Bill Text: OH SB287 | 2013-2014 | 130th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: To modify authorized investments of interim moneys and inactive moneys under the Uniform Depository Act.
Spectrum: Moderate Partisan Bill (Republican 17-3)
Status: (Passed) 2014-09-04 - Effective Date [SB287 Detail]
Download: Ohio-2013-SB287-Engrossed.html
As Passed by the Senate
A BILL
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Bill Title: To modify authorized investments of interim moneys and inactive moneys under the Uniform Depository Act.
Spectrum: Moderate Partisan Bill (Republican 17-3)
Status: (Passed) 2014-09-04 - Effective Date [SB287 Detail]
Download: Ohio-2013-SB287-Engrossed.html
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Senator Hughes
Cosponsors:
Senators Eklund, Patton, Sawyer, Seitz
To amend sections 135.14, 135.142, 135.143, 135.35, | 1 |
and 3770.06 and to enact section 135.48 of the | 2 |
Revised Code to modify authorized investments of | 3 |
interim moneys and inactive moneys under the | 4 |
Uniform Depository Act. | 5 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 135.14, 135.142, 135.143, 135.35, | 6 |
and 3770.06 be amended and section 135.48 of the Revised Code be | 7 |
enacted to read as follows: | 8 |
Sec. 135.14. (A) As used in this section: | 9 |
(1) "Treasurer" does not include the treasurer of state, and | 10 |
"governing board" does not include the state board of deposit. | 11 |
(2) "Other obligations" includes notes whether or not issued | 12 |
in anticipation of the issuance of bonds. | 13 |
(B) The treasurer or governing board may invest or deposit | 14 |
any part or all of the interim moneys. The following | 15 |
classifications of obligations shall be eligible for such | 16 |
investment or deposit: | 17 |
(1) United States treasury bills, notes, bonds, or any other | 18 |
obligation or security issued by the United States treasury or any | 19 |
other obligation guaranteed as to principal and interest by the | 20 |
United States. | 21 |
Nothing in the classification of eligible obligations set | 22 |
forth in division (B)(1) of this section or in the classifications | 23 |
of eligible obligations set forth in divisions (B)(2) to (7) of | 24 |
this section shall be construed to authorize any investment in | 25 |
stripped principal or interest obligations of such eligible | 26 |
obligations. | 27 |
(2) Bonds, notes, debentures, or any other obligations or | 28 |
securities issued by any federal government agency or | 29 |
instrumentality, including but not limited to, the federal | 30 |
national mortgage association, federal home loan bank, federal | 31 |
farm credit bank, federal home loan mortgage corporation, and | 32 |
government national mortgage association | 33 |
34 | |
direct issuances of federal government agencies or | 35 |
instrumentalities. | 36 |
(3) Interim deposits in the eligible institutions applying | 37 |
for interim moneys as provided in section 135.08 of the Revised | 38 |
Code. The award of interim deposits shall be made in accordance | 39 |
with section 135.09 of the Revised Code and the treasurer or the | 40 |
governing board shall determine the periods for which such interim | 41 |
deposits are to be made and shall award such interim deposits for | 42 |
such periods, provided that any eligible institution receiving an | 43 |
interim deposit award may, upon notification that the award has | 44 |
been made, decline to accept the interim deposit in which event | 45 |
the award shall be made as though the institution had not applied | 46 |
for such interim deposit. | 47 |
(4) Bonds and other obligations of this state | 48 |
political subdivisions of this state, provided that, with respect | 49 |
to bonds or other obligations of political subdivisions, all of | 50 |
the following apply: | 51 |
(a) The bonds or other obligations are payable from general | 52 |
revenues of the political subdivision and backed by the full faith | 53 |
and credit of the political subdivision. | 54 |
(b) The bonds or other obligations are rated at the time of | 55 |
purchase in the three highest classifications established by at | 56 |
least one nationally recognized standard rating service and | 57 |
purchased through a registered securities broker or dealer. | 58 |
(c) The aggregate value of the bonds or other obligations | 59 |
does not exceed twenty per cent of interim moneys available for | 60 |
investment at the time of purchase. | 61 |
(d) The treasurer or governing board is not the sole | 62 |
purchaser of the bonds or other obligations at original issuance. | 63 |
No investment shall be made under division (B)(4) of this | 64 |
section unless the treasurer or governing board has completed | 65 |
additional training for making the investments authorized by | 66 |
division (B)(4) of this section. The type and amount of additional | 67 |
training shall be approved by the treasurer of state and may be | 68 |
conducted by or provided under the supervision of the treasurer of | 69 |
state. | 70 |
(5) No-load money market mutual funds consisting exclusively | 71 |
of obligations described in division (B)(1) or (2) of this section | 72 |
and repurchase agreements secured by such obligations, provided | 73 |
that investments in securities described in this division are made | 74 |
only through eligible institutions mentioned in section 135.03 of | 75 |
the Revised Code; | 76 |
(6) The Ohio subdivision's fund as provided in section 135.45 | 77 |
of the Revised Code; | 78 |
(7) Up to | 79 |
available for investment in either of the following: | 80 |
(a) Commercial paper notes issued by an entity that is | 81 |
defined in division (D) of section 1705.01 of the Revised Code and | 82 |
that has assets exceeding five hundred million dollars, to which | 83 |
notes all of the following apply: | 84 |
(i) The notes are rated at the time of purchase in the | 85 |
highest classification established by at least two nationally | 86 |
recognized standard rating services. | 87 |
(ii) The aggregate value of the notes does not exceed ten per | 88 |
cent of the aggregate value of the outstanding commercial paper of | 89 |
the issuing corporation. | 90 |
(iii) The notes mature not later than | 91 |
seventy days after purchase. | 92 |
(iv) The investment in commercial paper notes of a single | 93 |
issuer shall not exceed in the aggregate five per cent of interim | 94 |
moneys available for investment at the time of purchase. | 95 |
(b) Bankers acceptances of banks that are insured by the | 96 |
federal deposit insurance corporation and | 97 |
98 |
| 99 |
100 |
| 101 |
eighty days after purchase. | 102 |
No investment shall be made pursuant to division (B)(7) of | 103 |
this section unless the treasurer or governing board has completed | 104 |
additional training for making the investments authorized by | 105 |
division (B)(7) of this section. The type and amount of additional | 106 |
training shall be approved by the | 107 |
may be conducted by or provided under the supervision of the | 108 |
109 |
(C) Nothing in the classifications of eligible obligations | 110 |
set forth in divisions (B)(1) to (7) of this section shall be | 111 |
construed to authorize any investment in a derivative, and no | 112 |
treasurer or governing board shall invest in a derivative. For | 113 |
purposes of this division, "derivative" means a financial | 114 |
instrument or contract or obligation whose value or return is | 115 |
based upon or linked to another asset or index, or both, separate | 116 |
from the financial instrument, contract, or obligation itself. Any | 117 |
security, obligation, trust account, or other instrument that is | 118 |
created from an issue of the United States treasury or is created | 119 |
from an obligation of a federal agency or instrumentality or is | 120 |
created from both is considered a derivative instrument. An | 121 |
eligible investment described in this section with a variable | 122 |
interest rate payment, based upon a single interest payment or | 123 |
single index comprised of other eligible investments provided for | 124 |
in division (B)(1) or (2) of this section, is not a derivative, | 125 |
provided that such variable rate investment has a maximum maturity | 126 |
of two years. | 127 |
(D) Except as provided in division (E) of this section, any | 128 |
investment made pursuant to this section must mature within five | 129 |
years from the date of settlement, unless the investment is | 130 |
matched to a specific obligation or debt of the subdivision. | 131 |
(E) The treasurer or governing board may also enter into a | 132 |
written repurchase agreement with any eligible institution | 133 |
mentioned in section 135.03 of the Revised Code or any eligible | 134 |
dealer pursuant to division (M) of this section, under the terms | 135 |
of which agreement the treasurer or governing board purchases, and | 136 |
such institution or dealer agrees unconditionally to repurchase | 137 |
any of the securities listed in divisions (B)(1) to (5), except | 138 |
letters of credit described in division (B)(2), of section 135.18 | 139 |
of the Revised Code. The market value of securities subject to an | 140 |
overnight written repurchase agreement must exceed the principal | 141 |
value of the overnight written repurchase agreement by at least | 142 |
two per cent. A written repurchase agreement shall not exceed | 143 |
thirty days and the market value of securities subject to a | 144 |
written repurchase agreement must exceed the principal value of | 145 |
the written repurchase agreement by at least two per cent and be | 146 |
marked to market daily. All securities purchased pursuant to this | 147 |
division shall be delivered into the custody of the treasurer or | 148 |
governing board or an agent designated by the treasurer or | 149 |
governing board. A written repurchase agreement with an eligible | 150 |
securities dealer shall be transacted on a delivery versus payment | 151 |
basis. The agreement shall contain the requirement that for each | 152 |
transaction pursuant to the agreement the participating | 153 |
institution or dealer shall provide all of the following | 154 |
information: | 155 |
(1) The par value of the securities; | 156 |
(2) The type, rate, and maturity date of the securities; | 157 |
(3) A numerical identifier generally accepted in the | 158 |
securities industry that designates the securities. | 159 |
No treasurer or governing board shall enter into a written | 160 |
repurchase agreement under the terms of which the treasurer or | 161 |
governing board agrees to sell securities owned by the subdivision | 162 |
to a purchaser and agrees with that purchaser to unconditionally | 163 |
repurchase those securities. | 164 |
(F) No treasurer or governing board shall make an investment | 165 |
under this section, unless the treasurer or governing board, at | 166 |
the time of making the investment, reasonably expects that the | 167 |
investment can be held until its maturity. | 168 |
(G) No treasurer or governing board shall pay interim moneys | 169 |
into a fund established by another subdivision, treasurer, | 170 |
governing board, or investing authority, if that fund was | 171 |
established for the purpose of investing the public moneys of | 172 |
other subdivisions. This division does not apply to the payment of | 173 |
public moneys into either of the following: | 174 |
(1) The Ohio subdivision's fund pursuant to division (B)(6) | 175 |
of this section; | 176 |
(2) A fund created solely for the purpose of acquiring, | 177 |
constructing, owning, leasing, or operating municipal utilities | 178 |
pursuant to the authority provided under section 715.02 of the | 179 |
Revised Code or Section 4 of Article XVIII, Ohio Constitution. | 180 |
For purposes of division (G) of this section, "subdivision" | 181 |
includes a county. | 182 |
(H) The use of leverage, in which the treasurer or governing | 183 |
board uses its current investment assets as collateral for the | 184 |
purpose of purchasing other assets, is prohibited. The issuance of | 185 |
taxable notes for the purpose of arbitrage is prohibited. | 186 |
Contracting to sell securities that have not yet been acquired by | 187 |
the treasurer or governing board, for the purpose of purchasing | 188 |
such securities on the speculation that bond prices will decline, | 189 |
is prohibited. | 190 |
(I) Whenever, during a period of designation, the treasurer | 191 |
classifies public moneys as interim moneys, the treasurer shall | 192 |
notify the governing board of such action. The notification shall | 193 |
be given within thirty days after such classification and in the | 194 |
event the governing board does not concur in such classification | 195 |
or in the investments or deposits made under this section, the | 196 |
governing board may order the treasurer to sell or liquidate any | 197 |
of such investments or deposits, and any such order shall | 198 |
specifically describe the investments or deposits and fix the date | 199 |
upon which they are to be sold or liquidated. Investments or | 200 |
deposits so ordered to be sold or liquidated shall be sold or | 201 |
liquidated for cash by the treasurer on the date fixed in such | 202 |
order at the then current market price. Neither the treasurer nor | 203 |
the members of the board shall be held accountable for any loss | 204 |
occasioned by sales or liquidations of investments or deposits at | 205 |
prices lower than their cost. Any loss or expense incurred in | 206 |
making such sales or liquidations is payable as other expenses of | 207 |
the treasurer's office. | 208 |
(J) If any investments or deposits purchased under the | 209 |
authority of this section are issuable to a designated payee or to | 210 |
the order of a designated payee, the name of the treasurer and the | 211 |
title of the treasurer's office shall be so designated. If any | 212 |
such securities are registrable either as to principal or | 213 |
interest, or both, then such securities shall be registered in the | 214 |
name of the treasurer as such. | 215 |
(K) The treasurer is responsible for the safekeeping of all | 216 |
documents evidencing a deposit or investment acquired by the | 217 |
treasurer under this section. Any securities may be deposited for | 218 |
safekeeping with a qualified trustee as provided in section 135.18 | 219 |
of the Revised Code, except the delivery of securities acquired | 220 |
under any repurchase agreement under this section shall be made to | 221 |
a qualified trustee, provided, however, that the qualified trustee | 222 |
shall be required to report to the treasurer, governing board, | 223 |
auditor of state, or an authorized outside auditor at any time | 224 |
upon request as to the identity, market value, and location of the | 225 |
document evidencing each security, and that if the participating | 226 |
institution is a designated depository of the subdivision for the | 227 |
current period of designation, the securities that are the subject | 228 |
of the repurchase agreement may be delivered to the treasurer or | 229 |
held in trust by the participating institution on behalf of the | 230 |
subdivision. Interest earned on any investments or deposits | 231 |
authorized by this section shall be collected by the treasurer and | 232 |
credited by the treasurer to the proper fund of the subdivision. | 233 |
Upon the expiration of the term of office of a treasurer or | 234 |
in the event of a vacancy in the office of treasurer by reason of | 235 |
death, resignation, removal from office, or otherwise, the | 236 |
treasurer or the treasurer's legal representative shall transfer | 237 |
and deliver to the treasurer's successor all documents evidencing | 238 |
a deposit or investment held by the treasurer. For the investments | 239 |
and deposits so transferred and delivered, such treasurer shall be | 240 |
credited with and the treasurer's successor shall be charged with | 241 |
the amount of money held in such investments and deposits. | 242 |
(L) Whenever investments or deposits acquired under this | 243 |
section mature and become due and payable, the treasurer shall | 244 |
present them for payment according to their tenor, and shall | 245 |
collect the moneys payable thereon. The moneys so collected shall | 246 |
be treated as public moneys subject to sections 135.01 to 135.21 | 247 |
of the Revised Code. | 248 |
(M)(1) All investments, except for investments in securities | 249 |
described in divisions (B)(5) and (6) of this section and for | 250 |
investments by a municipal corporation in the issues of such | 251 |
municipal corporation, shall be made only through a member of the | 252 |
253 | |
regulatory authority (FINRA), through a bank, savings bank, or | 254 |
savings and loan association regulated by the superintendent of | 255 |
financial institutions, or through an institution regulated by the | 256 |
comptroller of the currency, federal deposit insurance | 257 |
corporation, or board of governors of the federal reserve system. | 258 |
(2) Payment for investments shall be made only upon the | 259 |
delivery of securities representing such investments to the | 260 |
treasurer, governing board, or qualified trustee. If the | 261 |
securities transferred are not represented by a certificate, | 262 |
payment shall be made only upon receipt of confirmation of | 263 |
transfer from the custodian by the treasurer, governing board, or | 264 |
qualified trustee. | 265 |
(N) In making investments authorized by this section, a | 266 |
treasurer or governing board may retain the services of an | 267 |
investment advisor, provided the advisor is licensed by the | 268 |
division of securities under section 1707.141 of the Revised Code | 269 |
or is registered with the securities and exchange commission, and | 270 |
possesses experience in public funds investment management, | 271 |
specifically in the area of state and local government investment | 272 |
portfolios, or the advisor is an eligible institution mentioned in | 273 |
section 135.03 of the Revised Code. | 274 |
(O)(1) Except as otherwise provided in divisions (O)(2) and | 275 |
(3) of this section, no treasurer or governing board shall make an | 276 |
investment or deposit under this section, unless there is on file | 277 |
with the auditor of state a written investment policy approved by | 278 |
the treasurer or governing board. The policy shall require that | 279 |
all entities conducting investment business with the treasurer or | 280 |
governing board shall sign the investment policy of that | 281 |
subdivision. All brokers, dealers, and financial institutions, | 282 |
described in division (M)(1) of this section, initiating | 283 |
transactions with the treasurer or governing board by giving | 284 |
advice or making investment recommendations shall sign the | 285 |
treasurer's or governing board's investment policy thereby | 286 |
acknowledging their agreement to abide by the policy's contents. | 287 |
All brokers, dealers, and financial institutions, described in | 288 |
division (M)(1) of this section, executing transactions initiated | 289 |
by the treasurer or governing board, having read the policy's | 290 |
contents, shall sign the investment policy thereby acknowledging | 291 |
their comprehension and receipt. | 292 |
(2) If a written investment policy described in division | 293 |
(O)(1) of this section is not filed on behalf of the subdivision | 294 |
with the auditor of state, the treasurer or governing board of | 295 |
that subdivision shall invest the subdivision's interim moneys | 296 |
only in interim deposits pursuant to division (B)(3) of this | 297 |
section or interim deposits pursuant to section 135.145 of the | 298 |
Revised Code and approved by the treasurer of state, no-load money | 299 |
market mutual funds pursuant to division (B)(5) of this section, | 300 |
or the Ohio subdivision's fund pursuant to division (B)(6) of this | 301 |
section. | 302 |
(3) Divisions (O)(1) and (2) of this section do not apply to | 303 |
a treasurer or governing board of a subdivision whose average | 304 |
annual portfolio of investments held pursuant to this section is | 305 |
one hundred thousand dollars or less, provided that the treasurer | 306 |
or governing board certifies, on a form prescribed by the auditor | 307 |
of state, that the treasurer or governing board will comply and is | 308 |
in compliance with the provisions of sections 135.01 to 135.21 of | 309 |
the Revised Code. | 310 |
(P) A treasurer or governing board may enter into a written | 311 |
investment or deposit agreement that includes a provision under | 312 |
which the parties agree to submit to nonbinding arbitration to | 313 |
settle any controversy that may arise out of the agreement, | 314 |
including any controversy pertaining to losses of public moneys | 315 |
resulting from investment or deposit. The arbitration provision | 316 |
shall be set forth entirely in the agreement, and the agreement | 317 |
shall include a conspicuous notice to the parties that any party | 318 |
to the arbitration may apply to the court of common pleas of the | 319 |
county in which the arbitration was held for an order to vacate, | 320 |
modify, or correct the award. Any such party may also apply to the | 321 |
court for an order to change venue to a court of common pleas | 322 |
located more than one hundred miles from the county in which the | 323 |
treasurer or governing board is located. | 324 |
For purposes of this division, "investment or deposit | 325 |
agreement" means any agreement between a treasurer or governing | 326 |
board and a person, under which agreement the person agrees to | 327 |
invest, deposit, or otherwise manage a subdivision's interim | 328 |
moneys on behalf of the treasurer or governing board, or agrees to | 329 |
provide investment advice to the treasurer or governing board. | 330 |
(Q) An investment made by the treasurer or governing board | 331 |
pursuant to this section prior to September 27, 1996, that was a | 332 |
legal investment under the law as it existed before September 27, | 333 |
1996, may be held until maturity | 334 |
335 | |
336 | |
337 | |
338 |
Sec. 135.142. (A) In addition to the investments authorized | 339 |
by section 135.14 of the Revised Code, any board of education, by | 340 |
a two-thirds vote of its members, may authorize the treasurer of | 341 |
the board of education to invest up to | 342 |
of the interim moneys of the board, available for investment at | 343 |
any one time, in either of the following: | 344 |
(1) Commercial paper notes issued by any entity that is | 345 |
defined in division (D) of section 1705.01 of the Revised Code and | 346 |
has assets exceeding five hundred million dollars, and to which | 347 |
notes all of the following apply: | 348 |
(a) The notes are rated at the time of purchase in the | 349 |
highest classification established by at least two nationally | 350 |
recognized standard rating services | 351 |
(b) The aggregate value of the notes does not exceed ten per | 352 |
cent of the aggregate value of the outstanding commercial paper of | 353 |
the issuing corporation | 354 |
(c) The notes mature no later than | 355 |
seventy days after purchase. | 356 |
(d) The investment in commercial paper notes of a single | 357 |
issuer shall not exceed in the aggregate five per cent of interim | 358 |
moneys of the board available for investment at the time of | 359 |
purchase. | 360 |
(2) Bankers' acceptances of banks that are | 361 |
by the federal deposit insurance corporation | 362 |
363 |
| 364 |
365 |
| 366 |
eighty days after purchase. | 367 |
(B) No investment authorized pursuant to division (A) of this | 368 |
section shall be made, whether or not authorized by a board of | 369 |
education, unless the treasurer of the board of education has | 370 |
completed additional training for making the types of investments | 371 |
authorized pursuant to division (A) of this section. The type and | 372 |
amount of such training shall be approved and may be conducted by | 373 |
or provided under the supervision of the | 374 |
state. | 375 |
(C) The treasurer of the board of education shall prepare | 376 |
annually and submit to the board of education, the superintendent | 377 |
of public instruction, and the auditor of state, on or before the | 378 |
thirty-first day of August, a report listing each investment made | 379 |
pursuant to division (A) of this section during the preceding | 380 |
fiscal year, income earned from such investments, fees and | 381 |
commissions paid pursuant to division (D) of this section, and any | 382 |
other information required by the board, the superintendent, and | 383 |
the auditor of state. | 384 |
(D) A board of education may make appropriations and | 385 |
expenditures for fees and commissions in connection with | 386 |
investments made pursuant to division (A) of this section. | 387 |
(E)(1) In addition to the investments authorized by section | 388 |
135.14 of the Revised Code and division (A) of this section, any | 389 |
board of education that is a party to an agreement with the | 390 |
treasurer of state pursuant to division (G) of section 135.143 of | 391 |
the Revised Code and that has outstanding obligations issued under | 392 |
authority of section 133.10 or 133.301 of the Revised Code may | 393 |
authorize the treasurer of the board of education to invest | 394 |
interim moneys of the board in debt interests rated in either of | 395 |
the two highest rating classifications by at least two nationally | 396 |
recognized standard rating | 397 |
entities that are defined in division (D) of section 1705.01 of | 398 |
the Revised Code. The debt interests purchased under authority of | 399 |
division (E) of this section shall mature not later than the | 400 |
latest maturity date of the outstanding obligations issued under | 401 |
authority of section 133.10 or 133.301 of the Revised Code. | 402 |
(2) If any of the debt interests acquired under division | 403 |
(E)(1) of this section ceases to be rated as there required, its | 404 |
issuer shall notify the treasurer of state of this fact within | 405 |
twenty-four hours. At any time thereafter the treasurer of state | 406 |
may require collateralization at the rate of one hundred two per | 407 |
cent of any remaining obligation of the entity, with securities | 408 |
authorized for investment under section 135.143 of the Revised | 409 |
Code. The collateral shall be delivered to and held by a custodian | 410 |
acceptable to the treasurer of state, marked to market daily, and | 411 |
any default to be cured within twelve hours. Unlimited | 412 |
substitution shall be allowed of comparable securities. | 413 |
Sec. 135.143. (A) The treasurer of state may invest or | 414 |
execute transactions for any part or all of the interim funds of | 415 |
the state in the following classifications of obligations: | 416 |
(1) United States treasury bills, notes, bonds, or any other | 417 |
obligations or securities issued by the United States treasury or | 418 |
any other obligation guaranteed as to principal and interest by | 419 |
the United States; | 420 |
(2) Bonds, notes, debentures, or any other obligations or | 421 |
securities issued by any federal government agency or | 422 |
instrumentality; | 423 |
(3)(a) Bonds, notes, and other | 424 |
state of Ohio, including, but not limited to, any obligations | 425 |
issued by the treasurer of state | 426 |
facilities commission, the Ohio building authority, | 427 |
housing finance agency, the Ohio water development authority, and | 428 |
the Ohio turnpike infrastructure commission; | 429 |
(b) Bonds, notes, and other obligations of any state or | 430 |
political subdivision thereof rated in the three highest | 431 |
categories by at least one nationally recognized standard rating | 432 |
service and purchased through a registered securities broker or | 433 |
dealer, provided the treasurer of state is not the sole purchaser | 434 |
of the bonds, notes, or other obligations at original issuance. | 435 |
(4)(a) Written repurchase agreements with any eligible Ohio | 436 |
financial institution that is a member of the federal reserve | 437 |
system or federal home loan bank, or any | 438 |
United States government securities dealer, under the terms of | 439 |
which agreement the treasurer of state purchases and the eligible | 440 |
financial institution or dealer agrees unconditionally to | 441 |
repurchase any of the securities that are listed in division | 442 |
(A)(1), (2), or (6) of this section | 443 |
444 | |
value of securities subject to these transactions must exceed the | 445 |
principal value of the repurchase agreement by an amount specified | 446 |
by the treasurer of state, and the securities must be delivered | 447 |
into the custody of the treasurer of state or the qualified | 448 |
trustee or agent designated by the treasurer of state. The | 449 |
agreement shall contain the requirement that for each transaction | 450 |
pursuant to the agreement, the participating institution or dealer | 451 |
shall provide all of the following information: | 452 |
(i) The par value of the securities; | 453 |
(ii) The type, rate, and maturity date of the securities; | 454 |
(iii) A numerical identifier generally accepted in the | 455 |
securities industry that designates the securities. | 456 |
(b) The treasurer of state also may sell any securities, | 457 |
listed in division (A)(1), (2), or (6) of this section, regardless | 458 |
of maturity or time of redemption of the securities, under the | 459 |
same terms and conditions for repurchase, provided that the | 460 |
securities have been fully paid for and are owned by the treasurer | 461 |
of state at the time of the sale. | 462 |
(5) Securities lending agreements with any eligible financial | 463 |
institution that is a member of the federal reserve system or | 464 |
federal home loan bank or any recognized United States government | 465 |
securities dealer, under the terms of which agreements the | 466 |
treasurer of state lends securities and the eligible financial | 467 |
institution or dealer agrees to simultaneously exchange similar | 468 |
securities or cash, equal value for equal value. | 469 |
Securities and cash received as collateral for a securities | 470 |
lending agreement are not interim funds of the state. The | 471 |
investment of cash collateral received pursuant to a securities | 472 |
lending agreement may be invested only in such instruments | 473 |
specified by the treasurer of state in accordance with a written | 474 |
investment policy. | 475 |
(6) Various forms of commercial paper issued by any | 476 |
477 | |
of the United States or a state, which notes are rated | 478 |
479 | |
recognized standard rating
| 480 |
total amount invested under this section in any commercial paper | 481 |
at any time shall not exceed
| 482 |
state's total average portfolio, as determined and calculated by | 483 |
the treasurer of state; | 484 |
(7) Bankers acceptances, maturing in two hundred seventy days | 485 |
or less, | 486 |
487 | |
acceptances at any time shall not exceed ten per cent of the | 488 |
state's total average portfolio, as determined and calculated by | 489 |
the treasurer of state; | 490 |
(8) Certificates of deposit in eligible institutions applying | 491 |
for interim moneys as provided in section 135.08 of the Revised | 492 |
Code, including linked deposits as provided in sections 135.61 to | 493 |
135.67 of the Revised Code, agricultural linked deposits as | 494 |
provided in sections 135.71 to 135.76 of the Revised Code, and | 495 |
housing linked deposits as provided in sections 135.81 to 135.87 | 496 |
of the Revised Code; | 497 |
(9) The state treasurer's investment pool authorized under | 498 |
section 135.45 of the Revised Code; | 499 |
(10) Debt interests, other than commercial paper described in | 500 |
division (A)(6) of this section, rated | 501 |
the three highest categories by two nationally recognized standard | 502 |
rating
| 503 |
are | 504 |
a state, or issued by foreign nations diplomatically recognized by | 505 |
the United States government, or any instrument based on, derived | 506 |
from, or related to such interests, provided that: | 507 |
(a) The investments in debt interests other than commercial | 508 |
paper shall not exceed in the aggregate twenty-five per cent of | 509 |
the state's portfolio | 510 |
(b) The investments in debt interests issued by foreign | 511 |
nations shall not exceed in the aggregate one per cent of the | 512 |
state's portfolio | 513 |
The treasurer of state shall invest under division (A)(10) of | 514 |
this section in a debt interest issued by a foreign nation only if | 515 |
the debt interest is backed by the full faith and credit of that | 516 |
foreign nation, and provided that all interest and principal shall | 517 |
be denominated and payable in United States funds. | 518 |
(c) | 519 |
investments in the debt interests of a single issuer shall not | 520 |
exceed in the aggregate | 521 |
state's portfolio | 522 |
523 | |
524 |
| 525 |
526 | |
527 | |
528 | |
529 |
(d) For purposes of division (A)(10) of this section, a debt | 530 |
interest is rated in the three highest categories by two | 531 |
nationally recognized standard rating | 532 |
the debt interest itself or the issuer of the debt interest is | 533 |
rated, or is implicitly rated, | 534 |
three highest categories by two nationally recognized standard | 535 |
rating | 536 |
(e) For purposes of division (A)(10) of this section, the | 537 |
"state's portfolio" means the state's total average portfolio, as | 538 |
determined and calculated by the treasurer of state. | 539 |
(11) No-load money market mutual funds rated in the highest | 540 |
category by one nationally recognized standard rating service or | 541 |
consisting exclusively of obligations described in division | 542 |
(A)(1), (2), or (6) of this section and repurchase agreements | 543 |
secured by such obligations. | 544 |
(12) Obligations of a political subdivision issued under | 545 |
Chapter 133. of the Revised Code and identified in an agreement | 546 |
described in division (G) of this section. | 547 |
(B) Whenever, during a period of designation, the treasurer | 548 |
of state classifies public moneys as interim moneys, the treasurer | 549 |
of state shall notify the state board of deposit of such action. | 550 |
The notification shall be given within thirty days after such | 551 |
classification and, in the event the state board of deposit does | 552 |
not concur in such classification or in the investments or | 553 |
deposits made under this section, the board may order the | 554 |
treasurer of state to sell or liquidate any of the investments or | 555 |
deposits, and any such order shall specifically describe the | 556 |
investments or deposits and fix the date upon which they are to be | 557 |
sold or liquidated. Investments or deposits so ordered to be sold | 558 |
or liquidated shall be sold or liquidated for cash by the | 559 |
treasurer of state on the date fixed in such order at the then | 560 |
current market price. Neither the treasurer of state nor the | 561 |
members of the state board of deposit shall be held accountable | 562 |
for any loss occasioned by sales or liquidations of investments or | 563 |
deposits at prices lower than their cost. Any loss or expense | 564 |
incurred in making these sales or liquidations is payable as other | 565 |
expenses of the treasurer's office. | 566 |
(C) If any securities or obligations invested in by the | 567 |
treasurer of state pursuant to this section are registrable either | 568 |
as to principal or interest, or both, such securities or | 569 |
obligations shall be registered in the name of the treasurer of | 570 |
state. | 571 |
(D) The treasurer of state is responsible for the safekeeping | 572 |
of all securities or obligations under this section. Any such | 573 |
securities or obligations may be deposited for safekeeping as | 574 |
provided in section 113.05 of the Revised Code. | 575 |
(E) Interest earned on any investments or deposits authorized | 576 |
by this section shall be collected by the treasurer of state and | 577 |
credited by the treasurer of state to the proper fund of the | 578 |
state. | 579 |
(F) Whenever investments or deposits acquired under this | 580 |
section mature and become due and payable, the treasurer of state | 581 |
shall present them for payment according to their tenor, and shall | 582 |
collect the moneys payable thereon. The moneys so collected shall | 583 |
be treated as public moneys subject to sections 135.01 to 135.21 | 584 |
of the Revised Code. | 585 |
(G) The treasurer of state and any political subdivision | 586 |
issuing obligations referred to in division (A)(12) of this | 587 |
section, which obligations mature within one year from the | 588 |
original date of issuance, may enter into an agreement providing | 589 |
for: | 590 |
(1) The purchase of those obligations by the treasurer of | 591 |
state on terms and subject to conditions set forth in the | 592 |
agreement; | 593 |
(2) The payment by the political subdivision to the treasurer | 594 |
of state of a reasonable fee as consideration for the agreement of | 595 |
the treasurer of state to purchase those obligations; provided, | 596 |
however, that the treasurer of state shall not be authorized to | 597 |
enter into any such agreement with a board of education of a | 598 |
school district that has an outstanding obligation with respect to | 599 |
a loan received under authority of section 3313.483 of the Revised | 600 |
Code. | 601 |
(H) For purposes of division (G) of this section, a fee shall | 602 |
not be considered reasonable unless it is set to recover only the | 603 |
direct costs, a reasonable estimate of the indirect costs | 604 |
associated with the purchasing of obligations of a political | 605 |
subdivision under division (G) of this section and any reselling | 606 |
of the obligations or any interest in the obligations, including | 607 |
interests in a fund comprised of the obligations, and the | 608 |
administration thereof. No money from the general revenue fund | 609 |
shall be used to subsidize the purchase or resale of these | 610 |
obligations. | 611 |
(I) All money collected by the treasurer of state from the | 612 |
fee imposed by division (G) of this section shall be deposited to | 613 |
the credit of the state political subdivision obligations fund, | 614 |
which is hereby created in the state treasury. Money credited to | 615 |
the fund shall be used solely to pay the treasurer of state's | 616 |
direct and indirect costs associated with purchasing and reselling | 617 |
obligations of a political subdivision under division (G) of this | 618 |
section. | 619 |
(J) As used in this section, "political subdivision" means a | 620 |
county, township, municipal corporation, or | 621 |
622 |
Sec. 135.35. (A) The investing authority shall deposit or | 623 |
invest any part or all of the county's inactive moneys and shall | 624 |
invest all of the money in the county public library fund when | 625 |
required by section 135.352 of the Revised Code. The following | 626 |
classifications of securities and obligations are eligible for | 627 |
such deposit or investment: | 628 |
(1) United States treasury bills, notes, bonds, or any other | 629 |
obligation or security issued by the United States treasury, any | 630 |
other obligation guaranteed as to principal or interest by the | 631 |
United States, or any book entry, zero-coupon United States | 632 |
treasury security that is a direct obligation of the United | 633 |
States. | 634 |
Nothing in the classification of eligible securities and | 635 |
obligations set forth in divisions (A)(2) to | 636 |
section shall be construed to authorize any investment in stripped | 637 |
principal or interest obligations of such eligible securities and | 638 |
obligations. | 639 |
(2) Bonds, notes, debentures, or any other obligations or | 640 |
securities issued by any federal government agency or | 641 |
instrumentality, including, but not limited to, the federal | 642 |
national mortgage association, federal home loan bank, federal | 643 |
farm credit bank, federal home loan mortgage corporation, and | 644 |
government national mortgage association | 645 |
646 | |
direct issuances of federal government agencies or | 647 |
instrumentalities. | 648 |
(3) Time certificates of deposit or savings or deposit | 649 |
accounts, including, but not limited to, passbook accounts, in any | 650 |
eligible institution mentioned in section 135.32 of the Revised | 651 |
Code; | 652 |
(4) Bonds and other obligations of this state or the | 653 |
political subdivisions of this state; | 654 |
(5) No-load money market mutual funds rated in the highest | 655 |
category at the time of purchase by at least one nationally | 656 |
recognized standard rating service or consisting exclusively of | 657 |
obligations described in division (A)(1) | 658 |
section 135.143 of the Revised Code and repurchase agreements | 659 |
secured by such obligations, provided that investments in | 660 |
securities described in this division are made only through | 661 |
eligible institutions mentioned in section 135.32 of the Revised | 662 |
Code; | 663 |
(6) The Ohio subdivision's fund as provided in section 135.45 | 664 |
of the Revised Code; | 665 |
(7) Securities lending agreements with any eligible | 666 |
institution mentioned in section 135.32 of the Revised Code that | 667 |
is a member of the federal reserve system or federal home loan | 668 |
bank or with any recognized United States government securities | 669 |
dealer meeting the description in division (J)(1) of this section, | 670 |
under the terms of which agreements the investing authority lends | 671 |
securities and the eligible institution or dealer agrees to | 672 |
simultaneously exchange similar securities or cash, equal value | 673 |
for equal value. | 674 |
Securities and cash received as collateral for a securities | 675 |
lending agreement are not inactive moneys of the county or moneys | 676 |
of a county public library fund. The investment of cash collateral | 677 |
received pursuant to a securities lending agreement may be | 678 |
invested only in instruments specified by the investing authority | 679 |
in the written investment policy described in division (K) of this | 680 |
section. | 681 |
(8) Up to twenty-five per cent of the county's total average | 682 |
portfolio in either of the following investments: | 683 |
(a) Commercial paper notes issued by an entity that is | 684 |
defined in division (D) of section 1705.01 of the Revised Code and | 685 |
that has assets exceeding five hundred million dollars, to which | 686 |
notes all of the following apply: | 687 |
(i) The notes are rated at the time of purchase in the | 688 |
highest classification established by at least two nationally | 689 |
recognized standard rating services. | 690 |
(ii) The aggregate value of the notes does not exceed ten per | 691 |
cent of the aggregate value of the outstanding commercial paper of | 692 |
the issuing corporation. | 693 |
(iii) The notes mature not later than two hundred seventy | 694 |
days after purchase. | 695 |
(b) Bankers acceptances of banks that are insured by the | 696 |
federal deposit insurance corporation and | 697 |
698 |
| 699 |
700 |
| 701 |
eighty days after purchase. | 702 |
No investment shall be made pursuant to division (A)(8) of | 703 |
this section unless the investing authority has completed | 704 |
additional training for making the investments authorized by | 705 |
division (A)(8) of this section. The type and amount of additional | 706 |
training shall be approved by the | 707 |
may be conducted by or provided under the supervision of the | 708 |
709 |
(9) Up to fifteen per cent of the county's total average | 710 |
portfolio in notes issued by corporations that are incorporated | 711 |
under the laws of the United States and that are operating within | 712 |
the United States, or by depository institutions that are doing | 713 |
business under authority granted by the United States or any state | 714 |
and that are operating within the United States, provided both of | 715 |
the following apply: | 716 |
(a) The notes are rated in the second highest or higher | 717 |
category by at least two nationally recognized standard rating | 718 |
services at the time of purchase. | 719 |
(b) The notes mature not later than two years after purchase. | 720 |
(10) | 721 |
722 | |
723 | |
724 | |
725 |
| 726 |
three highest categories by two nationally recognized standard | 727 |
rating services and issued by foreign nations diplomatically | 728 |
recognized by the United States government. All interest and | 729 |
principal shall be denominated and payable in United States funds. | 730 |
The investments made under division (A) | 731 |
shall not exceed in the aggregate one per cent of a county's total | 732 |
average portfolio. | 733 |
The investing authority shall invest under division | 734 |
(A) | 735 |
nation only if the debt interest is backed by the full faith and | 736 |
credit of that foreign nation, there is no prior history of | 737 |
default, and the debt interest matures not later than five years | 738 |
after purchase. For purposes of division (A) | 739 |
section, a debt interest is rated in the three highest categories | 740 |
by two nationally recognized standard rating services if either | 741 |
the debt interest itself or the issuer of the debt interest is | 742 |
rated, or is implicitly rated, at the time of purchase in the | 743 |
three highest categories by two nationally recognized standard | 744 |
rating services. | 745 |
| 746 |
authorized under division (G) of section 135.341 of the Revised | 747 |
Code, provided that all of the conditions for entering into such a | 748 |
line of credit under that division are satisfied, or bonds and | 749 |
other obligations of a county land reutilization corporation | 750 |
organized under Chapter 1724. of the Revised Code, if the county | 751 |
land reutilization corporation is located wholly or partly within | 752 |
the same county as the investing authority. | 753 |
(B) Nothing in the classifications of eligible obligations | 754 |
and securities set forth in divisions (A)(1) to | 755 |
section shall be construed to authorize investment in a | 756 |
derivative, and no investing authority shall invest any county | 757 |
inactive moneys or any moneys in a county public library fund in a | 758 |
derivative. For purposes of this division, "derivative" means a | 759 |
financial instrument or contract or obligation whose value or | 760 |
return is based upon or linked to another asset or index, or both, | 761 |
separate from the financial instrument, contract, or obligation | 762 |
itself. Any security, obligation, trust account, or other | 763 |
instrument that is created from an issue of the United States | 764 |
treasury or is created from an obligation of a federal agency or | 765 |
instrumentality or is created from both is considered a derivative | 766 |
instrument. An eligible investment described in this section with | 767 |
a variable interest rate payment, based upon a single interest | 768 |
payment or single index comprised of other eligible investments | 769 |
provided for in division (A)(1) or (2) of this section, is not a | 770 |
derivative, provided that such variable rate investment has a | 771 |
maximum maturity of two years. A treasury inflation-protected | 772 |
security shall not be considered a derivative, provided the | 773 |
security matures not later than five years after purchase. | 774 |
(C) Except as provided in division (D) of this section, any | 775 |
investment made pursuant to this section must mature within five | 776 |
years from the date of settlement, unless the investment is | 777 |
matched to a specific obligation or debt of the county or to a | 778 |
specific obligation or debt of a political subdivision of this | 779 |
state, and the investment is specifically approved by the | 780 |
investment advisory committee. | 781 |
(D) The investing authority may also enter into a written | 782 |
repurchase agreement with any eligible institution mentioned in | 783 |
section 135.32 of the Revised Code or any eligible securities | 784 |
dealer pursuant to division (J) of this section, under the terms | 785 |
of which agreement the investing authority purchases and the | 786 |
eligible institution or dealer agrees unconditionally to | 787 |
repurchase any of the securities listed in divisions (B)(1) to | 788 |
(5), except letters of credit described in division (B)(2), of | 789 |
section 135.18 of the Revised Code. The market value of securities | 790 |
subject to an overnight written repurchase agreement must exceed | 791 |
the principal value of the overnight written repurchase agreement | 792 |
by at least two per cent. A written repurchase agreement must | 793 |
exceed the principal value of the overnight written repurchase | 794 |
agreement, by at least two per cent. A written repurchase | 795 |
agreement shall not exceed thirty days, and the market value of | 796 |
securities subject to a written repurchase agreement must exceed | 797 |
the principal value of the written repurchase agreement by at | 798 |
least two per cent and be marked to market daily. All securities | 799 |
purchased pursuant to this division shall be delivered into the | 800 |
custody of the investing authority or the qualified custodian of | 801 |
the investing authority or an agent designated by the investing | 802 |
authority. A written repurchase agreement with an eligible | 803 |
securities dealer shall be transacted on a delivery versus payment | 804 |
basis. The agreement shall contain the requirement that for each | 805 |
transaction pursuant to the agreement the participating | 806 |
institution shall provide all of the following information: | 807 |
(1) The par value of the securities; | 808 |
(2) The type, rate, and maturity date of the securities; | 809 |
(3) A numerical identifier generally accepted in the | 810 |
securities industry that designates the securities. | 811 |
No investing authority shall enter into a written repurchase | 812 |
agreement under the terms of which the investing authority agrees | 813 |
to sell securities owned by the county to a purchaser and agrees | 814 |
with that purchaser to unconditionally repurchase those | 815 |
securities. | 816 |
(E) No investing authority shall make an investment under | 817 |
this section, unless the investing authority, at the time of | 818 |
making the investment, reasonably expects that the investment can | 819 |
be held until its maturity. The investing authority's written | 820 |
investment policy shall specify the conditions under which an | 821 |
investment may be redeemed or sold prior to maturity. | 822 |
(F) No investing authority shall pay a county's inactive | 823 |
moneys or moneys of a county public library fund into a fund | 824 |
established by another subdivision, treasurer, governing board, or | 825 |
investing authority, if that fund was established by the | 826 |
subdivision, treasurer, governing board, or investing authority | 827 |
for the purpose of investing or depositing the public moneys of | 828 |
other subdivisions. This division does not apply to the payment of | 829 |
public moneys into either of the following: | 830 |
(1) The Ohio subdivision's fund pursuant to division (A)(6) | 831 |
of this section; | 832 |
(2) A fund created solely for the purpose of acquiring, | 833 |
constructing, owning, leasing, or operating municipal utilities | 834 |
pursuant to the authority provided under section 715.02 of the | 835 |
Revised Code or Section 4 of Article XVIII, Ohio Constitution. | 836 |
For purposes of division (F) of this section, "subdivision" | 837 |
includes a county. | 838 |
(G) The use of leverage, in which the county uses its current | 839 |
investment assets as collateral for the purpose of purchasing | 840 |
other assets, is prohibited. The issuance of taxable notes for the | 841 |
purpose of arbitrage is prohibited. Contracting to sell securities | 842 |
not owned by the county, for the purpose of purchasing such | 843 |
securities on the speculation that bond prices will decline, is | 844 |
prohibited. | 845 |
(H) Any securities, certificates of deposit, deposit | 846 |
accounts, or any other documents evidencing deposits or | 847 |
investments made under authority of this section shall be issued | 848 |
in the name of the county with the county treasurer or investing | 849 |
authority as the designated payee. If any such deposits or | 850 |
investments are registrable either as to principal or interest, or | 851 |
both, they shall be registered in the name of the treasurer. | 852 |
(I) The investing authority shall be responsible for the | 853 |
safekeeping of all documents evidencing a deposit or investment | 854 |
acquired under this section, including, but not limited to, | 855 |
safekeeping receipts evidencing securities deposited with a | 856 |
qualified trustee, as provided in section 135.37 of the Revised | 857 |
Code, and documents confirming the purchase of securities under | 858 |
any repurchase agreement under this section shall be deposited | 859 |
with a qualified trustee, provided, however, that the qualified | 860 |
trustee shall be required to report to the investing authority, | 861 |
auditor of state, or an authorized outside auditor at any time | 862 |
upon request as to the identity, market value, and location of the | 863 |
document evidencing each security, and that if the participating | 864 |
institution is a designated depository of the county for the | 865 |
current period of designation, the securities that are the subject | 866 |
of the repurchase agreement may be delivered to the treasurer or | 867 |
held in trust by the participating institution on behalf of the | 868 |
investing authority. | 869 |
Upon the expiration of the term of office of an investing | 870 |
authority or in the event of a vacancy in the office for any | 871 |
reason, the officer or the officer's legal representative shall | 872 |
transfer and deliver to the officer's successor all documents | 873 |
mentioned in this division for which the officer has been | 874 |
responsible for safekeeping. For all such documents transferred | 875 |
and delivered, the officer shall be credited with, and the | 876 |
officer's successor shall be charged with, the amount of moneys | 877 |
evidenced by such documents. | 878 |
(J)(1) All investments, except for investments in securities | 879 |
described in divisions (A)(5), (6), and | 880 |
shall be made only through a member of the | 881 |
882 | |
(FINRA), through a bank, savings bank, or savings and loan | 883 |
association regulated by the superintendent of financial | 884 |
institutions, or through an institution regulated by the | 885 |
comptroller of the currency, federal deposit insurance | 886 |
corporation, or board of governors of the federal reserve system. | 887 |
(2) Payment for investments shall be made only upon the | 888 |
delivery of securities representing such investments to the | 889 |
treasurer, investing authority, or qualified trustee. If the | 890 |
securities transferred are not represented by a certificate, | 891 |
payment shall be made only upon receipt of confirmation of | 892 |
transfer from the custodian by the treasurer, governing board, or | 893 |
qualified trustee. | 894 |
(K)(1) Except as otherwise provided in division (K)(2) of | 895 |
this section, no investing authority shall make an investment or | 896 |
deposit under this section, unless there is on file with the | 897 |
auditor of state a written investment policy approved by the | 898 |
investing authority. The policy shall require that all entities | 899 |
conducting investment business with the investing authority shall | 900 |
sign the investment policy of that investing authority. All | 901 |
brokers, dealers, and financial institutions, described in | 902 |
division (J)(1) of this section, initiating transactions with the | 903 |
investing authority by giving advice or making investment | 904 |
recommendations shall sign the investing authority's investment | 905 |
policy thereby acknowledging their agreement to abide by the | 906 |
policy's contents. All brokers, dealers, and financial | 907 |
institutions, described in division (J)(1) of this section, | 908 |
executing transactions initiated by the investing authority, | 909 |
having read the policy's contents, shall sign the investment | 910 |
policy thereby acknowledging their comprehension and receipt. | 911 |
(2) If a written investment policy described in division | 912 |
(K)(1) of this section is not filed on behalf of the county with | 913 |
the auditor of state, the investing authority of that county shall | 914 |
invest the county's inactive moneys and moneys of the county | 915 |
public library fund only in time certificates of deposits or | 916 |
savings or deposit accounts pursuant to division (A)(3) of this | 917 |
section, no-load money market mutual funds pursuant to division | 918 |
(A)(5) of this section, or the Ohio subdivision's fund pursuant to | 919 |
division (A)(6) of this section. | 920 |
(L)(1) The investing authority shall establish and maintain | 921 |
an inventory of all obligations and securities acquired by the | 922 |
investing authority pursuant to this section. The inventory shall | 923 |
include a description of each obligation or security, including | 924 |
type, cost, par value, maturity date, settlement date, and any | 925 |
coupon rate. | 926 |
(2) The investing authority shall also keep a complete record | 927 |
of all purchases and sales of the obligations and securities made | 928 |
pursuant to this section. | 929 |
(3) The investing authority shall maintain a monthly | 930 |
portfolio report and issue a copy of the monthly portfolio report | 931 |
describing such investments to the county investment advisory | 932 |
committee, detailing the current inventory of all obligations and | 933 |
securities, all transactions during the month that affected the | 934 |
inventory, any income received from the obligations and | 935 |
securities, and any investment expenses paid, and stating the | 936 |
names of any persons effecting transactions on behalf of the | 937 |
investing authority. | 938 |
(4) The monthly portfolio report shall be a public record and | 939 |
available for inspection under section 149.43 of the Revised Code. | 940 |
(5) The inventory and the monthly portfolio report shall be | 941 |
filed with the board of county commissioners. The monthly | 942 |
portfolio report also shall be filed with the treasurer of state. | 943 |
(M) An investing authority may enter into a written | 944 |
investment or deposit agreement that includes a provision under | 945 |
which the parties agree to submit to nonbinding arbitration to | 946 |
settle any controversy that may arise out of the agreement, | 947 |
including any controversy pertaining to losses of public moneys | 948 |
resulting from investment or deposit. The arbitration provision | 949 |
shall be set forth entirely in the agreement, and the agreement | 950 |
shall include a conspicuous notice to the parties that any party | 951 |
to the arbitration may apply to the court of common pleas of the | 952 |
county in which the arbitration was held for an order to vacate, | 953 |
modify, or correct the award. Any such party may also apply to the | 954 |
court for an order to change venue to a court of common pleas | 955 |
located more than one hundred miles from the county in which the | 956 |
investing authority is located. | 957 |
For purposes of this division, "investment or deposit | 958 |
agreement" means any agreement between an investing authority and | 959 |
a person, under which agreement the person agrees to invest, | 960 |
deposit, or otherwise manage, on behalf of the investing | 961 |
authority, a county's inactive moneys or moneys in a county public | 962 |
library fund, or agrees to provide investment advice to the | 963 |
investing authority. | 964 |
(N)(1) An investment held in the county portfolio on | 965 |
September 27, 1996, that was a legal investment under the law as | 966 |
it existed before September 27, 1996, may be held until maturity | 967 |
968 | |
969 | |
970 | |
971 |
(2) An investment held in the county portfolio on | 972 |
973 | |
legal investment under the law as it existed before | 974 |
975 | |
maturity. | 976 |
Sec. 135.48. The state board of deposit may adopt rules under | 977 |
section 111.15 of the Revised Code that are necessary to implement | 978 |
this chapter. | 979 |
Sec. 3770.06. (A) There is hereby created the state lottery | 980 |
gross revenue fund, which shall be in the custody of the treasurer | 981 |
of state but shall not be part of the state treasury. All gross | 982 |
revenues received from sales of lottery tickets, fines, fees, and | 983 |
related proceeds in connection with the statewide lottery and all | 984 |
gross proceeds from statewide joint lottery games shall be | 985 |
deposited into the fund. The treasurer of state shall invest any | 986 |
portion of the fund not needed for immediate use in the same | 987 |
manner as, and subject to all provisions of law with respect to | 988 |
the investment of, state funds. The treasurer of state shall | 989 |
disburse money from the fund on order of the director of the state | 990 |
lottery commission or the director's designee. | 991 |
Except for gross proceeds from statewide joint lottery games, | 992 |
all revenues of the state lottery gross revenue fund that are not | 993 |
paid to holders of winning lottery tickets, that are not required | 994 |
to meet short-term prize liabilities, that are not credited to | 995 |
lottery sales agents in the form of bonuses, commissions, or | 996 |
reimbursements, that are not paid to financial institutions to | 997 |
reimburse those institutions for sales agent nonsufficient funds, | 998 |
and that are collected from sales agents for remittance to | 999 |
insurers under contract to provide sales agent bonding services | 1000 |
shall be transferred to the state lottery fund, which is hereby | 1001 |
created in the state treasury. In addition, all revenues of the | 1002 |
state lottery gross revenue fund that represent the gross proceeds | 1003 |
from the statewide joint lottery games and that are not paid to | 1004 |
holders of winning lottery tickets, that are not required to meet | 1005 |
short-term prize liabilities, that are not credited to lottery | 1006 |
sales agents in the form of bonuses, commissions, or | 1007 |
reimbursements, and that are not necessary to cover operating | 1008 |
expenses associated with those games or to otherwise comply with | 1009 |
the agreements signed by the governor that the director enters | 1010 |
into under division (J) of section 3770.02 of the Revised Code or | 1011 |
the rules the commission adopts under division (B)(5) of section | 1012 |
3770.03 of the Revised Code shall be transferred to the state | 1013 |
lottery fund. All investment earnings of the fund shall be | 1014 |
credited to the fund. Moneys shall be disbursed from the fund | 1015 |
pursuant to vouchers approved by the director. Total disbursements | 1016 |
for monetary prize awards to holders of winning lottery tickets in | 1017 |
connection with the statewide lottery and purchases of goods and | 1018 |
services awarded as prizes to holders of winning lottery tickets | 1019 |
shall be of an amount equal to at least fifty per cent of the | 1020 |
total revenue accruing from the sale of lottery tickets. | 1021 |
(B) Pursuant to Section 6 of Article XV, Ohio Constitution, | 1022 |
there is hereby established in the state treasury the lottery | 1023 |
profits education fund. Whenever, in the judgment of the director | 1024 |
of the state lottery commission, the amount to the credit of the | 1025 |
state lottery fund that does not represent proceeds from statewide | 1026 |
joint lottery games is in excess of that needed to meet the | 1027 |
maturing obligations of the commission and as working capital for | 1028 |
its further operations, the director of the state lottery | 1029 |
commission shall recommend the amount of the excess to be | 1030 |
transferred to the lottery profits education fund, and the | 1031 |
director of budget and management may transfer the excess to the | 1032 |
lottery profits education fund in connection with the statewide | 1033 |
lottery. In addition, whenever, in the judgment of the director of | 1034 |
the state lottery commission, the amount to the credit of the | 1035 |
state lottery fund that represents proceeds from statewide joint | 1036 |
lottery games equals the entire net proceeds of those games as | 1037 |
described in division (B)(5) of section 3770.03 of the Revised | 1038 |
Code and the rules adopted under that division, the director of | 1039 |
the state lottery commission shall recommend the amount of the | 1040 |
proceeds to be transferred to the lottery profits education fund, | 1041 |
and the director of budget and management may transfer those | 1042 |
proceeds to the lottery profits education fund. Investment | 1043 |
earnings of the lottery profits education fund shall be credited | 1044 |
to the fund. | 1045 |
The lottery profits education fund shall be used solely for | 1046 |
the support of elementary, secondary, vocational, and special | 1047 |
education programs as determined in appropriations made by the | 1048 |
general assembly, or as provided in applicable bond proceedings | 1049 |
for the payment of debt service on obligations issued to pay costs | 1050 |
of capital facilities, including those for a system of common | 1051 |
schools throughout the state pursuant to section 2n of Article | 1052 |
VIII, Ohio Constitution. When determining the availability of | 1053 |
money in the lottery profits education fund, the director of | 1054 |
budget and management may consider all balances and estimated | 1055 |
revenues of the fund. | 1056 |
(C) There is hereby established in the state treasury the | 1057 |
deferred prizes trust fund. With the approval of the director of | 1058 |
budget and management, an amount sufficient to fund annuity prizes | 1059 |
shall be transferred from the state lottery fund and credited to | 1060 |
the trust fund. The treasurer of state shall credit all earnings | 1061 |
arising from investments purchased under this division to the | 1062 |
trust fund. Within sixty days after the end of each fiscal year, | 1063 |
the treasurer of state shall certify to the director of budget and | 1064 |
management whether the actuarial amount of the trust fund is | 1065 |
sufficient over the fund's life for continued funding of all | 1066 |
remaining deferred prize liabilities as of the last day of the | 1067 |
fiscal year just ended. Also, within that sixty days, the director | 1068 |
of budget and management shall certify the amount of investment | 1069 |
earnings necessary to have been credited to the trust fund during | 1070 |
the fiscal year just ending to provide for such continued funding | 1071 |
of deferred prizes. Any earnings credited in excess of the latter | 1072 |
certified amount shall be transferred to the lottery profits | 1073 |
education fund. | 1074 |
To provide all or a part of the amounts necessary to fund | 1075 |
deferred prizes awarded by the commission in connection with the | 1076 |
statewide lottery, the treasurer of state, in consultation with | 1077 |
the commission, may invest moneys contained in the deferred prizes | 1078 |
trust fund which represents proceeds from the statewide lottery in | 1079 |
obligations of the type permitted for the investment of state | 1080 |
funds but whose maturities are thirty years or less. | 1081 |
Notwithstanding the requirements of any other section of the | 1082 |
Revised Code, to provide all or part of the amounts necessary to | 1083 |
fund deferred prizes awarded by the commission in connection with | 1084 |
statewide joint lottery games, the treasurer of state, in | 1085 |
consultation with the commission, may invest moneys in the trust | 1086 |
fund which represent proceeds derived from the statewide joint | 1087 |
lottery games in accordance with the rules the commission adopts | 1088 |
under division (B)(5) of section 3770.03 of the Revised Code. | 1089 |
Investments of the trust fund are not subject to the provisions of | 1090 |
division (A)(10) of section 135.143 of the Revised Code limiting | 1091 |
to twenty-five per cent the amount of the state's total average | 1092 |
portfolio that may be invested in debt interests other than | 1093 |
commercial paper and limiting to
| 1094 |
the amount that may be invested in debt interests, including | 1095 |
commercial paper, of a single issuer. | 1096 |
All purchases made under this division shall be effected on a | 1097 |
delivery versus payment method and shall be in the custody of the | 1098 |
treasurer of state. | 1099 |
The treasurer of state may retain an investment advisor, if | 1100 |
necessary. The commission shall pay any costs incurred by the | 1101 |
treasurer of state in retaining an investment advisor. | 1102 |
(D) The auditor of state shall conduct annual audits of all | 1103 |
funds and any other audits as the auditor of state or the general | 1104 |
assembly considers necessary. The auditor of state may examine all | 1105 |
records, files, and other documents of the commission, and records | 1106 |
of lottery sales agents that pertain to their activities as | 1107 |
agents, for purposes of conducting authorized audits. | 1108 |
(E) The state lottery commission shall establish an internal | 1109 |
audit plan before the beginning of each fiscal year, subject to | 1110 |
the approval of the office of internal audit in the office of | 1111 |
budget and management. At the end of each fiscal year, the | 1112 |
commission shall prepare and submit an annual report to the office | 1113 |
of internal audit for the office's review and approval, specifying | 1114 |
the internal audit work completed by the end of that fiscal year | 1115 |
and reporting on compliance with the annual internal audit plan. | 1116 |
(F) Whenever, in the judgment of the director of budget and | 1117 |
management, an amount of net state lottery proceeds is necessary | 1118 |
to be applied to the payment of debt service on obligations, all | 1119 |
as defined in sections 151.01 and 151.03 of the Revised Code, the | 1120 |
director shall transfer that amount directly from the state | 1121 |
lottery fund or from the lottery profits education fund to the | 1122 |
bond service fund defined in those sections. The provisions of | 1123 |
this division are subject to any prior pledges or obligation of | 1124 |
those amounts to the payment of bond service charges as defined in | 1125 |
division (C) of section 3318.21 of the Revised Code, as referred | 1126 |
to in division (B) of this section. | 1127 |
Section 2. That existing sections 135.14, 135.142, 135.143, | 1128 |
135.35, and 3770.06 of the Revised Code are hereby repealed. | 1129 |
Section 3. Section 135.14 of the Revised Code is presented | 1130 |
in this act as a composite of the section as amended by both Sub. | 1131 |
H.B. 473 and Am. Sub. H.B. 640 of the 123rd General Assembly. The | 1132 |
General Assembly, applying the principle stated in division (B) of | 1133 |
section 1.52 of the Revised Code that amendments are to be | 1134 |
harmonized if reasonably capable of simultaneous operation, finds | 1135 |
that the composite is the resulting version of the section in | 1136 |
effect prior to the effective date of the section as presented in | 1137 |
this act. | 1138 |