Ohio Administrative Code Title 135 - State Board of Deposit
Ohio Administrative Code Title 135 - State Board of Deposit
Overview
The State Board of Deposit is a key financial oversight body in Ohio. Its main role is to safeguard and manage the state's public funds by overseeing their deposit and investment. Title 135 of the Ohio Administrative Code governs how the Board operates, the responsibilities of its members, and the procedures it follows for managing state funds.
Purpose and Scope
To oversee the deposit and safekeeping of Ohio’s public funds.
To approve and regulate banking arrangements for state funds.
To ensure transparency, accountability, and proper management of public monies.
To protect the state’s financial interests and maintain public trust.
Key Provisions of OAC Title 135
1. Composition and Authority
The Board typically consists of the State Treasurer, Auditor of State, and other appointed officials.
It has the statutory authority to approve financial institutions where public funds may be deposited.
Responsible for reviewing and approving collateral requirements to secure deposits.
2. Depository Selection and Management
The Board evaluates and selects banks or financial institutions as official depositories for state funds.
It sets terms for deposits, including interest rates, fees, and collateral pledging.
Reviews contracts and agreements between the state and depositories.
3. Collateral and Security Requirements
Requires depositories to pledge collateral to protect state funds against bank insolvency.
Specifies types of acceptable collateral (e.g., government securities).
Monitors ongoing compliance with collateral requirements.
4. Reporting and Accountability
Mandates regular reporting by depositories and state officials on fund balances, deposits, and collateral.
Reviews audits and financial statements related to public funds.
Ensures compliance with state laws and administrative rules regarding fund management.
5. Meetings and Decision-Making
The Board meets regularly to review depository status, fund management, and financial risks.
Decisions are recorded and made accessible to ensure public transparency.
Relevant Case Law
Case 1: Authority to Require Collateral
Summary: A dispute arose over whether the Board could require a bank to pledge collateral beyond statutory minimums.
Holding: Courts upheld the Board’s authority to set reasonable collateral requirements to protect public funds.
Reasoning: The Board’s mandate to safeguard state funds includes the power to demand adequate security.
Case 2: Depository Selection Process
Summary: A bank challenged the Board’s decision to exclude it from depository status.
Holding: Courts found that the Board has discretion in selecting depositories, provided the process is fair and consistent with law.
Reasoning: Discretionary authority is necessary to manage public funds prudently.
Case 3: Public Transparency and Record Keeping
Summary: Litigation over access to Board meeting records and deposit agreements.
Holding: Courts affirmed the Board’s obligation to maintain transparency under public records laws.
Reasoning: Public oversight is essential to maintain trust in the management of public monies.
Case 4: Fiduciary Responsibility
Summary: Allegations that Board members failed to properly oversee fund deposits.
Holding: Courts reiterated that Board members hold fiduciary duties to act prudently and in the state’s best interest.
Reasoning: Proper oversight protects taxpayers and ensures lawful financial management.
Summary
Ohio Administrative Code Title 135 establishes the framework for the State Board of Deposit to supervise the safeguarding and management of Ohio’s public funds. It empowers the Board to select and regulate depositories, enforce collateral requirements, and ensure transparency and accountability. Courts consistently uphold the Board’s authority while emphasizing fair process, fiduciary duty, and public transparency.
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