Wilson Announces Passage of Bill Giving County Treasurers Greater Flexibility and Authority to Invest
June 7, 2018
COLUMBUS—State Senator Steve Wilson (R-Maineville) today announced the House passage of his legislation giving greater authority and flexibility to county treasurers to invest. Senate Bill 163 will increase opportunities for higher yields, diversification of investments and better equip the elected county treasurers to protect taxpayer money.
“This legislation gives county treasurers a chance to increase portfolio yields with very minimal risk,” said Wilson. “The changes in Senate Bill 163 will have a positive impact on communities across Ohio by providing a new potential means to generate local funds without raising taxes.”
Treasurers who take advantage of this increased flexibility will have the potential to generate additional revenue using a new category of investments.
Under current law, county treasurers are only permitted to invest in corporate bonds with the two highest credit ratings: AAA or AA ratings. Issuance of corporate paper within these categories is limited, and consequently county investment portfolios have been forced into concentrated positions and their effectiveness of having corporate debt securities available has been limited.
Senate Bill 163 seeks to alleviate restrictions by providing county treasurers with the option to invest in bonds that are rated in the top three credit categories, adding A rated corporate bonds as an investment option for counties. This legislation would also expand the allowable maturity of securities from two to three years.