[Mail_treas] OASBO update from President Ryan Ghizzoni

[Kim Laugherty]

For those who do not receive OASBO communications, OASBO President Ryan Ghizzoni wanted to share the following information regarding licensure and liability issues.

In light of the significant discussion that has occurred over the past two days regarding licensure and treasurer/CFO liability, I would like to provide some updates regarding OASBO's work on this issue. We share your concerns and will continue to advocate for relief and coverage on matters outside the control of your position. Please see below for the latest updates.

Licensure Issues
As you know, there have been some districts receive findings for recovery due to payments being made to unlicensed individuals. OASBO has met numerous times with the Auditor of State (AOS) and Ohio Department of Education (ODE) regarding this matter and continue to seek ways to mitigate this risk.

When OASBO first became aware of the recent focus on treasurer/CFO liability on licensure matters, we commissioned a legal analysis and recommendations from our legal counsel, Squire Patton Boggs (SPB). We were seeking possible legislative options to provide relief for members. Because of the "strict liability" provisions in the Ohio Revised Code (ORC) also apply to other local government entities, SPB opined that it would be very difficult to achieve a change that applies only to school treasurer/CFOs. OASBO has expressed our concerns with AOS and ODE regarding the lack of control treasurer/CFOs have in these decisions but short of a legislative change, the strict liability provision appears to be the issue.

OASBO has offered training sessions with ODE and AOS on the licensure issue as well as published practical guidelines in the January 2017 SBO Quarterly. We recognize training and guidance don't change the fact that treasurer/CFOs are responsible for a multitude of things outside their control.

Removing "strict liability" for only school treasurers/CFOs will be challenging. However, we hope that everyone who has concerns about this situation has already been informing their own legislators about the liability faced by public school treasurer/CFOs, even when they have no control over who gets hired, etc. If we are to achieve a comprehensive legislative remedy, it will take a lot of grassroots involvement.

Advocacy
After SPB's commissioned legal analysis, one recommendation was actually sought and achieved through the budget bill last year (HB 49). Since the most recent Findings for Recovery (FFRs) issued against treasurers at the time, were because a substitute educational aide did not hold the proper permit (and had worked in two districts), we successfully advocated for a change in the law that:


  1.  Gives districts more flexibility in hiring a substitute educational aide who does not hold a permit (if the superintendent believes they are qualified, the district can have the person submit the application to ODE and begin working that same day), and
  2.  A clarification that substitute educational aides do need a permit (we had reports that superintendents didn't think the substitute aides needed to be credentialed).

Because we had heard concerns expressed by superintendents over the difficulty in finding properly credentialed substitute teachers (leading to improper hires), we successfully lobbied ODE and the state board of education to allow substitute teachers not licensed in a subject area, to be in that classroom for more than 5 days at a time. The state board changed the administrative rule to allow unqualified substitutes to teach the course for 60 days. The rule change became effective November 2, 2017.

As a result of comments made by members during our all-day April 3, 2017 seminar on the topic of treasurer liability, OASBO requested that ODE develop a form for the treasurer/CFO to use when requiring that the superintendent verify that everyone in the district is properly credentialed. You can download the form here: https://cms.oasbo-ohio.org/getmedia/637cecb6-db6c-41b7-bff9-e5add568e8fd/Treasurers-License-Status-Verification-Form

OASBO also requested that ODE send notifications about licensure issues to treasurer/CFOs ~ not just superintendents. The Office of Professional Conduct now notifies both the superintendent and treasurer of a district of any disciplinary action that the office takes against an educator's license. The office added the additional notification to district treasurers to its disciplinary process several months ago.

The OASBO AOS Advisory Committee meets quarterly with Chief Deputy AOS, Bob Hinkle. The group has discussed treasurer/CFO liability at previous meetings with Chief Deputy Hinkle, and the members will raise the issue again at the meeting on March 5, in the strongest of terms. But again, an ORC change may be required to affect a release from "strict liability".

Professional Liability Insurance
OASBO is seeking quotes to purchase professional liability coverage for all Professional Members as a member benefit. Today, to the best of our knowledge, all standard professional liability policies exclude claims against the "Treasurer's Bond." If we are unable to provide a standard policy, we are looking at options to self-insure the risk to protect our members.

One thing you may not know ~ OASBO provides professional (legal) assistance, to Professional Members, when a treasurer/CFO encounters liability issues. In fact, we have assisted members in the recent incidences where FFRs were issued against them. While we hope there will not be such a need in the future, please don't hesitate to contact us if the need arises.

I hope this information is beneficial, and we will update you following the AOS Advisory Committee meeting scheduled for March 5.

Regards,
Ryan Ghizzoni
Berea City Schools Treasurer/CFO

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