Under a new Ohio law, school district and educational service center treasurers will no longer be strictly and individually liable for the loss or misuse of public money under their control, regardless of their own blame or fault.

Ohio House Bill 491, signed by Governor Kasich on December 19, 2018, provides an exception to the general rule of strict liability for loss of public funds, where a a treasurer has performed all official duties with reasonable care. As a result, a treasurer will not be held liable unless the funds were lost as a result of the treasurer's own negligence or other wrongful act. House Bill 491 further specifies that a treasurer will not be strictly liable where the treasurer relied on on the accuracy of district non-financial information or data, including: (1) EMIS reports; (2) pupil transportation reports; and (3) licensure or other credentialing information; again, unless the loss results from the treasurer's negligence or other wrongful act.

Moreover, under current law, a school district or ESC treasurer may pay a teacher for services only after the teacher files with the treasurer: (1) all required reports ; and (2) a written statement from the superintendent that the teacher has filed with the treasurer a valid educator license to teach the subjects or grades to which the teacher is assigned. House Bill 491 makes each teacher's payments contingent upon a written statement from the superintendent or a designee that the teacher has filed with the superintendent or designee (and not the treasurer) the required reports and the valid educator license. The bill also expressly requires each teacher to file the reports and license.

A treasurer who makes any payment in compliance with this new procedure cannot be held liable for a loss of public funds, unless the loss results from the treasurer's own negligence or other wrongful act. This protection also extends to the superintendent or designee, unless the loss results from his or her own negligence or wrongful act.

The law becomes effective 90 days after filing with the Ohio Secretary of State. Moreover, the law will apply to any matter involving a school treasurer that, as of the law’s effective date, has not been resolved through all available appeals.