COLUMBUS—State Representative Scott Wiggam (R-Wayne County) announced that Governor John Kasich has signed the “Protect Local Treasuries Act” this week. This bill allows local governments, as well as schools and libraries, to purchase insurance instead of bonds to protect against loss of tax dollars through unintentional or unfaithful actions of elected and appointed officials.
House Bill 291 modernizes a practice that has been in place in Ohio for more than 60 years and allows flexibility and cost savings while protecting the local treasury at a higher monetary level. Representative Wiggam’s bill will save local governments’ time, resources, and money.
“This law enables local governments to protect their treasuries with modern insurance policies instead of bonds. Since most local governments now purchase both insurance and bonds, deleting the mandatory purchase of bonds can save millions of local tax dollars across the state of Ohio every year,” said Representative Wiggam.
The bill specifies that insurance coverage purchased must be equal to or greater than the rate of current bonds set in statute for all officers, employees, and appointees who are required by law to file a bond.
Supported by the County Commissioners Association of Ohio, Ohio Municipal League Ohio Township Association and the Ohio Association of School Business Officials, the bill passed unanimously through the House and Senate chambers before receiving the Governor’s signature.