | 219 |
Darfur region; actively working to deny, cover up, or alter the | 220 |
record on human rights abuses in Darfur; or other similar actions. | 221 |
(G) "Government of Sudan" means the government in Khartoum, | 228 |
Sudan, that is led by the national congress party, formerly known | 229 |
as the national Islamic front, or any successor government formed | 230 |
on or after October 13, 2006, including the coalition national | 231 |
unity government agreed upon in the "2005 Comprehensive Peace | 232 |
Agreement," and does not include the regional government of | 233 |
southern Sudan. | 234 |
(I) "Indirect holdings" means all stocks and bonds of a | 240 |
company that are not direct holdings and are held in an account or | 241 |
fund in which the public investor owns shares or interests | 242 |
together with other investors not subject to the provisions of | 243 |
this chapter, as well as any private equity fund, private equity | 244 |
fund-of-funds, venture capital fund, hedge fund, hedge | 245 |
fund-of-funds, real estate fund or other investment vehicle that | 246 |
is not publicly traded, mutual funds, and pooled or securitized | 247 |
investment vehicles. | 248 |
(L) "Military equipment" means weapons, arms, military | 263 |
supplies, and equipment including, but not limited to, radar | 264 |
systems, or military-grade transport vehicles, that readily may be | 265 |
used for military purposes; or supplies or services sold or | 266 |
directly or indirectly provided to any force actively | 267 |
participating in armed conflict in Sudan. | 268 |
(M) "Mineral extraction activities" include exploring, | 269 |
extracting, processing, transporting, or wholesale selling or | 270 |
trading of elemental minerals or associated metal alloys or | 271 |
oxides, also known as ore, including gold, copper, chromium, | 272 |
chromite, diamonds, iron, iron ore, silver, tungsten, uranium, and | 273 |
zinc; and includes facilitating such activities, including by | 274 |
providing supplies or services in support of such activities. | 275 |
(N) "Oil-related activities" includes, but is not limited to, | 276 |
owning rights to oil blocks; exporting, extracting, producing, | 277 |
refining, processing, exploring for, transporting, selling, or | 278 |
trading of oil; constructing, maintaining, or operating a | 279 |
pipeline, refinery, or other oil-field infrastructure; or | 280 |
facilitating such activities, including by providing supplies or | 281 |
services in support of such activities. "Oil-related activities" | 282 |
does not mean engaging in only the retail sale of gasoline and | 283 |
related consumer products. | 284 |
(P) "Power production activities" means any business | 287 |
operation that involves a project commissioned by the national | 288 |
electricity corporation of Sudan or other similar entity of the | 289 |
government of Sudan whose purpose is to facilitate power | 290 |
generation and delivery, including, but not limited to, | 291 |
establishing power-generating plants or hydroelectric dams, | 292 |
selling or installing components for a project, providing service | 293 |
contracts related to the installation or maintenance of a project, | 294 |
or facilitating any of these activities, including by providing | 295 |
supplies or services in support of such activities. | 296 |
(1) The company has business operations that involve | 310 |
contracts with or provision of supplies or services to the | 311 |
government of Sudan, companies in which the government of Sudan | 312 |
has any direct or indirect equity share, consortiums or projects | 313 |
commissioned by the government of Sudan, or companies involved in | 314 |
consortiums or projects commissioned by the government of Sudan, | 315 |
and more than ten per cent of the company's revenues or assets | 316 |
linked to Sudan involve oil-related activities or | 317 |
mineral-extraction activities; less than seventy-five per cent of | 318 |
the company's revenues or assets linked to Sudan involve contracts | 319 |
with or provision of oil-related or mineral-extracting products or | 320 |
services to the regional government of southern Sudan or a project | 321 |
or consortium created exclusively by that regional government; and | 322 |
the company has failed to take substantial action specific to | 323 |
Sudan; or more than ten per cent of the company's revenues or | 324 |
assets linked to Sudan involve power-production activities; less | 325 |
than seventy-five per cent of the company's power-production | 326 |
activities include projects whose intent is to provide power or | 327 |
electricity to the marginalized populations of Sudan; and the | 328 |
company has failed to take substantial action specific to Sudan. | 329 |
(3) The company supplies military equipment within Sudan, | 331 |
unless it clearly shows that the military equipment cannot be used | 332 |
to facilitate offensive military actions in Sudan or the company | 333 |
implements rigorous and verifiable safeguards to prevent use of | 334 |
that equipment by forces actively participating in armed conflict. | 335 |
Examples of safeguards include post-sale tracking of such | 336 |
equipment by the company, certification from a reputable and | 337 |
objective third party that such equipment is not being used by a | 338 |
party participating in armed conflict in Sudan, or sale of such | 339 |
equipment solely to the regional government of southern Sudan or | 340 |
any internationally recognized peacekeeping force or humanitarian | 341 |
organization. | 342 |
(4)(a) The company has business operations that involve | 343 |
contracts with or provision of supplies or services to the | 344 |
government of Iran, companies in which the government of Iran has | 345 |
any direct or indirect equity share, consortiums, or projects | 346 |
commissioned by the government of Iran, or companies involved in | 347 |
consortiums or projects commissioned by the government of Iran, | 348 |
and one of the following apply: | 349 |
(ii) The company has, with actual knowledge, on or after | 353 |
August 5, 1996, made an investment of twenty million dollars or | 354 |
more, or any combination of investments of at least ten million | 355 |
dollars each, which in the aggregate equals or exceeds twenty | 356 |
million dollars in any twelve-month period, and which directly or | 357 |
significantly contributes to the enhancement of Iran's ability to | 358 |
develop the petroleum resources of Iran; | 359 |
(W) "Substantial action specific to Sudan" means adopting, | 384 |
publicizing, and implementing a formal plan to cease scrutinized | 385 |
business operations within one year and to refrain from any such | 386 |
new business operations; undertaking humanitarian efforts in | 387 |
conjunction with an international organization, the government of | 388 |
Sudan, the regional government of southern Sudan, or a nonprofit | 389 |
entity evaluated and certified by an independent third party to be | 390 |
substantially in a relationship to the company's Sudan business | 391 |
operations and of benefit to one or more marginalized populations | 392 |
of Sudan; or, through engagement with the government of Sudan, | 393 |
materially improving conditions for the genocidally victimized | 394 |
population in Darfur. | 395 |
(2) For each company newly identified under this section that | 440 |
has active business operations, the public investor shall send a | 441 |
written notice informing the company of its scrutinized company | 442 |
status and that it may become subject to divestment by the public | 443 |
investor. The notice shall inform the company of the opportunity | 444 |
to clarify its Iran-related or Sudan-related activities and | 445 |
encourage the company, within ninety days, to cease its | 446 |
scrutinized business operations or convert such operations to | 447 |
inactive business operations in order to avoid qualifying for | 448 |
divestment by the public investor. | 449 |
(3) If, within ninety days after the public investors create | 450 |
the lists pursuant to division (B) of this section, a company on | 451 |
either list ceases scrutinized business operations, the public | 452 |
investor shall remove the company from the scrutinized companies | 453 |
with activities in Sudan list and the scrutinized companies with | 454 |
activities in Iran list, and the provisions of this chapter shall | 455 |
cease to apply to that company unless that company resumes | 456 |
scrutinized business operations. If, within ninety days after the | 457 |
public investors create the lists, the company converts its | 458 |
scrutinized active business operations to inactive business | 459 |
operations, the company is subject to all provisions of this | 460 |
chapter relating to inactive business operations. A company may be | 461 |
on both the scrutinized companies with activities in Sudan list | 462 |
and the scrutinized companies with activities in Iran list. A | 463 |
company may be removed from one list but remain on the other list, | 464 |
in which case the company is subject to the provisions of this | 465 |
chapter applicable to the list on which the company remains. | 466 |
(1) If, after the ninety-day period described in division | 477 |
(D)(3) of section 137.02 of the Revised Code the company continues | 478 |
to have scrutinized active business operations, and only while | 479 |
such company continues to have scrutinized active business | 480 |
operations, the public investor shall sell, redeem, divest, or | 481 |
withdraw all direct holdings in publicly traded securities of the | 482 |
company, except as provided in section 137.04 of the Revised Code, | 483 |
from the public investor's assets under management within twelve | 484 |
months after the ninety-day period described in division (D)(3) of | 485 |
section 137.02 of the Revised Code. | 486 |
(2) If a company that ceased scrutinized active business | 487 |
operations following engagement pursuant to division (D)(3) of | 488 |
section 137.02 of the Revised Code resumes such operations, this | 489 |
division immediately applies, and the public investor shall send a | 490 |
written notice to the company. The public investor also shall | 491 |
immediately reinstate the company on the scrutinized companies | 492 |
with activities in Sudan list or on the scrutinized companies with | 493 |
activities in Iran list, as applicable. | 494 |
(C) If a manager of an actively managed investment fund, in | 500 |
which a public investor has indirect holdings of publicly traded | 501 |
companies that have scrutinized active business operations, has | 502 |
created, pursuant to division (D)(4) of section 137.02 of the | 503 |
Revised Code, a similar actively managed fund devoid of such | 504 |
companies, the public investor shall replace all applicable | 505 |
investments with investments in the similar fund in an expedited | 506 |
time frame consistent with prudent investing standards. | 507 |
(D) Notwithstanding any other provisions of sections 137.01 | 508 |
to 137.09 of the Revised Code, a public investor may cease any | 509 |
divestment required by this section and may reinvest in companies | 510 |
on the scrutinized companies with activities in Sudan list or the | 511 |
scrutinized companies with activities in Iran list from which it | 512 |
divested if clear and convincing evidence shows that the value of | 513 |
all assets under management by the public investor becomes equal | 514 |
to or less than ninety-nine and one-half per cent, or at least | 515 |
less than fifty basis points, of the hypothetical value of all | 516 |
assets under management by the public investor assuming no | 517 |
divestment for any company had occurred under this section. | 518 |
Cessation of divestment, reinvestment, or any subsequent ongoing | 519 |
investment authorized by this division is limited to the minimum | 520 |
steps necessary to avoid the contingency set forth in this | 521 |
division or that no divestment of any company is required for less | 522 |
than fair value. For any cessation of divestment, reinvestment, or | 523 |
subsequent ongoing investment authorized by this section, the | 524 |
public investor shall provide a written report, in advance of | 525 |
initial reinvestment, to the president of the senate and the | 526 |
speaker of the house of representatives, and updated semiannually | 527 |
thereafter for as long as the public investor continues to act | 528 |
pursuant to this division, setting forth the reasons and | 529 |
justification, supported by clear and convincing evidence, for the | 530 |
public investor's decisions to cease divestment, reinvest, or | 531 |
remain invested in companies having scrutinized active business | 532 |
operations. This division does not apply to reinvestment in | 533 |
companies on the grounds that they have ceased to have scrutinized | 534 |
active business operations. | 535 |
Sec. 137.05. (A) Each public investor shall file a report | 543 |
with the president of the senate, the speaker of the house of | 544 |
representatives, the minority leader of the senate, the minority | 545 |
leader of the house of representatives, the Ohio retirement study | 546 |
council, and the workers compensation council that includes the | 547 |
scrutinized companies with activities in Sudan list and the | 548 |
scrutinized companies with activities in Iran list within thirty | 549 |
days after the list is created and within thirty days after the | 550 |
list is updated pursuant to section 137.02 of the Revised Code. | 551 |
The public investor shall make the report available to the public. | 552 |
(B) Each public investor shall file a report annually, which | 553 |
shall be made available to the public, to the president of the | 554 |
senate, the speaker of the house of representatives, the minority | 555 |
leader of the senate, the minority leader of the house of | 556 |
representatives, the Ohio retirement study council, and the | 557 |
workers compensation council, and send a copy of that report to | 558 |
the United States presidential special envoy to Sudan and the | 559 |
United States presidential special envoy to Iran, or an | 560 |
appropriate designee or successor, which includes: | 561 |
Sec. 137.08. A public investor is not liable for breach of | 613 |
the public investor's fiduciary duty to the public fund for which | 614 |
that public investor has the authority to invest assets if the | 615 |
public investor complies in good faith with the requirements of | 616 |
this chapter. If the public investor made determinations in good | 617 |
faith regarding the status of a company as required under this | 618 |
chapter, the members are not liable in an action for libel or | 619 |
slander. All former, present, or future public investors and | 620 |
members of any boards of all public investors and all officers, | 621 |
employees, and agents of such boards shall be indemnified, whether | 622 |
jointly or severally, for all claims, demands, suits, actions, | 623 |
damages, judgments, costs, charges, and expenses, including court | 624 |
costs and attorney's fees, and against all liability, losses, and | 625 |
damages of any nature that such board members, officers, | 626 |
employees, or agents may incur by reason of any decision to | 627 |
restrict, reduce, or eliminate investments in companies doing | 628 |
business in Iran or Sudan. A board member, officer, employee, or | 629 |
agent of a public investor shall be indemnified through the public | 630 |
fund in which the public authority has the authority to invest. In | 631 |
any action pursuant to this chapter, any state retirement board | 632 |
has any rights granted in section 109.98 of the Revised Code and | 633 |
the workers' compensation oversight commission has any rights | 634 |
granted in section 109.981 of the Revised Code. | 635 |
Sec. 148.04. (A) The Ohio public employees deferred | 641 |
compensation board shall initiate, plan, expedite, and, subject
to | 642 |
an appropriate assurance of the approval of the internal
revenue | 643 |
service, promulgate and offer to all eligible employees,
and | 644 |
thereafter administer on behalf of all participating
employees and | 645 |
continuing members, and alter as required, a
program for deferral | 646 |
of compensation, including a reasonable
number of options to the | 647 |
employee for the investment of deferred
funds, including life | 648 |
insurance, annuities, variable annuities,
pooled investment funds | 649 |
managed by
the board, or other forms of investment approved by the | 650 |
board,
always in such form as will assure the desired tax | 651 |
treatment of
such funds. There may be at least one terror-free | 652 |
investment option, as defined in section 3305.01 of the Revised | 653 |
Code, among the investment options offered to eligible employees. | 654 |
Annually, the board shall prepare, and deliver to the president of | 655 |
the senate and the speaker of the house of representatives a | 656 |
report regarding the board's efforts to identify and provide a | 657 |
terror-free investment option. The members of the board are the | 658 |
trustees of any deferred funds and shall discharge
their duties | 659 |
with respect to the funds solely in the interest of and for the | 660 |
exclusive benefit of participating employees, continuing members, | 661 |
and their
beneficiaries. With respect to such deferred funds, | 662 |
section
148.09 of the Revised Code shall
apply to claims against | 663 |
participating employees or continuing members and
their employers. | 664 |
(C) The board shall, subject to any applicable contract | 671 |
provisions, undertake to obtain as favorable conditions of tax | 672 |
treatment as possible, both in the initial programs and any | 673 |
permitted alterations of them or additions to them, as to such | 674 |
matters as terms of distribution, designation of beneficiaries, | 675 |
withdrawal upon disability, financial hardship, or termination of | 676 |
public employment, and other optional provisions. | 677 |
Such a deferred compensation program shall be in addition
to | 684 |
any retirement or any other benefit program provided by law
for | 685 |
employees of this state. The board shall adopt rules
pursuant to | 686 |
Chapter 119. of the Revised Code to provide any
necessary | 687 |
standards or conditions for the administration of its
programs, | 688 |
including any limits on the portion of a participating
employee's | 689 |
compensation that may be deferred in order to avoid
adverse | 690 |
treatment of the program by the internal revenue service
or the | 691 |
occurrence of deferral, withholding, or other deductions
in excess | 692 |
of the compensation available for any pay period. | 693 |
(E) This section does not limit the authority of any | 700 |
municipal corporation, county, township, park district, | 701 |
conservancy district, sanitary district, health district, public | 702 |
library, county law library, public institution of higher | 703 |
education, or school district to provide separate authorized
plans | 704 |
or programs for deferring compensation of their officers
and | 705 |
employees in addition to the program for the deferral of | 706 |
compensation offered by the board. Any municipal corporation, | 707 |
township,
public institution of higher education, or school | 708 |
district that
offers such plans or programs shall include a | 709 |
reasonable number
of options to its officers or employees for the | 710 |
investment of the
deferred funds, including annuities, variable | 711 |
annuities,
regulated investment trusts, or other forms of | 712 |
investment
approved by the municipal corporation, township, public | 713 |
institution of higher
education, or school district, that will | 714 |
assure the desired tax
treatment of the funds. | 715 |
(A) "Public institution
of higher education" means a state | 717 |
university as defined in
section 3345.011 of the Revised Code, the | 718 |
northeastern Ohio
universities college of
medicine, or a | 719 |
university branch,
technical college, state
community college, | 720 |
community college, or
municipal university established or | 721 |
operating under Chapter 3345.,
3349., 3354., 3355., 3357., or | 722 |
3358.
of the Revised
Code. | 723 |
Each alternative retirement plan
offered under this program
| 773 |
shall be a defined contribution plan qualified under section
401 | 774 |
(a) of the Internal Revenue
Code that provides retirement and | 775 |
death benefits through
investment options. The options shall be | 776 |
offered to electing
employees pursuant to group or individual | 777 |
contracts, and certificates
issued under group contracts,. The | 778 |
options may include a terror-free investment option and may | 779 |
include life insurance,
annuities, variable annuities, regulated | 780 |
investment trusts, pooled
investment funds, or other forms of | 781 |
investment, at the option of
each
electing employee. | 782 |
Sec. 3334.02. (A) In order to help make higher education | 789 |
affordable and accessible to all citizens of Ohio, to maintain | 790 |
state institutions of higher education by helping to provide a | 791 |
stable financial base to these institutions, to provide the | 792 |
citizens of Ohio with financing assistance for higher education | 793 |
and protection against rising tuition costs, to encourage saving | 794 |
to enhance the ability of citizens of Ohio to obtain financial | 795 |
access to institutions of higher education, to encourage | 796 |
elementary and secondary students in this state to achieve | 797 |
academic excellence, and to promote a well-educated and | 798 |
financially secure population to the ultimate benefit of all | 799 |
citizens of the state of Ohio, there is hereby created the Ohio | 800 |
college savings program. The program shall consist of the
issuance | 801 |
of college savings bonds and the sale of tuition
units. | 802 |
(C) To provide the citizens of Ohio with a choice of | 806 |
tax-advantaged college savings programs and the opportunity to | 807 |
participate in
more than one type of
college savings program at a | 808 |
time, the Ohio tuition trust
authority shall establish and | 809 |
administer a variable college savings program
as a qualified state | 810 |
tuition program under section 529 of the
Internal Revenue Code. | 811 |
The program shall
allow contributors to
make cash contributions to | 812 |
variable college savings
program
accounts created for the purpose | 813 |
of paying future tuition and
other
higher education expenses and | 814 |
providing variable rates of
return
on contributions. The program | 815 |
shall offer contributors a reasonable number of options for the | 816 |
investment of contributed funds among which may be at least one | 817 |
terror-free investment option, as defined in section 3305.01 of | 818 |
the Revised Code. The Ohio tuition trust authority annually shall | 819 |
prepare, and deliver to the president of the senate and the | 820 |
speaker of the house of representatives a report regarding the | 821 |
board's efforts to identify and provide a terror-free investment | 822 |
option. | 823 |
Section 3. The sections and items of law contained in this | 828 |
act, and their applications, are severable. If any section or item | 829 |
of law contained in this act, or if any application of any section | 830 |
or item of law contained in this act, is held invalid, the | 831 |
invalidity does not affect other sections or items of law | 832 |
contained in this act and their applications that can be given | 833 |
effect without the invalid section or item of law or application. | 834 |