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S. B. No. 314 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Senators Mason, Spada, Harris, Roberts, Miller, D., Wilson, Fedor, Sawyer, Smith
A BILL
To amend section 135.63 and to enact sections
135.101, 135.102, 135.103, 135.104, 135.105, and
135.106 of the Revised Code to authorize the
Treasurer of State to administer a linked deposit
program designed to encourage personal savings and
promote personal financial education.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 135.63 be amended and sections
135.101, 135.102, 135.103, 135.104, 135.105, and 135.106 of the
Revised Code be enacted to read as follows:
Sec. 135.101. As used in sections 135.101 to 135.106 of the
Revised Code:
(A) "Eligible resident" means an individual who is a resident
of Ohio and who completes the SaveNOW education program prescribed
by section 135.104 of the Revised Code.
(B) "Eligible savings institution" means a financial
institution that offers savings accounts available to residents of
Ohio, that is a public depository of public money of the state
under section 135.03 of the Revised Code, and that agrees to
participate in the SaveNOW program under sections 135.101 to
135.106 of the Revised Code.
(C) "SaveNOW linked deposit" means a deposit placed by the
treasurer of state with an eligible savings institution at a rate
determined and calculated by the treasurer of state.
(D) "SaveNOW savings account" means an interest-bearing
account that is opened by an eligible resident at an eligible
savings institution and that complies with the requirements of
section 135.104 of the Revised Code.
(E) "Premium savings rate" means the highest savings rate
that is offered by an eligible savings institution for large
deposits, as approved by and negotiated with the treasurer of
state.
(F) "Program period" means the length of time, not to exceed
two years, established by the treasurer of state that a SaveNOW
savings account is eligible to receive the SaveNOW interest
incentive.
Sec. 135.102. The general assembly finds that the personal
savings rate among Ohioans has declined in recent years, that
personal savings are important to the future prosperity of Ohio,
and that personal savings must be encouraged and assisted. The
SaveNOW program provided for in sections 135.101 to 135.106 of the
Revised Code is intended to promote increased personal savings,
which will materially contribute to the economic growth of Ohio
and the financial security of its residents. Accordingly, it is
declared to be the public policy of the state through the SaveNOW
program to create an availability of higher-rate savings accounts
for the purpose of increasing personal savings and promoting
financial education among the residents of Ohio.
Sec. 135.103. The treasurer of state may invest in SaveNOW
linked deposits under sections 135.101 to 135.106 of the Revised
Code, provided that at the time of placing any SaveNOW linked
deposits the combined amount of investments of public money of the
state in linked deposits of any kind is not more than twelve per
cent of the state's total average investment portfolio as
determined by the treasurer of state. When deciding whether to
invest in SaveNOW linked deposits, the treasurer of state shall
give priority to the investment, liquidity, and cash flow needs of
the state.
Sec. 135.104. (A) A resident of Ohio may participate in the
SaveNOW program by agreeing to maintain a SaveNOW savings account
at an eligible savings institution for the program period and by
completing the SaveNOW education program. The SaveNOW education
program shall include a financial literacy assessment and a
financial literacy program established and administered by the
treasurer of state.
(B) An eligible savings institution shall accept applications
for a SaveNOW savings account from eligible residents on a
first-come, first-served basis on forms prescribed by the
treasurer of state. The eligible savings institution shall offer
to eligible residents a SaveNOW savings account that satisfies all
of the following:
(1) Opening and maintaining the account requires no minimum
deposit;
(2) No fees are charged for opening or using the account; and
(3) All deposits in the account earn at least the premium
savings rate.
(C) To provide an additional incentive for saving, a SaveNOW
incentive rate of interest shall accrue to the average daily
balance of deposits, up to five thousand dollars, in a SaveNOW
savings account during the program period at a rate equal to up to
three
percentage points above the premium savings rate. The
interest
earnings arising from the SaveNOW incentive rate of
interest shall
be credited to the account in a lump sum at the
conclusion of the
program period.
(D) The interest earnings arising from the SaveNOW incentive
rate of interest under division (C) of this section shall be
deducted from the interest earned on the state's SaveNOW linked
deposit at the end of the eligible program period.
(E) Not more than one SaveNOW savings account shall be held
by an eligible resident during a program period. An individual
holding a SaveNOW savings account jointly with another individual
shall be considered to be holding such an account for the purposes
of this division, unless the joint ownership is of an account
opened by a parent, grandparent, or guardian for a minor or for a
dependent adult.
Sec. 135.105. (A) Upon the placement of a SaveNOW linked
deposit
with an eligible savings institution, the institution
shall offer SaveNOW savings accounts to eligible residents under
section 135.104 of the Revised Code. A certification of compliance
with this section in the
form and manner prescribed by the
treasurer of state shall be
required of the eligible savings
institution.
(B) The treasurer of state shall take any and all steps
necessary to implement the SaveNOW program and to monitor the
compliance of eligible savings institutions, including the
development of guidelines as necessary.
(C) Annually, by the first day of February, the treasurer of
state shall report on the SaveNOW program for the
preceding
calendar year to the governor, the speaker of the house
of
representatives, and the president of the senate. The speaker
shall transmit copies of the report to the
chairpersons
of the
standing committees of the house of representatives that
customarily
consider legislation regarding finance,
and the
president of the senate shall transmit copies of the
report to the
chairpersons of the standing committees
of the senate
that
customarily consider legislation regarding finance. The report
shall set forth the SaveNOW linked deposits
made by the treasurer
of state under the program during the year
and shall include a
list of eligible savings institutions and the number of SaveNOW
savings accounts at each of those institutions during the
preceding year.
Sec. 135.106. The state and the treasurer of state are not
liable to any
eligible savings institution or any eligible
resident in any manner for the terms associated with SaveNOW
savings accounts. Any misuse or misconduct on the part of an
eligible savings institution or eligible resident does not in any
manner
affect the deposit agreement between the eligible savings
institution and the
treasurer of state.
Sec. 135.63. The treasurer of state may invest in linked
deposits under
sections 135.61 to 135.67, agricultural linked
deposits
under sections
135.71 to 135.76,
housing linked deposits
under sections 135.81 to 135.87, and assistive technology device
linked deposits
under sections 135.91 to 135.97, and SaveNOW
linked deposits under sections 135.101 to 135.106 of the Revised
Code, provided
that at the time of placement
of any such linked
deposit
under sections 135.61 to 135.67
of the Revised Code,
agricultural
linked deposit,
housing linked deposit, or assistive
technology
device linked
deposit, the combined amount of
investments
in the
linked deposits, agricultural
linked deposits,
housing
linked
deposits, and assistive technology device all such
linked deposits
is not
more
than twelve per cent of the state's
total average
investment
portfolio as
determined by the treasurer
of state.
When
deciding
whether to invest in
the linked deposits,
agricultural
linked
deposits,
housing linked deposits, or
assistive technology
device any such
linked deposits, the
treasurer of
state shall
give priority
to the
investment,
liquidity, and cash
flow needs of the state.
Section 2. That existing section 135.63 of the Revised Code
is hereby repealed.
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