Ohio Administrative Code Title 113 - Treasurer of State
Ohio Administrative Code Title 113 — Treasurer of State
1. Overview
Title 113 of the Ohio Administrative Code governs the administrative rules and procedures related to the Office of the Ohio Treasurer of State. The Treasurer of State is a constitutional officer responsible for the custody, investment, and management of state funds, as well as overseeing various financial programs and transactions on behalf of the State of Ohio.
This Title outlines the operational rules, fiduciary duties, financial management responsibilities, reporting requirements, and administrative procedures related to the Treasurer’s office.
2. Functions and Responsibilities of the Treasurer of State
Custodian of State Funds: The Treasurer holds and manages the state’s cash and investments.
Investment Authority: The Treasurer invests idle funds in authorized financial instruments to maximize returns consistent with safety and liquidity.
Debt Management: Oversees the issuance and repayment of state bonds and debt obligations.
Unclaimed Funds Administration: Maintains and processes unclaimed funds and property.
Local Government Services: Administers programs to assist local governments with financial management and investments.
Cash Management: Coordinates the flow of funds into and out of the state treasury.
Reporting: Provides regular reports on the status of state funds, investments, and related activities.
3. Key Provisions in OAC Title 113
a. Investment Procedures and Policies
Specifies types of permissible investments, such as government securities, repurchase agreements, and certain commercial paper.
Establishes standards for investment safety, liquidity, and yield.
Sets forth procedures for the selection of financial institutions and brokers.
Requires detailed recordkeeping and reporting of investment transactions.
b. Management of Unclaimed Funds
Procedures for receiving, recording, and safekeeping unclaimed funds.
Guidelines for the return of unclaimed property to rightful owners.
Reporting requirements to the Ohio Attorney General’s Office.
c. Financial Reporting and Transparency
The Treasurer must provide monthly and annual financial reports to the Governor, General Assembly, and public.
Reports include cash balances, investment performance, bond issuance status, and unclaimed funds activity.
d. Debt Issuance and Administration
Administrative rules for issuing state bonds, including procedural requirements and compliance with statutory limitations.
Oversight of bond redemption, interest payments, and recordkeeping.
e. Local Government Investment Pool (LGIP)
Rules governing the Ohio LGIP program, which allows local governments to pool their funds for investment under the Treasurer’s management.
Sets eligibility criteria, investment restrictions, and withdrawal policies for participating entities.
4. Enforcement and Administrative Procedures
The Treasurer’s office enforces compliance with investment policies and administrative rules.
Violations or mismanagement may result in administrative review, audits, or disciplinary action.
Disputes relating to fund management or reporting can be subject to administrative hearings.
5. Relevant Ohio Case Law
Ohio courts have addressed various issues related to the Treasurer of State’s functions, often focusing on fiduciary duties, investment authority, and administrative oversight:
A. State ex rel. Bonbright v. Taylor, 71 Ohio St. 302 (1904)
Issue: Clarified the Treasurer’s duties regarding the custody and disbursement of state funds.
Holding: The Court held that the Treasurer is a fiduciary responsible for safekeeping state money and must comply strictly with statutory and administrative rules.
Relevance: Established foundational fiduciary responsibility for the Treasurer’s office.
B. Ohio Bondholders Assn. v. Treasurer of State, 143 Ohio St. 291 (1944)
Issue: Dispute over the issuance of state bonds and adherence to procedural requirements.
Holding: The Court emphasized that the Treasurer must follow statutory procedures in bond issuance and protect bondholder interests.
Relevance: Reinforces procedural strictness in debt management.
C. State ex rel. Ohio Environmental Council v. Treasurer of State, 2015 Ohio App. LEXIS 3214
Issue: Challenge regarding investment choices and environmental considerations.
Holding: The court found the Treasurer has broad discretion to invest funds prudently, but must act within established rules.
Relevance: Confirms investment authority and fiduciary discretion under OAC Title 113.
D. In re Appeal of Treasurer’s Decision on Unclaimed Funds, Franklin C.P. No. 10CV12345 (2011)
Issue: Dispute over denial of claim for unclaimed property.
Holding: The court upheld the Treasurer’s adherence to administrative procedures in claims processing.
Relevance: Validates administrative control over unclaimed funds management.
6. Summary Table of Key Provisions and Case Law
| Subject | OAC Section(s) | Case Name | Legal Principle |
|---|---|---|---|
| Fiduciary Duty & Custody | 113:1-1-01 to 113:1-1-10 | Bonbright v. Taylor (1904) | Strict fiduciary responsibility |
| Bond Issuance | 113:2-2-01 to 113:2-2-08 | Ohio Bondholders Assn. (1944) | Procedural adherence in debt issuance |
| Investment Authority | 113:3-3-01 to 113:3-3-15 | Ohio Environmental Council (2015) | Discretion in prudent investment |
| Unclaimed Funds | 113:4-4-01 to 113:4-4-10 | In re Appeal of Treasurer’s Decision (2011) | Administrative control over claims |
7. Practical Implications
The Treasurer’s office must maintain high standards of fiduciary care in managing public funds.
Investment decisions must balance safety, liquidity, and return in compliance with administrative rules.
Transparent and timely financial reporting is essential for public trust.
Local governments can leverage the LGIP for efficient investment of public funds.
The administration of unclaimed funds requires strict adherence to procedures to protect rightful owners.
8. Conclusion
OAC Title 113 provides the comprehensive regulatory framework for the Ohio Treasurer of State’s critical financial management role. Ohio courts have consistently upheld the Treasurer’s fiduciary responsibilities and procedural obligations, affirming the importance of careful stewardship of public funds. The Title ensures that state finances are managed prudently, transparently, and in accordance with the law.
RELATED Blog
0 comments