Ohio § 4123.44

§ 4123.44.

The members of the bureau of workers' compensation board of directors, the administrator

of workers' compensation, and the bureau of workers' compensation chief investment

officer are fiduciaries to the state insurance fund.  The administrator, in accordance with sections 4121.126 and 4121.127 of the Revised Code and the investment policy approved by the board pursuant to section 4121.12 of the Revised Code , and in consultation with the bureau of workers' compensation chief investment officer,

may invest any of the surplus or reserve belonging to the state insurance fund.  The administrator and the bureau of workers' compensation chief investment officer

shall not deviate from the investment policy approved by the board without the approval

of the workers' compensation investment committee and the board. The administrator shall not invest in any type of investment specified in divisions

(B)(1) to (10) of section 4123.442 of the Revised Code.  The administrator shall not make an investment decision with the primary purpose

of influencing any social or environmental policy or attempting to influence the governance

of any corporation. The administrator and other fiduciaries shall discharge their duties with respect

to the funds with the care, skill, prudence, and diligence under the circumstances

then prevailing that a prudent person acting in a like capacity and familiar with

such matters would use in the conduct of an enterprise of a like character and with

like aims, and by diversifying the investments of the assets of the funds so as to

minimize the risk of large losses, unless under the circumstances it is clearly prudent

not to do so. The administrator and other fiduciaries, in accordance with their fiduciary duties

described under this section, shall make investment decisions with the sole purpose

of maximizing the return on investments and that are consistent with any other fiduciary

responsibilities of the administrator and other fiduciaries under this chapter and

Chapters 4121., 4127., and 4131. of the Revised Code. To facilitate investment of the funds, the administrator may establish a partnership,

trust, limited liability company, corporation, including a corporation exempt from

taxation under the Internal Revenue Code, 100 Stat. 2085, 26 U.S.C. 1 , as amended, or any other legal entity authorized to transact business in this state. When reporting on the performance of investments, the administrator shall comply with

the performance presentation standards established by the association for investment

management and research. All investments shall be purchased at current market prices and the evidences of title

to the investments shall be placed in the custody of the treasurer of state, who is

hereby designated as custodian, or in the custody of the treasurer of state's authorized

agent.  Evidences of title of the investments so purchased may be deposited by the treasurer

of state for safekeeping with an authorized agent selected by the treasurer of state

who is a qualified trustee under section 135.18 of the Revised Code .  The treasurer of state or the agent shall collect the principal, dividends, distributions,

and interest as they become due and payable and place them when collected into the

state insurance fund. The treasurer of state shall pay for investments purchased by the administrator on

receipt of written or electronic instructions from the administrator or the administrator's

designated agent authorizing the purchase, and pending receipt of the evidence of

title of the investment by the treasurer of state or the treasurer of state's authorized

agent.  The administrator may sell investments held by the administrator, and the treasurer

of state or the treasurer of state's authorized agent shall accept payment from the

purchaser and deliver evidence of title of the investment to the purchaser, on receipt

of written or electronic instructions from the administrator or the administrator's

designated agent authorizing the sale, and pending receipt of the moneys for the investments.  The amount received shall be placed in the state insurance fund.  The administrator and the treasurer of state may enter into agreements to establish

procedures for the purchase and sale of investments under this division and the custody

of the investments. No purchase or sale of any investment shall be made under this section, except as

authorized by the administrator. Any statement of financial position distributed by the administrator shall include

the fair value, as of the statement date, of all investments held by the administrator

under this section. When in the judgment of the administrator it is necessary to provide available funds

for the payment of compensation or benefits under this chapter, the administrator

may borrow money from any available source and pledge as security a sufficient amount

of bonds or other securities in which the state insurance fund is invested.  The aggregate unpaid amount of loans existing at any one time for money so borrowed

shall not exceed ten million dollars.  The bonds or other securities so pledged as security for such loans to the administrator

shall be the sole security for the payment of the principal and interest of any such

loan.  The administrator shall not be personally liable for the payment of the principal

or the interest of any such loan.  No such loan shall be made for a longer period of time than one year.  Such loans may be renewed but no one renewal shall be for a period in excess of

one year.  Such loans shall bear such rate of interest as the administrator determines and

in negotiating the loans, the administrator shall endeavor to secure as favorable

interest rates and terms as circumstances will permit. The treasurer of state may deliver to the person or governmental agency making such

loan, the bonds or other securities which are to be pledged by the administrator as

security for such loan, upon receipt by the treasurer of state of an order of the

administrator authorizing such loan.  Upon payment of any such loan by the administrator, the bonds or other securities

pledged as security therefor shall be returned to the treasurer of state as custodian

of such bonds. The administrator may pledge with the treasurer of state such amount of bonds or other

securities in which the state insurance fund is invested as is reasonably necessary

as security for any certificates issued, or paid out, by the treasurer of state upon

any warrants drawn by the administrator. The administrator may secure investment information services, consulting services,

and other like services to facilitate investment of the surplus and reserve belonging

to the state insurance fund.  The administrator shall pay the expense of securing such services from the state

insurance fund. The board and administrator shall not take any action to promote a policy under which

the administrator makes investment decisions with the primary purpose of influencing

any social or environmental policy or attempting to influence the governance of any

corporation.