OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
S.B. 115 Final Analysis
134th General Assembly
Click here for S.B. 115’s Fiscal Note
Version: As Passed by the General Assembly
Primary Sponsor: Sen. Schuring
Effective date: March 2, 2022
Effective Date:
Carla Napolitano, Attorney
SUMMARY
 Gives a public depository in the Ohio Pooled Collateral Program two business days to
pledge additional securities to satisfy the minimum collateral requirement if the value of
its existing pledged securities falls below that minimum.
 Exempts a public depositor, treasurer, or the public depositor’s or treasurer’s bonders
or surety from liability for the loss of funds due to a public depository’s failure to
maintain sufficient pledged collateral.
DETAILED ANALYSIS
Ohio Pooled Collateral Program
The Ohio Pooled Collateral Program (OPCP) is a program administered by the Ohio
Treasurer of State with the purpose of protecting government deposits, both state and local, by
streamlining the process of pledging collateral to secure public deposits. The Treasurer’s office
is the sole administrator of the program and is responsible for managing the pledged
collateral.1
Under continuing law, a public depository, an institution that receives or holds public
moneys, such as a qualified bank, must provide security for the repayment of those deposits in
one of two ways. First, it may secure any uninsured public deposits of each public depositor
separately at 105% at all times. Or, it may participate in the OPCP and secure any uninsured
1 R.C. 135.182 and R.C. 135.01 and 135.31, not in the act, and Ohio Pooled Collateral System, Ohio
Treasurer of State, https://tos.ohio.gov/ohio-pooled-collateral-system/.
December 3, 2021
Office of Research and Drafting LSC Legislative Budget Office
public deposits by establishing and pledging to the Treasurer of State a single pool of collateral
for the benefit of every public depositor at the public depository.2
In other words, it may secure the deposits of each depositor separately or together. If it
chooses the latter, it must follow the requirements of the OPCP. The OPCP requires that at all
times, the total market value of the pledged securities equal at least 102% of all uninsured
public deposits at that institution or an amount determined by rules adopted by the Treasurer
of State.3
The act makes two changes to the OPCP related to minimum collateral requirements
and liability.
Collateral
First, the act adds a requirement that if, on any day, the total market value of the
securities pledged by the public depository is less than the applicable minimum requirement,
the depository has two business days to pledge additional eligible securities having a market
value sufficient, when combined with the market value of eligible securities already pledged, to
satisfy the minimum requirement to secure the repayment of all uninsured public deposits at
the public depository.4 In other words, if the public funds become under-collateralized, the
public depository has a two-day grace period to correct the problem and still be in compliance
with OPCP. Two common reasons for under-collateralization are an unexpected increase in
public deposits at the public depository or a decrease in the value of the existing pledged
collateral due to market conditions.5
Liability
The second change made by the act relates to liability for loss of funds. Under
continuing law, in order to accept public moneys, a public depository must, in addition to
pledging collateral as described above, enter into an agreement with the Treasurer of State that
meets certain requirements.6 The act explicitly exempts a public depositor, treasurer (whether
the Treasurer of State or the treasurer of a political subdivision), or the public depositor’s or
treasurer’s bonders or surety from liability for the loss of funds if a public depository fails to
comply with the agreement’s terms regarding the appropriate level of collateral.7
2 R.C. 135.18 and 135.37, not in the act.
3 R.C. 135.182(B).
4 R.C. 135.182(B)(3).
5 Robert Sprague, Ohio Treasurer, Ohio Pooled Collateral System (OPCS): Public Unit Best Practices,
http://ohiocountytreasurers.org/aws/CTAO/asset_manager/get_file/391265?ver=1365.
6 R.C. 135.182(D).
7 R.C. 135.182(K) and 135.01.
P a g e |2 S.B. 115
As Passed by the General Assembly
Office of Research and Drafting LSC Legislative Budget Office
HISTORY
Action Date
Introduced 03-03-21
Reported, S. Financial Institutions & Technology 05-11-21
Passed Senate (33-0) 06-02-21
Reported, H. Financial Institutions 09-29-21
Passed House (83-0) 11-18-21
21-SB115-134/ar
P a g e |3 S.B. 115
As Passed by the General Assembly


Statutes affected:
As Introduced: 135.182
As Reported By Senate Committee: 135.182
As Passed By Senate: 135.182
As Reported By House Committee: 135.182
As Passed By House: 135.182
As Enrolled: 135.182