| Section 1. That sections 122.60, 122.71, 135.03, 135.032, | 12 |
|
135.04,
135.06, 135.08,
135.10, 135.14, 135.144, 135.18, 135.32, | 13 |
|
135.321, 135.33, 135.35, 135.353, 135.37, 135.51, 135.52,
135.53, | 14 |
|
1733.04, 1733.041, 1733.24, 1733.30, 1733.31, 2909.32, and | 15 |
|
2909.33 of
the Revised Code be amended
to read as follows: | 16 |
| (C) "Eligible business" means a for-profit business entity, | 24 |
|
or a
nonprofit entity, that had total annual sales in its most | 25 |
|
recently completed
fiscal
year of less than ten million dollars | 26 |
|
and
that has a principal place of for-profit business or nonprofit | 27 |
|
entity activity
within the state, the operation
of which, alone or | 28 |
|
in conjunction with other facilities, will
create new jobs or | 29 |
|
preserve existing jobs and employment
opportunities and will | 30 |
|
improve the economic welfare of the people of
the
state. As used | 31 |
|
in this division, "new jobs" does not include
existing
jobs | 32 |
|
transferred
from another facility within the state,
and "existing | 33 |
|
jobs" means
only existing jobs at facilities within
the same | 34 |
|
municipal corporation or township
in which the project, activity, | 35 |
|
or
enterprise
that is the subject of a capital access loan is | 36 |
|
located. | 37 |
| (B)
"Project" means any real or personal property
connected | 71 |
|
with or being a part of an industrial, distribution,
commercial, | 72 |
|
or research facility to be acquired, constructed,
reconstructed, | 73 |
|
enlarged, improved, furnished, or equipped, or any
combination | 74 |
|
thereof, with the aid provided under sections 122.71
to 122.83 of | 75 |
|
the Revised Code, for industrial,
commercial,
distribution, and | 76 |
|
research development of the state. | 77 |
| (E)(1)
"Minority business enterprise" means an individual
who | 86 |
|
is a United States citizen and owns and controls a business,
or a | 87 |
|
partnership, corporation, or joint venture of any kind that is | 88 |
|
owned and controlled by United States citizens, which citizen
or | 89 |
|
citizens are
residents of
this state
and
are
members of one of
the | 90 |
|
following
economically
disadvantaged groups:
Blacks or African | 91 |
|
Americans, American
Indians, Hispanics or Latinos, and
Asians. | 92 |
| (2)
"Owned and controlled" means that at least fifty-one
per | 93 |
|
cent of the business, including corporate stock if a
corporation, | 94 |
|
is owned by persons who belong to one or more of the
groups set | 95 |
|
forth in division (E)(1) of this section, and that
those owners | 96 |
|
have control over the management and
day-to-day
operations of the | 97 |
|
business and an interest in the capital,
assets, and profits and | 98 |
|
losses of the business proportionate to
their percentage of | 99 |
|
ownership. In order to qualify as a minority
business enterprise, | 100 |
|
a business shall have been owned and
controlled by those persons | 101 |
|
at least one year prior to
being
awarded a contract pursuant to | 102 |
|
this section. | 103 |
| (K) "Community development corporation" means a corporation | 119 |
|
organized under Chapter 1702. of the Revised Code that consists of | 120 |
|
residents of the community and business and civic leaders and that | 121 |
|
has as a principal purpose one or more of the following: the | 122 |
|
revitalization and development of a low- to moderate-income | 123 |
|
neighborhood or community; the creation of jobs for low- to | 124 |
|
moderate-income residents; the development of commercial | 125 |
|
facilities and services; providing training, technical assistance, | 126 |
|
and financial assistance to small businesses; and planning, | 127 |
|
developing, or managing low-income housing or other community | 128 |
|
development activities. | 129 |
| Sec. 135.03. (A) Any national bank, any bank doing business | 130 |
|
under authority granted by the superintendent of financial | 131 |
|
institutions, or any bank doing business under authority granted | 132 |
|
by the regulatory authority of another state of the United States, | 133 |
|
located in this state, is eligible
to become a public
depository, | 134 |
|
subject
to sections 135.01 to
135.21 of the Revised
Code. No | 135 |
|
bank shall
receive or have on
deposit at any one time
public | 136 |
|
moneys,
including public moneys as
defined in section
135.31 of | 137 |
|
the
Revised Code, in an aggregate
amount in excess of
thirty per | 138 |
|
cent
of its total assets, as shown
in its latest
report to the
| 139 |
|
comptroller of the
currency, the superintendent
of financial | 140 |
|
institutions, the federal deposit insurance
corporation, or the | 141 |
|
board of governors of the federal reserve
system. | 142 |
| (B) Any federal savings association, any savings and
loan | 143 |
|
association or savings bank doing business under authority | 144 |
|
granted by the superintendent of financial institutions, or any | 145 |
|
savings and loan association or savings bank doing business under | 146 |
|
authority granted by the regulatory authority of another state of | 147 |
|
the United States, located in this state, and authorized to accept | 148 |
|
deposits
is eligible to
become a public depository, subject to | 149 |
|
sections
135.01 to 135.21
of the Revised Code. No
savings | 150 |
|
association, savings and loan association, or savings bank
shall | 151 |
|
receive or have on deposit at any one
time
public moneys, | 152 |
|
including public moneys as defined in section
135.31 of the | 153 |
|
Revised Code, in an aggregate amount in excess of
thirty per cent | 154 |
|
of its total assets, as shown in its latest
report to the
office | 155 |
|
of thrift supervision, the superintendent of
financial | 156 |
|
institutions, the federal deposit insurance corporation,
or the | 157 |
|
board of governors of the federal reserve system. | 158 |
| (C) Any federal credit union located in this state, any | 159 |
|
credit union located in this state and licensed pursuant to | 160 |
|
section 1733.39 of the Revised Code, or any
credit union as | 161 |
|
defined in section 1733.01 of the Revised Code,
subject to | 162 |
|
inspection by the superintendent of financial
institutions, is | 163 |
|
eligible to become a public depository, subject
to sections | 164 |
|
135.01 to 135.21 of the Revised Code. No credit union
shall | 165 |
|
receive or have on deposit at any one time public moneys, | 166 |
|
including public moneys as defined in section 135.31 of the | 167 |
|
Revised Code, in an aggregate amount in excess of thirty per cent | 168 |
|
of its total assets, as shown in its latest report to the | 169 |
|
superintendent of financial institutions or the national credit | 170 |
|
union administration. | 171 |
| (B) To facilitate the clearance of state warrants to the | 194 |
|
state treasury, the state board of deposit may delegate the | 195 |
|
authority to the treasurer of state to establish warrant
clearance | 196 |
|
accounts in any institution mentioned in section 135.03
of the | 197 |
|
Revised Code located in areas where the volume of warrant | 198 |
|
clearances justifies the establishment of an account as
determined | 199 |
|
by the treasurer of state. The balances maintained in
such warrant | 200 |
|
clearance accounts shall be at sufficient levels to
cover the | 201 |
|
activity generated by such accounts on an individual
basis. Any | 202 |
|
financial institution in the state that has a warrant
clearance | 203 |
|
account established by the treasurer of state shall,
not more than | 204 |
|
ten days after the close of each quarter, prepare
and transmit to | 205 |
|
the treasurer of state an analysis statement of
such account for | 206 |
|
the quarter then ended. Such statement shall
contain such | 207 |
|
information as determined by the state board of
deposit, and this | 208 |
|
information shall be used in whole or in part
by the treasurer of | 209 |
|
state in determining the level of balances to
be maintained in | 210 |
|
such accounts. | 211 |
| (C) Each governing board shall award the active deposits
of | 212 |
|
public moneys subject to its control to the eligible
institutions | 213 |
|
in accordance with this section, except that no such
public | 214 |
|
depository shall thereby be required to take or permitted
to | 215 |
|
receive and have at any one time a greater amount of active | 216 |
|
deposits of such public moneys than that specified in the | 217 |
|
application of such depository. When, by reason of such
limitation | 218 |
|
or otherwise, the amount of active public moneys
deposited or to | 219 |
|
be deposited in a public depository, pursuant to
an award made | 220 |
|
under this section, is reduced or withdrawn, as the
case requires, | 221 |
|
the amount of such reduction or the sum so
withdrawn shall be | 222 |
|
deposited in another eligible institution
applying therefor, or if | 223 |
|
there is no such eligible institution,
then the amount so withheld | 224 |
|
or withdrawn shall be awarded or
deposited for the remainder of | 225 |
|
the period of designation in
accordance with sections 135.01 to | 226 |
|
135.21 of the Revised Code. | 227 |
| (D) Any institution mentioned in section 135.03 of the | 228 |
|
Revised Code is eligible to become a public depository
of the | 229 |
|
inactive and interim deposits of public moneys of a
subdivision. | 230 |
|
In case the aggregate amount
of inactive or interim deposits | 231 |
|
applied for by such eligible
institutions is less than the | 232 |
|
aggregate maximum amount of such
inactive or interim deposits as | 233 |
|
estimated to be deposited
pursuant to sections 135.01 to 135.21 of | 234 |
|
the Revised Code, the
governing board of the subdivision may | 235 |
|
designate as a public
depository of the inactive or interim | 236 |
|
deposits of the public
moneys thereof, one or more institutions of | 237 |
|
a kind mentioned in
section 135.03 of the Revised Code, subject to | 238 |
|
the requirements of sections
135.01 to 135.21 of the Revised Code. | 239 |
| (E) Any institution mentioned in section 135.03 of the | 240 |
|
Revised Code is eligible to become a public depository
of the | 241 |
|
active deposits of public moneys of a subdivision. In
case the | 242 |
|
aggregate amount of active deposits of the public moneys
of the | 243 |
|
subdivision applied for by such eligible institutions is
less than | 244 |
|
the aggregate maximum amount to be deposited as such,
as estimated | 245 |
|
by the governing board, said board may designate as
a public | 246 |
|
depository of the active deposits of the public moneys
of the | 247 |
|
subdivision, one or more institutions of the kind
mentioned in | 248 |
|
section 135.03 of the Revised Code, subject to the requirements
of | 249 |
|
sections 135.01 to 135.21 of the Revised Code. | 250 |
| (F)(1) The governing board of the state or of a
subdivision | 251 |
|
may designate one or more minority banks or minority credit unions | 252 |
|
as public
depositories of its inactive, interim, or active | 253 |
|
deposits of
public moneys designated as federal funds. Except for | 254 |
|
section
135.18 or 135.181 of the Revised Code,
Chapter 135. of the | 255 |
|
Revised Code
does not apply to the application for, or the award | 256 |
|
of, such
deposits. As used in this division, "minority bank" or | 257 |
|
"minority credit union" means, as applicable, a bank
or credit | 258 |
|
union operating in this state that is owned or controlled by one | 259 |
|
or more socially or
economically disadvantaged persons. Such | 260 |
|
disadvantage may arise
from cultural, ethnic, or racial | 261 |
|
background, chronic economic
circumstances, or other similar | 262 |
|
cause. Such persons include, but
are not limited to, | 263 |
|
Afro-Americans, Puerto Ricans,
Spanish-speaking Americans, and | 264 |
|
American Indians. | 265 |
| (d) This division contains safeguards for the protection
of | 275 |
|
the general public and the banking industry, since it provides
the | 276 |
|
governing board of the state or political subdivision with | 277 |
|
permissive authority in the award of deposits; limits the | 278 |
|
authority of the governing board to the award of federal funds; | 279 |
|
and subjects minority banks and minority credit unions to certain | 280 |
|
limitations of Chapter
135. of the Revised Code, including the | 281 |
|
requirement that, as in
the case of every financial institution | 282 |
|
subject to Chapter 135.
of the Revised Code, a minority bank or | 283 |
|
minority credit union pledge certain securities
for repayment of | 284 |
|
the deposits. | 285 |
| Sec. 135.06. Each eligible institution desiring to be a | 300 |
|
public depository of the inactive deposits of the public moneys
of | 301 |
|
the state or of the inactive deposits of the public moneys of
the | 302 |
|
subdivision shall, not more than thirty days prior to the
date | 303 |
|
fixed by section 135.12 of the Revised Code for the
designation of | 304 |
|
such public depositories, make application
therefor in writing to | 305 |
|
the proper governing board. Such
application shall specify the | 306 |
|
maximum amount of such public
moneys which the applicant desires | 307 |
|
to receive and have on deposit
as an inactive deposit at any one | 308 |
|
time during the period covered
by the designation, provided that | 309 |
|
it shall not apply for more than
thirty per cent of its
total | 310 |
|
assets as revealed by its latest
report to the
superintendent of | 311 |
|
financial institutions,
the comptroller of the currency, the | 312 |
|
office of
thrift supervision, the federal deposit insurance | 313 |
corporation, or
the board of governors of the federal reserve | 314 |
|
system, or the national credit union administration,
and the | 315 |
|
rate of interest which the
applicant will pay
thereon, subject to | 316 |
|
the
limitations of
sections 135.01 to 135.21
of the Revised | 317 |
|
Code.
Each application
shall be accompanied by a
financial | 318 |
|
statement of
the applicant,
under oath of its cashier, | 319 |
|
treasurer, or other
officer, in such
detail as to show the | 320 |
|
capital funds of the
applicant, as of the
date of its latest | 321 |
|
report to the
superintendent of financial
institutions, the | 322 |
|
comptroller of the currency, the office of
thrift supervision, | 323 |
the federal deposit insurance corporation, or
the board of | 324 |
|
governors of the federal reserve system, or the national credit | 325 |
|
union administration, and adjusted
to
show any
changes therein | 326 |
|
made prior to the date of
the
application. Such
application may | 327 |
|
be combined with an
application
for designation
as a public | 328 |
|
depository of active
deposits, interim
deposits, or
both. | 329 |
| Sec. 135.08. Each eligible institution desiring to be a | 330 |
|
public depository of interim deposits of the public moneys of the | 331 |
|
state or of the interim deposits of the public moneys of the | 332 |
|
subdivision shall, not more than thirty days prior to the date | 333 |
|
fixed by section 135.12 of the Revised Code for the designation
of | 334 |
|
public depositories, make application therefor in writing to
the | 335 |
|
proper governing board. Such application shall specify the
maximum | 336 |
|
amount of such public moneys which the applicant desires
to | 337 |
|
receive and have on deposit as interim deposits at any one
time | 338 |
|
during the period covered by the designation, provided that it | 339 |
|
shall not apply for more than
thirty
per cent of its total assets | 340 |
|
as revealed by its latest
report to
the superintendent of | 341 |
|
financial institutions, the
comptroller of the
currency, the | 342 |
|
office of
thrift supervision, the federal deposit insurance | 343 |
corporation, or
the board of governors of the federal reserve | 344 |
|
system, or the national credit union administration, and the rate | 345 |
|
of interest which the
applicant will pay
thereon, subject to
the | 346 |
|
limitations of
sections 135.01 to 135.21
of the Revised Code. | 347 |
| Each application shall be accompanied by a financial | 348 |
|
statement of the applicant, under oath of its cashier, treasurer, | 349 |
|
or other officer, in such detail as to show the capital funds of | 350 |
|
the applicant, as of the date of its latest report to the | 351 |
|
superintendent of financial
institutions, the comptroller of the | 352 |
|
currency, the office of
thrift supervision, the federal deposit | 353 |
insurance corporation, or
the board of governors of the federal | 354 |
|
reserve system, or the national credit union administration and | 355 |
|
adjusted
to show any changes therein made
prior to
the date of | 356 |
|
the
application. Such application may be
combined
with an | 357 |
|
application
for designation as a public
depository of
inactive | 358 |
|
deposits,
active deposits, or both. | 359 |
| Sec. 135.10. Each eligible institution desiring to be a | 360 |
|
public depository of the active deposits of the public moneys of | 361 |
|
the state or of a subdivision shall, not more than thirty days | 362 |
|
prior to the date fixed by section 135.12 of the Revised Code for | 363 |
|
the designation of such public depositories, make application | 364 |
|
therefor in writing to the proper governing board. If desired, | 365 |
|
such application may specify the maximum amount of such public | 366 |
|
moneys which the applicant desires to receive and have on deposit | 367 |
|
at any one time during the period covered by the designation.
Each | 368 |
|
application shall be accompanied by a financial statement of
the | 369 |
|
applicant, under oath of its cashier, treasurer, or other
officer, | 370 |
|
in such detail as to show the capital funds of the
applicant, as | 371 |
of the date of its latest report to the
superintendent of banks or | 372 |
| financial institutions, the comptroller of the currency, the | 373 |
|
office of thrift supervision, or the national credit union | 374 |
|
administration and
adjusted to show any changes therein prior to | 375 |
|
the date of the
application. Such application may be combined with | 376 |
|
an
application for designation as a public depository of inactive | 377 |
|
deposits, interim deposits, or both. | 378 |
| (2) Bonds, notes, debentures, or any other obligations or | 398 |
|
securities issued by any federal government agency or | 399 |
|
instrumentality,
including but not limited to, the federal | 400 |
|
national mortgage association,
federal home loan bank, federal | 401 |
|
farm credit bank, federal home loan mortgage
corporation, | 402 |
|
government national mortgage association, and student loan | 403 |
|
marketing association. All federal agency securities shall be | 404 |
|
direct
issuances of federal government agencies or | 405 |
|
instrumentalities. | 406 |
| (3) Interim deposits in the eligible institutions applying | 407 |
|
for interim moneys as provided in section 135.08 of the Revised | 408 |
|
Code. The award of interim deposits shall be made in accordance | 409 |
|
with section 135.09 of the Revised Code and the treasurer or the | 410 |
|
governing board shall determine the periods for which such
interim | 411 |
|
deposits are to be made and shall award such interim
deposits for | 412 |
|
such periods, provided that any eligible institution
receiving an | 413 |
|
interim deposit award may, upon notification that
the award has | 414 |
|
been made, decline to accept the interim deposit in
which event | 415 |
|
the award shall be made as though the
institution had not applied | 416 |
|
for such interim deposit. | 417 |
| (C) Nothing in the classifications of eligible obligations | 455 |
|
set
forth in divisions (B)(1) to (7) of this section shall be | 456 |
|
construed
to authorize any investment in a derivative, and no | 457 |
|
treasurer or
governing board shall invest in a derivative. For | 458 |
|
purposes of this
division, "derivative" means a financial | 459 |
|
instrument or contract or obligation
whose value or return is | 460 |
|
based upon or linked to another asset or index, or
both, separate | 461 |
|
from the financial instrument, contract, or obligation itself. | 462 |
|
Any security, obligation, trust account, or other instrument that | 463 |
|
is created
from an issue of the United States treasury or is | 464 |
|
created
from an obligation of a federal agency or instrumentality | 465 |
|
or is created from
both is considered a derivative instrument. An | 466 |
|
eligible investment described
in this section with a variable | 467 |
|
interest rate payment, based upon a single
interest payment or | 468 |
|
single index comprised of other eligible investments
provided for | 469 |
|
in division (B)(1) or (2) of this section, is not a
derivative, | 470 |
|
provided that such variable rate investment has a maximum maturity | 471 |
|
of two years. | 472 |
| (E) The treasurer or governing board may also enter into a | 477 |
|
written repurchase agreement with any eligible institution | 478 |
|
mentioned in
section 135.03 of the Revised Code or any eligible | 479 |
|
dealer pursuant to
division (M) of this section, under the terms | 480 |
|
of which
agreement the treasurer or governing board purchases, and | 481 |
|
such
institution or dealer agrees unconditionally to repurchase | 482 |
|
any of the
securities listed in divisions (B)(1)
to (5), except | 483 |
|
letters of credit described in division
(B)(2), of
section 135.18 | 484 |
|
of the Revised
Code. The market value of securities subject to an | 485 |
|
overnight
written
repurchase agreement must exceed the principal | 486 |
|
value of the overnight
written repurchase agreement by at least | 487 |
|
two per cent. A
written repurchase agreement
shall not exceed | 488 |
|
thirty days and the market value of securities subject to a | 489 |
|
written repurchase agreement must exceed the principal
value of | 490 |
|
the written
repurchase agreement by at least two per cent and be | 491 |
|
marked to market daily.
All securities purchased
pursuant to this | 492 |
|
division shall be delivered into the custody of the treasurer
or | 493 |
|
governing board or an agent designated by the treasurer or | 494 |
|
governing
board. A written repurchase agreement with an eligible | 495 |
|
securities
dealer shall be
transacted on a delivery versus payment | 496 |
|
basis. The
agreement shall contain the requirement that for
each | 497 |
|
transaction pursuant to the agreement the participating | 498 |
|
institution or dealer shall provide all of the following | 499 |
|
information: | 500 |
| (I) Whenever, during a period of designation, the treasurer | 536 |
|
classifies public moneys as interim moneys, the treasurer shall | 537 |
|
notify the
governing board of such action. The notification shall | 538 |
|
be
given within thirty days after such classification and in the | 539 |
|
event the
governing board does not concur in such classification | 540 |
|
or in the
investments or deposits made under this section, the | 541 |
|
governing
board may order the treasurer to sell or liquidate any | 542 |
|
of such
investments or deposits, and any such order shall | 543 |
|
specifically
describe the investments or deposits and fix the date | 544 |
|
upon which
they are to be sold or liquidated. Investments or | 545 |
|
deposits so
ordered to be sold or liquidated shall be sold or | 546 |
|
liquidated for
cash by the treasurer on the date fixed in such | 547 |
|
order at the then
current market price. Neither the treasurer nor | 548 |
|
the members of
the board shall be held accountable for any loss | 549 |
|
occasioned by
sales or liquidations of investments or deposits at | 550 |
|
prices lower
than their cost. Any loss or expense incurred in | 551 |
|
making such
sales or liquidations is payable as other expenses of | 552 |
|
the
treasurer's office. | 553 |
| (K) The treasurer is responsible for the safekeeping of all | 561 |
|
documents evidencing a deposit or investment acquired by the | 562 |
|
treasurer under this section. Any securities may be deposited for | 563 |
|
safekeeping with a qualified trustee as provided in section
135.18 | 564 |
|
of the Revised Code, except the delivery of securities
acquired | 565 |
|
under any repurchase agreement under this section shall
be made to | 566 |
|
a qualified trustee, provided, however, that the
qualified trustee | 567 |
|
shall be required to report to the treasurer,
governing board, | 568 |
|
auditor of state, or an authorized outside
auditor at any time | 569 |
|
upon request as to the identity, market
value, and location of the | 570 |
|
document evidencing each security, and
that if the participating | 571 |
|
institution is a designated depository
of the subdivision for the | 572 |
|
current period of designation, the
securities that are the subject | 573 |
|
of the repurchase agreement may
be delivered to the treasurer or | 574 |
|
held in trust by the
participating institution on behalf of the | 575 |
|
subdivision. Interest
earned on any investments or deposits | 576 |
|
authorized by this section
shall be collected by the treasurer and | 577 |
|
credited by the
treasurer to the proper fund of the subdivision. | 578 |
| Upon the expiration of the term of office of a treasurer or | 579 |
|
in the event of a vacancy in the office of treasurer by reason of | 580 |
|
death, resignation, removal from office, or otherwise, the | 581 |
|
treasurer or the treasurer's legal representative shall transfer | 582 |
|
and deliver
to the treasurer's successor all documents evidencing | 583 |
|
a deposit or investment
held by the treasurer. For the investments | 584 |
|
and deposits so
transferred and delivered, such treasurer shall be | 585 |
|
credited with and the
treasurer's successor shall be charged with | 586 |
|
the amount of money held in such
investments and deposits. | 587 |
| (M)(1) All investments, except for investments in securities | 594 |
|
described in divisions (B)(5) and (6) of this section and for | 595 |
|
investments by
a municipal corporation in the issues of such | 596 |
|
municipal
corporation, shall be made only through a member of the | 597 |
|
national
association of securities dealers, through a bank, | 598 |
savings bank,
or savings and loan association or credit union | 599 |
|
regulated by the superintendent of financial
institutions, or | 600 |
|
through an institution regulated by the comptroller of
the | 601 |
currency, federal deposit insurance corporation, or board of | 602 |
|
governors of the federal reserve system, or the national credit | 603 |
|
union administration. | 604 |
| (N) In making investments authorized by this section, a | 612 |
|
treasurer
or governing board may retain the services of an | 613 |
|
investment advisor, provided
the advisor is
licensed by the | 614 |
|
division of
securities under section 1707.141 of the Revised Code | 615 |
|
or is
registered with the securities and
exchange commission, and | 616 |
|
possesses experience in public funds
investment management, | 617 |
|
specifically in the area of state and local
government investment | 618 |
|
portfolios, or the advisor is an eligible
institution mentioned in | 619 |
|
section 135.03 of the Revised
Code. | 620 |
| (O)(1) Except as otherwise provided in divisions (O)(2)
and | 621 |
|
(3) of this section, no treasurer or governing board shall make an | 622 |
|
investment or deposit
under this section, unless there is on file | 623 |
|
with the auditor of state
a written investment policy approved by | 624 |
|
the treasurer or governing board.
The policy shall require that | 625 |
|
all entities conducting investment business with the treasurer or | 626 |
|
governing
board shall sign the investment policy of that | 627 |
|
subdivision. All brokers, dealers, and financial institutions, | 628 |
|
described in
division (M)(1) of this section, initiating | 629 |
|
transactions with the treasurer or
governing board by giving | 630 |
|
advice or making investment recommendations shall
sign the | 631 |
|
treasurer's or governing board's investment policy thereby | 632 |
|
acknowledging their agreement to abide by the policy's contents. | 633 |
|
All brokers,
dealers, and financial institutions, described in | 634 |
|
division (M)(1) of this
section, executing transactions initiated | 635 |
|
by the treasurer or governing board,
having read the policy's | 636 |
|
contents, shall sign the investment policy thereby
acknowledging | 637 |
|
their comprehension and receipt. | 638 |
| (P) A treasurer or governing board may enter into
a written | 655 |
|
investment or deposit agreement that includes a
provision under | 656 |
|
which the parties agree to submit to
nonbinding arbitration to | 657 |
|
settle any controversy that may arise
out of the agreement, | 658 |
|
including any controversy pertaining to
losses of public moneys | 659 |
|
resulting from investment or deposit.
The arbitration provision | 660 |
|
shall
be set forth entirely in the agreement, and the agreement | 661 |
|
shall
include a conspicuous notice to the
parties that any party | 662 |
|
to the arbitration may apply to the court of common
pleas of the | 663 |
|
county in which the arbitration was held for an order to vacate, | 664 |
|
modify, or correct the award. Any such party may also apply to the | 665 |
|
court for
an order to change venue to a court of common pleas | 666 |
|
located more than one
hundred miles from the county in which the | 667 |
|
treasurer or governing board is
located. | 668 |
| (Q) An investment made by the treasurer or governing board | 675 |
|
pursuant to this section prior to
September 27, 1996, that
was a | 676 |
|
legal investment under the law as it existed before
September 27, | 677 |
|
1996, may be held
until maturity, or if the investment does not | 678 |
|
have a maturity date, it may be held until five years from | 679 |
|
September 27, 1996, regardless
of whether the investment would | 680 |
|
qualify as a
legal investment under the terms of this section as | 681 |
|
amended. | 682 |
| (2) For the treasurer or governing board of the political | 692 |
|
subdivision depositing the interim moneys pursuant to division | 693 |
|
(A)(1) of this section, the eligible public depository selected | 694 |
|
pursuant to that division invests the interim moneys in | 695 |
|
certificates of deposit of one or more federally insured banks or | 696 |
|
savings and loan associations, or a credit union insured pursuant | 697 |
|
to section 1733.041 of the Revised Code, wherever located. The | 698 |
|
full amount of principal and any accrued interest of each | 699 |
|
certificate of deposit invested in pursuant to division (A)(2) of | 700 |
|
this section shall be insured by federal deposit insurance, or in | 701 |
|
the case of a credit union, insured by the national credit union | 702 |
|
administration or a share guaranty corporation as defined in | 703 |
|
section 1761.01 of the Revised Code. | 704 |
| (4) At the same time that the eligible public depository | 710 |
|
selected in accordance with division (A)(1) of this section | 711 |
|
invests the deposit received pursuant to that division in the | 712 |
|
certificates of deposit described in division (A)(2) of this | 713 |
|
section, and the certificates of deposit are issued by the bank | 714 |
or, savings and loan association, or credit union, the eligible | 715 |
|
public depository receives an amount of deposits from customers of | 716 |
|
other federally insured financial institutions, or credit unions | 717 |
|
insured by the national credit union administration or a share | 718 |
|
guaranty corporation as defined in section 1761.01 of the Revised | 719 |
|
Code, wherever located, that are equal to or greater than the | 720 |
|
amount of the interim money initially deposited pursuant to | 721 |
|
division (A)(1) of this section by the treasurer or governing | 722 |
|
board of a political subdivision. | 723 |
| Sec. 135.18. (A) The treasurer, before making the initial | 728 |
|
deposit in a public depository pursuant to an award made under | 729 |
|
sections 135.01 to 135.21 of the Revised Code, except as provided | 730 |
|
in section 135.144 of the Revised Code, shall require the | 731 |
|
institution designated as a public depository to pledge to and | 732 |
|
deposit with the treasurer, as security for the repayment of all | 733 |
|
public
moneys to be deposited in the public depository during the | 734 |
|
period
of designation pursuant to the award, eligible securities | 735 |
|
of
aggregate market value equal to the excess of the amount of | 736 |
|
public moneys to be at the time so deposited, over and above the | 737 |
|
portion or amount of such moneys as is at that time insured by
the | 738 |
federal deposit insurance corporation or by, any other agency
or | 739 |
|
instrumentality of the federal government, or a credit union share | 740 |
|
guaranty corporation as defined in section 1761.01 of the Revised | 741 |
|
Code. In the case of any
deposit other
than the initial
deposit | 742 |
|
made during the period of
designation, the amount of the
aggregate | 743 |
|
market value of
securities required to be pledged and
deposited | 744 |
|
shall be equal to
the difference between the amount of
public | 745 |
|
moneys on deposit in
such public depository plus the
amount to be | 746 |
|
so deposited, minus
the portion or amount of the
aggregate as is | 747 |
|
at the time insured
as provided in this section. The
treasurer may | 748 |
|
require additional
eligible securities to be
deposited to provide | 749 |
|
for any
depreciation which may occur in the
market value of any of | 750 |
|
the
securities so deposited. | 751 |
| (2) Bonds, notes, debentures, letters of credit, or other | 761 |
|
obligations or
securities issued by any federal government agency | 762 |
|
or instrumentality, or the
export-import bank of Washington; | 763 |
|
bonds, notes, or other
obligations guaranteed as to principal and | 764 |
|
interest by the United
States or those for which the faith of the | 765 |
|
United States is
pledged for the payment of principal and interest | 766 |
|
thereon, by
interpretation or otherwise and not by language | 767 |
|
appearing in the
instrument specifically providing such guarantee | 768 |
|
or pledge; | 769 |
| (11) Bonds or other obligations of any county, municipal | 799 |
|
corporation, or other legally constituted taxing subdivision of | 800 |
|
another state of the United States, or of any instrumentality of | 801 |
|
such county, municipal corporation, or other taxing subdivision, | 802 |
|
for which the full faith and credit of the issuer is pledged and, | 803 |
|
at the time of purchase of the bonds or other obligations, rated | 804 |
|
in one of the two highest categories by at least one nationally | 805 |
|
recognized standard rating service. | 806 |
| (C) If the public depository fails to pay over any part of | 807 |
|
the public deposit made therein as provided by law, the treasurer | 808 |
|
shall sell at public sale any of the bonds or other securities | 809 |
|
deposited with the treasurer pursuant to this section or section | 810 |
|
131.09 of the Revised Code, or shall draw on any letter of credit | 811 |
|
to the
extent of the failure to pay. Thirty days' notice of the | 812 |
|
sale shall be
given in a newspaper of general circulation at | 813 |
|
Columbus, in the
case of the treasurer of state, and at the county | 814 |
|
seat of the
county in which the office of the treasurer is | 815 |
|
located, in the
case of any other treasurer. When a sale of bonds | 816 |
|
or other
securities has been so made and upon payment to the | 817 |
|
treasurer of
the purchase money, the treasurer shall transfer such | 818 |
|
bonds or
securities whereupon the absolute ownership of such bonds | 819 |
|
or
securities shall pass to the purchasers. Any surplus remaining | 820 |
|
after deducting the amount due the state or subdivision and | 821 |
|
expenses of sale shall be paid to the public depository. | 822 |
| (D) An institution designated as a public depository may,
by | 823 |
|
written notice to the treasurer, designate a qualified trustee
and | 824 |
|
deposit the eligible securities required by this section with
the | 825 |
|
trustee for safekeeping for the account of the treasurer and
the | 826 |
|
institution as a public depository, as their respective
rights to | 827 |
|
and interests in such securities under this section may
appear and | 828 |
|
be asserted by written notice to or demand upon the
trustee. In
| 829 |
|
which case, the treasurer shall accept the written
receipt of the | 830 |
|
trustee describing the securities that have been
deposited with | 831 |
|
the trustee by the public depository, a copy of
which shall also | 832 |
|
be delivered to the public depository.
Thereupon all
securities | 833 |
|
so deposited with the trustee are
deemed to be pledged
with the | 834 |
|
treasurer and to be deposited with
the treasurer, for all
the | 835 |
|
purposes of this section. | 836 |
| (F) When the public depository has deposited eligible | 842 |
|
securities described in division (B)(1) of this section with a | 843 |
|
trustee for safekeeping, the public depository may at any time | 844 |
|
substitute or exchange eligible securities described in division | 845 |
|
(B)(1) of this section having a current market value equal to or | 846 |
|
greater than the current market value of the securities then on | 847 |
|
deposit and for which they are to be substituted or exchanged, | 848 |
|
without specific authorization from any governing board, boards, | 849 |
|
or treasurer of any such substitution or exchange. | 850 |
| (1) The treasurer has authorized the public depository to | 860 |
|
make such substitution or exchange on a continuing basis during a | 861 |
|
specified period without prior approval of each substitution or | 862 |
|
exchange. The authorization may be effected by the treasurer | 863 |
|
sending to the trustee a written notice stating that substitution | 864 |
|
may be effected on a continuing basis during a specified period | 865 |
|
which shall not extend beyond the end of the period of
designation | 866 |
|
during which the notice is given. The trustee may
rely upon this | 867 |
|
notice and upon the period of authorization stated
therein and | 868 |
|
upon the period of designation stated therein. | 869 |
| (2) No continuing authorization for substitution has been | 870 |
|
given by the treasurer, the public depository notifies the | 871 |
|
treasurer and the trustee of an intended substitution or
exchange, | 872 |
|
and the treasurer fails to object to the trustee as to
the | 873 |
|
eligibility or market value of the securities being
substituted | 874 |
|
within ten calendar days after the date appearing on
the notice of | 875 |
|
proposed substitution. The notice to the treasurer
and to the | 876 |
|
trustee shall be given in writing and delivered
personally or by | 877 |
|
certified or registered mail with a return
receipt requested. The | 878 |
|
trustee may assume in any case that the
notice has been delivered | 879 |
|
to the treasurer. In order for
objections of the treasurer to be | 880 |
|
effective, receipt of the
objections must be acknowledged in | 881 |
|
writing by the trustee. | 882 |
| (I) Any federal reserve bank or branch thereof located in | 890 |
|
this state
or federal home loan bank, without compliance with | 891 |
|
Chapter 1111. of the Revised Code and
without becoming
subject to | 892 |
|
any other law
of this state relative to the exercise by | 893 |
|
corporations of trust
powers generally, is qualified to act as | 894 |
|
trustee for the
safekeeping of securities, under this section.
Any | 895 |
|
institution
mentioned in section 135.03 of the Revised Code
that | 896 |
|
holds a
certificate of qualification issued by the
superintendent | 897 |
|
of
financial institutions or any institution
complying with | 898 |
|
sections 1111.04,
1111.05, and 1111.06 of the
Revised Code, is | 899 |
|
qualified
to act as trustee for the safekeeping
of securities, | 900 |
|
other than
those belonging to itself, under this
section. Upon | 901 |
|
application
to the superintendent in writing by an
institution, | 902 |
|
the
superintendent
shall investigate the
applicant
and ascertain | 903 |
|
whether or not it
has been authorized to
execute and
accept trusts | 904 |
|
in this state
and has safe and adequate
vaults and
efficient | 905 |
|
supervision
thereof for the storage and
safekeeping
within this | 906 |
|
state of
securities. If the
superintendent finds
that the | 907 |
|
applicant has
been so authorized and
has such
vaults and | 908 |
|
supervision
thereof, the superintendent
shall approve
the | 909 |
|
application and issue
a certificate to that
effect, the
original | 910 |
|
or any certified copy of which
shall be
conclusive
evidence that | 911 |
|
the institution therein named is
qualified to act as
trustee for | 912 |
|
the purposes of this section with
respect to
securities other than | 913 |
|
those belonging to itself. | 914 |
| Any charges or compensation of a designated trustee for | 922 |
|
acting as such under this section shall be paid by the public | 923 |
|
depository and in no event shall be chargeable to the state or
the | 924 |
|
subdivision or to the treasurer or to any officer of the
state or | 925 |
|
subdivision. The charges or compensation shall
not be
a lien or | 926 |
|
charge upon the securities deposited for safekeeping
prior or | 927 |
|
superior to the rights to and interests in the
securities of the | 928 |
|
state or the subdivision or of the treasurer.
The treasurer and | 929 |
|
the treasurer's bonders or surety
shall be relieved from any | 930 |
|
liability to the state or the subdivision or to the
public | 931 |
|
depository for the loss or destruction of any securities
deposited | 932 |
|
with a qualified trustee pursuant to this section. | 933 |
| Sec. 135.32. (A) Any national bank, any bank doing business | 934 |
|
under authority granted by the superintendent of financial | 935 |
|
institutions, or any bank doing business under authority granted | 936 |
|
by the regulatory authority of another state of the United States, | 937 |
|
located in this state, is
eligible to become a public
depository, | 938 |
|
subject
to sections 135.31 to
135.40 of the Revised
Code. No | 939 |
|
bank shall
receive or have on
deposit at any one time
public | 940 |
|
moneys,
including public moneys as
defined in section
135.01 of | 941 |
|
the
Revised Code, in an aggregate
amount in excess of
thirty per | 942 |
|
cent
of its total assets, as shown
in its latest
report to the
| 943 |
|
comptroller of the
currency, the superintendent of
financial | 944 |
|
institutions, the federal deposit insurance
corporation, or the | 945 |
|
board of governors of the federal reserve
system. | 946 |
| (B) Any federal savings association, any
savings and loan | 947 |
|
association or savings bank doing business under
authority | 948 |
|
granted by the superintendent of financial institutions,
or any | 949 |
|
savings and loan association or savings bank doing business
under | 950 |
|
authority granted by the regulatory authority of another
state of | 951 |
|
the United States, located in this state, and authorized
to | 952 |
|
accept
deposits is
eligible to become a public depository, | 953 |
|
subject to
sections 135.31
to 135.40 of the Revised Code. No
| 954 |
|
savings association, savings and loan association,
or
savings | 955 |
|
bank shall receive or
have on deposit at any one time
public | 956 |
|
moneys, including public moneys as defined in section
135.01 of | 957 |
|
the Revised Code, in an aggregate amount in excess of
thirty per | 958 |
|
cent of its total assets, as shown in its latest
report to
the | 959 |
|
office of thrift supervision, the
superintendent of financial | 960 |
|
institutions, the federal deposit
insurance corporation, or the | 961 |
|
board of governors of the federal
reserve system. | 962 |
| (C) Any federal credit union located in this state, any | 963 |
|
credit union located in this state and licensed pursuant to | 964 |
|
section 1733.39 of the Revised Code, or any
credit union as | 965 |
|
defined in section 1733.01 of the Revised Code,
subject to | 966 |
|
inspection by the superintendent of financial
institutions, is | 967 |
|
eligible to become a public depository, subject
to sections | 968 |
|
135.31 to 135.40 of the Revised Code. No credit union
shall | 969 |
|
receive or have on deposit at any one time public moneys, | 970 |
|
including public moneys as defined in section 135.01 of the | 971 |
|
Revised Code, in an aggregate amount in excess of thirty per cent | 972 |
|
of its total assets, as shown in its latest report to the | 973 |
|
superintendent of financial institutions or the national credit | 974 |
|
union administration. | 975 |
| At least sixty days before the meeting, the county
treasurer | 999 |
|
shall submit to the board an estimate of the aggregate
amount of | 1000 |
|
public moneys that might be available for deposit as
active moneys | 1001 |
|
at any one time during the next four-year
period. Upon receipt of | 1002 |
|
such estimate, the board shall immediately notify
all eligible | 1003 |
|
institutions that might desire to be designated as
such public | 1004 |
|
depositories of the date on which the designation is
to be made; | 1005 |
|
the amount that has been estimated to be available
for deposit; | 1006 |
|
and the date fixed as the last date on which
applications may be | 1007 |
|
submitted, that shall not be more than thirty
days or less than | 1008 |
|
ten days prior to the date set for the meeting
designating public | 1009 |
|
depositories. | 1010 |
| (B) Any eligible institution described in division (A) or (C) | 1011 |
|
of
section 135.32 of the Revised Code that has an office located | 1012 |
|
within the territorial limits of the county is eligible to become | 1013 |
|
a public depository of the active moneys of the county. Each | 1014 |
|
eligible institution desiring to be a public depository of such | 1015 |
|
active moneys shall, not more than thirty days or less than ten | 1016 |
|
days prior to the date fixed by this section, make application | 1017 |
therefortherefore in writing to the board of county | 1018 |
|
commissioners.
The application may specify the maximum amount of | 1019 |
|
such public moneys
that the applicant desires to receive and have | 1020 |
|
on deposit at any
time during the period covered by the | 1021 |
|
designation. Each
application shall be accompanied by a financial | 1022 |
|
statement of the
applicant, under oath of its cashier, treasurer, | 1023 |
|
or other officer
as of the date of its latest report to the | 1024 |
superintendent of
banks orfinancial institutions, the comptroller | 1025 |
|
of the currency, or the national credit union administration, and | 1026 |
|
adjusted to show any
changes therein prior to the date of the | 1027 |
|
application, that shall
include a statement of its public and | 1028 |
|
nonpublic deposits. | 1029 |
| (C) The board of county commissioners, upon recommendation
of | 1030 |
|
the treasurer, shall designate, by resolution, one or more | 1031 |
|
eligible institutions as public depositories for active moneys.
In | 1032 |
|
case the aggregate amount of active moneys applied for by | 1033 |
|
institutions within the county is less than the amount estimated | 1034 |
|
to be available for deposit, the board may designate as a public | 1035 |
|
depository one or more eligible institutions that are
conveniently | 1036 |
|
located. The original resolution of designation
shall be certified | 1037 |
|
to the treasurer and any institution
designated as a public | 1038 |
|
depository. | 1039 |
| (2) Bonds, notes, debentures, or any other obligations or
| 1082 |
|
securities issued by any federal government agency or
| 1083 |
|
instrumentality, including but not limited to, the federal
| 1084 |
|
national mortgage association, federal home loan bank, federal
| 1085 |
|
farm credit
bank, federal home loan mortgage corporation,
| 1086 |
|
government national mortgage
association, and student loan
| 1087 |
|
marketing association. All federal agency
securities shall be
| 1088 |
|
direct issuances of federal government agencies or
| 1089 |
|
instrumentalities.
| 1090 |
| The investing authority shall invest under division (A)(11)
| 1176 |
|
of this section in a debt interest issued by a foreign nation only
| 1177 |
|
if the debt interest is backed by the full faith and credit of
| 1178 |
|
that foreign nation, there is no prior history of default, and the
| 1179 |
|
debt interest matures not later than five years after purchase.
| 1180 |
|
For purposes of division (A)(11) of this section, a debt interest
| 1181 |
|
is rated in the three highest categories by two nationally
| 1182 |
|
recognized standard rating services if either the debt interest
| 1183 |
|
itself or the issuer of the debt interest is rated, or is
| 1184 |
|
implicitly rated, at the time of purchase in the three highest
| 1185 |
|
categories by two nationally recognized standard rating services.
| 1186 |
| (B) Nothing in the classifications of eligible obligations
| 1191 |
|
and securities
set forth in divisions (A)(1) to (11) of this
| 1192 |
|
section shall
be
construed to authorize investment in a
| 1193 |
|
derivative, and no investing
authority shall invest any county
| 1194 |
|
inactive moneys or any moneys in
a county public library fund in a
| 1195 |
|
derivative. For
purposes of this
division, "derivative" means a
| 1196 |
|
financial instrument or
contract or
obligation whose value or
| 1197 |
|
return is based upon or linked to
another asset or index, or both,
| 1198 |
|
separate from the financial
instrument,
contract, or obligation
| 1199 |
|
itself. Any security,
obligation, trust account, or
other
| 1200 |
|
instrument that is created
from an issue of the United
States
| 1201 |
|
treasury or is created from an
obligation of a federal agency
or
| 1202 |
|
instrumentality or is created
from both is considered a
| 1203 |
|
derivative
instrument. An eligible
investment described in this
| 1204 |
|
section with a variable
interest rate
payment, based upon a
| 1205 |
|
single interest payment or single index
comprised of other
| 1206 |
|
eligible investments provided for in division
(A)(1) or (2) of
| 1207 |
|
this section, is not a derivative, provided that
such variable
| 1208 |
|
rate investment has a maximum maturity of two years.
A treasury
| 1209 |
|
inflation-protected security shall not be considered a
derivative,
| 1210 |
|
provided the security matures not later than five
years after
| 1211 |
|
purchase.
| 1212 |
| (D) The investing authority may also enter into a written
| 1221 |
|
repurchase agreement with any eligible institution
mentioned in
| 1222 |
|
section 135.32 of the Revised Code or any eligible securities
| 1223 |
|
dealer pursuant to division (J) of this section, under the terms
| 1224 |
|
of which
agreement the investing authority purchases and the
| 1225 |
|
eligible
institution or dealer agrees
unconditionally to
| 1226 |
|
repurchase any of the securities listed in
divisions (B)(1) to
| 1227 |
|
(5), except
letters of credit described in division (B)(2), of
| 1228 |
|
section 135.18 of the Revised Code. The
market value of
securities
| 1229 |
|
subject to an overnight written repurchase agreement must
exceed
| 1230 |
|
the
principal value of the overnight written repurchase agreement
| 1231 |
|
by at
least two per
cent. A written repurchase agreement must
| 1232 |
|
exceed the
principal value of the
overnight written repurchase
| 1233 |
|
agreement, by at least two per cent. A
written repurchase
| 1234 |
|
agreement shall not exceed thirty days, and the market
value of
| 1235 |
|
securities subject to a written repurchase
agreement must exceed
| 1236 |
|
the
principal value of the written repurchase agreement by at
| 1237 |
|
least two per cent and
be marked to market daily. All securities
| 1238 |
|
purchased pursuant to this division
shall be delivered into the
| 1239 |
|
custody of the investing authority or the qualified custodian of
| 1240 |
|
the investing
authority or an agent designated by the investing
| 1241 |
|
authority. A written
repurchase
agreement with an eligible
| 1242 |
|
securities dealer shall be transacted on a delivery
versus payment
| 1243 |
|
basis. The agreement
shall contain the requirement that for each
| 1244 |
|
transaction pursuant
to the agreement the participating
| 1245 |
|
institution shall provide all
of the following information:
| 1246 |
| (F) No investing authority shall pay a county's inactive
| 1262 |
|
moneys
or moneys of a county public library fund into a fund
| 1263 |
|
established by another subdivision,
treasurer, governing board,
| 1264 |
|
or investing
authority, if that fund
was established by the
| 1265 |
|
subdivision, treasurer,
governing board, or
investing authority
| 1266 |
|
for the purpose of investing or
depositing the
public moneys of
| 1267 |
|
other subdivisions. This division does not
apply
to the payment
| 1268 |
|
of public moneys into either of the following:
| 1269 |
| (I) The investing authority shall be responsible for the
| 1292 |
|
safekeeping of all documents evidencing a deposit or investment
| 1293 |
|
acquired under this section, including, but not limited to,
| 1294 |
|
safekeeping receipts evidencing securities deposited with a
| 1295 |
|
qualified trustee, as provided in section 135.37 of the Revised
| 1296 |
|
Code, and documents confirming the purchase of securities under
| 1297 |
|
any repurchase agreement under this section shall be deposited
| 1298 |
|
with a qualified trustee, provided, however, that the qualified
| 1299 |
|
trustee shall be required to report to the investing authority,
| 1300 |
|
auditor of state, or an authorized outside auditor at any time
| 1301 |
|
upon request as to the identity, market value, and location of
the
| 1302 |
|
document evidencing each security, and that if the
participating
| 1303 |
|
institution is a designated depository of the
county for the
| 1304 |
|
current period of designation, the securities that
are the subject
| 1305 |
|
of the repurchase agreement may be delivered to
the treasurer or
| 1306 |
|
held in trust by the participating institution
on behalf of the
| 1307 |
|
investing authority.
| 1308 |
| Upon the expiration of the term of office of an investing
| 1309 |
|
authority or in the event of a vacancy in the office for any
| 1310 |
|
reason, the officer or the officer's legal representative
shall
| 1311 |
|
transfer and deliver to the officer's successor all documents
| 1312 |
|
mentioned in this division for which the officer has been
| 1313 |
|
responsible for safekeeping. For
all such documents transferred
| 1314 |
|
and delivered, the officer shall
be credited with, and the
| 1315 |
|
officer's successor shall be
charged with, the amount of moneys
| 1316 |
|
evidenced by such documents.
| 1317 |
| (J)(1) All investments, except for investments in securities
| 1318 |
|
described in divisions (A)(5) and (6) of this
section, shall be
| 1319 |
|
made only
through a member of the national association of
| 1320 |
securities
dealers, through a bank, savings bank, or savings and
| 1321 |
|
loan
association, or credit union regulated by the
superintendent | 1322 |
|
of financial
institutions, or through an institution regulated
by | 1323 |
|
the
comptroller of the currency, federal deposit
insurance
| 1324 |
corporation, or board of governors of the federal reserve
system, | 1325 |
|
or the national credit union administration.
| 1326 |
| (K)(1) Except as otherwise provided in division (K)(2) of
| 1334 |
|
this section, no investing authority shall make an investment or
| 1335 |
|
deposit under
this section, unless there is on file with the
| 1336 |
|
auditor of state a written
investment policy approved by the
| 1337 |
|
investing authority. The policy shall
require that all entities
| 1338 |
|
conducting investment business with the
investing authority shall
| 1339 |
|
sign the investment policy of that investing authority. All
| 1340 |
|
brokers, dealers, and financial institutions, described in
| 1341 |
|
division (J)(1) of
this section,
initiating transactions with the
| 1342 |
|
investing authority by giving advice or
making investment
| 1343 |
|
recommendations shall sign the investing authority's
investment
| 1344 |
|
policy thereby acknowledging their agreement to abide by the
| 1345 |
|
policy's contents. All brokers, dealers, and financial
| 1346 |
|
institutions,
described in division (J)(1) of this section,
| 1347 |
|
executing transactions initiated
by the investing authority,
| 1348 |
|
having read the policy's contents, shall sign the
investment
| 1349 |
|
policy thereby acknowledging their comprehension and receipt.
| 1350 |
| (2) If a written investment policy described in division
| 1351 |
|
(K)(1)
of this section is not filed on behalf of the county with
| 1352 |
|
the auditor of
state, the investing authority of that county shall
| 1353 |
|
invest the county's
inactive moneys and moneys of the county
| 1354 |
|
public library
fund only in time
certificates of deposits or
| 1355 |
|
savings or deposit accounts
pursuant
to division (A)(3) of this
| 1356 |
|
section, no-load money market
mutual
funds pursuant to division
| 1357 |
|
(A)(5) of this section,
or the Ohio
subdivision's fund pursuant
| 1358 |
|
to division (A)(6) of this section.
| 1359 |
| (3) The investing authority shall maintain a monthly
| 1369 |
|
portfolio report and
issue a copy of the monthly portfolio
report
| 1370 |
|
describing such investments to the county
investment advisory
| 1371 |
|
committee, detailing the current inventory of all
obligations and
| 1372 |
|
securities, all transactions during the month that affected
the
| 1373 |
|
inventory, any income received from the obligations and
| 1374 |
|
securities, and
any investment expenses paid, and stating the
| 1375 |
|
names of any persons effecting
transactions on behalf of the
| 1376 |
|
investing authority.
| 1377 |
| (M) An investing authority may enter into a
written
| 1382 |
|
investment or deposit agreement that includes a
provision under
| 1383 |
|
which the parties agree to submit to
nonbinding arbitration to
| 1384 |
|
settle any controversy that may arise
out of the agreement,
| 1385 |
|
including any controversy pertaining to
losses of public moneys
| 1386 |
|
resulting from investment or deposit.
The arbitration provision
| 1387 |
|
shall
be set forth entirely in the agreement, and the agreement
| 1388 |
|
shall
include a conspicuous notice to the
parties that any party
| 1389 |
|
to the arbitration may apply to the court of common
pleas of the
| 1390 |
|
county in which the arbitration was held for an order to vacate,
| 1391 |
|
modify, or correct the award. Any such party may also apply to the
| 1392 |
|
court for
an order to change venue to a court of common pleas
| 1393 |
|
located more than one
hundred miles from the county in which the
| 1394 |
|
investing authority is located.
| 1395 |
| (N) An investment held in the county portfolio on September
| 1403 |
|
27, 1996, that
was a legal investment under the law as it existed
| 1404 |
|
before September
27, 1996, may be held until maturity, or if
the
| 1405 |
|
investment does not have a maturity date the investment may be
| 1406 |
|
held until
five years from
September 27, 1996, regardless of
| 1407 |
|
whether
the investment would qualify as a legal investment under
| 1408 |
|
the terms of this
section as amended.
| 1409 |
|
(b) For the investing authority depositing the inactive | 1427 |
|
moneys pursuant to division (A)(3)(a) of this section, the | 1428 |
|
eligible public depository selected pursuant to that division | 1429 |
|
invests the inactive moneys in certificates of deposit of one or | 1430 |
|
more federally insured banks or savings and loan associations, or | 1431 |
|
a credit union insured pursuant to section 1733.041 of the Revised | 1432 |
|
Code, wherever located. The full amount of principal and any | 1433 |
|
accrued interest of each certificate of deposit invested in | 1434 |
|
pursuant to division (A)(3)(b) of this section shall be insured by | 1435 |
|
federal deposit insurance, or in the case of a credit union, | 1436 |
|
insured by the national credit union administration or a share | 1437 |
|
guaranty corporation as defined in section 1761.01 of the Revised | 1438 |
|
Code. | 1439 |
| (d) At the same time that the eligible public depository | 1445 |
|
selected in accordance with division (A)(3)(a) of this section | 1446 |
|
invests the deposit received pursuant to that division in the | 1447 |
|
certificates of deposit described in division (A)(3)(b) of this | 1448 |
|
section, and the certificates of deposit are issued by the bank | 1449 |
or, savings and loan association, or credit union, the eligible | 1450 |
|
public depository receives an amount of deposits from customers of | 1451 |
|
other federally insured financial institutions, or credit unions | 1452 |
|
insured by the national credit union administration or a share | 1453 |
|
guaranty corporation as defined in section 1761.01 of the Revised | 1454 |
|
Code, wherever located, that are equal to or greater than the | 1455 |
|
amount initially deposited by the investing authority pursuant to | 1456 |
|
division (A)(3)(a) of this section. | 1457 |
| Sec. 135.37. (A) Any institution described in section
135.32 | 1462 |
|
of the Revised Code shall, at the time it receives a
deposit of | 1463 |
|
public moneys under section 135.33 or 135.35 of the
Revised Code, | 1464 |
|
pledge to and deposit with the investing authority,
as security | 1465 |
|
for the repayment of all public moneys to be
deposited, eligible | 1466 |
|
securities of aggregate market value equal to
or in excess of the | 1467 |
|
amount of public moneys to be at the time so
deposited. Any | 1468 |
|
securities listed in division (B) of section
135.18 of the Revised | 1469 |
|
Code are eligible for such purpose. The
collateral so pledged or | 1470 |
|
deposited may be in an amount that when
added to the portion of | 1471 |
|
the deposit insured by the federal
deposit insurance corporation | 1472 |
or, any other agency or
instrumentality of the federal government, | 1473 |
|
or a credit union share guaranty corporation as defined in | 1474 |
|
section 1761.01 of the Revised Code will, in the aggregate,
equal | 1475 |
|
or exceed the amount of public moneys so deposited;
provided that, | 1476 |
|
when an investment of inactive moneys consists of
the purchase of | 1477 |
|
one or more of the type of securities listed in
division (A)(1) or | 1478 |
|
(2) of section 135.35 of the Revised Code, no
additional | 1479 |
|
collateral need be pledged or deposited. | 1480 |
| (E) A public depository may designate, in accordance with
the | 1510 |
|
provisions of division (D) of section 135.18 of the Revised
Code, | 1511 |
|
a trustee for the safekeeping of any pledged securities.
Such | 1512 |
|
trustee shall be any bank or other institution eligible as a | 1513 |
|
trustee under division (I) of section 135.18 of the Revised Code, | 1514 |
|
except that, for the purposes of this section, a bank to which a | 1515 |
|
certificate of qualification is issued shall be an institution | 1516 |
|
mentioned in division (A) of section 135.32 of the Revised Code. | 1517 |
| Sec. 135.51. In case of any default on the part of a bank | 1522 |
or, domestic building and loan association, savings bank, or | 1523 |
|
credit union in its
capacity as
depository of the money of any | 1524 |
|
county, municipal
corporation,
township, or school district, the | 1525 |
|
board of county
commissioners,
the legislative authority of such | 1526 |
|
municipal
corporation, the
board of township trustees, and the | 1527 |
|
board of
education of such
school district, in lieu of | 1528 |
|
immediately selling
the securities
received and held as security | 1529 |
|
for the deposit of
such money under
authority of any section of | 1530 |
|
the Revised Code, may
retain the
same, collect the interest and | 1531 |
|
any installments of
principal
thereafter falling due on such | 1532 |
|
securities, and refund,
exchange,
sell, or otherwise dispose of | 1533 |
|
any of them, at such times
and in
such manner as such board of | 1534 |
|
county commissioners,
legislative
authority, board of township | 1535 |
|
trustees, or board of
education
determines to be advisable with a | 1536 |
|
view to conserving the
value of
such securities for the benefit | 1537 |
|
of such county, municipal
corporation, township, or school | 1538 |
|
district, and for the benefit of
the depositors, creditors, and | 1539 |
stockholders or other owners of
such bank or building and loan, | 1540 |
|
domestic association, savings bank, or credit union. | 1541 |
| Sec. 135.52. In anticipation of the collection of the | 1542 |
|
principal and interest of securities, or other disposition of | 1543 |
|
them, as authorized by section 135.51 of the Revised Code, and of | 1544 |
|
the payment of dividends in the liquidation of the depository
bank | 1545 |
or, domestic savings and loan association, savings bank, or credit | 1546 |
|
union and for
the
purpose of providing public money immediately | 1547 |
|
available for
the
needs of the county, municipal corporation, | 1548 |
|
township, or
school
district, the taxing authority may issue | 1549 |
|
bonds of the
county,
municipal corporation, township, or school | 1550 |
|
district, in an
amount
not exceeding the moneys on deposit in the | 1551 |
depository bank
or
savings and loan, domestic association, | 1552 |
| savings bank, or credit union the payment of
which is secured by | 1553 |
|
such securities, after crediting to such
moneys the amount | 1554 |
|
realized from the sale or other disposition of
any other | 1555 |
|
securities pledged or deposited for such moneys, or in
an amount | 1556 |
|
not exceeding the value or amount ultimately to be
realized from | 1557 |
|
such securities to be determined by valuation made
under oath by | 1558 |
|
two persons who are conversant with the value of the
assets | 1559 |
|
represented by such securities, whichever amount is the
lesser, | 1560 |
|
plus an amount equal to the interest accruing on such
securities | 1561 |
|
during one year from and after the date of default of
such bank | 1562 |
or savings and loan, domestic association, savings bank, or credit | 1563 |
|
union in its
capacity as a depository.
The maturity of such bonds | 1564 |
|
shall not
exceed ten years and they
shall bear interest at a rate | 1565 |
|
not
exceeding the rate determined
as provided in section 9.95 of | 1566 |
|
the
Revised Code. Such bonds
shall be the general obligations of | 1567 |
|
the
county, municipal
corporation, township, or school district | 1568 |
|
issuing them. The
legislation under which such bonds are issued | 1569 |
|
shall comply with
Section 11 of Article XII, Ohio Constitution. | 1570 |
|
The amount of such
bonds issued or outstanding shall not be | 1571 |
|
considered in
ascertaining any of the limitations on the net | 1572 |
|
indebtedness of
such county, municipal corporation, township, or | 1573 |
|
school district
prescribed by law. In all other respects, the | 1574 |
|
issuance,
maturities, and sale of such bonds shall be subject to | 1575 |
|
Chapter
133. of the Revised Code. | 1576 |
| A sufficient amount of the moneys received from principal
on | 1577 |
|
the sale of such bonds to cover the interest accruing on such | 1578 |
|
securities for one year, to the extent determined by the
authority | 1579 |
|
issuing such bonds in the resolution or ordinance of
issuance | 1580 |
|
under this section, shall be paid into the bond
retirement fund | 1581 |
|
from which the bonds are to be redeemed, together
with premiums | 1582 |
|
and accrued interest. The balance of such
principal shall be | 1583 |
|
credited to the funds to which the moneys
represented by such | 1584 |
|
depository balance belong, and in the
respective amounts of such | 1585 |
|
funds. | 1586 |
| Sec. 135.53. All principal and interest collected by the | 1587 |
|
proper officer or agent of the county, municipal corporation, | 1588 |
|
township, or school district, on account of the securities | 1589 |
|
mentioned in section 135.51 of the Revised Code, the proceeds of | 1590 |
|
any sale or other disposition of any of such securities, and any | 1591 |
dividends received from the liquidation of the defaulting bank or, | 1592 |
domestic building and loan association, savings bank, or credit | 1593 |
|
union
shall be paid into the
bond retirement fund from which the | 1594 |
|
bonds
provided for in section
135.52 of the Revised Code are to | 1595 |
|
be
redeemed, until the
aggregate of such payments equals the | 1596 |
|
requirements of such fund,
whereupon such securities, and any | 1597 |
|
remaining depository balance,
not anticipated by such bonds, to | 1598 |
|
the extent then retained by
such county, municipal corporation, | 1599 |
|
township, or school district,
shall be assigned and delivered to | 1600 |
the defaulting bank or
building and loan, domestic association, | 1601 |
| savings bank, or
credit union to its liquidating officer, or to | 1602 |
|
its successor or
assignee, together with a release or other | 1603 |
|
instrument showing full
satisfaction of the claim of such county, | 1604 |
|
municipal corporation,
township, or school district against such | 1605 |
bank, building
and loandomestic association, savings bank, | 1606 |
|
credit union, or officer. | 1607 |
| (7) Act as trustee or custodian, for which reasonable | 1626 |
|
compensation may be received, under any written trust instrument | 1627 |
|
or custodial agreement created or organized in the United States | 1628 |
|
and forming part of a tax-advantaged savings plan that qualifies | 1629 |
|
for specific tax treatment under sections 223, 401(d), 408, 408A, | 1630 |
|
and 530 of the Internal Revenue Code, 26 U.S.C. 223, 401(d), 408, | 1631 |
|
408A, and 530, as amended, for its members or groups of its | 1632 |
|
members, provided that the funds of such plans are invested in | 1633 |
|
share accounts or share certificate accounts of the credit union. | 1634 |
|
These services include, but are not limited to, acting as a | 1635 |
|
trustee or custodian for member retirement, education, or health | 1636 |
|
savings accounts. | 1637 |
| (4) Real estate may be acquired by lease, purchase,
or | 1654 |
|
otherwise as necessary and to the extent required
for use of the | 1655 |
|
credit union presently and in the future operation
of its office | 1656 |
|
or headquarters, and in case of a purchase of real
estate, the | 1657 |
|
superintendent must first be
notified in writing prior to the | 1658 |
|
purchase of the real estate. The superintendent shall notify the | 1659 |
|
credit union not more than thirty days after receipt of the | 1660 |
|
notification to purchase the real estate if the purchase is | 1661 |
|
denied, approved, or modified. If the superintendent does not | 1662 |
|
respond within thirty days after receipt of the notification to | 1663 |
|
purchase the real estate, it shall be deemed approved. Nothing | 1664 |
|
herein contained shall be deemed to prohibit a
credit union from | 1665 |
|
taking title to real estate in connection with
a default in the | 1666 |
|
payment of a loan, provided that title to such
real estate shall | 1667 |
|
not be held by the credit union for more than
two years without | 1668 |
|
the prior written approval of the
superintendent. A credit union | 1669 |
|
also may lease space in any real estate it acquires in accordance | 1670 |
|
with rules adopted by the superintendent. | 1671 |
| Sec. 1733.041. Each credit union operating under this | 1701 |
|
chapter or otherwise
authorized to do business in this state shall | 1702 |
|
obtain insurance for the
protection of their members' accounts. | 1703 |
|
Such share guarantee insurance may be
obtained from the national | 1704 |
|
credit union administration operating under the
"Federal Credit | 1705 |
|
Union Act," 84 Stat. 994 (1970), 12 U.S.C. 1751, and any | 1706 |
amendments thereto, or from the national deposita credit union | 1707 |
|
share guaranty corporation,
established under Chapter 1761. of the | 1708 |
|
Revised Code, or from any insurer
qualified under the laws of this | 1709 |
|
state to write such insurance. | 1710 |
| Sec. 1733.24. (A) A credit union is authorized to receive | 1711 |
|
funds for deposit in share accounts, share draft accounts, and | 1712 |
|
share certificates from its members, from other credit unions,
and | 1713 |
|
from an officer, employee, or agent of the federal, state, or | 1714 |
|
local governments, or political subdivisions of the state, in | 1715 |
|
accordance with such terms, rates, and conditions as may be | 1716 |
|
established by its board of directors, and, if acting as a public | 1717 |
|
depository, consistent with Chapter 135. of the Revised Code. | 1718 |
| (B) The shares and share accounts of the credit union may
be | 1719 |
|
of one or more classes, as designated by the board of
directors, | 1720 |
|
subject to approval of the superintendent of credit
unions based | 1721 |
|
on rules that shall assure equitable distribution of
dividends | 1722 |
|
among classes, considering costs and advantages of each
class to | 1723 |
|
the members of the credit union, including without
limitation | 1724 |
|
special services rendered, length of ownership,
minimum | 1725 |
|
investment, conditions of repurchase, and other
appropriate | 1726 |
|
standards or combinations thereof. In the event the
articles of | 1727 |
|
incorporation of the credit union indicate the
authorized number | 1728 |
|
of shares to be unlimited, the designation of
classification of | 1729 |
|
shares and share accounts of the
credit union may be effected by | 1730 |
|
the board of directors, subject
to the approval of the | 1731 |
|
superintendent, and does not require
amendment of the articles of | 1732 |
|
incorporation. All shares of the
credit union shall have a par | 1733 |
|
value per share as set by the board
of directors. Redemptions and | 1734 |
|
liquidating dividends shall be
prorated to each member on the | 1735 |
|
basis of the price paid the credit
union for such share, | 1736 |
|
irrespective of the class of such shares. | 1737 |
| (H) Shares or share accounts may be issued in the name of
a | 1768 |
|
custodian under the Ohio transfers to minors act, a member in | 1769 |
|
trust for a beneficiary, a fiduciary or custodian in trust for a | 1770 |
|
member beneficiary, or a fiduciary or custodian in trust upon the | 1771 |
|
death of a member. Redemption of such shares or payment of
such | 1772 |
|
share accounts to a member, to the extent of the
payment, | 1773 |
|
discharges the liability of the credit union to the
member and the | 1774 |
|
beneficiary, and the credit union shall be under
no obligation to | 1775 |
|
see to the application of the payment. Unless
prior to the death | 1776 |
|
of a member, the member has
notified the
credit union in writing | 1777 |
|
in a form approved by the credit union of
a different beneficiary | 1778 |
|
to receive the proceeds of such shares or
share accounts, then the | 1779 |
|
proceeds shall be paid to the
beneficiary or to the beneficiary's | 1780 |
|
parent or legal
representative. Any
payment made pursuant to | 1781 |
|
written instructions of the member or
pursuant to the provisions | 1782 |
|
herein contained shall be a valid and
sufficient release and | 1783 |
|
discharge of the credit union in
connection with any such share or | 1784 |
|
share accounts. | 1785 |
| (I)(1) Except as otherwise provided in the articles or | 1786 |
|
regulations, and subject to the provisions thereof, a minor may | 1787 |
|
purchase shares, share accounts, or other depository instruments, | 1788 |
|
and except for qualification
as a voting member, the credit union | 1789 |
|
may deal with the minor
with respect to shares, share accounts, or | 1790 |
|
other depository instruments owned by the minor
as if the minor | 1791 |
|
were a person of legal age. | 1792 |
| Sec. 1733.30. (A) A credit union may make any investment of | 1802 |
|
any funds not
required for the purpose of loans or not required to | 1803 |
|
meet the pledging requirements of Chapter 135. of the Revised | 1804 |
|
Code, in
state or national banks or state or federally chartered | 1805 |
|
savings and
loan associations, savings banks, or credit unions, | 1806 |
|
doing business in this state; in accounts,
deposits, or shares of | 1807 |
|
federally insured savings and loan
associations or savings banks | 1808 |
|
or insured credit unions, doing business outside this state; in | 1809 |
|
deposits
or
accounts of federally insured banks, trust companies, | 1810 |
|
and mutual
savings banks doing business outside this state; in the | 1811 |
|
shares of
a corporate credit union subject to the regulations of | 1812 |
|
that
corporate credit union; in shares, stocks, or obligations of | 1813 |
|
any other organization providing services that are associated with | 1814 |
|
the routine operations of credit unions; or in United States | 1815 |
|
government securities
or municipal bonds issued by municipalities | 1816 |
|
of this state; and,
with the approval of the superintendent of | 1817 |
|
credit unions,
in securities other than those specified in this | 1818 |
|
division. All investments
under this division shall be made in | 1819 |
|
United States dollars. | 1820 |
| (C) Except as otherwise provided in this division, each | 1884 |
|
credit union shall maintain a liquidity fund
equal to five per | 1885 |
|
cent of its shares. The assets included in the
liquidity fund | 1886 |
|
shall be defined by rule adopted by the
superintendent. The | 1887 |
|
superintendent
may require a particular credit union or all credit | 1888 |
|
unions to
establish a liquidity fund greater than or less than | 1889 |
|
five per cent of total
shares, if, in the opinion of the | 1890 |
|
superintendent, economic
conditions or other appropriate | 1891 |
|
circumstances so warrant. | 1892 |
| (2)(a) The director shall prepare a document to serve as a | 1915 |
|
declaration of material assistance/nonassistance for agencies to | 1916 |
|
use to identify whether an applicant for a license or the renewal | 1917 |
|
of a license has provided material assistance to an organization | 1918 |
|
listed in the United States department of state terrorist | 1919 |
|
exclusion list. The declaration shall be substantially in the form | 1920 |
|
and of the same content as set forth in division (A)(2)(b) of this | 1921 |
|
section. The director shall make the declaration available to each | 1922 |
|
issuing agency of a license the director identifies pursuant to | 1923 |
|
division (A)(1) of this section, along with a then-current copy of | 1924 |
|
the United States department of state terrorist exclusion list. | 1925 |
|
The director may adopt rules governing the preparation of the | 1926 |
|
declaration and the distribution of the declaration and the list. | 1927 |
| For purposes of this declaration of material | 1955 |
|
assistance/nonassistance, "material support or resources" means | 1956 |
|
currency, payment instruments, other financial securities, funds, | 1957 |
|
transfer of funds, and financial services that are in excess of | 1958 |
|
one hundred dollars, as well as communications, lodging, training, | 1959 |
|
safe houses, false documentation or identification, communications | 1960 |
|
equipment, facilities, weapons, lethal substances, explosives, | 1961 |
|
personnel, transportation, and other physical assets, except | 1962 |
|
medicine or religious materials." | 1963 |
| (1) That the provision of material assistance to an | 2000 |
|
organization on the terrorist exclusion list was made more than | 2001 |
|
ten years prior to the time of the application, or the applicant | 2002 |
|
provided material assistance during the ten years prior to the | 2003 |
|
application and the date of the review, but at the time of the | 2004 |
|
assistance, the organization was either not on the list or was not | 2005 |
|
involved in any activity or conduct that would have merited | 2006 |
|
inclusion on the list had it existed at the time, or at the time | 2007 |
|
of the assistance it was not reasonable to know of the | 2008 |
|
organization's activities that would have merited its inclusion on | 2009 |
|
the list. | 2010 |
| Sec. 2909.33. (A)(1) The director of public safety shall | 2060 |
|
prepare a document to serve as a declaration of material | 2061 |
|
assistance/nonassistance by which any person, company, affiliated | 2062 |
|
group, or organization, or person who holds, owns, or otherwise | 2063 |
|
has a controlling interest in a company, affiliated group, or | 2064 |
|
organization, when required by this section, shall certify any | 2065 |
|
provision of material assistance to an organization listed on the | 2066 |
|
United States department of state terrorist exclusion list. The | 2067 |
|
declaration shall be substantially in the same format and of the | 2068 |
|
same content as set forth in division (A)(2)(b) of section 2909.32 | 2069 |
|
of the Revised Code. | 2070 |
| (2) The director of public safety and the director of budget | 2071 |
|
and management shall make available on their respective department | 2072 |
|
web sites and by any other means the director of public safety | 2073 |
|
deems appropriate, the declaration of material | 2074 |
|
assistance/nonassistance and a then-current copy of the terrorist | 2075 |
|
exclusion list. The director of public safety, in consultation | 2076 |
|
with the director of budget and management, may adopt rules that | 2077 |
|
govern the preparation of the declaration and the distribution of | 2078 |
|
the declaration and terrorist exclusion list. | 2079 |
| (3)(a) Prior to entering into a contract to conduct business | 2080 |
|
with or receive funding from any state agency, instrumentality, or | 2081 |
|
political subdivision of the state any person, company, affiliated | 2082 |
|
group, or organization, or person who holds, owns, or otherwise | 2083 |
|
has a controlling interest in a company, affiliated group, or | 2084 |
|
organization, may precertify that it has not provided material | 2085 |
|
assistance to an organization on the terrorist exclusion list. The | 2086 |
|
precertification this division describes shall be granted to any | 2087 |
|
person, company, affiliated group, or organization that submits to | 2088 |
|
the director of budget and management a completed copy of the | 2089 |
|
declaration prepared pursuant to this section, with an answer of | 2090 |
|
"no" to all questions. No person shall require any person, | 2091 |
|
company, affiliated group, or organization that is precertified to | 2092 |
|
complete any additional declarations prior to the expiration of a | 2093 |
|
precertification. All precertifications expire the thirtieth day | 2094 |
|
of June of the second year of each state biennium period. To be | 2095 |
|
precertified during the two years subsequent to that expiration | 2096 |
|
date, an entity shall submit a new declaration to the director of | 2097 |
|
budget and management pursuant to rules the director adopts. | 2098 |
|
(b) Any person, company, affiliated group, or organization | 2099 |
|
that is precertified pursuant to this division and that takes any | 2100 |
|
action or learns of anything that would result in an answer of | 2101 |
|
"yes" to any question on the declaration of material | 2102 |
|
assistance/nonassistance this division requires, shall cease to | 2103 |
|
represent that it is precertified and, within thirty days of | 2104 |
|
taking that action or learning the new information, shall notify | 2105 |
|
the director of budget and management to request its | 2106 |
|
precertification be rescinded. | 2107 |
| (C)(1) Except as otherwise provided in divisions (C)(2) and | 2119 |
|
(H) of this section, prior to entering into a contract with any | 2120 |
|
state agency, instrumentality, or political subdivision to conduct | 2121 |
|
business or receive funding, any person, company, affiliated | 2122 |
|
group, or organization, and any person who holds, owns, or | 2123 |
|
otherwise has a controlling interest in a company, affiliated | 2124 |
|
group, or organization shall certify that it does not provide | 2125 |
|
material assistance to any organization on the United States | 2126 |
|
department of state terrorist exclusion list. The certification | 2127 |
|
shall be made by completing and submitting the declaration of | 2128 |
|
material assistance/nonassistance as described in division (A) of | 2129 |
|
this section. | 2130 |
| (2) Certification pursuant to this division shall not be | 2131 |
|
required unless the entity entering into a contract for business | 2132 |
|
or funding has received, or will have received as a result of the | 2133 |
|
pending contract, an aggregate amount greater than one hundred | 2134 |
|
thousand dollars in business or funding, excluding the amount of | 2135 |
|
any personal benefit, from the state, instrumentalities, and | 2136 |
|
political subdivisions during the current fiscal year, measured | 2137 |
|
from the first day of July until the thirtieth day of June. | 2138 |
| (D)(1) No state agency, instrumentality, or political | 2139 |
|
subdivision shall conduct business with or provide any funding to | 2140 |
|
any person, company, affiliated group or organization, or any | 2141 |
|
person who has a controlling interest in a company, affiliated | 2142 |
|
group, or organization unless that person, company, affiliated | 2143 |
|
group, or organization is certified as this section requires. | 2144 |
| (E) For the purposes of this section, the office of budget | 2152 |
|
and management shall be the repository for all declarations | 2153 |
|
received pursuant to division (A)(3)(a) of this section and the | 2154 |
|
director of budget and management shall maintain a centralized | 2155 |
|
database of all such declarations received. If a person, company, | 2156 |
|
affiliated group, or organization discloses the provision of | 2157 |
|
material assistance to an organization listed on the terrorist | 2158 |
|
exclusion list, within three business days of that disclosure, the | 2159 |
|
director shall send the declarant a written notice of prohibition | 2160 |
|
against doing business or receiving funding. The notice shall | 2161 |
|
inform the declarant of the right to a review of the prohibition | 2162 |
|
by the department of public safety if the declarant requests that | 2163 |
|
review within sixty days after the notice of prohibition was | 2164 |
|
mailed. The director shall send copy of any notice sent pursuant | 2165 |
|
to this division to the department of public safety. | 2166 |
| (1) That the provision of material assistance to an | 2174 |
|
organization on the terrorist exclusion list was made more than | 2175 |
|
ten years prior to the time the declaration of material | 2176 |
|
assistance/nonassistance was filled out, or the material | 2177 |
|
assistance was provided during the ten years prior to the | 2178 |
|
application and the date of the review, but at the time of the | 2179 |
|
assistance, the organization was either not on the list or would | 2180 |
|
not have merited inclusion had it existed at the time, or at the | 2181 |
|
time of the assistance it was not reasonable to know of the | 2182 |
|
organization's activities that would have merited its inclusion on | 2183 |
|
the list. | 2184 |
| (F) Any person, company, affiliated group, or organization | 2190 |
|
that had not provided material assistance at the time a | 2191 |
|
declaration of material assistance/nonassistance was answered, but | 2192 |
|
starts providing material assistance to an organization on the | 2193 |
|
terrorist exclusion list during the course of doing business with | 2194 |
|
or receiving funding from the state, an agency or instrumentality | 2195 |
|
of the state, or a subdivision of the state, is prohibited from | 2196 |
|
entering into additional contracts to do business with or receive | 2197 |
|
funding from the state, any agency or instrumentality, or any | 2198 |
|
subdivision for a period of ten years after the provision of | 2199 |
|
material assistance is discovered. | 2200 |
| (2) Any person, company, affiliated group, or organization | 2207 |
|
that fails to certify as this section requires is subject to a | 2208 |
|
fine of one thousand dollars for each day of doing business or | 2209 |
|
receiving funding, except that any person, company, affiliated | 2210 |
|
group, or organization that first reaches the threshold of one | 2211 |
|
hundred thousand dollars in business or funding, due to the | 2212 |
|
contract that it is entering into, shall not be subject to the | 2213 |
|
fine for the first thirty days after entering into that contract, | 2214 |
|
after which it shall be subject to the fine for each day that it | 2215 |
|
is not certified. | 2216 |
| Section 2. That existing sections 122.60, 122.71, 135.03, | 2260 |
|
135.032, 135.04, 135.06,
135.08, 135.10, 135.14, 135.144, 135.18, | 2261 |
|
135.32, 135.321, 135.33, 135.35, 135.353, 135.37, 135.51, 135.52, | 2262 |
|
135.53, 1733.04, 1733.041, 1733.24, 1733.30, 1733.31, 2909.32, and | 2263 |
|
2909.33 of the Revised Code
are hereby repealed. | 2264 |