State Representative Richard Adams today announced that the Ohio House of Representatives has passed House Bill 209, which enables counties and other government subdivisions to receive full insurance coverage on their large-dollar, short-term deposit accounts by the Federal Deposit Insurance Corporation.The bill, sponsored by Representative Adams, would help to ensure that public entities can avoid the more costly protection that is required for large-dollar deposit balances of more than $250,000 through what is known as collateralization. Currently, public entities only have access to full FDIC coverage on large-dollar amounts if the funds are put into long-term certificates of deposit, meaning they must pay more to use large sums in the short-term.
“This legislation makes a common-sense change that will benefit our local government entities and the taxpayers,” Rep. Adams said. “I’m very pleased that the entire House of Representatives voted in support of it.”
Rather than collateralization or the use of a long-term certificate of deposit program, a county or government subdivision would be permitted to work with a bank to leverage the full FDIC coverage on short-term deposits. House Bill 209 will now move to the Ohio Senate for further consideration.
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