As Introduced                            1            

122nd General Assembly                                             4            

   Regular Session                                 H. B. No. 562   5            

      1997-1998                                                    6            


  REPRESENTATIVES DAMSCHRODER-TERWILLEGER-TAYLOR-GARCIA-MOTTLEY    8            


                                                                   10           

                           A   B I L L                                          

             To amend sections 111.15, 131.15, 135.18, 135.181,    12           

                3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and   13           

                4501.02 and to repeal sections 1107.36,  3351.05,  14           

                3351.06, 3351.071, 3351.08, 3351.09, 3351.10,      15           

                3351.11, 3351.12, 3351.13, and 3351.131 of the     16           

                Revised Code to remove statutory  references to    17           

                the Ohio Student Aid Commission.                   18           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        19           

      Section 1.  That sections 111.15, 131.15, 135.18, 135.181,   21           

3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 of the    22           

Revised Code be amended to read as follows:                        23           

      Sec. 111.15.  (A)  As used in this section:                  32           

      (1)  "Rule" includes any rule, regulation, bylaw, or         34           

standard having a general and uniform operation adopted by an      35           

agency under the authority of the laws governing the agency; any   36           

appendix to a rule; and any internal management rule.  "Rule"      37           

does not include any guideline adopted pursuant to section         38           

3301.0714 of the Revised Code, any order respecting the duties of  39           

employees, any finding, any determination of a question of law or  40           

fact in a matter presented to an agency, or any rule promulgated   41           

pursuant to Chapter 119., section 4141.14, division (C)(1) or (2)  42           

of section 5117.02, or section 5703.14 of the Revised Code.        43           

"Rule" includes any amendment or rescission of a rule.             44           

      (2)  "Agency" means any governmental entity of the state     46           

and includes, but is not limited to, any board, department,        47           

division, commission, bureau, society, council, institution,       48           

                                                          2      

                                                                 
state college or university, community college district,           49           

technical college district, or state community college.  "Agency"  50           

does not include the general assembly or any court.                51           

      (3)  "Internal management rule" means any rule, regulation,  53           

bylaw, or standard governing the day-to-day staff procedures and   54           

operations within an agency.                                       55           

      (4)  "Substantive revision" has the same meaning as in       57           

division (J) of section 119.01 of the Revised Code.                58           

      (B)(1)  Any rule, other than a rule of an emergency nature,  60           

adopted by any agency pursuant to this section shall be effective  61           

on the tenth day after the day on which the rule in final form     62           

and in compliance with division (B)(3) of this section is filed    63           

as follows:                                                        64           

      (a)  Two certified copies of the rule shall be filed with    66           

both the secretary of state and the director of the legislative    67           

service commission;                                                68           

      (b)  Two certified copies of the rule shall be filed with    70           

the joint committee on agency rule review.  Division (B)(1)(b) of  71           

this section does not apply to any rule to which division (D) of   72           

this section does not apply.                                       73           

      An agency that adopts or amends a rule that is subject to    75           

division (D) of this section shall assign a review date to the     77           

rule that is not later than five years after its effective date.                

If no review date is assigned to a rule, or if a review date       78           

assigned to a rule exceeds the five-year maximum, the review date  79           

for the rule is five years after its effective date.  A rule with  80           

a review date is subject to review under section 119.032 of the    81           

Revised Code.  This paragraph does not apply to a rule of a state  83           

college or university, community college district, technical                    

college district, or state community college.                      84           

      If all copies are not filed on the same day, the rule shall  86           

be effective on the tenth day after the day on which the latest    87           

filing is made.  If an agency in adopting a rule designates an     88           

effective date that is later than the effective date provided for  89           

                                                          3      

                                                                 
by division (B)(1) of this section, the rule if filed as required  90           

by such division shall become effective on the later date          91           

designated by the agency.                                          92           

      Any rule that is required to be filed under division (B)(1)  94           

of this section is also subject to division (D) of this section    95           

if not exempted by division (D)(1), (2), (3), (4), (5), (6), (7),  97           

or (8) of this section.                                                         

      (2)  A rule of an emergency nature necessary for the         99           

immediate preservation of the public peace, health, or safety      100          

shall state the reasons for the necessity.  Copies of the          101          

emergency rule, in final form and in compliance with division      102          

(B)(3) of this section, shall be filed as follows:  two certified  103          

copies of the emergency rule shall be filed with both the          104          

secretary of state and the director of the legislative service     105          

commission, and one certified copy of the emergency rule shall be  106          

filed with the joint committee on agency rule review.  The         107          

emergency rule is effective immediately upon the latest filing,    108          

except that if the agency in adopting the emergency rule           109          

designates an effective date, or date and time of day, that is     110          

later than the effective date and time provided for by division    111          

(B)(2) of this section, the emergency rule if filed as required    112          

by such division shall become effective at the later date, or      113          

later date and time of day, designated by the agency.              114          

      An emergency rule becomes invalid at the end of the          116          

ninetieth day it is in effect.  Prior to that date, the agency     117          

may file the emergency rule as a nonemergency rule in compliance   118          

with division (B)(1) of this section.  The agency may not refile   119          

the emergency rule in compliance with division (B)(2) of this      120          

section so that, upon the emergency rule becoming invalid under    121          

such division, the emergency rule will continue in effect without  122          

interruption for another ninety-day period.                        123          

      (3)  An agency shall file a rule under division (B)(1) or    125          

(2) of this section in compliance with the following standards     126          

and procedures:                                                    127          

                                                          4      

                                                                 
      (a)  The rule shall be numbered in accordance with the       129          

numbering system devised by the director for the Ohio              130          

administrative code.                                               131          

      (b)  The rule shall be prepared and submitted in compliance  133          

with the rules of the legislative service commission.              134          

      (c)  The rule shall clearly state the date on which it is    136          

to be effective and the date on which it will expire, if known.    137          

      (d)  Each rule that amends or rescinds another rule shall    139          

clearly refer to the rule that is amended or rescinded.  Each      140          

amendment shall fully restate the rule as amended.                 141          

      If the director of the legislative service commission or     143          

the director's designee gives an agency written notice pursuant    145          

to section 103.05 of the Revised Code that a rule filed by the     146          

agency is not in compliance with the rules of the legislative      147          

service commission, the agency shall within thirty days after      148          

receipt of the notice conform the rule to the rules of the         149          

commission as directed in the notice.                              150          

      (C)  All rules filed pursuant to divisions (B)(1)(a) and     152          

(2) of this section shall be recorded by the secretary of state    153          

and the director under the title of the agency adopting the rule   154          

and shall be numbered according to the numbering system devised    155          

by the director.  The secretary of state and the director shall    156          

preserve the rules in an accessible manner.  Each such rule shall  157          

be a public record open to public inspection and may be lent to    158          

any law publishing company that wishes to reproduce it.            159          

      (D)  At least sixty days before a board, commission,         161          

department, division, or bureau of the government of the state     162          

files a rule under division (B)(1) of this section, it shall file  163          

two copies of the full text of the proposed rule with the joint    165          

committee on agency rule review, and the proposed rule is subject  168          

to legislative review and invalidation under division (I) of       169          

section 119.03 of the Revised Code.  If a state board,                          

commission, department, division, or bureau makes a substantive    170          

revision in a proposed rule after it is filed with the joint       171          

                                                          5      

                                                                 
committee, the state board, commission, department, division, or   173          

bureau shall promptly file two copies of the full text of the      175          

proposed rule in its revised form with the joint committee.  The   176          

latest version of a proposed rule as filed with the joint          177          

committee supersedes each earlier version of the text of the same  179          

proposed rule.  Except as provided in division (F) of this         180          

section, a state board, commission, department, division, or       181          

bureau shall attach one copy of the rule summary and fiscal        182          

analysis prepared under section 121.24 or 127.18 of the Revised    183          

Code, or both, to each copy of a proposed rule, and to each copy   184          

of a proposed rule in revised form, that is filed under this       185          

division.                                                          186          

      As used in this division, "commission" includes the public   188          

utilities commission when adopting rules under a federal or state  189          

statute.                                                                        

      This division does not apply to any of the following:        191          

      (1)  A proposed rule of an emergency nature;                 193          

      (2)  A rule proposed under section 1121.05, 1121.06,         195          

1155.18, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40,  196          

4123.411, 4123.44, or 4123.442 of the Revised Code;                198          

      (3)  A rule proposed by an agency other than a board,        200          

commission, department, division, or bureau of the government of   201          

the state;                                                         202          

      (4)  A proposed internal management rule of a board,         204          

commission, department, division, or bureau of the government of   205          

the state;                                                         206          

      (5)  A rule proposed by the Ohio student aid commission      208          

that complies with a federal law or rule, so long as the proposed  209          

rule contains both of the following:                               210          

      (a)  A statement that it is proposed for the purpose of      212          

complying with a federal law or rule;                              213          

      (b)  A citation to the federal law or rule that requires     215          

compliance.                                                        216          

      (6)  Any proposed rule that must be adopted verbatim by an   218          

                                                          6      

                                                                 
agency pursuant to federal law or rule, to become effective        219          

within sixty days of adoption, in order to continue the operation  220          

of a federally reimbursed program in this state, so long as the    221          

proposed rule contains both of the following:                      222          

      (a)  A statement that it is proposed for the purpose of      224          

complying with a federal law or rule;                              225          

      (b)  A citation to the federal law or rule that requires     227          

verbatim compliance.                                               228          

      (7)(6)  An initial rule proposed by the director of health   230          

to impose safety standards, quality-of-care standards, and         231          

quality-of-care data reporting requirements with respect to a      232          

health service specified in section 3702.11 of the Revised Code,   233          

or an initial rule proposed by the director to impose quality      235          

standards on a facility listed in division (A)(4) of section                    

3702.30 of the Revised Code, if section 3702.12 of the Revised     236          

Code requires that the rule be adopted under this section;         237          

      (8)(7)  A rule of the state lottery commission pertaining    239          

to instant game rules.                                             240          

      (E)  Whenever a state board, commission, department,         242          

division, or bureau files a proposed rule or a proposed rule in    243          

revised form under division (D) of this section, it shall also     244          

file one copy of the full text of the same proposed rule or        245          

proposed rule in revised form with the secretary of state and two  246          

copies thereof with the director of the legislative service        247          

commission.  Except as provided in division (F) of this section,   248          

a state board, commission, department, division, or bureau shall   249          

attach a copy of the rule summary and fiscal analysis prepared     250          

under section 121.24 or 127.18 of the Revised Code, or both, to    251          

each copy of a proposed rule or proposed rule in revised form      252          

that is filed with the secretary of state or the director of the   253          

legislative service commission.                                    254          

      (F)  Except as otherwise provided in this division, the      256          

auditor of state or the auditor of state's designee is not         257          

required to attach a rule summary and fiscal analysis to any copy  259          

                                                          7      

                                                                 
of a proposed rule, or proposed rule in revised form, that the     260          

auditor of state proposes under section 117.12, 117.19, 117.38,    262          

or 117.43 of the Revised Code and files under division (D) or (E)  263          

of this section.  If, however, the auditor of state or the         264          

designee prepares a rule summary and fiscal analysis of the        265          

original version of such a proposed rule for purposes of           266          

complying with section 121.24 of the Revised Code, the auditor of  267          

state or designee shall attach a copy of the rule summary and      268          

fiscal analysis to each copy of the original version of the        269          

proposed rule filed under division (D) or (E) of this section.     270          

      Sec. 131.15.  (A)  Any depositor enumerated in section       279          

131.11 of the Revised Code shall make ample provisions for the     280          

safekeeping of hypothecated securities.  The interest thereon,     281          

when paid, shall be turned over to the bank or trust company if    282          

it is not in default.  The depositor may make provisions for the   283          

exchange and release of securities and the substitution of other   284          

securities or of an undertaking therefor except in those cases     285          

where the public depository has deposited eligible securities      286          

with a trustee for safekeeping.                                    287          

      (B)  When the public depository has deposited eligible       289          

securities described in division (B)(1) of section 135.18 of the   290          

Revised Code with a trustee for safekeeping, the public            291          

depository may at any time substitute or exchange eligible         292          

securities described in division (B)(1) of section 135.18 of the   293          

Revised Code having a current market value equal to or greater     294          

than the current market value of the securities then on deposit    295          

and for which they are to be substituted or exchanged, without     296          

specific authorization from the depositor of any substitution or   297          

exchange.                                                          298          

      (C)  When the public depository has deposited eligible       300          

securities described in division (B)(2) to (10)(9) of section      301          

135.18 of the Revised Code with a trustee for safekeeping, the     302          

public depository may at any time substitute or exchange eligible  303          

securities having a current market value equal to or greater than  304          

                                                          8      

                                                                 
the current market value of the securities then on deposit and     305          

for which they are to be substituted or exchanged without          306          

specific authorization of any depositor of any such substitution   307          

or exchange only if:                                               308          

      (1)  The depositor has authorized the public depository to   310          

make such substitutions or exchanges on a continuing basis during  311          

a specified period without prior approval of each substitution or  312          

exchange.  Such authorization may be effected by the depositor     313          

sending to the trustee a written notice stating that substitution  314          

may be effected on a continuing basis during a specified period    315          

that shall not extend beyond the end of the period of designation  316          

during which the notice is given.  "Period of designation" as      317          

used in this section means the period under section 135.12 of the  318          

Revised Code for the award of inactive funds of the subdivision    319          

of which the depositor is an officer or employee.  The trustee     320          

may rely upon such notice and upon the period of authorization     321          

stated therein and upon the period of designation stated therein.  322          

      (2)  No continuing authorization for substitution has been   324          

given by the depositor, the public depository notifies the         325          

depositor and the trustee of an intended substitution or           326          

exchange, and the depositor fails to object to the trustee as to   327          

the eligibility or market value of the securities being            328          

substituted within ten calendar days after the date appearing on   329          

the notice of proposed substitution.  The notice to the depositor  330          

and to the trustee shall be given in writing and delivered         331          

personally or by certified mail with a return receipt requested.   332          

The trustee may assume in any case that the notice has been        333          

delivered to the depositor.  In order for objections of the        334          

depositor to be effective, receipt of the objections must be       335          

acknowledged in writing by the trustee.                            336          

      (3)  The depositor gives written authorization for a         338          

substitution or exchange of specific securities.                   339          

      (D)  The public depository shall notify the depositor of     341          

any substitution or exchange under division (C)(1) or (2) of this  342          

                                                          9      

                                                                 
section.  If the depository designates a trustee qualified under   343          

section 135.18 of the Revised Code to act as such for the          344          

safekeeping of securities, the depositor shall accept the written  345          

receipt of the designated trustee, describing the securities that  346          

have been deposited with the trustee by the public depository, as  347          

and for a hypothecation of such securities and issue to the        348          

depository his THE DEPOSITOR'S written acknowledgment to that      349          

effect, keeping a copy thereof in his THE DEPOSITOR'S office.      350          

Thereupon, all such securities pledged and deposited with the      351          

trustee are deemed hypothecated and deposited with the depositor,  352          

for all the purposes of sections 131.13 to 131.16 of the Revised   353          

Code.  The trustee shall hold the securities for the account of    354          

the depositor and the depository as their respective rights to     355          

and interests in such securities under said sections appear and    356          

are asserted by written notice to or demand upon the trustee.      357          

      Notwithstanding the fact that a public depository is         359          

required to pledge eligible securities in certain amounts to       360          

secure deposits of public moneys, a trustee shall have no duty or  361          

obligation to determine the eligibility, market value, or face     362          

value of any securities deposited with the trustee by a public     363          

depository.  This applies in all situations including, without     364          

limitation, a substitution or exchange of securities.              365          

      Sec. 135.18.  (A)  The treasurer, before making the initial  374          

deposit in a public depository pursuant to an award made under     375          

sections 135.01 to 135.21 of the Revised Code, shall require the   376          

institution designated as a public depository to pledge to and     377          

deposit with the treasurer, as security for the repayment of all   378          

public moneys to be deposited in the public depository during the  379          

period of designation pursuant to the award, eligible securities   380          

of aggregate market value equal to the excess of the amount of     381          

public moneys to be at the time so deposited, over and above such  382          

portion or amount of such moneys as is at such time insured by     383          

the federal deposit insurance corporation or by any other agency   384          

or instrumentality of the federal government, or the treasurer     385          

                                                          10     

                                                                 
may require the institution to deposit with the treasurer surety   386          

company bonds which, when executed, shall be for an amount equal   387          

to such excess amount.  In the case of any deposit other than the  388          

initial deposit made during the period of designation, the amount  389          

of the aggregate market value of securities required to be         390          

pledged and deposited, or of the surety company bonds required to  391          

be deposited, shall be equal to the difference between the amount  392          

of public moneys on deposit in such public depository plus the     393          

amount to be so deposited, minus the portion or amount of the      394          

aggregate as is at the time insured as provided in this section.   395          

The treasurer may require additional eligible securities to be     396          

deposited to provide for any depreciation which may occur in the   397          

market value of any of the securities so deposited.                398          

      (B)  The following securities shall be eligible for the      400          

purposes of this section:                                          401          

      (1)  Bonds, notes, or other obligations of the United        403          

States; or bonds, notes, or other obligations guaranteed as to     404          

principal and interest by the United States or those for which     405          

the faith of the United States is pledged for the payment of       406          

principal and interest thereon, by language appearing in the       407          

instrument specifically providing such guarantee or pledge and     408          

not merely by interpretation or otherwise;                         409          

      (2)  Bonds, notes, debentures, letters of credit, or other   411          

obligations or securities issued by any federal government agency  412          

or instrumentality, or the export-import bank of Washington;       413          

bonds, notes, or other obligations guaranteed as to principal and  414          

interest by the United States or those for which the faith of the  415          

United States is pledged for the payment of principal and          416          

interest thereon, by interpretation or otherwise and not by        417          

language appearing in the instrument specifically providing such   418          

guarantee or pledge;                                                            

      (3)  Obligations of or fully insured or fully guaranteed by  420          

the United States or any federal government agency or              421          

instrumentality;                                                                

                                                          11     

                                                                 
      (4)  Obligations partially insured or partially guaranteed   423          

by any federal agency or instrumentality;                          424          

      (5) Obligations of or fully guaranteed by the federal        426          

national mortgage association, federal home loan mortgage          427          

corporation, federal farm credit bank, or student loan marketing   428          

association;                                                                    

      (6)  Bonds and other obligations of this state;              430          

      (7)  Bonds and other obligations of any county, township,    432          

school district, municipal corporation, or other legally           433          

constituted taxing subdivision of this state, which is not at the  434          

time of such deposit, in default in the payment of principal or    435          

interest on any of its bonds or other obligations, for which the   436          

full faith and credit of the issuing subdivision is pledged;       438          

      (8)  Bonds of other states of the United States which have   440          

not during the ten years immediately preceding the time of such    441          

deposit defaulted in payments of either interest or principal on   442          

any of their bonds;                                                443          

      (9)  Obligations guaranteed as to principal and interest by  445          

the Ohio student aid commission;                                   446          

      (10)  Shares of no-load money market mutual funds            448          

consisting exclusively of obligations described in division        449          

(B)(1) or (2) of this section and repurchase agreements secured    450          

by such obligations.                                               451          

      (C)  If the public depository fails to pay over any part of  453          

the public deposit made therein as provided by law, the treasurer  454          

shall sell at public sale any of the bonds or other securities     455          

deposited with the treasurer pursuant to this section or section   456          

131.09 of the Revised Code, or shall draw on any letter of credit  457          

to the extent of such failure to pay.  Thirty days' notice of      458          

such sale shall be given in a newspaper of general circulation at  459          

Columbus, in the case of the treasurer of state, and at the        460          

county seat of the county in which the office of the treasurer is  461          

located, in the case of any other treasurer.  When a sale of       462          

bonds or other securities has been so made and upon payment to     463          

                                                          12     

                                                                 
the treasurer of the purchase money, the treasurer shall transfer  464          

such bonds or securities whereupon the absolute ownership of such  465          

bonds or securities shall pass to the purchasers.  Any surplus     466          

remaining after deducting the amount due the state or subdivision  467          

and expenses of sale shall be paid to the public depository.       468          

      (D)  An institution designated as a public depository may,   470          

by written notice to the treasurer, designate a qualified trustee  471          

and deposit the eligible securities required by this section with  472          

the trustee for safekeeping for the account of the treasurer and   473          

the institution as a public depository, as their respective        474          

rights to and interests in such securities under this section may  475          

appear and be asserted by written notice to or demand upon the     476          

trustee.  In such case, the treasurer shall accept the written     477          

receipt of the trustee describing the securities which have been   478          

deposited with the trustee by the public depository, a copy of     479          

which shall also be delivered to the public depository.            480          

Thereupon all such securities so deposited with the trustee are    481          

deemed to be pledged with the treasurer and to be deposited with   482          

the treasurer, for all the purposes of this section.               483          

      (E)  The governing board may make provisions for the         485          

exchange and release of securities and the substitution of other   486          

eligible securities therefor except where the public depository    487          

has deposited eligible securities with a trustee for safekeeping   488          

as provided in this section.                                       489          

      (F)  When the public depository has deposited eligible       491          

securities described in division (B)(1) of this section with a     492          

trustee for safekeeping, the public depository may at any time     493          

substitute or exchange eligible securities described in division   494          

(B)(1) of this section having a current market value equal to or   495          

greater than the current market value of the securities then on    496          

deposit and for which they are to be substituted or exchanged,     497          

without specific authorization from any governing board, boards,   498          

or treasurer of any such substitution or exchange.                 499          

      (G)  When the public depository has deposited eligible       501          

                                                          13     

                                                                 
securities described in divisions (B)(2) to (10)(9) of this        502          

section with a trustee for safekeeping, the public depository may  503          

at any time substitute or exchange eligible securities having a    504          

current market value equal to or greater than the current market   505          

value of the securities then on deposit and for which they are to  506          

be substituted or exchanged without specific authorization of any  507          

governing board, boards, or treasurer of any such substitution or  508          

exchange only if:                                                  509          

      (1)  The treasurer has authorized the public depository to   511          

make such substitution or exchange on a continuing basis during a  512          

specified period without prior approval of each substitution or    513          

exchange.  Such authorization may be effected by the treasurer     514          

sending to the trustee a written notice stating that substitution  515          

may be effected on a continuing basis during a specified period    516          

which shall not extend beyond the end of the period of             517          

designation during which the notice is given.  The trustee may     518          

rely upon such notice and upon the period of authorization stated  519          

therein and upon the period of designation stated therein.         520          

      (2)  No continuing authorization for substitution has been   522          

given by the treasurer, the public depository notifies the         523          

treasurer and the trustee of an intended substitution or           524          

exchange, and the treasurer fails to object to the trustee as to   525          

the eligibility or market value of the securities being            526          

substituted within ten calendar days after the date appearing on   527          

the notice of proposed substitution.  The notice to the treasurer  528          

and to the trustee shall be given in writing and delivered         529          

personally or by certified or registered mail with a return        530          

receipt requested.  The trustee may assume in any case that the    531          

notice has been delivered to the treasurer.  In order for          532          

objections of the treasurer to be effective, receipt of the        533          

objections must be acknowledged in writing by the trustee.         534          

      (3)  The treasurer gives written authorization for a         536          

substitution or exchange of specific securities.                   537          

      (H)  The public depository shall notify any governing        539          

                                                          14     

                                                                 
board, boards, or treasurer of any such substitution or exchange   540          

under division (G)(1) or (2) of this section.  Upon request from   541          

the treasurer, the trustee shall furnish a statement of the        542          

securities pledged against such public deposits.                   543          

      (I)  Any federal reserve bank or branch thereof located in   545          

this state, without compliance with Chapter 1111. of the Revised   546          

Code and without becoming subject to any other law of this state   549          

relative to the exercise by corporations of trust powers           550          

generally, is qualified to act as trustee for the safekeeping of   551          

securities, under this section.  Any institution mentioned in      552          

section 135.03 of the Revised Code that holds a certificate of     553          

qualification issued by the superintendent of financial            554          

institutions or any institution complying with sections 1111.04,                

1115.05, and 1111.06 of the Revised Code, is qualified to act as   556          

trustee for the safekeeping of securities, other than those        557          

belonging to itself, under this section.  Upon application to the  558          

superintendent in writing by any such institution, the                          

superintendent shall investigate the applicant and ascertain       560          

whether or not it has been authorized to execute and accept        561          

trusts in this state and has safe and adequate vaults and          562          

efficient supervision thereof for the storage and safekeeping      563          

within this state of such securities.  If the superintendent       564          

finds that the applicant has been so authorized and does have      565          

such vaults and supervision thereof, the superintendent shall      566          

approve the application and issue a certificate to that effect,    567          

the original or any certified copy of which shall be conclusive    568          

evidence that the institution therein named is qualified to act    569          

as trustee for the purposes of this section with respect to        570          

securities other than those belonging to itself.                                

      Notwithstanding the fact that a public depository is         572          

required to pledge eligible securities in certain amounts to       573          

secure deposits of public moneys, a trustee shall have no duty or  574          

obligation to determine the eligibility, market value, or face     575          

value of any securities deposited with the trustee by a public     576          

                                                          15     

                                                                 
depository.  This applies in all situations including, without     577          

limitation, a substitution or exchange of securities.              578          

      Any charges or compensation of a designated trustee for      580          

acting as such under this section shall be paid by the public      581          

depository and in no event shall be chargeable to the state or     582          

the subdivision or to the treasurer or to any officer of the       583          

state or subdivision.  Such charges or compensation shall not be   584          

a lien or charge upon the securities deposited for safekeeping     585          

prior or superior to the rights to and interests in such           586          

securities of the state or the subdivision or of the treasurer.    587          

The treasurer and the treasurer's bondsmen BONDERS or surety       588          

shall be relieved from any liability to the state or the           589          

subdivision or to the public depository for the loss or            590          

destruction of any securities deposited with a qualified trustee   591          

pursuant to this section.                                                       

      Sec. 135.181.  (A)  As used in this section:                 603          

      (1)  "Public depository" means that term as defined in       605          

section 135.01 of the Revised Code, but also means an institution  606          

which receives or holds any public deposits as defined in section  607          

135.31 of the Revised Code.                                        608          

      (2)  "Public deposits," "public moneys," and "treasurer"     610          

mean those terms as defined in section 135.01 of the Revised       611          

Code, but also have the same meanings as are set forth in section  612          

135.31 of the Revised Code.                                        613          

      (3)  "Subdivision" means that term as defined in section     615          

135.01 of the Revised Code, but also includes a county.            616          

      (B)  In lieu of the pledging requirements prescribed in      618          

sections 135.18 and 135.37 of the Revised Code, an institution     619          

designated as a public depository at its option may pledge a       620          

single pool of eligible securities to secure the repayment of all  621          

public moneys deposited in the institution and not otherwise       622          

secured pursuant to law, provided that at all times the total      623          

value of the securities so pledged, based on the valuations        624          

prescribed in division (C) of this section, is at least equal to   625          

                                                          16     

                                                                 
one hundred ten per cent of the total amount of all public         626          

deposits to be secured by the pooled securities, including the     627          

portion of such deposits covered by any federal deposit            628          

insurance.  Each such institution shall carry in its accounting    629          

records at all times a general ledger or other appropriate         630          

account of the total amount of all public deposits to be secured   631          

by the pool, as determined at the opening of business each day,    632          

and the total value of securities pledged to secure such           633          

deposits.                                                          634          

      (C)  The following securities, at the specified valuations,  636          

shall be eligible as collateral for the purposes of division (B)   637          

of this section, provided no such securities pledged as            638          

collateral are at any time in default as to either principal or    639          

interest:                                                          640          

      (1)  Obligations of or fully insured or fully guaranteed by  642          

the United States or any federal government agency or              643          

instrumentality:  at face value;                                   644          

      (2)  Obligations partially insured or partially guaranteed   646          

by any federal government agency or instrumentality:  at face      647          

value;                                                                          

      (3)  Obligations of or fully guaranteed by the federal       649          

national mortgage association, federal home loan mortgage          650          

corporation, federal farm, credit bank, or student loan marketing  651          

association:  at face value;                                       652          

      (4)  Obligations of any state, county, municipal             654          

corporation, or other legally constituted authority of any state,  655          

or any instrumentality of any state, county, municipal             656          

corporation, or other authority, which are secured as to the       657          

payment of principal and interest by the holding in escrow of      658          

obligations of the United States for which the full faith and      659          

credit of the United States is pledged:  at face value;            660          

      (5)  Obligations of this state, or any county or other       662          

legally constituted authority of this state, or any                663          

instrumentality of this state, or such county or other authority:  664          

                                                          17     

                                                                 
at face value;                                                     665          

      (6)  Obligations of any other state:  at ninety per cent of  667          

face value;                                                        668          

      (7)  Obligations of any county, municipal corporation, or    670          

other legally constituted authority of any other state, or any     671          

instrumentality of such county, municipal corporation, or other    672          

authority:  at eighty per cent of face value;                      673          

      (8)  Notes representing loans made to persons attending or   675          

planning to attend eligible institutions of education and to       676          

their parents, and insured or guaranteed by the United States or   677          

any agency, department, or other instrumentality thereof, or       678          

guaranteed by the Ohio student aid commission pursuant to          679          

sections 3351.05 to 3351.14 of the Revised Code:  at face value;   680          

      (9)  Any other obligations the treasurer of state approves:  682          

at the percentage of face value the treasurer of state             683          

prescribes;                                                                     

      (10)  Shares of no-load money market mutual funds            685          

consisting exclusively of obligations described in division        686          

(C)(1), (2), or (3) of this section and repurchase agreements      687          

secured by such obligations:  at face value.                       688          

      (D)  The state and each subdivision shall have an undivided  690          

security interest in the pool of securities pledged by a public    691          

depository pursuant to division (B) of this section in the         692          

proportion that the total amount of the state's or subdivision's   693          

public moneys secured by the pool bears to the total amount of     694          

public deposits so secured.                                        695          

      (E)  An institution designated as a public depository shall  697          

designate a qualified trustee and deposit with the trustee for     698          

safekeeping the eligible securities pledged pursuant to division   699          

(B) of this section.  The institution shall give written notice    700          

of the qualified trustee to any treasurer or treasurers            701          

depositing public moneys for which such securities are pledged.    702          

The treasurer shall accept the written receipt of the trustee      703          

describing the pool of securities so deposited by the depository,  704          

                                                          18     

                                                                 
a copy of which also shall be delivered to the depository.         705          

      (F)  Any federal reserve bank or branch thereof located in   707          

this state, without compliance with Chapter 1111. of the Revised   708          

Code and without becoming subject to any other law of this state   711          

relative to the exercise by corporations of trust powers           712          

generally, is qualified to act as trustee for the safekeeping of   713          

securities, under this section.  Any institution mentioned in      714          

section 135.03 or 135.32 of the Revised Code which holds a                      

certificate of qualification issued by the superintendent of       715          

financial institutions or any institution complying with sections  717          

1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to  718          

act as trustee for the safekeeping of securities under this        719          

section, other than those belonging to itself or to an affiliate   720          

as defined in division (A) of section 1101.01 of the Revised       721          

Code.  Upon application to the superintendent in writing by any    722          

such institution, the superintendent shall investigate the         724          

applicant and ascertain whether or not it has been authorized to   725          

execute and accept trusts in this state and has safe and adequate  726          

vaults and efficient supervision thereof for the storage and       727          

safekeeping of such securities.  If the superintendent finds that  728          

the applicant has been so authorized and does have such vaults     729          

and supervision thereof, the superintendent shall approve the      730          

application and issue a certificate to that effect, the original   732          

or any certified copy of which shall be conclusive evidence that   733          

the institution named therein is qualified to act as trustee for   734          

the purposes of this section with respect to securities other      735          

than those belonging to itself or to an affiliate.                 736          

      (G)  The public depository at any time may substitute,       738          

exchange, or release eligible securities deposited with a          739          

qualified trustee pursuant to this section, provided that such     740          

substitution, exchange, or release does not reduce the total       741          

value of the securities, based on the valuations prescribed in     742          

division (C) of this section, to an amount that is less than one   743          

hundred ten per cent of the total amount of public deposits as     744          

                                                          19     

                                                                 
determined pursuant to division (B) of this section.               745          

      (H)  Notwithstanding the fact that a public depository is    747          

required to pledge eligible securities in certain amounts to       748          

secure deposits of public moneys, a trustee shall have no duty or  749          

obligation to determine the eligibility, market value, or face     750          

value of any securities deposited with the trustee by a public     751          

depository.  This applies in all situations including, but not     752          

limited to, a substitution or exchange of securities, but          753          

excluding those situations effectuated by division (I) of this     754          

section in which the trustee is required to determine face and     755          

market value.                                                      756          

      (I)  If the public depository fails to pay over any part of  758          

the public deposits made therein as provided by law and secured    759          

pursuant to division (B) of this section, the treasurer shall      760          

give written notice of this failure to the qualified trustee       761          

holding the pool of securities pledged against public moneys       762          

deposited in the depository, and at the same time shall send a     763          

copy of this notice to the depository.  Upon receipt of such       764          

notice, the trustee shall transfer to the treasurer for public     765          

sale such of the pooled securities as may be necessary to produce  766          

an amount equal to the deposits made by the treasurer and not      767          

paid over, less the portion of such deposits covered by any        768          

federal deposit insurance, plus any accrued interest due on such   769          

deposits; however, such amount shall not exceed the state's or     770          

subdivision's proportional security interest in the market value   771          

of the pool as of the date of the depository's failure to pay      772          

over the deposits, as such interest and value are determined by    773          

the trustee.  The treasurer shall sell at public sale any of the   774          

bonds or other securities so transferred.  Thirty days' notice of  775          

such sale shall be given in a newspaper of general circulation at  776          

Columbus, in the case of the treasurer of state, and at the        777          

county seat of the county in which the office of the treasurer is  778          

located, in the case of any other treasurer.  When a sale of       779          

bonds or other securities has been so made and upon payment to     780          

                                                          20     

                                                                 
the treasurer of the purchase money, the treasurer shall transfer  781          

such bonds or securities whereupon the absolute ownership of such  782          

bonds or securities shall pass to the purchasers.  Any surplus     783          

after deducting the amount due the state or subdivision and        784          

expenses of sale shall be paid to the public depository.           785          

      (J)  Any charges or compensation of a designated trustee     787          

for acting as such under this section shall be paid by the public  788          

depository and in no event shall be chargeable to the state or     789          

subdivision or to the treasurer or to any officer of the state or  790          

subdivision.  Such charges or compensation shall not be a lien or  791          

charge upon the securities deposited for safekeeping prior or      792          

superior to the rights to and interests in such securities of the  793          

state or subdivision or of the treasurer.  The treasurer and the   794          

treasurer's bondspersons bonders or surety shall be relieved from  795          

any liability to the state or subdivision or to the public         796          

depository for the loss or destruction of any securities           797          

deposited with a qualified trustee pursuant to this section.       798          

      (K)  In lieu of placing its unqualified endorsement on each  800          

security, a public depository pledging securities pursuant to      801          

division (B) of this section that are not negotiable without its   802          

endorsement or assignment may furnish to the qualified trustee     803          

holding the securities an appropriate resolution and irrevocable   804          

power of attorney authorizing the trustee to assign the            805          

securities.  The resolution and power of attorney shall conform    806          

to such terms and conditions as the trustee prescribes.            807          

      (L)  Upon request of a treasurer no more often than four     809          

times per year, a public depository shall report the amount of     810          

public moneys deposited by the treasurer and secured pursuant to   811          

division (B) of this section, and the total value, based on the    812          

valuations prescribed in division (C) of this section, of the      813          

pool of securities pledged to secure public moneys held by the     814          

depository, including those deposited by the treasurer.  Upon      815          

request of a treasurer no more often than four times per year, a   816          

qualified trustee shall report such total value of the pool of     817          

                                                          21     

                                                                 
securities deposited with it by the depository and shall provide   818          

an itemized list of the securities in the pool.  These reports     819          

shall be made as of the date the treasurer specifies.              820          

      Sec. 3333.25.  There is hereby created the Ohio academic     829          

scholarship payment fund, which shall be in the custody of the     830          

treasurer of state but shall not be a part of the state treasury.  831          

The fund shall consist of all moneys appropriated for the fund by  832          

the general assembly and other moneys otherwise made available to  833          

the fund.  The payment fund shall be used for the payment of Ohio  834          

academic scholarships or for additional scholarships to recognize  835          

outstanding academic achievement and ability.  The Ohio board of   836          

regents shall administer this section and establish rules for the  837          

distribution and awarding of any additional scholarships.          838          

      The board may direct the treasurer of state to invest any    841          

moneys in the payment fund not currently needed for scholarship    842          

payments, in any kinds of investments in which moneys of the Ohio  843          

student aid commission PUBLIC EMPLOYEES RETIREMENT SYSTEM may be   844          

invested.                                                                       

      The instruments of title of all investments shall be         846          

delivered to the treasurer of state or to a qualified trustee      847          

designated by the treasurer of state as provided in section        848          

135.18 of the Revised Code.  The treasurer of state shall collect  849          

both principal and investment earnings on all investments as they  850          

become due and pay them into the fund.                             851          

      All deposits to the fund shall be made in financial          853          

institutions of this state secured as provided in section 135.18   854          

of the Revised Code.                                               855          

      Sec. 3345.32.  (A)  As used in this section:                 864          

      (1)  "State university or college" means the institutions    866          

described in section 3345.27 of the Revised Code, the              867          

northeastern Ohio universities college of medicine, and the        868          

medical college of Ohio at Toledo.                                 869          

      (2)  "Resident" has the meaning specified by rule of the     871          

Ohio board of regents.                                             872          

                                                          22     

                                                                 
      (3)  "Statement of selective service status" means a         874          

statement certifying one of the following:                         875          

      (a)  That the individual filing the statement has            877          

registered with the selective service system in accordance with    878          

the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.      879          

App. 453, as amended;                                              880          

      (b)  That the individual filing the statement is not         882          

required to register with the selective service for one of the     883          

following reasons:                                                 884          

      (i)  The individual is under eighteen or over twenty-six     886          

years of age;                                                      887          

      (ii)  The individual is on active duty with the armed        889          

forces of the United States other than for training in a reserve   890          

or national guard unit;                                            891          

      (iii)  The individual is a nonimmigrant alien lawfully in    893          

the United States in accordance with section 101 (a)(15) of the    894          

"Immigration and Nationality Act," 8 U.S.C. 1101, as amended;      895          

      (iv)  The individual is not a citizen of the United States   897          

and is a permanent resident of the Trust Territory of the Pacific  899          

Islands or the Northern Mariana Islands.                           900          

      (4)  "Institution of higher education" means any eligible    902          

institution approved by the student aid commission UNITED STATES   904          

DEPARTMENT OF EDUCATION pursuant to Chapter 3351. of the Revised   905          

Code THE "HIGHER EDUCATION ACT OF 1965," 79 STAT. 1219, AS         906          

AMENDED, or any institution whose students are eligible for        908          

financial assistance under any of the programs described by        909          

division (E) of this section.                                                   

      (B)  The Ohio board of regents shall, by rule, specify the   911          

form of statements of selective service status to be filed in      912          

compliance with divisions (C) to (F) of this section.  Each        913          

statement of selective service status shall contain a section      914          

wherein a male student born after December 31, 1959, certifies     915          

that the student has registered with the selective service system  917          

in accordance with the "Military Selective Service Act," 62 Stat.  918          

                                                          23     

                                                                 
604, 50 U.S.C. App. 453, as amended.  For those students not       920          

required to register with the selective service, as specified in   921          

divisions (A)(2)(b)(i) to (iv) of this section, a section shall    922          

be provided on the statement of selective service status for the   923          

certification of nonregistration and for an explanation of the     924          

reason for the exemption.  The board of regents may require that   925          

such statements be accompanied by documentation specified by rule  926          

of the board.                                                                   

      (C)  A state university or college that enrolls in any       928          

course, class, or program a male student born after December 31,   929          

1959, who has not filed a statement of selective service status    930          

with the university or college shall, regardless of the student's  931          

residency, charge the student any tuition surcharge charged        932          

students who are not residents of this state.                      933          

      (D)  No male born after December 31, 1959, shall be          935          

eligible to receive any loan, grant, scholarship, or other         936          

financial assistance for educational expenses under section        937          

3315.33, 3333.12, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03,     938          

5910.032, or 5919.34 of the Revised Code unless that person has    940          

filed a statement of selective service status with that person's   941          

institution of higher education.                                                

      (E)  If an institution of higher education receives a        943          

statement from an individual certifying that the individual has    945          

registered with the selective service system in accordance with                 

the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.      946          

App. 453, as amended or that the individual is exempt from         947          

registration for a reason other than that the individual is under  949          

eighteen years of age, the institution shall not require the       950          

individual to file any further statements.  If it receives a       951          

statement certifying that the individual is not required to        952          

register because the individual is under eighteen years of age,    953          

the institution shall require the individual to file a new         954          

statement of selective service status each time the individual     955          

seeks to enroll for a new academic term or makes application for   957          

                                                          24     

                                                                 
a new loan or loan guarantee or for any form of financial          958          

assistance for educational expenses, until it receives a           959          

statement certifying that the individual has registered with the   960          

selective service system or is exempt from registration for a                   

reason other than that the individual is under eighteen years of   962          

age.                                                                            

      Sec. 3351.07.  (A)  The Ohio student aid commission may:     971          

      (1)  Guarantee the loan of money, subject to section         973          

3351.08 of the Revised Code and upon any other terms and           974          

conditions as the commission may prescribe, to persons and         975          

parents of persons attending or planning to attend eligible        976          

institutions to assist them in meeting educational expenses;       977          

      (2)  Reject or take, hold, and administer, on behalf of the  979          

commission and for any of its purposes, real property, personal    980          

property, and moneys, or any interest therein, and the income      981          

therefrom, either absolutely or in trust, for any purpose of the   982          

commission.  The commission may invest its funds in any            983          

investments listed in division (K) of this section.  The           984          

commission may acquire property or moneys for its purposes by the  986          

acceptance of gifts, grants, bequests, devises, or loans;          987          

provided, that no obligation of the commission shall be a debt of  988          

the state, and the commission shall have no power to make its      989          

debts payable out of moneys except those of the commission.        990          

      (3)  Enter into such contracts as may be desirable with      992          

eligible educational institutions, upon terms as may be agreed     994          

upon between the commission and the institution, to provide for    995          

the administration by the institution of any loan or loan plan     997          

guaranteed by the commission, including applications therefor and  998          

repayment thereof;                                                              

      (4)  Enter into contracts with any approved lender, upon     1,000        

terms as may be agreed upon between the commission and the         1,001        

approved lender, to provide for the administration by the          1,002        

approved lender of any loan or loan plan guaranteed by the         1,003        

commission, including applications therefor and terms and          1,004        

                                                          25     

                                                                 
repayment thereof, and to establish the conditions for payment by  1,005        

the commission to the approved lender of the guarantee on any      1,006        

loan.  The commission may also enter into contracts with any       1,007        

approved lender to provide assistance to lenders in the            1,008        

administration of loans.  No moneys of approved lenders or         1,009        

borrowers that are temporarily administered by the commission      1,010        

pursuant to the contracts shall be considered public moneys.  A                 

loan shall be defaulted when, after the expiration of a            1,011        

prescribed period of nonpayment and reasonable collection          1,012        

efforts, the approved lender makes application to the commission   1,013        

for payment on the loan stating that the loan is in default in     1,014        

accordance with the terms of the federal law, contract, or         1,015        

regulations of the commission, executed under this division.  In                

accordance with the "Higher Education Amendments of 1968," 82      1,016        

Stat. 1020, 20 U.S.C.A. 1087, as amended, if a borrower dies,      1,017        

becomes permanently and totally disabled, or is adjudged           1,018        

bankrupt, the commission shall discharge the borrower's liability  1,019        

on the borrower's debt by repaying the unpaid principal and        1,020        

interest due thereon.                                                           

      (5)  Sue and be sued in the name of the commission;          1,022        

      (6)  Collect loans guaranteed by the commission on which     1,024        

the commission has met its guarantee obligations.  The commission  1,025        

may, if it prefers, employ a private collection agency or          1,026        

agencies for the purpose of collecting loans on which it has met   1,027        

its guarantee obligations.                                         1,028        

      (7)  Adopt rules, not inconsistent with sections 3351.05 to  1,031        

3351.14 of the Revised Code, governing the guarantee of loans                   

made by the commission, and governing any other matters relating   1,032        

to the activities of the commission;                               1,033        

      (8)  Participate in or administer education-related state    1,035        

or federal financial aid programs on behalf of the state in        1,036        

accordance with state and federal law.                             1,037        

      (9)  Perform any other acts necessary or appropriate to      1,040        

carry out effectively the objects and purposes of the commission.  1,041        

                                                          26     

                                                                 
      (B)  The Ohio student aid commission, for the purposes of    1,043        

sections 3351.05 to 3351.14 of the Revised Code, shall:            1,044        

      (1)  Prescribe the academic status required for a resident,  1,046        

qualified nonresident, or the parent of a resident or qualified    1,047        

nonresident to obtain guarantee of a loan;                         1,048        

      (2)  Approve eligible institutions in which a student must   1,050        

be enrolled or accepted for enrollment in order for the student    1,051        

or the student's parent to be eligible for guaranteed loans.       1,052        

      (C)  For the purposes of this chapter, "approved lender"     1,054        

means any bank as defined in section 1101.01 of the Revised Code,  1,055        

any domestic savings and loan association as defined in section    1,056        

1151.01 of the Revised Code, any credit union as defined in        1,057        

section 1733.01 of the Revised Code, any federal credit union      1,058        

established pursuant to federal law, any insurance company         1,059        

organized or authorized to do business in this state, any          1,060        

eligible educational institution approved pursuant to division     1,061        

(B)(2) of this section that applies for and receives formal        1,062        

approval as an eligible lender by the commission pursuant to the   1,063        

rules of the commission as they pertain to that institution, any   1,064        

pension fund eligible under the "Higher Education Amendments of    1,065        

1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary  1,066        

market operation designated under division (D)(B) of this          1,067        

section, or any secondary market operation established pursuant    1,068        

to the "Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A.   1,069        

1071, as amended, or under the laws of any state.                  1,070        

      (D)(B)  The governor may designate one nonprofit             1,072        

corporation secondary market operation to be the single nonprofit  1,073        

private agency designated by the state under the "Higher           1,074        

Education Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D),  1,075        

as amended.  The commission shall enter into appropriate           1,076        

contracts with the designated secondary market operation that      1,077        

shall be on not less favorable terms than those contracts entered  1,078        

into by the commission with any other approved lender.  No         1,079        

approval by the commission shall be necessary for the transfer of  1,080        

                                                          27     

                                                                 
loans by any approved lender to the designated secondary market    1,081        

operation.                                                                      

      (E)(C)  The nonprofit corporation designated by the          1,083        

governor under division (D)(B) of this section as the private      1,084        

agency secondary market operation shall be considered to be an     1,085        

agency of the state, in accordance with section 435(d)(1)(F) of    1,086        

the "Higher Education Act of 1965," as amended, 101 Stat. 347, 20  1,087        

U.S.C.A. 1085(d)(1)(F), AS AMENDED, exclusively for the purpose    1,088        

of functioning as a secondary student loan market.  The            1,090        

corporation shall be considered a state agency only for the        1,091        

purposes of this division and no other division or section of the  1,092        

Revised Code regarding state agencies shall apply to the           1,093        

corporation.  No liability or obligation incurred by the           1,094        

corporation shall be considered to be a liability or debt of the   1,095        

state, nor shall the state be construed to act as guarantor of     1,096        

any debt of the corporation.                                                    

      (F)(D)  The nonprofit corporation designated under division  1,098        

(D)(B) of this section shall designate a separate nonprofit        1,099        

corporation to operate exclusively for charitable and educational  1,100        

purposes, complementing and supplementing the designating          1,101        

corporation's secondary market operation for student loans         1,102        

authorized under the "Higher Education Act of 1965," as amended,   1,103        

101 Stat. 347, 20 U.S.C.A. 1085, AS AMENDED, and promoting the     1,104        

general health and welfare of the state, the public interest, and  1,105        

a public purpose through improving student assistance programs by  1,106        

expanding access to higher education financing programs for        1,107        

students and families in need of student financial aid.  In        1,108        

furtherance of such purposes, the separate nonprofit corporation   1,109        

may do all of the following:                                       1,110        

      (1)  Assist educational institutions in establishing         1,112        

financial aid programs to help students obtain an economical       1,113        

education;                                                         1,114        

      (2)  Encourage financial institutions to increase            1,116        

educational opportunities by making funds available to both        1,117        

                                                          28     

                                                                 
students and educational institutions;                             1,118        

      (3)  Make available financial aid that supplements the       1,120        

financial assistance provided by eligible and approved lenders     1,121        

under state and federal programs;                                  1,122        

      (4)  Develop and administer programs that do all of the      1,124        

following:                                                         1,125        

      (a)  Provide financial aid and incidental student financial  1,127        

aid information to students and their parents or other persons     1,128        

responsible for paying educational costs of those students at      1,129        

educational institutions;                                          1,130        

      (b)  Provide financial aid and information relating to it    1,132        

to and through educational institutions, enabling those            1,133        

institutions to assist students financially in obtaining an        1,134        

education and fully expanding their intellectual capacity and      1,135        

skills;                                                            1,136        

      (c)  Better enable financial institutions to participate in  1,138        

student loan programs and other forms of financial aid, assisting  1,139        

students and educational institutions to increase education        1,140        

excellence and accessibility.                                      1,141        

      (G)(E)  The nonprofit corporation designated under           1,143        

authority of division (F)(D) of this section shall do both of the  1,144        

following:                                                         1,145        

      (1)  Establish the criteria, standards, terms, and           1,147        

conditions for participation by students, parents, educational     1,148        

institutions, and financial institutions in that corporation's     1,149        

programs;                                                          1,150        

      (2)  Provide the governor a report of its programs and a     1,152        

copy of its audited financial statements not later than one        1,153        

hundred eighty days after the end of each fiscal year of the       1,154        

corporation.                                                       1,155        

      No liability, obligation, or debt incurred by the            1,157        

corporation designated under authority of division (F)(D) of this  1,159        

section or by any person under that corporation's programs shall                

be, or be considered to be, a liability, obligation, or debt of,   1,160        

                                                          29     

                                                                 
or a pledge of the faith and credit of, the state, any political   1,161        

subdivision of the state, or any state-supported or                1,162        

state-assisted institution of higher education, nor shall the      1,163        

state or any political subdivision of the state or any             1,164        

state-supported or state-assisted institution of higher education  1,165        

be or be construed to act as an obligor under or guarantor of any  1,166        

liability, obligation, or debt of that corporation or of any       1,167        

person under that corporation's programs or incur or be construed  1,168        

to have incurred any other liability, obligation, or debt as a     1,169        

result of any acts of the corporation.                             1,170        

      (H)(F)  The nonprofit corporation designated under           1,172        

authority of division (F)(D) of this section shall not be deemed   1,173        

to qualify by reason of the designation as a guarantor or an       1,175        

eligible lender  under sections 435(d) and (j) of the "Higher      1,177        

Education Act of 1965," as amended, 101 Stat. 347, 20 U.S.C.A.     1,178        

1085(d) and (j), AS AMENDED.                                       1,179        

      (J)  As used in division (K) of this section:                1,181        

      (1)  "American depositary receipt" means a receipt for the   1,183        

shares of a foreign corporation held by an American bank or trust  1,184        

company, representing the deposit of an equivalent amount of       1,185        

underlying foreign shares.                                         1,186        

      (2)  "Commingled stock investment fund" means a pooling of   1,188        

securities to create a fund of a certain type or classification    1,189        

of stock wherein participants share in the total return of the     1,190        

fund represented by dividends, interest, and appreciation.         1,191        

      (3)  "Derivative instrument" means a financial obligation    1,193        

that derives its precise value from the value of one or more       1,194        

other instruments or assets at the same point in time.             1,195        

      (4)  "Pass-through security" means a security, representing  1,197        

pooled debt obligations repackaged as shares, that passes income   1,198        

and principal from debtors through an intermediary to investors.   1,199        

      (K)  The commission shall have full power to invest the      1,201        

funds:                                                             1,202        

      (1)(a)  In bonds of the United States or this state, or in   1,204        

                                                          30     

                                                                 
bonds, notes, debentures, or other obligations the principal and   1,205        

interest of which are guaranteed in full by the United States      1,206        

government or this state, or those for which the credit of the     1,207        

United States is pledged for the payment of the principal and      1,208        

interest thereof;                                                  1,209        

      (b)  In derivative instruments based on the bonds, notes,    1,211        

debentures, or obligations described in division (K)(1)(a) of      1,213        

this section.                                                                   

      (2)(a)  In bonds, notes, debentures, or any other            1,215        

obligations or securities issued by any federal government agency  1,216        

presently or in the future established by act of congress;         1,217        

      (b)  In derivative instruments based on the bonds, notes,    1,219        

debentures, obligations, or securities described in division       1,221        

(K)(2)(a) of this section.                                                      

      (3)(a)  In bonds, notes, certificates of indebtedness, or    1,223        

other obligations of the state; any county, township, municipal    1,224        

corporation, school district, conservancy district, or sanitary    1,225        

district of the state; or any other legally constituted taxing or  1,226        

bond issuing authority, subdivision, or municipal corporation      1,227        

within the state;                                                  1,228        

      (b)  In derivative instruments based on the bonds, notes,    1,230        

certificates of indebtedness, or obligations described in          1,231        

division (K)(3)(a) of this section.                                1,232        

      (4)  In revenue bonds issued by a taxing subdivision of the  1,234        

state;                                                             1,235        

      (5)  In farm loan bonds issued under the "Federal Farm Loan  1,238        

Act of 1916," 39 Stat. 360, 12 U.S.C.A. 641, as amended;                        

      (6)  In notes secured by mortgages and insured by the        1,240        

federal housing commissioner, or the commissioner's successor or   1,241        

assigns, or in debentures issued by the commissioner, which are    1,242        

guaranteed as to principal and interest by the federal housing     1,243        

administration, an agency of the United States government;         1,244        

      (7)(a)  In bonds or other interest-bearing obligations of    1,246        

any other state of the United States that, within ten years prior  1,248        

                                                          31     

                                                                 
to the making of the investment, has not defaulted for more than   1,249        

ninety days in the payment of principal or interest on any of its  1,250        

bonds or other interest-bearing obligations;                                    

      (b)  In derivative instruments based on the bonds or         1,252        

obligations described in division (K)(7)(a) of this section.       1,254        

      (8)  In obligations issued by a federal home loan bank       1,256        

created under the "Federal Home Loan Bank Act of 1932," 47 Stat.   1,257        

725, 12 U.S.C.A. 1421, as amended;                                 1,258        

      (9)  In shares, certificates, or other evidences of          1,260        

deposits issued by a federal savings and loan association          1,261        

organized and incorporated under the "Home Owners' Loan Act of     1,262        

1933," 48 Stat. 128, 12 U.S.C.A. 1461, as amended, but only to     1,263        

the extent that the shares or certificates or other evidences of   1,264        

deposits are insured under subchapter IV of the "National Housing  1,266        

Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1701, as amended;                       

      (10)  In bonds issued by the home owners' loan corporation   1,268        

created under the "Home Owners' Loan Act of 1933," 48 Stat. 128,   1,270        

12 U.S.C.A. 1461, as amended;                                                   

      (11)  In obligations issued by national mortgage             1,272        

associations created under the "National Housing Act," 48 Stat.    1,274        

1246 (1934), 12 U.S.C.A. 1701, as amended;                                      

      (12)  In shares, certificates, or other evidences of         1,276        

deposits issued by a state-chartered savings and loan association  1,277        

organized under the laws of the state, which association has       1,278        

obtained insurance of accounts as provided in subchapter IV of     1,279        

the "National Housing Act," 48 Stat. 1246 (1934), 12 U.S.C.A.      1,281        

1701, as amended, but only to the extent that the evidences of     1,283        

deposits are insured under the act, as amended;                                 

      (13)  In savings accounts in a national bank located in the  1,285        

state or a state bank located in and organized under the laws of   1,286        

the state by depositing the funds therein, provided that no        1,287        

deposit shall be made unless the deposits of the depository bank   1,288        

are insured by the federal deposit insurance corporation, created  1,289        

under the "Federal Deposit Insurance Corporation Act of 1933," 48  1,291        

                                                          32     

                                                                 
Stat. 162, 12 U.S.C.A. 264, as amended; and provided further,      1,292        

that the deposit of the funds in any such savings accounts in any  1,293        

one bank shall not exceed the sum insured under the act, as        1,294        

amended;                                                           1,295        

      (14)  In bonds and notes backed by pools of first liens on   1,297        

fee simple estates in land in this state that are improved by      1,298        

one- to four-family residential structures;                        1,299        

      (15)  In bonds, notes, or other evidences of indebtedness    1,301        

that are secured by first liens upon improved commercial real      1,302        

property, upon condition that:                                     1,303        

      (a)  No mortgage loan on any one property, at the time of    1,305        

investment by the commission, exceeds ninety per cent of the       1,306        

value of the real property securing the loan unless that portion   1,307        

of the loan exceeding ninety per cent is insured or the mortgage   1,308        

is a participating or convertible mortgage;                        1,309        

      (b)  The aggregate investment in mortgage loans on           1,311        

commercial property that are not insured by the federal housing    1,312        

commissioner shall not exceed ten per cent of the total value of   1,313        

all funds invested by the commission.                              1,314        

      (16)  In pass-through securities backed by pools of first    1,316        

liens on fee simple estates in land in this state that are         1,317        

improved by one- to four-family residential structures;            1,318        

      (17)  In pass-through securities backed by pools of first    1,320        

liens upon improved commercial real property, provided that no     1,321        

mortgage loan on any one property, at the time of investment by    1,322        

the commission, exceeds ninety per cent of the value of the real   1,323        

property securing the loan unless that portion of the loan         1,324        

exceeding ninety per cent is insured;                              1,325        

      (18)  In the following corporate, trust, or partnership      1,327        

obligations:                                                       1,328        

      (a)  Notes, bonds, debentures, conditional sales contracts,  1,330        

equipment trust certificates, pass-through securities, other       1,331        

fixed obligations, or evidences of indebtedness or interests that  1,332        

are the obligations of a corporation, trust, or partnership;       1,333        

                                                          33     

                                                                 
provided that the obligor is incorporated or created under the     1,334        

laws of the United States or any state thereof, or of the          1,335        

District of Columbia; and that the obligations are rated at the    1,337        

time of purchase the equivalent of an "A-" or higher quality                    

rating according to the Standard and Poor's rating service by at   1,339        

least two standard rating services; or that for a period of five                

fiscal years for which the necessary statistical data are          1,340        

available next preceding the date of investment, the corporation,  1,341        

trust, or partnership, as disclosed by its annual fiscal           1,342        

statements, had an average annual pre-tax income plus its average  1,343        

annual fixed charges at least equal to two times its average       1,344        

annual fixed charges for the same period; provided, that in        1,345        

neither of the last two years of that period shall the sum of its  1,346        

annual net income and its annual fixed charges have been less      1,347        

than two times its fixed charges for the same period.  As used in  1,348        

this division, "fixed charges" means interest on funded or         1,349        

unfunded debt, contingent interest charges, amortization of debt   1,350        

discount, and expense and one-third of rentals for leased          1,351        

property, and includes, in the case of consolidated earnings       1,352        

statements of parent and subsidiary entities, which shall be used  1,353        

if available, all fixed charges of the subsidiaries.               1,354        

      (b)  Derivative instruments based on the corporate, trust,   1,356        

or partnership obligations described in division (K)(18)(a) of     1,358        

this section;                                                                   

      (c)  Various forms of commercial paper issued by any         1,360        

corporation that is incorporated under the laws of the United      1,361        

States or any state thereof; banker's acceptances that are         1,362        

eligible for discount at any federal reserve bank; negotiable      1,363        

time certificates of deposit issued by commercial banks and        1,364        

domestic savings and loan associations as defined in section       1,365        

1151.01 of the Revised Code, if the obligations mature within      1,366        

nine months from the date of purchase; and repurchase agreements   1,367        

secured by obligations of the United States treasury or federal    1,368        

agencies or by any other money market instruments specified in     1,369        

                                                          34     

                                                                 
this section;                                                      1,370        

      (d)  Corporate debentures convertible or exchangeable into   1,372        

common stock, provided that at the time of acquisition the         1,373        

requirements of division (K)(20) of this section are met.          1,374        

      (19)  In real estate located within the United States;       1,376        

provided, that the aggregate of all investments made under this    1,377        

division shall not exceed twenty-five per cent of the total value  1,378        

of all funds invested by the commission, except that no            1,380        

investment in real estate made under authority granted elsewhere   1,381        

in this section shall be counted toward this limitation.           1,382        

      The commission may invest under this division in any         1,384        

direct, indirect, or beneficial interest in real property,         1,385        

including, but not limited to, improved or unimproved real         1,386        

property, suitable or adaptable without excessive cost for more    1,387        

than one use, and whether or not income-producing; mortgages;      1,388        

deeds of trust; notes secured by real property; leaseholds;        1,389        

leases; ground leases; air rights; limited partnerships; real      1,390        

property interests owned, developed, or managed by joint ventures  1,391        

or limited partnerships; variable notes secured by real property;  1,392        

participations, created by any person regularly engaged in the     1,393        

business of making, or acting as a broker of, mortgage loans, in   1,394        

notes secured by real property; interests in collective            1,395        

investment funds; corporations, trusts, or associations that       1,396        

qualify as real estate investment trusts under section 856 of the  1,397        

"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 856,  1,399        

as amended; interests in or real property for the development of   1,400        

natural resources, excluding oil or gas; and condominium           1,401        

interests, provided that liability is limited to the amount of     1,402        

the investment.  Unimproved real property or interests in the      1,403        

property acquired shall be subject to a commercial development     1,404        

plan or a natural resources development plan.                      1,405        

      Real property purchased under this division may be improved  1,407        

by the commission.  Expenditures for improvements may include,     1,408        

but are not limited to, expenditures for demolition of existing    1,409        

                                                          35     

                                                                 
structures, grading and landscaping, construction of new           1,410        

structures, modification of existing structures, fixtures,         1,411        

equipment, and related personal property.  The commission may      1,412        

manage the real property or may contract for management            1,413        

responsibilities with firms having expertise in the management of  1,414        

similar real property.                                             1,415        

      Real property purchased or improved under this division:     1,417        

      (a)  Shall be geographically dispersed;                      1,419        

      (b)  May be leased to corporations, partnerships, or sole    1,421        

proprietorships with or without purchase option provisions, and    1,422        

lease payments may, but need not, include all or part of the       1,423        

purchase and improvement costs;                                    1,424        

      (c)  May be mortgaged to facilitate activities authorized    1,426        

in this division.                                                  1,427        

      (20)(a)  In common and preferred stocks and American         1,429        

depositary receipts, provided the stocks are issued or guaranteed  1,430        

by a corporation created or existing under the laws of the United  1,431        

States or any state thereof and the following criteria are met;    1,432        

or the stocks or American depositary receipts are, at the time of  1,433        

the commission's acquisition, included in the Standard and Poor's  1,435        

Composite 500-Stock Index or 400 Mid-Cap Index, or listed on the   1,437        

New York or American stock exchange; or the American depositary    1,439        

receipts meet the following criteria:                              1,440        

      (i)  For a period of five fiscal years for which the         1,442        

necessary statistical data are available next preceding the date   1,443        

of investment, the corporation, as disclosed by its published      1,444        

fiscal annual statements, has had an average annual net income     1,445        

plus its average annual fixed charges at least equal to one and    1,446        

one-half times the sum of its average annual dividend or           1,447        

distribution requirement for preferred stock and its average       1,448        

annual fixed charges for the same period; provided, during         1,449        

neither of the last two years of the period shall the sum of its   1,450        

annual net income and its annual fixed charges be less than one    1,451        

and one-half times the sum of its dividend or distribution         1,452        

                                                          36     

                                                                 
requirements for preferred stock and its fixed charges for the     1,453        

same period.  As used in this paragraph, "fixed charges" means     1,454        

interest on funded or unfunded debt, contingent interest charges,  1,455        

amortization of debt discount, and expense and rentals for leased  1,456        

property and, in the case of consolidated earnings statements of   1,457        

parent and subsidiary corporations, includes all fixed charges     1,458        

and preferred dividend or distribution requirements, if any, of    1,459        

the subsidiaries.                                                  1,460        

      (ii)  The corporation has no arrears of dividends or         1,462        

distributions on its preferred stock;                              1,463        

      (iii)  The common stock or American depositary receipt is    1,465        

registered on a national securities exchange as provided in the    1,466        

"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.A. 77b,  1,469        

or, if traded only in the over-the-counter market, at least five   1,470        

member firms of the national association of securities dealers     1,471        

make markets in the stock or American depositary receipt.          1,472        

Registration is not required of the common stock of a bank that    1,473        

is a member of the federal deposit insurance corporation or a      1,474        

bank holding company and has capital funds, represented by         1,475        

capital, surplus, and undivided profits, of at least twenty        1,476        

million dollars; the common stock of a life insurance or an        1,477        

insurance holding company that has capital funds, represented by   1,478        

capital, special surplus funds, and unassigned surplus, of at      1,479        

least fifty million dollars; or the common stock of a fire or      1,480        

casualty insurance company, or a combination thereof, that has     1,481        

capital funds represented by capital, net surplus, and voluntary   1,482        

reserves, of at least fifty million dollars;                       1,483        

      (iv)  The preferred stock of the corporation, if any is      1,485        

outstanding, qualifies for investment under division (K)(18)(a)    1,487        

of this section;                                                                

      (v)  The corporation, having no preferred stock              1,489        

outstanding, has had either earnings before interest and taxes     1,490        

for the five fiscal years next preceding the date of investment    1,491        

of at least twice the interest on all mortgages, bonds,            1,492        

                                                          37     

                                                                 
debentures, and funded debts, if any, after deduction of the       1,493        

proper charges for replacements, depreciation, and obsolescence    1,494        

or the corporation's senior subordinated debt obligations are      1,495        

rated "A-" or higher quality rating according to the Standard and  1,496        

Poor's rating service or the equivalent rating in another          1,497        

standard rating service;                                           1,498        

      (vi)  The corporation has paid a cash dividend or            1,500        

distribution on its common stock in at least three years of the    1,501        

five-year period next preceding the date of investment, and the    1,502        

aggregate net earnings available for dividends or distributions    1,503        

on the common stock of the corporation for the whole of the        1,504        

period has been at least equal to the amount of the dividends or   1,505        

distributions paid, except that ten per cent of the total value    1,506        

of all funds invested by the commission may be invested in         1,507        

nondividend paying common stocks;                                  1,508        

      (vii)  In applying the earnings test under this division to  1,510        

any issuing, assuming, or guaranteeing corporation, where the      1,511        

corporation has acquired its property or any substantial part      1,512        

thereof within a five-year period immediately preceding the date   1,513        

of investment by consolidations, merger, or by the purchase of     1,514        

all or a substantial portion of the property of any other          1,515        

corporation or corporations, or has acquired the assets of any     1,516        

unincorporated business enterprise by purchase or otherwise, net   1,517        

income, fixed charges, and preferred dividends or distributions    1,518        

of the several predecessor or constituent corporations or          1,519        

enterprises shall be consolidated and adjusted so as to ascertain  1,520        

whether or not the applicable requirements of this section have    1,521        

been complied with.                                                1,522        

      (b)  In derivative instruments based on the stocks or        1,524        

American depositary receipts that qualify for investment under     1,525        

division (K)(20)(a) of this section;                               1,526        

      (c)  In beneficial interests in commingled stock investment  1,528        

funds;                                                             1,529        

      (d)  The total value of common and preferred stocks,         1,531        

                                                          38     

                                                                 
American depositary receipts, derivative instruments, and          1,532        

commingled stock investment fund investments made under this       1,533        

division shall not exceed fifty per cent of the total value of     1,534        

all funds invested by the commission, provided:                    1,535        

      (i)  Not more than one and one-half per cent of the total    1,537        

value of the funds is invested in the common stock of a single     1,538        

corporation;                                                       1,539        

      (ii)  The total number of common shares in a single          1,541        

corporation does not exceed ten per cent of the issued and         1,542        

outstanding common stock of such corporation.                      1,543        

      (e)  As used in division (K)(20)(d) of this section,         1,545        

"value" consists of cash, the par value of unpaid balance of all   1,546        

unmatured or unpaid investments requiring the payment of a fixed   1,547        

amount at payment date, and the cost of all other investments.     1,548        

      (21)(a)  In debt or equity interests in either of the        1,550        

following:                                                         1,551        

      (i)  Any corporation, partnership, proprietorship, or other  1,553        

entity not otherwise meeting the investment requirements of this   1,554        

section, provided more than one-half of its assets are within      1,555        

this state, more than one-half of its employees are employed       1,556        

within this state, or its principal office is located within this  1,557        

state, and provided liability is limited to the amount of the      1,558        

investment;                                                        1,559        

      (ii)  Venture capital firms having an office within this     1,561        

state, provided that, as a condition of the commission making an   1,562        

investment in a venture capital firm, the firm shall agree to use  1,563        

its best efforts to make investments, in an aggregate amount at    1,564        

least equal to the investment to be made by the commission in      1,565        

that venture capital firm, in small businesses having their        1,566        

principal offices within this state and having either more than    1,567        

one-half of their assets within this state or more than one-half   1,568        

of their employees employed within this state.                     1,569        

      (b)  Investments made under division (K)(21) of this         1,571        

section shall not exceed in the aggregate five per cent of the     1,572        

                                                          39     

                                                                 
total value of all funds invested by the commission.               1,573        

      (c)  As used in division (K)(21) of this section:            1,575        

      (i)  "Venture capital firm" means any corporation,           1,577        

partnership, proprietorship, or other entity, the principal        1,578        

business of which is or will be the making of investments in       1,579        

small businesses.                                                  1,580        

      (ii)  "Small business" means any corporation, partnership,   1,582        

proprietorship, or other entity that either does not have more     1,583        

than four hundred employees when the investment is made or would   1,584        

qualify as a small business for the purpose of receiving           1,585        

financial assistance from small business investment companies      1,586        

licensed under the "Small Business Investment Act of 1958," 72     1,587        

Stat. 689, 15 U.S.C.A. 661, as amended, and rules of the small     1,588        

business administration.                                           1,589        

      (iii)  "Equity interests" means limited partnership          1,591        

interests and other equity interests in which liability is         1,592        

limited to the amount of the investment, but does not mean         1,593        

general partnership interests or other interests involving         1,594        

general liability.                                                 1,595        

      (22)  In the following Canadian obligations, which shall     1,597        

not exceed fifteen per cent of the total value of all funds        1,598        

invested by the commission:  bonds, debentures, notes, or other    1,600        

obligations issued, guaranteed, or assumed as to both principal    1,601        

and interest by the government of Canada, by any province of       1,602        

Canada, or by any city of Canada that has a population of not      1,603        

less than one hundred fifty thousand, if all of the following      1,604        

apply:                                                                          

      (a)  The faith and credit of the issuer, guarantor, or       1,606        

assumer of the bonds, debentures, notes, or other obligations is   1,607        

pledged for the payment of principal and interest thereof, and     1,608        

the principal and interest thereof is payable in United States     1,610        

funds, either unconditionally or at the option of the holder;      1,611        

      (b)  Any such city, if the issuer, guarantor, or assumer is  1,613        

a city, has power to levy taxes on the taxable real property       1,614        

                                                          40     

                                                                 
therein or to collect other revenues for the payment of both       1,615        

principal and interest of the bonds, debentures, notes, or other   1,616        

obligations without limitation of rate or amount;                  1,617        

      (c)  The issuer, guarantor, or assumer of the bonds,         1,619        

debentures, notes, or other obligations has not within ten years   1,620        

prior to the making of the investment defaulted in payment of      1,621        

principal or interest of any debt evidenced by its bonds,          1,622        

debentures, notes, or other obligations for more than ninety       1,623        

days;                                                              1,624        

      (d)  The bonds, debentures, notes, or other obligations are  1,626        

rated at the time of purchase the equivalent of an "A-" or higher  1,627        

quality rating according to the Standard and Poor's rating         1,628        

service by at least two standard rating services or, if not        1,629        

rated, are certified in writing by two or more such services to    1,630        

be of investment quality equivalent to or higher than the quality  1,631        

of bonds rated an "A-".                                            1,632        

      (23)  In obligations issued, assumed, or guaranteed by the   1,634        

international bank for reconstruction and development, the Asian   1,635        

development bank, the inter-American development bank, the         1,636        

African development bank, the international finance corporation,   1,637        

or other similar development bank in which the president, as       1,638        

authorized by congress and on behalf of the United States, has     1,640        

accepted membership;                                               1,641        

      (24)  In general obligations backed by the full faith and    1,643        

credit of the state of Israel.  All interest and principal shall   1,644        

be denominated and payable in United States funds.                 1,645        

      (25)  In debt or equity interests in or issued by foreign    1,647        

entities or any instrument based on, derived from, or related to   1,648        

those interests and foreign currency denominated contracts or      1,649        

obligations.  The investments made under this division shall not   1,650        

exceed in the aggregate ten per cent of the total value of all     1,651        

funds invested by the commission.                                  1,652        

      Sec. 3365.08.  (A)  A college that expects to receive or     1,661        

receives reimbursement under section 3365.07 of the Revised Code   1,662        

                                                          41     

                                                                 
shall furnish to a participant all textbooks and materials         1,663        

directly related to a course taken by the participant under        1,664        

division (B) of section 3365.04 of the Revised Code.  No college   1,665        

shall charge such participant for tuition, textbooks, materials,   1,666        

or other fees directly related to any such course.                 1,667        

      (B)  No student enrolled under this chapter in a course for  1,669        

which credit toward high school graduation is awarded is eligible  1,670        

for any SHALL RECEIVE DIRECT financial aid under Chapter 3351. of  1,672        

the Revised Code THROUGH ANY STATE OR FEDERAL PROGRAM.                          

      (C)  If a school district provides transportation for        1,674        

resident school students in grades eleven and twelve under         1,675        

section 3327.01 of the Revised Code, a parent of a pupil enrolled  1,676        

in a course under division (B) of section 3365.04 of the Revised   1,677        

Code may apply to the board of education for full or partial       1,678        

reimbursement for the necessary costs of transporting the student  1,679        

between the secondary school he THE STUDENT attends and the        1,680        

college in which he THE STUDENT is enrolled.  Reimbursement may    1,681        

be paid solely from funds received by the district under division  1,682        

(K) of section 3317.024 of the Revised Code.  The state board of   1,684        

education shall establish guidelines, based on financial need,     1,685        

under which a district may provide such reimbursement.             1,686        

      Sec. 3366.01.  As used in this chapter, the following words  1,696        

and terms have the following meanings unless the context           1,697        

indicates a different meaning or intent:                                        

      (A)  "Bond proceedings" means the order, trust, agreement,   1,700        

indenture and other agreements, or amendments and supplements to   1,701        

the foregoing, or any one or more or combination thereof,          1,702        

authorizing or providing for the terms and conditions applicable   1,703        

to, or providing for the issuance, security, or liquidity of,      1,704        

obligations and the provisions contained in such obligations.      1,705        

      (B)  "Bond service charges" means principal, including       1,708        

mandatory sinking fund requirements for retirement of              1,709        

obligations, and interest, and redemption premium, if any,         1,710        

required to be paid on obligations.                                             

                                                          42     

                                                                 
      (C)  "Bond service fund" means the applicable fund and       1,713        

accounts therein created in the bond proceedings for and pledged   1,714        

to the payment of bond service charges, including all moneys and   1,715        

investments, and earnings from investments, credited and to be     1,716        

credited thereto.                                                               

      (D)  "Costs of attendance" means all costs of a student      1,719        

incurred in connection with a program of study at an eligible      1,720        

institution, as determined by the institution, including tuition;  1,721        

instructional fees; room and board; books, computers, and          1,722        

supplies; and other related fees, charges, and expenses.           1,723        

      (E)  "Designated nonprofit corporation" means the nonprofit  1,726        

corporation designated under division (F)(D) of section 3351.07    1,727        

of the Revised Code to operate exclusively for charitable and      1,729        

educational purposes by expanding access to higher education       1,730        

financing programs for students and families in need of student    1,731        

financial aid.                                                                  

      (F)  "Education loan" means a loan made by an eligible       1,734        

lender pursuant to the policy guidelines to or for the benefit of  1,736        

a student for the purpose of financing part or all of the                       

student's costs of attendance.                                     1,737        

      (G)  "Eligible borrower" means any of the following:         1,740        

      (1)  Individuals who are residents of the state, and who     1,742        

are attending and are in good standing in, or who have been        1,743        

accepted for attendance at, any eligible institution located in    1,744        

this state or elsewhere, on a part-time or full-time basis, to     1,745        

pursue an associate, baccalaureate, or advanced degree or a        1,746        

nursing diploma;                                                   1,747        

      (2)  Individuals who reside outside the state and who have   1,750        

been accepted for attendance at, or who are attending and are in   1,751        

good standing in, any eligible institution located in this state,  1,752        

on a part-time or full-time basis, to pursue an associate,                      

baccalaureate, or advanced degree or a nursing diploma;            1,753        

      (3)  Individuals who are parents or legal guardians of, or   1,756        

other persons, as set forth in the policy guidelines, borrowing    1,757        

                                                          43     

                                                                 
under an education loan for the benefit of individuals meeting     1,758        

requirements set forth in division (G)(1) or (2) of this section,  1,759        

in order to assist them in paying costs of attendance.             1,760        

      (H)(1)  "Eligible institution" means an institution          1,763        

described in any of divisions (H)(1)(a), (b), or (c) of this       1,764        

section that satisfies all of the requirements set forth in        1,766        

divisions (H)(2), (3), and (4) of this section.                    1,767        

      (a)  The institution is a state-assisted post-secondary      1,770        

educational institution within this state.                                      

      (b)  The institution is a nonprofit institution within this  1,773        

state having a certificate of authorization from the Ohio board    1,774        

of regents pursuant to Chapter 1713. of the Revised Code.          1,775        

      (c)  The institution is a post-secondary educational         1,778        

institution similar to one described in division (H)(1)(a) or (b)  1,779        

of this section that is located outside this state and that is     1,780        

similarly approved by the appropriate agency of that state.        1,781        

      (2)  The institution is accredited by the appropriate        1,783        

regional and, when appropriate, professional accrediting           1,784        

associations within whose jurisdiction it falls.                   1,785        

      (3)  The institution satisfies the eligibility requirements  1,788        

for participation in the federal family education loan program     1,789        

authorized under Title IV, Part B, of the "Higher Education Act    1,791        

of 1965," 20 U.S.C.A. 1071 et seq., as amended, as long as that    1,793        

program remains in existence.                                                   

      (4)  The institution satisfies the other conditions set      1,795        

forth in the policy guidelines.                                    1,796        

      (I)  "Eligible lender" means a bank, national banking        1,798        

association, savings bank, savings and loan association, or        1,799        

credit union having an office in this state that satisfies the     1,800        

criteria for eligible lenders established pursuant to the policy   1,801        

guidelines.                                                        1,802        

      (J)  "Governmental agency" means the state and any state     1,805        

department, division, commission, institution, or authority; the   1,806        

United States or any agency thereof; or any agency, commission,    1,807        

                                                          44     

                                                                 
or authority established pursuant to an interstate compact or      1,808        

agreement; or any combination of the foregoing.                    1,809        

      (K)  "Issuing authority" means the treasurer of state, or    1,812        

the officer who by law performs the functions of the treasurer of  1,813        

state.                                                                          

      (L)  "Obligations" means the bonds, notes, or securities of  1,816        

this state issued by the issuing authority pursuant to this        1,817        

chapter.                                                                        

      (M)  "Person" means any individual, corporation, business    1,820        

trust, estate, trust, partnership, or association, any federal,    1,821        

state, interstate, regional, or local governmental agency, any     1,822        

subdivision of the state, or any combination of these.             1,823        

      (N)  "Pledged receipts" means, to the extent the following   1,826        

are pledged by the bond proceedings for the payment of bond        1,827        

service charges:  all receipts representing moneys accruing from   1,828        

or in connection with the repayment of education loans, including  1,829        

interest and payments from any guarantee or insurance in respect   1,830        

to such education loans; accrued interest received from the sale   1,831        

of obligations; the balances in the special funds; income from     1,832        

the investment of the special funds; all right, title, or          1,833        

interest of the state in any education loans and any guarantees    1,834        

or insurance in respect thereof; all right, title, and interest    1,835        

of the designated nonprofit corporation in the education loans     1,836        

and any guarantees or insurance in respect thereof, and any money  1,837        

representing the proceeds of obligations or any income from or     1,838        

interest on those proceeds; or any other gifts, grants,            1,839        

donations, and pledges and any income and receipts therefrom,      1,840        

available and pledged for the payment of bond service charges.     1,841        

      (O)  "Policy guidelines" means the rules adopted pursuant    1,844        

to division (A) of section 3366.03 of the Revised Code.            1,845        

      (P)  "Proceeds loan" means the transfer, pursuant to a loan  1,848        

agreement or agency agreement, of the proceeds of the              1,849        

obligations, or the deposit of the proceeds of the obligations     1,850        

with a trustee in trust under a trust agreement, indenture, or     1,851        

                                                          45     

                                                                 
other trust document under the bond proceedings pending their      1,852        

disbursement for the purposes authorized by this chapter.          1,853        

      (Q)  "Resident" means any student who would qualify as a     1,856        

resident of this state for state subsidy and tuition surcharge     1,857        

purposes under rules adopted by the Ohio board of regents under    1,858        

section 3333.31 of the Revised Code.                               1,859        

      (R)  "Special funds" or "funds" means the bond service fund  1,862        

and any other funds, including reserve funds, created under the    1,863        

bond proceedings, including all moneys and investments, and        1,864        

earnings from investment, credited and to be credited thereto.     1,865        

      (S)  "Student" means an individual described in division     1,868        

(G)(1) or (2) of this section who meets requirements established   1,869        

under the policy guidelines.  "Student" includes dependent and     1,870        

independent undergraduate, graduate, and professional students.    1,871        

      (T)  "Subdivision" has the same meaning as in division (MM)  1,874        

of section 133.01 of the Revised Code.                             1,875        

      Sec. 4501.02.  (A)  There is hereby created in the           1,884        

department of public safety a bureau of motor vehicles, which      1,885        

shall be administered by a registrar of motor vehicles.  The       1,886        

registrar shall be appointed by the director of public safety and  1,887        

shall serve at his THE DIRECTOR'S pleasure.                        1,888        

      The registrar shall administer the laws of the state         1,890        

relative to the registration of and certificates of title for      1,891        

motor vehicles, and the licensing of motor vehicle dealers, motor  1,892        

vehicle leasing dealers, distributors, and salespersons, and of    1,893        

motor vehicle salvage dealers, salvage motor vehicle auctions,     1,894        

and salvage motor vehicle pools.  The registrar also shall, in     1,895        

accordance with section 4503.61 of the Revised Code, take those    1,896        

steps necessary to enter this state into membership in the         1,897        

international registration plan and carry out his THE REGISTRAR'S  1,899        

other duties under that section.  The registrar, with the          1,900        

approval of the director of public safety, may do all of the       1,901        

following:                                                                      

      (1)  Adopt such forms and rules as are necessary to carry    1,903        

                                                          46     

                                                                 
out all laws he THE REGISTRAR is required to administer;           1,904        

      (2)  Appoint such number of assistants, deputies, clerks,    1,906        

stenographers, and other employees as are necessary to carry out   1,907        

such laws;                                                         1,908        

      (3)  Acquire or lease such facilities as are necessary to    1,910        

carry out the duties of his THE REGISTRAR'S office.                1,911        

      The registrar shall give a bond for the faithful             1,913        

performance of his THE REGISTRAR'S duties in such amount and with  1,915        

such security as the director approves.  When in the opinion of    1,916        

the director it is advisable, any deputy or other employee may be  1,917        

required to give bond in such amount and with such security as     1,918        

the director approves.  In the discretion of the director, the     1,919        

bonds authorized to be taken on deputies or other employees may    1,920        

be individual, schedule, or blanket bonds.                         1,921        

      The registrar shall furnish the director of the Ohio         1,923        

student aid commission with the information required under         1,924        

division (C) of section 3351.071 of the Revised Code.              1,925        

      The director of public safety may investigate the            1,927        

activities of the bureau and have access to its records at any     1,928        

time, and the registrar shall make a report to the director at     1,929        

any time upon request.                                             1,930        

      All laws relating to the licensing of motor vehicle          1,932        

dealers, motor vehicle leasing dealers, distributors, and          1,933        

salespersons, and of motor vehicle salvage dealers, salvage motor  1,934        

vehicle auctions, and salvage motor vehicle pools, designating     1,935        

and granting power to the registrar shall be liberally construed   1,936        

to the end that the practice or commission of fraud in the         1,937        

business of selling motor vehicles and of disposing of salvage     1,938        

motor vehicles may be prohibited and prevented.                    1,939        

      (B)  There is hereby created in the department of public     1,941        

safety a division of emergency medical services, which shall be    1,942        

administered by an executive director of emergency medical         1,943        

services appointed under section 4765.03 of the Revised Code.      1,944        

      Section 2.  That existing sections 111.15, 131.15, 135.18,   1,946        

                                                          47     

                                                                 
135.181, 3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02  1,948        

and sections 1107.36, 3351.05, 3351.06, 3351.071, 3351.08,         1,949        

3351.09, 3351.10, 3351.11, 3351.12, 3351.13, and 3351.131 of the   1,950        

Revised Code are hereby repealed.                                               

      Section 3.  Section 135.18 of the Revised Code is presented  1,952        

in this act as a composite of the section as amended by both Am.   1,954        

Sub. S.B. 81 and Am. Sub. H.B. 538 of the 121st General Assembly,               

with the new language of neither of the acts shown in capital      1,956        

letters.  Section 135.181 of the Revised Code is presented in      1,957        

this act as a composite of the section as amended by Am. Sub.      1,958        

S.B. 81, Am. Sub. S.B. 293, and Am. Sub. H.B. 538 of the 121st     1,959        

General Assembly, with the new language of none of the acts shown  1,961        

in capital letters.  Sections 3333.25 and 3351.07 of the Revised   1,962        

Code is presented in this act as composites of the sections as     1,963        

amended by both Am. Sub. H.B. 627 and Am. Sub. S.B. 82 of the      1,964        

121st General Assembly, with the new language of neither of the    1,966        

acts shown in capital letters.  This is in recognition of the      1,967        

principle stated in division (B) of section 1.52 of the Revised    1,968        

Code that such amendments are to be harmonized where not           1,969        

substantively irreconcilable and constitutes a legislative         1,970        

finding that such is the resulting version in effect prior to the  1,971        

effective date of this act.