As Reported by the House Finance and Appropriations Committee    1            

122nd General Assembly                                             4            

   Regular Session                             Am. H. B. No. 562   5            

      1997-1998                                                    6            


 REPRESENTATIVES DAMSCHRODER-TERWILLEGER-TAYLOR-GARCIA-MOTTLEY-    8            

                          AMSTUTZ-OPFER                            9            


                                                                   11           

                           A   B I L L                                          

             To amend sections 111.15, 131.15, 135.18, 135.181,    13           

                3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and   14           

                4501.02 and to repeal sections  3351.05, 3351.06,  16           

                3351.071, 3351.08, 3351.09, 3351.10,  3351.11,     17           

                3351.12, 3351.13, and 3351.131 of the Revised      19           

                Code to remove statutory  references to the Ohio   20           

                Student Aid Commission.                            21           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        22           

      Section 1.  That sections 111.15, 131.15, 135.18, 135.181,   24           

3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 of the    25           

Revised Code be amended to read as follows:                        26           

      Sec. 111.15.  (A)  As used in this section:                  35           

      (1)  "Rule" includes any rule, regulation, bylaw, or         37           

standard having a general and uniform operation adopted by an      38           

agency under the authority of the laws governing the agency; any   39           

appendix to a rule; and any internal management rule.  "Rule"      40           

does not include any guideline adopted pursuant to section         41           

3301.0714 of the Revised Code, any order respecting the duties of  42           

employees, any finding, any determination of a question of law or  43           

fact in a matter presented to an agency, or any rule promulgated   44           

pursuant to Chapter 119., section 4141.14, division (C)(1) or (2)  45           

of section 5117.02, or section 5703.14 of the Revised Code.        46           

"Rule" includes any amendment or rescission of a rule.             47           

      (2)  "Agency" means any governmental entity of the state     49           

and includes, but is not limited to, any board, department,        50           

                                                          2      

                                                                 
division, commission, bureau, society, council, institution,       51           

state college or university, community college district,           52           

technical college district, or state community college.  "Agency"  53           

does not include the general assembly or any court.                54           

      (3)  "Internal management rule" means any rule, regulation,  56           

bylaw, or standard governing the day-to-day staff procedures and   57           

operations within an agency.                                       58           

      (4)  "Substantive revision" has the same meaning as in       60           

division (J) of section 119.01 of the Revised Code.                61           

      (B)(1)  Any rule, other than a rule of an emergency nature,  63           

adopted by any agency pursuant to this section shall be effective  64           

on the tenth day after the day on which the rule in final form     65           

and in compliance with division (B)(3) of this section is filed    66           

as follows:                                                        67           

      (a)  Two certified copies of the rule shall be filed with    69           

both the secretary of state and the director of the legislative    70           

service commission;                                                71           

      (b)  Two certified copies of the rule shall be filed with    73           

the joint committee on agency rule review.  Division (B)(1)(b) of  74           

this section does not apply to any rule to which division (D) of   75           

this section does not apply.                                       76           

      An agency that adopts or amends a rule that is subject to    78           

division (D) of this section shall assign a review date to the     80           

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       81           

assigned to a rule exceeds the five-year maximum, the review date  82           

for the rule is five years after its effective date.  A rule with  83           

a review date is subject to review under section 119.032 of the    84           

Revised Code.  This paragraph does not apply to a rule of a state  86           

college or university, community college district, technical                    

college district, or state community college.                      87           

      If all copies are not filed on the same day, the rule shall  89           

be effective on the tenth day after the day on which the latest    90           

filing is made.  If an agency in adopting a rule designates an     91           

                                                          3      

                                                                 
effective date that is later than the effective date provided for  92           

by division (B)(1) of this section, the rule if filed as required  93           

by such division shall become effective on the later date          94           

designated by the agency.                                          95           

      Any rule that is required to be filed under division (B)(1)  97           

of this section is also subject to division (D) of this section    98           

if not exempted by division (D)(1), (2), (3), (4), (5), (6), (7),  100          

or (8) of this section.                                                         

      (2)  A rule of an emergency nature necessary for the         102          

immediate preservation of the public peace, health, or safety      103          

shall state the reasons for the necessity.  Copies of the          104          

emergency rule, in final form and in compliance with division      105          

(B)(3) of this section, shall be filed as follows:  two certified  106          

copies of the emergency rule shall be filed with both the          107          

secretary of state and the director of the legislative service     108          

commission, and one certified copy of the emergency rule shall be  109          

filed with the joint committee on agency rule review.  The         110          

emergency rule is effective immediately upon the latest filing,    111          

except that if the agency in adopting the emergency rule           112          

designates an effective date, or date and time of day, that is     113          

later than the effective date and time provided for by division    114          

(B)(2) of this section, the emergency rule if filed as required    115          

by such division shall become effective at the later date, or      116          

later date and time of day, designated by the agency.              117          

      An emergency rule becomes invalid at the end of the          119          

ninetieth day it is in effect.  Prior to that date, the agency     120          

may file the emergency rule as a nonemergency rule in compliance   121          

with division (B)(1) of this section.  The agency may not refile   122          

the emergency rule in compliance with division (B)(2) of this      123          

section so that, upon the emergency rule becoming invalid under    124          

such division, the emergency rule will continue in effect without  125          

interruption for another ninety-day period.                        126          

      (3)  An agency shall file a rule under division (B)(1) or    128          

(2) of this section in compliance with the following standards     129          

                                                          4      

                                                                 
and procedures:                                                    130          

      (a)  The rule shall be numbered in accordance with the       132          

numbering system devised by the director for the Ohio              133          

administrative code.                                               134          

      (b)  The rule shall be prepared and submitted in compliance  136          

with the rules of the legislative service commission.              137          

      (c)  The rule shall clearly state the date on which it is    139          

to be effective and the date on which it will expire, if known.    140          

      (d)  Each rule that amends or rescinds another rule shall    142          

clearly refer to the rule that is amended or rescinded.  Each      143          

amendment shall fully restate the rule as amended.                 144          

      If the director of the legislative service commission or     146          

the director's designee gives an agency written notice pursuant    148          

to section 103.05 of the Revised Code that a rule filed by the     149          

agency is not in compliance with the rules of the legislative      150          

service commission, the agency shall within thirty days after      151          

receipt of the notice conform the rule to the rules of the         152          

commission as directed in the notice.                              153          

      (C)  All rules filed pursuant to divisions (B)(1)(a) and     155          

(2) of this section shall be recorded by the secretary of state    156          

and the director under the title of the agency adopting the rule   157          

and shall be numbered according to the numbering system devised    158          

by the director.  The secretary of state and the director shall    159          

preserve the rules in an accessible manner.  Each such rule shall  160          

be a public record open to public inspection and may be lent to    161          

any law publishing company that wishes to reproduce it.            162          

      (D)  At least sixty days before a board, commission,         164          

department, division, or bureau of the government of the state     165          

files a rule under division (B)(1) of this section, it shall file  166          

two copies of the full text of the proposed rule with the joint    168          

committee on agency rule review, and the proposed rule is subject  171          

to legislative review and invalidation under division (I) of       172          

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

commission, department, division, or bureau makes a substantive    173          

                                                          5      

                                                                 
revision in a proposed rule after it is filed with the joint       174          

committee, the state board, commission, department, division, or   176          

bureau shall promptly file two copies of the full text of the      178          

proposed rule in its revised form with the joint committee.  The   179          

latest version of a proposed rule as filed with the joint          180          

committee supersedes each earlier version of the text of the same  182          

proposed rule.  Except as provided in division (F) of this         183          

section, a state board, commission, department, division, or       184          

bureau shall attach one copy of the rule summary and fiscal        185          

analysis prepared under section 121.24 or 127.18 of the Revised    186          

Code, or both, to each copy of a proposed rule, and to each copy   187          

of a proposed rule in revised form, that is filed under this       188          

division.                                                          189          

      As used in this division, "commission" includes the public   191          

utilities commission when adopting rules under a federal or state  192          

statute.                                                                        

      This division does not apply to any of the following:        194          

      (1)  A proposed rule of an emergency nature;                 196          

      (2)  A rule proposed under section 1121.05, 1121.06,         198          

1155.18, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40,  199          

4123.411, 4123.44, or 4123.442 of the Revised Code;                201          

      (3)  A rule proposed by an agency other than a board,        203          

commission, department, division, or bureau of the government of   204          

the state;                                                         205          

      (4)  A proposed internal management rule of a board,         207          

commission, department, division, or bureau of the government of   208          

the state;                                                         209          

      (5)  A rule proposed by the Ohio student aid commission      211          

that complies with a federal law or rule, so long as the proposed  212          

rule contains both of the following:                               213          

      (a)  A statement that it is proposed for the purpose of      215          

complying with a federal law or rule;                              216          

      (b)  A citation to the federal law or rule that requires     218          

compliance.                                                        219          

                                                          6      

                                                                 
      (6)  Any proposed rule that must be adopted verbatim by an   221          

agency pursuant to federal law or rule, to become effective        222          

within sixty days of adoption, in order to continue the operation  223          

of a federally reimbursed program in this state, so long as the    224          

proposed rule contains both of the following:                      225          

      (a)  A statement that it is proposed for the purpose of      227          

complying with a federal law or rule;                              228          

      (b)  A citation to the federal law or rule that requires     230          

verbatim compliance.                                               231          

      (7)(6)  An initial rule proposed by the director of health   233          

to impose safety standards, quality-of-care standards, and         234          

quality-of-care data reporting requirements with respect to a      235          

health service specified in section 3702.11 of the Revised Code,   236          

or an initial rule proposed by the director to impose quality      238          

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

3702.30 of the Revised Code, if section 3702.12 of the Revised     239          

Code requires that the rule be adopted under this section;         240          

      (8)(7)  A rule of the state lottery commission pertaining    242          

to instant game rules.                                             243          

      (E)  Whenever a state board, commission, department,         245          

division, or bureau files a proposed rule or a proposed rule in    246          

revised form under division (D) of this section, it shall also     247          

file one copy of the full text of the same proposed rule or        248          

proposed rule in revised form with the secretary of state and two  249          

copies thereof with the director of the legislative service        250          

commission.  Except as provided in division (F) of this section,   251          

a state board, commission, department, division, or bureau shall   252          

attach a copy of the rule summary and fiscal analysis prepared     253          

under section 121.24 or 127.18 of the Revised Code, or both, to    254          

each copy of a proposed rule or proposed rule in revised form      255          

that is filed with the secretary of state or the director of the   256          

legislative service commission.                                    257          

      (F)  Except as otherwise provided in this division, the      259          

auditor of state or the auditor of state's designee is not         260          

                                                          7      

                                                                 
required to attach a rule summary and fiscal analysis to any copy  262          

of a proposed rule, or proposed rule in revised form, that the     263          

auditor of state proposes under section 117.12, 117.19, 117.38,    265          

or 117.43 of the Revised Code and files under division (D) or (E)  266          

of this section.  If, however, the auditor of state or the         267          

designee prepares a rule summary and fiscal analysis of the        268          

original version of such a proposed rule for purposes of           269          

complying with section 121.24 of the Revised Code, the auditor of  270          

state or designee shall attach a copy of the rule summary and      271          

fiscal analysis to each copy of the original version of the        272          

proposed rule filed under division (D) or (E) of this section.     273          

      Sec. 131.15.  (A)  Any depositor enumerated in section       282          

131.11 of the Revised Code shall make ample provisions for the     283          

safekeeping of hypothecated securities.  The interest thereon,     284          

when paid, shall be turned over to the bank or trust company if    285          

it is not in default.  The depositor may make provisions for the   286          

exchange and release of securities and the substitution of other   287          

securities or of an undertaking therefor except in those cases     288          

where the public depository has deposited eligible securities      289          

with a trustee for safekeeping.                                    290          

      (B)  When the public depository has deposited eligible       292          

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

Revised Code with a trustee for safekeeping, the public            294          

depository may at any time substitute or exchange eligible         295          

securities described in division (B)(1) of section 135.18 of the   296          

Revised Code having a current market value equal to or greater     297          

than the current market value of the securities then on deposit    298          

and for which they are to be substituted or exchanged, without     299          

specific authorization from the depositor of any substitution or   300          

exchange.                                                          301          

      (C)  When the public depository has deposited eligible       303          

securities described in division (B)(2) to (10)(9) of section      304          

135.18 of the Revised Code with a trustee for safekeeping, the     305          

public depository may at any time substitute or exchange eligible  306          

                                                          8      

                                                                 
securities having a current market value equal to or greater than  307          

the current market value of the securities then on deposit and     308          

for which they are to be substituted or exchanged without          309          

specific authorization of any depositor of any such substitution   310          

or exchange only if:                                               311          

      (1)  The depositor has authorized the public depository to   313          

make such substitutions or exchanges on a continuing basis during  314          

a specified period without prior approval of each substitution or  315          

exchange.  Such authorization may be effected by the depositor     316          

sending to the trustee a written notice stating that substitution  317          

may be effected on a continuing basis during a specified period    318          

that shall not extend beyond the end of the period of designation  319          

during which the notice is given.  "Period of designation" as      320          

used in this section means the period under section 135.12 of the  321          

Revised Code for the award of inactive funds of the subdivision    322          

of which the depositor is an officer or employee.  The trustee     323          

may rely upon such notice and upon the period of authorization     324          

stated therein and upon the period of designation stated therein.  325          

      (2)  No continuing authorization for substitution has been   327          

given by the depositor, the public depository notifies the         328          

depositor and the trustee of an intended substitution or           329          

exchange, and the depositor fails to object to the trustee as to   330          

the eligibility or market value of the securities being            331          

substituted within ten calendar days after the date appearing on   332          

the notice of proposed substitution.  The notice to the depositor  333          

and to the trustee shall be given in writing and delivered         334          

personally or by certified mail with a return receipt requested.   335          

The trustee may assume in any case that the notice has been        336          

delivered to the depositor.  In order for objections of the        337          

depositor to be effective, receipt of the objections must be       338          

acknowledged in writing by the trustee.                            339          

      (3)  The depositor gives written authorization for a         341          

substitution or exchange of specific securities.                   342          

      (D)  The public depository shall notify the depositor of     344          

                                                          9      

                                                                 
any substitution or exchange under division (C)(1) or (2) of this  345          

section.  If the depository designates a trustee qualified under   346          

section 135.18 of the Revised Code to act as such for the          347          

safekeeping of securities, the depositor shall accept the written  348          

receipt of the designated trustee, describing the securities that  349          

have been deposited with the trustee by the public depository, as  350          

and for a hypothecation of such securities and issue to the        351          

depository his THE DEPOSITOR'S written acknowledgment to that      352          

effect, keeping a copy thereof in his THE DEPOSITOR'S office.      353          

Thereupon, all such securities pledged and deposited with the      354          

trustee are deemed hypothecated and deposited with the depositor,  355          

for all the purposes of sections 131.13 to 131.16 of the Revised   356          

Code.  The trustee shall hold the securities for the account of    357          

the depositor and the depository as their respective rights to     358          

and interests in such securities under said sections appear and    359          

are asserted by written notice to or demand upon the trustee.      360          

      Notwithstanding the fact that a public depository is         362          

required to pledge eligible securities in certain amounts to       363          

secure deposits of public moneys, a trustee shall have no duty or  364          

obligation to determine the eligibility, market value, or face     365          

value of any securities deposited with the trustee by a public     366          

depository.  This applies in all situations including, without     367          

limitation, a substitution or exchange of securities.              368          

      Sec. 135.18.  (A)  The treasurer, before making the initial  377          

deposit in a public depository pursuant to an award made under     378          

sections 135.01 to 135.21 of the Revised Code, shall require the   379          

institution designated as a public depository to pledge to and     380          

deposit with the treasurer, as security for the repayment of all   381          

public moneys to be deposited in the public depository during the  382          

period of designation pursuant to the award, eligible securities   383          

of aggregate market value equal to the excess of the amount of     384          

public moneys to be at the time so deposited, over and above such  385          

portion or amount of such moneys as is at such time insured by     386          

the federal deposit insurance corporation or by any other agency   387          

                                                          10     

                                                                 
or instrumentality of the federal government, or the treasurer     388          

may require the institution to deposit with the treasurer surety   389          

company bonds which, when executed, shall be for an amount equal   390          

to such excess amount.  In the case of any deposit other than the  391          

initial deposit made during the period of designation, the amount  392          

of the aggregate market value of securities required to be         393          

pledged and deposited, or of the surety company bonds required to  394          

be deposited, shall be equal to the difference between the amount  395          

of public moneys on deposit in such public depository plus the     396          

amount to be so deposited, minus the portion or amount of the      397          

aggregate as is at the time insured as provided in this section.   398          

The treasurer may require additional eligible securities to be     399          

deposited to provide for any depreciation which may occur in the   400          

market value of any of the securities so deposited.                401          

      (B)  The following securities shall be eligible for the      403          

purposes of this section:                                          404          

      (1)  Bonds, notes, or other obligations of the United        406          

States; or bonds, notes, or other obligations guaranteed as to     407          

principal and interest by the United States or those for which     408          

the faith of the United States is pledged for the payment of       409          

principal and interest thereon, by language appearing in the       410          

instrument specifically providing such guarantee or pledge and     411          

not merely by interpretation or otherwise;                         412          

      (2)  Bonds, notes, debentures, letters of credit, or other   414          

obligations or securities issued by any federal government agency  415          

or instrumentality, or the export-import bank of Washington;       416          

bonds, notes, or other obligations guaranteed as to principal and  417          

interest by the United States or those for which the faith of the  418          

United States is pledged for the payment of principal and          419          

interest thereon, by interpretation or otherwise and not by        420          

language appearing in the instrument specifically providing such   421          

guarantee or pledge;                                                            

      (3)  Obligations of or fully insured or fully guaranteed by  423          

the United States or any federal government agency or              424          

                                                          11     

                                                                 
instrumentality;                                                                

      (4)  Obligations partially insured or partially guaranteed   426          

by any federal agency or instrumentality;                          427          

      (5) Obligations of or fully guaranteed by the federal        429          

national mortgage association, federal home loan mortgage          430          

corporation, federal farm credit bank, or student loan marketing   431          

association;                                                                    

      (6)  Bonds and other obligations of this state;              433          

      (7)  Bonds and other obligations of any county, township,    435          

school district, municipal corporation, or other legally           436          

constituted taxing subdivision of this state, which is not at the  437          

time of such deposit, in default in the payment of principal or    438          

interest on any of its bonds or other obligations, for which the   439          

full faith and credit of the issuing subdivision is pledged;       441          

      (8)  Bonds of other states of the United States which have   443          

not during the ten years immediately preceding the time of such    444          

deposit defaulted in payments of either interest or principal on   445          

any of their bonds;                                                446          

      (9)  Obligations guaranteed as to principal and interest by  448          

the Ohio student aid commission;                                   449          

      (10)  Shares of no-load money market mutual funds            451          

consisting exclusively of obligations described in division        452          

(B)(1) or (2) of this section and repurchase agreements secured    453          

by such obligations.                                               454          

      (C)  If the public depository fails to pay over any part of  456          

the public deposit made therein as provided by law, the treasurer  457          

shall sell at public sale any of the bonds or other securities     458          

deposited with the treasurer pursuant to this section or section   459          

131.09 of the Revised Code, or shall draw on any letter of credit  460          

to the extent of such failure to pay.  Thirty days' notice of      461          

such sale shall be given in a newspaper of general circulation at  462          

Columbus, in the case of the treasurer of state, and at the        463          

county seat of the county in which the office of the treasurer is  464          

located, in the case of any other treasurer.  When a sale of       465          

                                                          12     

                                                                 
bonds or other securities has been so made and upon payment to     466          

the treasurer of the purchase money, the treasurer shall transfer  467          

such bonds or securities whereupon the absolute ownership of such  468          

bonds or securities shall pass to the purchasers.  Any surplus     469          

remaining after deducting the amount due the state or subdivision  470          

and expenses of sale shall be paid to the public depository.       471          

      (D)  An institution designated as a public depository may,   473          

by written notice to the treasurer, designate a qualified trustee  474          

and deposit the eligible securities required by this section with  475          

the trustee for safekeeping for the account of the treasurer and   476          

the institution as a public depository, as their respective        477          

rights to and interests in such securities under this section may  478          

appear and be asserted by written notice to or demand upon the     479          

trustee.  In such case, the treasurer shall accept the written     480          

receipt of the trustee describing the securities which have been   481          

deposited with the trustee by the public depository, a copy of     482          

which shall also be delivered to the public depository.            483          

Thereupon all such securities so deposited with the trustee are    484          

deemed to be pledged with the treasurer and to be deposited with   485          

the treasurer, for all the purposes of this section.               486          

      (E)  The governing board may make provisions for the         488          

exchange and release of securities and the substitution of other   489          

eligible securities therefor except where the public depository    490          

has deposited eligible securities with a trustee for safekeeping   491          

as provided in this section.                                       492          

      (F)  When the public depository has deposited eligible       494          

securities described in division (B)(1) of this section with a     495          

trustee for safekeeping, the public depository may at any time     496          

substitute or exchange eligible securities described in division   497          

(B)(1) of this section having a current market value equal to or   498          

greater than the current market value of the securities then on    499          

deposit and for which they are to be substituted or exchanged,     500          

without specific authorization from any governing board, boards,   501          

or treasurer of any such substitution or exchange.                 502          

                                                          13     

                                                                 
      (G)  When the public depository has deposited eligible       504          

securities described in divisions (B)(2) to (10)(9) of this        505          

section with a trustee for safekeeping, the public depository may  506          

at any time substitute or exchange eligible securities having a    507          

current market value equal to or greater than the current market   508          

value of the securities then on deposit and for which they are to  509          

be substituted or exchanged without specific authorization of any  510          

governing board, boards, or treasurer of any such substitution or  511          

exchange only if:                                                  512          

      (1)  The treasurer has authorized the public depository to   514          

make such substitution or exchange on a continuing basis during a  515          

specified period without prior approval of each substitution or    516          

exchange.  Such authorization may be effected by the treasurer     517          

sending to the trustee a written notice stating that substitution  518          

may be effected on a continuing basis during a specified period    519          

which shall not extend beyond the end of the period of             520          

designation during which the notice is given.  The trustee may     521          

rely upon such notice and upon the period of authorization stated  522          

therein and upon the period of designation stated therein.         523          

      (2)  No continuing authorization for substitution has been   525          

given by the treasurer, the public depository notifies the         526          

treasurer and the trustee of an intended substitution or           527          

exchange, and the treasurer fails to object to the trustee as to   528          

the eligibility or market value of the securities being            529          

substituted within ten calendar days after the date appearing on   530          

the notice of proposed substitution.  The notice to the treasurer  531          

and to the trustee shall be given in writing and delivered         532          

personally or by certified or registered mail with a return        533          

receipt requested.  The trustee may assume in any case that the    534          

notice has been delivered to the treasurer.  In order for          535          

objections of the treasurer to be effective, receipt of the        536          

objections must be acknowledged in writing by the trustee.         537          

      (3)  The treasurer gives written authorization for a         539          

substitution or exchange of specific securities.                   540          

                                                          14     

                                                                 
      (H)  The public depository shall notify any governing        542          

board, boards, or treasurer of any such substitution or exchange   543          

under division (G)(1) or (2) of this section.  Upon request from   544          

the treasurer, the trustee shall furnish a statement of the        545          

securities pledged against such public deposits.                   546          

      (I)  Any federal reserve bank or branch thereof located in   548          

this state, without compliance with Chapter 1111. of the Revised   549          

Code and without becoming subject to any other law of this state   552          

relative to the exercise by corporations of trust powers           553          

generally, is qualified to act as trustee for the safekeeping of   554          

securities, under this section.  Any institution mentioned in      555          

section 135.03 of the Revised Code that holds a certificate of     556          

qualification issued by the superintendent of financial            557          

institutions or any institution complying with sections 1111.04,                

1115.05, and 1111.06 of the Revised Code, is qualified to act as   559          

trustee for the safekeeping of securities, other than those        560          

belonging to itself, under this section.  Upon application to the  561          

superintendent in writing by any such institution, the                          

superintendent shall investigate the applicant and ascertain       563          

whether or not it has been authorized to execute and accept        564          

trusts in this state and has safe and adequate vaults and          565          

efficient supervision thereof for the storage and safekeeping      566          

within this state of such securities.  If the superintendent       567          

finds that the applicant has been so authorized and does have      568          

such vaults and supervision thereof, the superintendent shall      569          

approve the application and issue a certificate to that effect,    570          

the original or any certified copy of which shall be conclusive    571          

evidence that the institution therein named is qualified to act    572          

as trustee for the purposes of this section with respect to        573          

securities other than those belonging to itself.                                

      Notwithstanding the fact that a public depository is         575          

required to pledge eligible securities in certain amounts to       576          

secure deposits of public moneys, a trustee shall have no duty or  577          

obligation to determine the eligibility, market value, or face     578          

                                                          15     

                                                                 
value of any securities deposited with the trustee by a public     579          

depository.  This applies in all situations including, without     580          

limitation, a substitution or exchange of securities.              581          

      Any charges or compensation of a designated trustee for      583          

acting as such under this section shall be paid by the public      584          

depository and in no event shall be chargeable to the state or     585          

the subdivision or to the treasurer or to any officer of the       586          

state or subdivision.  Such charges or compensation shall not be   587          

a lien or charge upon the securities deposited for safekeeping     588          

prior or superior to the rights to and interests in such           589          

securities of the state or the subdivision or of the treasurer.    590          

The treasurer and the treasurer's bondsmen BONDERS or surety       591          

shall be relieved from any liability to the state or the           592          

subdivision or to the public depository for the loss or            593          

destruction of any securities deposited with a qualified trustee   594          

pursuant to this section.                                                       

      Sec. 135.181.  (A)  As used in this section:                 606          

      (1)  "Public depository" means that term as defined in       608          

section 135.01 of the Revised Code, but also means an institution  609          

which receives or holds any public deposits as defined in section  610          

135.31 of the Revised Code.                                        611          

      (2)  "Public deposits," "public moneys," and "treasurer"     613          

mean those terms as defined in section 135.01 of the Revised       614          

Code, but also have the same meanings as are set forth in section  615          

135.31 of the Revised Code.                                        616          

      (3)  "Subdivision" means that term as defined in section     618          

135.01 of the Revised Code, but also includes a county.            619          

      (B)  In lieu of the pledging requirements prescribed in      621          

sections 135.18 and 135.37 of the Revised Code, an institution     622          

designated as a public depository at its option may pledge a       623          

single pool of eligible securities to secure the repayment of all  624          

public moneys deposited in the institution and not otherwise       625          

secured pursuant to law, provided that at all times the total      626          

value of the securities so pledged, based on the valuations        627          

                                                          16     

                                                                 
prescribed in division (C) of this section, is at least equal to   628          

one hundred ten per cent of the total amount of all public         629          

deposits to be secured by the pooled securities, including the     630          

portion of such deposits covered by any federal deposit            631          

insurance.  Each such institution shall carry in its accounting    632          

records at all times a general ledger or other appropriate         633          

account of the total amount of all public deposits to be secured   634          

by the pool, as determined at the opening of business each day,    635          

and the total value of securities pledged to secure such           636          

deposits.                                                          637          

      (C)  The following securities, at the specified valuations,  639          

shall be eligible as collateral for the purposes of division (B)   640          

of this section, provided no such securities pledged as            641          

collateral are at any time in default as to either principal or    642          

interest:                                                          643          

      (1)  Obligations of or fully insured or fully guaranteed by  645          

the United States or any federal government agency or              646          

instrumentality:  at face value;                                   647          

      (2)  Obligations partially insured or partially guaranteed   649          

by any federal government agency or instrumentality:  at face      650          

value;                                                                          

      (3)  Obligations of or fully guaranteed by the federal       652          

national mortgage association, federal home loan mortgage          653          

corporation, federal farm, credit bank, or student loan marketing  654          

association:  at face value;                                       655          

      (4)  Obligations of any state, county, municipal             657          

corporation, or other legally constituted authority of any state,  658          

or any instrumentality of any state, county, municipal             659          

corporation, or other authority, which are secured as to the       660          

payment of principal and interest by the holding in escrow of      661          

obligations of the United States for which the full faith and      662          

credit of the United States is pledged:  at face value;            663          

      (5)  Obligations of this state, or any county or other       665          

legally constituted authority of this state, or any                666          

                                                          17     

                                                                 
instrumentality of this state, or such county or other authority:  667          

at face value;                                                     668          

      (6)  Obligations of any other state:  at ninety per cent of  670          

face value;                                                        671          

      (7)  Obligations of any county, municipal corporation, or    673          

other legally constituted authority of any other state, or any     674          

instrumentality of such county, municipal corporation, or other    675          

authority:  at eighty per cent of face value;                      676          

      (8)  Notes representing loans made to persons attending or   678          

planning to attend eligible institutions of education and to       679          

their parents, and insured or guaranteed by the United States or   680          

any agency, department, or other instrumentality thereof, or       681          

guaranteed by the Ohio student aid commission pursuant to          682          

sections 3351.05 to 3351.14 of the Revised Code:  at face value;   683          

      (9)  Any other obligations the treasurer of state approves:  685          

at the percentage of face value the treasurer of state             686          

prescribes;                                                                     

      (10)  Shares of no-load money market mutual funds            688          

consisting exclusively of obligations described in division        689          

(C)(1), (2), or (3) of this section and repurchase agreements      690          

secured by such obligations:  at face value.                       691          

      (D)  The state and each subdivision shall have an undivided  693          

security interest in the pool of securities pledged by a public    694          

depository pursuant to division (B) of this section in the         695          

proportion that the total amount of the state's or subdivision's   696          

public moneys secured by the pool bears to the total amount of     697          

public deposits so secured.                                        698          

      (E)  An institution designated as a public depository shall  700          

designate a qualified trustee and deposit with the trustee for     701          

safekeeping the eligible securities pledged pursuant to division   702          

(B) of this section.  The institution shall give written notice    703          

of the qualified trustee to any treasurer or treasurers            704          

depositing public moneys for which such securities are pledged.    705          

The treasurer shall accept the written receipt of the trustee      706          

                                                          18     

                                                                 
describing the pool of securities so deposited by the depository,  707          

a copy of which also shall be delivered to the depository.         708          

      (F)  Any federal reserve bank or branch thereof located in   710          

this state, without compliance with Chapter 1111. of the Revised   711          

Code and without becoming subject to any other law of this state   714          

relative to the exercise by corporations of trust powers           715          

generally, is qualified to act as trustee for the safekeeping of   716          

securities, under this section.  Any institution mentioned in      717          

section 135.03 or 135.32 of the Revised Code which holds a                      

certificate of qualification issued by the superintendent of       718          

financial institutions or any institution complying with sections  720          

1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to  721          

act as trustee for the safekeeping of securities under this        722          

section, other than those belonging to itself or to an affiliate   723          

as defined in division (A) of section 1101.01 of the Revised       724          

Code.  Upon application to the superintendent in writing by any    725          

such institution, the superintendent shall investigate the         727          

applicant and ascertain whether or not it has been authorized to   728          

execute and accept trusts in this state and has safe and adequate  729          

vaults and efficient supervision thereof for the storage and       730          

safekeeping of such securities.  If the superintendent finds that  731          

the applicant has been so authorized and does have such vaults     732          

and supervision thereof, the superintendent shall approve the      733          

application and issue a certificate to that effect, the original   735          

or any certified copy of which shall be conclusive evidence that   736          

the institution named therein is qualified to act as trustee for   737          

the purposes of this section with respect to securities other      738          

than those belonging to itself or to an affiliate.                 739          

      (G)  The public depository at any time may substitute,       741          

exchange, or release eligible securities deposited with a          742          

qualified trustee pursuant to this section, provided that such     743          

substitution, exchange, or release does not reduce the total       744          

value of the securities, based on the valuations prescribed in     745          

division (C) of this section, to an amount that is less than one   746          

                                                          19     

                                                                 
hundred ten per cent of the total amount of public deposits as     747          

determined pursuant to division (B) of this section.               748          

      (H)  Notwithstanding the fact that a public depository is    750          

required to pledge eligible securities in certain amounts to       751          

secure deposits of public moneys, a trustee shall have no duty or  752          

obligation to determine the eligibility, market value, or face     753          

value of any securities deposited with the trustee by a public     754          

depository.  This applies in all situations including, but not     755          

limited to, a substitution or exchange of securities, but          756          

excluding those situations effectuated by division (I) of this     757          

section in which the trustee is required to determine face and     758          

market value.                                                      759          

      (I)  If the public depository fails to pay over any part of  761          

the public deposits made therein as provided by law and secured    762          

pursuant to division (B) of this section, the treasurer shall      763          

give written notice of this failure to the qualified trustee       764          

holding the pool of securities pledged against public moneys       765          

deposited in the depository, and at the same time shall send a     766          

copy of this notice to the depository.  Upon receipt of such       767          

notice, the trustee shall transfer to the treasurer for public     768          

sale such of the pooled securities as may be necessary to produce  769          

an amount equal to the deposits made by the treasurer and not      770          

paid over, less the portion of such deposits covered by any        771          

federal deposit insurance, plus any accrued interest due on such   772          

deposits; however, such amount shall not exceed the state's or     773          

subdivision's proportional security interest in the market value   774          

of the pool as of the date of the depository's failure to pay      775          

over the deposits, as such interest and value are determined by    776          

the trustee.  The treasurer shall sell at public sale any of the   777          

bonds or other securities so transferred.  Thirty days' notice of  778          

such sale shall be given in a newspaper of general circulation at  779          

Columbus, in the case of the treasurer of state, and at the        780          

county seat of the county in which the office of the treasurer is  781          

located, in the case of any other treasurer.  When a sale of       782          

                                                          20     

                                                                 
bonds or other securities has been so made and upon payment to     783          

the treasurer of the purchase money, the treasurer shall transfer  784          

such bonds or securities whereupon the absolute ownership of such  785          

bonds or securities shall pass to the purchasers.  Any surplus     786          

after deducting the amount due the state or subdivision and        787          

expenses of sale shall be paid to the public depository.           788          

      (J)  Any charges or compensation of a designated trustee     790          

for acting as such under this section shall be paid by the public  791          

depository and in no event shall be chargeable to the state or     792          

subdivision or to the treasurer or to any officer of the state or  793          

subdivision.  Such charges or compensation shall not be a lien or  794          

charge upon the securities deposited for safekeeping prior or      795          

superior to the rights to and interests in such securities of the  796          

state or subdivision or of the treasurer.  The treasurer and the   797          

treasurer's bondspersons bonders or surety shall be relieved from  798          

any liability to the state or subdivision or to the public         799          

depository for the loss or destruction of any securities           800          

deposited with a qualified trustee pursuant to this section.       801          

      (K)  In lieu of placing its unqualified endorsement on each  803          

security, a public depository pledging securities pursuant to      804          

division (B) of this section that are not negotiable without its   805          

endorsement or assignment may furnish to the qualified trustee     806          

holding the securities an appropriate resolution and irrevocable   807          

power of attorney authorizing the trustee to assign the            808          

securities.  The resolution and power of attorney shall conform    809          

to such terms and conditions as the trustee prescribes.            810          

      (L)  Upon request of a treasurer no more often than four     812          

times per year, a public depository shall report the amount of     813          

public moneys deposited by the treasurer and secured pursuant to   814          

division (B) of this section, and the total value, based on the    815          

valuations prescribed in division (C) of this section, of the      816          

pool of securities pledged to secure public moneys held by the     817          

depository, including those deposited by the treasurer.  Upon      818          

request of a treasurer no more often than four times per year, a   819          

                                                          21     

                                                                 
qualified trustee shall report such total value of the pool of     820          

securities deposited with it by the depository and shall provide   821          

an itemized list of the securities in the pool.  These reports     822          

shall be made as of the date the treasurer specifies.              823          

      Sec. 3333.25.  There is hereby created the Ohio academic     832          

scholarship payment fund, which shall be in the custody of the     833          

treasurer of state but shall not be a part of the state treasury.  834          

The fund shall consist of all moneys appropriated for the fund by  835          

the general assembly and other moneys otherwise made available to  836          

the fund.  The payment fund shall be used for the payment of Ohio  837          

academic scholarships or for additional scholarships to recognize  838          

outstanding academic achievement and ability.  The Ohio board of   839          

regents shall administer this section and establish rules for the  840          

distribution and awarding of any additional scholarships.          841          

      The board may direct the treasurer of state to invest any    844          

moneys in the payment fund not currently needed for scholarship    845          

payments, in any kinds of investments in which moneys of the Ohio  846          

student aid commission PUBLIC EMPLOYEES RETIREMENT SYSTEM may be   847          

invested.                                                                       

      The instruments of title of all investments shall be         849          

delivered to the treasurer of state or to a qualified trustee      850          

designated by the treasurer of state as provided in section        851          

135.18 of the Revised Code.  The treasurer of state shall collect  852          

both principal and investment earnings on all investments as they  853          

become due and pay them into the fund.                             854          

      All deposits to the fund shall be made in financial          856          

institutions of this state secured as provided in section 135.18   857          

of the Revised Code.                                               858          

      Sec. 3345.32.  (A)  As used in this section:                 867          

      (1)  "State university or college" means the institutions    869          

described in section 3345.27 of the Revised Code, the              870          

northeastern Ohio universities college of medicine, and the        871          

medical college of Ohio at Toledo.                                 872          

      (2)  "Resident" has the meaning specified by rule of the     874          

                                                          22     

                                                                 
Ohio board of regents.                                             875          

      (3)  "Statement of selective service status" means a         877          

statement certifying one of the following:                         878          

      (a)  That the individual filing the statement has            880          

registered with the selective service system in accordance with    881          

the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.      882          

App. 453, as amended;                                              883          

      (b)  That the individual filing the statement is not         885          

required to register with the selective service for one of the     886          

following reasons:                                                 887          

      (i)  The individual is under eighteen or over twenty-six     889          

years of age;                                                      890          

      (ii)  The individual is on active duty with the armed        892          

forces of the United States other than for training in a reserve   893          

or national guard unit;                                            894          

      (iii)  The individual is a nonimmigrant alien lawfully in    896          

the United States in accordance with section 101 (a)(15) of the    897          

"Immigration and Nationality Act," 8 U.S.C. 1101, as amended;      898          

      (iv)  The individual is not a citizen of the United States   900          

and is a permanent resident of the Trust Territory of the Pacific  902          

Islands or the Northern Mariana Islands.                           903          

      (4)  "Institution of higher education" means any eligible    905          

institution approved by the student aid commission UNITED STATES   907          

DEPARTMENT OF EDUCATION pursuant to Chapter 3351. of the Revised   908          

Code THE "HIGHER EDUCATION ACT OF 1965," 79 STAT. 1219, AS         909          

AMENDED, or any institution whose students are eligible for        911          

financial assistance under any of the programs described by        912          

division (E) of this section.                                                   

      (B)  The Ohio board of regents shall, by rule, specify the   914          

form of statements of selective service status to be filed in      915          

compliance with divisions (C) to (F) of this section.  Each        916          

statement of selective service status shall contain a section      917          

wherein a male student born after December 31, 1959, certifies     918          

that the student has registered with the selective service system  920          

                                                          23     

                                                                 
in accordance with the "Military Selective Service Act," 62 Stat.  921          

604, 50 U.S.C. App. 453, as amended.  For those students not       923          

required to register with the selective service, as specified in   924          

divisions (A)(2)(b)(i) to (iv) of this section, a section shall    925          

be provided on the statement of selective service status for the   926          

certification of nonregistration and for an explanation of the     927          

reason for the exemption.  The board of regents may require that   928          

such statements be accompanied by documentation specified by rule  929          

of the board.                                                                   

      (C)  A state university or college that enrolls in any       931          

course, class, or program a male student born after December 31,   932          

1959, who has not filed a statement of selective service status    933          

with the university or college shall, regardless of the student's  934          

residency, charge the student any tuition surcharge charged        935          

students who are not residents of this state.                      936          

      (D)  No male born after December 31, 1959, shall be          938          

eligible to receive any loan, grant, scholarship, or other         939          

financial assistance for educational expenses under section        940          

3315.33, 3333.12, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03,     941          

5910.032, or 5919.34 of the Revised Code unless that person has    943          

filed a statement of selective service status with that person's   944          

institution of higher education.                                                

      (E)  If an institution of higher education receives a        946          

statement from an individual certifying that the individual has    948          

registered with the selective service system in accordance with                 

the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.      949          

App. 453, as amended or that the individual is exempt from         950          

registration for a reason other than that the individual is under  952          

eighteen years of age, the institution shall not require the       953          

individual to file any further statements.  If it receives a       954          

statement certifying that the individual is not required to        955          

register because the individual is under eighteen years of age,    956          

the institution shall require the individual to file a new         957          

statement of selective service status each time the individual     958          

                                                          24     

                                                                 
seeks to enroll for a new academic term or makes application for   960          

a new loan or loan guarantee or for any form of financial          961          

assistance for educational expenses, until it receives a           962          

statement certifying that the individual has registered with the   963          

selective service system or is exempt from registration for a                   

reason other than that the individual is under eighteen years of   965          

age.                                                                            

      Sec. 3351.07.  (A)  The Ohio student aid commission may:     974          

      (1)  Guarantee the loan of money, subject to section         976          

3351.08 of the Revised Code and upon any other terms and           977          

conditions as the commission may prescribe, to persons and         978          

parents of persons attending or planning to attend eligible        979          

institutions to assist them in meeting educational expenses;       980          

      (2)  Reject or take, hold, and administer, on behalf of the  982          

commission and for any of its purposes, real property, personal    983          

property, and moneys, or any interest therein, and the income      984          

therefrom, either absolutely or in trust, for any purpose of the   985          

commission.  The commission may invest its funds in any            986          

investments listed in division (K) of this section.  The           987          

commission may acquire property or moneys for its purposes by the  989          

acceptance of gifts, grants, bequests, devises, or loans;          990          

provided, that no obligation of the commission shall be a debt of  991          

the state, and the commission shall have no power to make its      992          

debts payable out of moneys except those of the commission.        993          

      (3)  Enter into such contracts as may be desirable with      995          

eligible educational institutions, upon terms as may be agreed     997          

upon between the commission and the institution, to provide for    998          

the administration by the institution of any loan or loan plan     1,000        

guaranteed by the commission, including applications therefor and  1,001        

repayment thereof;                                                              

      (4)  Enter into contracts with any approved lender, upon     1,003        

terms as may be agreed upon between the commission and the         1,004        

approved lender, to provide for the administration by the          1,005        

approved lender of any loan or loan plan guaranteed by the         1,006        

                                                          25     

                                                                 
commission, including applications therefor and terms and          1,007        

repayment thereof, and to establish the conditions for payment by  1,008        

the commission to the approved lender of the guarantee on any      1,009        

loan.  The commission may also enter into contracts with any       1,010        

approved lender to provide assistance to lenders in the            1,011        

administration of loans.  No moneys of approved lenders or         1,012        

borrowers that are temporarily administered by the commission      1,013        

pursuant to the contracts shall be considered public moneys.  A                 

loan shall be defaulted when, after the expiration of a            1,014        

prescribed period of nonpayment and reasonable collection          1,015        

efforts, the approved lender makes application to the commission   1,016        

for payment on the loan stating that the loan is in default in     1,017        

accordance with the terms of the federal law, contract, or         1,018        

regulations of the commission, executed under this division.  In                

accordance with the "Higher Education Amendments of 1968," 82      1,019        

Stat. 1020, 20 U.S.C.A. 1087, as amended, if a borrower dies,      1,020        

becomes permanently and totally disabled, or is adjudged           1,021        

bankrupt, the commission shall discharge the borrower's liability  1,022        

on the borrower's debt by repaying the unpaid principal and        1,023        

interest due thereon.                                                           

      (5)  Sue and be sued in the name of the commission;          1,025        

      (6)  Collect loans guaranteed by the commission on which     1,027        

the commission has met its guarantee obligations.  The commission  1,028        

may, if it prefers, employ a private collection agency or          1,029        

agencies for the purpose of collecting loans on which it has met   1,030        

its guarantee obligations.                                         1,031        

      (7)  Adopt rules, not inconsistent with sections 3351.05 to  1,034        

3351.14 of the Revised Code, governing the guarantee of loans                   

made by the commission, and governing any other matters relating   1,035        

to the activities of the commission;                               1,036        

      (8)  Participate in or administer education-related state    1,038        

or federal financial aid programs on behalf of the state in        1,039        

accordance with state and federal law.                             1,040        

      (9)  Perform any other acts necessary or appropriate to      1,043        

                                                          26     

                                                                 
carry out effectively the objects and purposes of the commission.  1,044        

      (B)  The Ohio student aid commission, for the purposes of    1,046        

sections 3351.05 to 3351.14 of the Revised Code, shall:            1,047        

      (1)  Prescribe the academic status required for a resident,  1,049        

qualified nonresident, or the parent of a resident or qualified    1,050        

nonresident to obtain guarantee of a loan;                         1,051        

      (2)  Approve eligible institutions in which a student must   1,053        

be enrolled or accepted for enrollment in order for the student    1,054        

or the student's parent to be eligible for guaranteed loans.       1,055        

      (C)  For the purposes of this chapter, "approved lender"     1,057        

means any bank as defined in section 1101.01 of the Revised Code,  1,058        

any domestic savings and loan association as defined in section    1,059        

1151.01 of the Revised Code, any credit union as defined in        1,060        

section 1733.01 of the Revised Code, any federal credit union      1,061        

established pursuant to federal law, any insurance company         1,062        

organized or authorized to do business in this state, any          1,063        

eligible educational institution approved pursuant to division     1,064        

(B)(2) of this section that applies for and receives formal        1,065        

approval as an eligible lender by the commission pursuant to the   1,066        

rules of the commission as they pertain to that institution, any   1,067        

pension fund eligible under the "Higher Education Amendments of    1,068        

1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary  1,069        

market operation designated under division (D)(B) of this          1,070        

section, or any secondary market operation established pursuant    1,071        

to the "Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A.   1,072        

1071, as amended, or under the laws of any state.                  1,073        

      (D)(B)  The governor may designate one nonprofit             1,075        

corporation secondary market operation to be the single nonprofit  1,076        

private agency designated by the state under the "Higher           1,077        

Education Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D),  1,078        

as amended.  The commission shall enter into appropriate           1,079        

contracts with the designated secondary market operation that      1,080        

shall be on not less favorable terms than those contracts entered  1,081        

into by the commission with any other approved lender.  No         1,082        

                                                          27     

                                                                 
approval by the commission shall be necessary for the transfer of  1,083        

loans by any approved lender to the designated secondary market    1,084        

operation.                                                                      

      (E)(C)  The nonprofit corporation designated by the          1,086        

governor under division (D)(B) of this section as the private      1,087        

agency secondary market operation shall be considered to be an     1,088        

agency of the state, in accordance with section 435(d)(1)(F) of    1,089        

the "Higher Education Act of 1965," as amended, 101 Stat. 347, 20  1,090        

U.S.C.A. 1085(d)(1)(F), AS AMENDED, exclusively for the purpose    1,091        

of functioning as a secondary student loan market.  The            1,093        

corporation shall be considered a state agency only for the        1,094        

purposes of this division and no other division or section of the  1,095        

Revised Code regarding state agencies shall apply to the           1,096        

corporation.  No liability or obligation incurred by the           1,097        

corporation shall be considered to be a liability or debt of the   1,098        

state, nor shall the state be construed to act as guarantor of     1,099        

any debt of the corporation.                                                    

      (F)(D)  The nonprofit corporation designated under division  1,101        

(D)(B) of this section shall designate a separate nonprofit        1,102        

corporation to operate exclusively for charitable and educational  1,103        

purposes, complementing and supplementing the designating          1,104        

corporation's secondary market operation for student loans         1,105        

authorized under the "Higher Education Act of 1965," as amended,   1,106        

101 Stat. 347, 20 U.S.C.A. 1085, AS AMENDED, and promoting the     1,107        

general health and welfare of the state, the public interest, and  1,108        

a public purpose through improving student assistance programs by  1,109        

expanding access to higher education financing programs for        1,110        

students and families in need of student financial aid.  In        1,111        

furtherance of such purposes, the separate nonprofit corporation   1,112        

may do all of the following:                                       1,113        

      (1)  Assist educational institutions in establishing         1,115        

financial aid programs to help students obtain an economical       1,116        

education;                                                         1,117        

      (2)  Encourage financial institutions to increase            1,119        

                                                          28     

                                                                 
educational opportunities by making funds available to both        1,120        

students and educational institutions;                             1,121        

      (3)  Make available financial aid that supplements the       1,123        

financial assistance provided by eligible and approved lenders     1,124        

under state and federal programs;                                  1,125        

      (4)  Develop and administer programs that do all of the      1,127        

following:                                                         1,128        

      (a)  Provide financial aid and incidental student financial  1,130        

aid information to students and their parents or other persons     1,131        

responsible for paying educational costs of those students at      1,132        

educational institutions;                                          1,133        

      (b)  Provide financial aid and information relating to it    1,135        

to and through educational institutions, enabling those            1,136        

institutions to assist students financially in obtaining an        1,137        

education and fully expanding their intellectual capacity and      1,138        

skills;                                                            1,139        

      (c)  Better enable financial institutions to participate in  1,141        

student loan programs and other forms of financial aid, assisting  1,142        

students and educational institutions to increase education        1,143        

excellence and accessibility.                                      1,144        

      (G)(E)  The nonprofit corporation designated under           1,146        

authority of division (F)(D) of this section shall do both of the  1,147        

following:                                                         1,148        

      (1)  Establish the criteria, standards, terms, and           1,150        

conditions for participation by students, parents, educational     1,151        

institutions, and financial institutions in that corporation's     1,152        

programs;                                                          1,153        

      (2)  Provide the governor a report of its programs and a     1,155        

copy of its audited financial statements not later than one        1,156        

hundred eighty days after the end of each fiscal year of the       1,157        

corporation.                                                       1,158        

      No liability, obligation, or debt incurred by the            1,160        

corporation designated under authority of division (F)(D) of this  1,162        

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

                                                          29     

                                                                 
be, or be considered to be, a liability, obligation, or debt of,   1,163        

or a pledge of the faith and credit of, the state, any political   1,164        

subdivision of the state, or any state-supported or                1,165        

state-assisted institution of higher education, nor shall the      1,166        

state or any political subdivision of the state or any             1,167        

state-supported or state-assisted institution of higher education  1,168        

be or be construed to act as an obligor under or guarantor of any  1,169        

liability, obligation, or debt of that corporation or of any       1,170        

person under that corporation's programs or incur or be construed  1,171        

to have incurred any other liability, obligation, or debt as a     1,172        

result of any acts of the corporation.                             1,173        

      (H)(F)  The nonprofit corporation designated under           1,175        

authority of division (F)(D) of this section shall not be deemed   1,176        

to qualify by reason of the designation as a guarantor or an       1,178        

eligible lender  under sections 435(d) and (j) of the "Higher      1,180        

Education Act of 1965," as amended, 101 Stat. 347, 20 U.S.C.A.     1,181        

1085(d) and (j), AS AMENDED.                                       1,182        

      (J)  As used in division (K) of this section:                1,184        

      (1)  "American depositary receipt" means a receipt for the   1,186        

shares of a foreign corporation held by an American bank or trust  1,187        

company, representing the deposit of an equivalent amount of       1,188        

underlying foreign shares.                                         1,189        

      (2)  "Commingled stock investment fund" means a pooling of   1,191        

securities to create a fund of a certain type or classification    1,192        

of stock wherein participants share in the total return of the     1,193        

fund represented by dividends, interest, and appreciation.         1,194        

      (3)  "Derivative instrument" means a financial obligation    1,196        

that derives its precise value from the value of one or more       1,197        

other instruments or assets at the same point in time.             1,198        

      (4)  "Pass-through security" means a security, representing  1,200        

pooled debt obligations repackaged as shares, that passes income   1,201        

and principal from debtors through an intermediary to investors.   1,202        

      (K)  The commission shall have full power to invest the      1,204        

funds:                                                             1,205        

                                                          30     

                                                                 
      (1)(a)  In bonds of the United States or this state, or in   1,207        

bonds, notes, debentures, or other obligations the principal and   1,208        

interest of which are guaranteed in full by the United States      1,209        

government or this state, or those for which the credit of the     1,210        

United States is pledged for the payment of the principal and      1,211        

interest thereof;                                                  1,212        

      (b)  In derivative instruments based on the bonds, notes,    1,214        

debentures, or obligations described in division (K)(1)(a) of      1,216        

this section.                                                                   

      (2)(a)  In bonds, notes, debentures, or any other            1,218        

obligations or securities issued by any federal government agency  1,219        

presently or in the future established by act of congress;         1,220        

      (b)  In derivative instruments based on the bonds, notes,    1,222        

debentures, obligations, or securities described in division       1,224        

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

      (3)(a)  In bonds, notes, certificates of indebtedness, or    1,226        

other obligations of the state; any county, township, municipal    1,227        

corporation, school district, conservancy district, or sanitary    1,228        

district of the state; or any other legally constituted taxing or  1,229        

bond issuing authority, subdivision, or municipal corporation      1,230        

within the state;                                                  1,231        

      (b)  In derivative instruments based on the bonds, notes,    1,233        

certificates of indebtedness, or obligations described in          1,234        

division (K)(3)(a) of this section.                                1,235        

      (4)  In revenue bonds issued by a taxing subdivision of the  1,237        

state;                                                             1,238        

      (5)  In farm loan bonds issued under the "Federal Farm Loan  1,241        

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

      (6)  In notes secured by mortgages and insured by the        1,243        

federal housing commissioner, or the commissioner's successor or   1,244        

assigns, or in debentures issued by the commissioner, which are    1,245        

guaranteed as to principal and interest by the federal housing     1,246        

administration, an agency of the United States government;         1,247        

      (7)(a)  In bonds or other interest-bearing obligations of    1,249        

                                                          31     

                                                                 
any other state of the United States that, within ten years prior  1,251        

to the making of the investment, has not defaulted for more than   1,252        

ninety days in the payment of principal or interest on any of its  1,253        

bonds or other interest-bearing obligations;                                    

      (b)  In derivative instruments based on the bonds or         1,255        

obligations described in division (K)(7)(a) of this section.       1,257        

      (8)  In obligations issued by a federal home loan bank       1,259        

created under the "Federal Home Loan Bank Act of 1932," 47 Stat.   1,260        

725, 12 U.S.C.A. 1421, as amended;                                 1,261        

      (9)  In shares, certificates, or other evidences of          1,263        

deposits issued by a federal savings and loan association          1,264        

organized and incorporated under the "Home Owners' Loan Act of     1,265        

1933," 48 Stat. 128, 12 U.S.C.A. 1461, as amended, but only to     1,266        

the extent that the shares or certificates or other evidences of   1,267        

deposits are insured under subchapter IV of the "National Housing  1,269        

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

      (10)  In bonds issued by the home owners' loan corporation   1,271        

created under the "Home Owners' Loan Act of 1933," 48 Stat. 128,   1,273        

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

      (11)  In obligations issued by national mortgage             1,275        

associations created under the "National Housing Act," 48 Stat.    1,277        

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

      (12)  In shares, certificates, or other evidences of         1,279        

deposits issued by a state-chartered savings and loan association  1,280        

organized under the laws of the state, which association has       1,281        

obtained insurance of accounts as provided in subchapter IV of     1,282        

the "National Housing Act," 48 Stat. 1246 (1934), 12 U.S.C.A.      1,284        

1701, as amended, but only to the extent that the evidences of     1,286        

deposits are insured under the act, as amended;                                 

      (13)  In savings accounts in a national bank located in the  1,288        

state or a state bank located in and organized under the laws of   1,289        

the state by depositing the funds therein, provided that no        1,290        

deposit shall be made unless the deposits of the depository bank   1,291        

are insured by the federal deposit insurance corporation, created  1,292        

                                                          32     

                                                                 
under the "Federal Deposit Insurance Corporation Act of 1933," 48  1,294        

Stat. 162, 12 U.S.C.A. 264, as amended; and provided further,      1,295        

that the deposit of the funds in any such savings accounts in any  1,296        

one bank shall not exceed the sum insured under the act, as        1,297        

amended;                                                           1,298        

      (14)  In bonds and notes backed by pools of first liens on   1,300        

fee simple estates in land in this state that are improved by      1,301        

one- to four-family residential structures;                        1,302        

      (15)  In bonds, notes, or other evidences of indebtedness    1,304        

that are secured by first liens upon improved commercial real      1,305        

property, upon condition that:                                     1,306        

      (a)  No mortgage loan on any one property, at the time of    1,308        

investment by the commission, exceeds ninety per cent of the       1,309        

value of the real property securing the loan unless that portion   1,310        

of the loan exceeding ninety per cent is insured or the mortgage   1,311        

is a participating or convertible mortgage;                        1,312        

      (b)  The aggregate investment in mortgage loans on           1,314        

commercial property that are not insured by the federal housing    1,315        

commissioner shall not exceed ten per cent of the total value of   1,316        

all funds invested by the commission.                              1,317        

      (16)  In pass-through securities backed by pools of first    1,319        

liens on fee simple estates in land in this state that are         1,320        

improved by one- to four-family residential structures;            1,321        

      (17)  In pass-through securities backed by pools of first    1,323        

liens upon improved commercial real property, provided that no     1,324        

mortgage loan on any one property, at the time of investment by    1,325        

the commission, exceeds ninety per cent of the value of the real   1,326        

property securing the loan unless that portion of the loan         1,327        

exceeding ninety per cent is insured;                              1,328        

      (18)  In the following corporate, trust, or partnership      1,330        

obligations:                                                       1,331        

      (a)  Notes, bonds, debentures, conditional sales contracts,  1,333        

equipment trust certificates, pass-through securities, other       1,334        

fixed obligations, or evidences of indebtedness or interests that  1,335        

                                                          33     

                                                                 
are the obligations of a corporation, trust, or partnership;       1,336        

provided that the obligor is incorporated or created under the     1,337        

laws of the United States or any state thereof, or of the          1,338        

District of Columbia; and that the obligations are rated at the    1,340        

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

rating according to the Standard and Poor's rating service by at   1,342        

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

fiscal years for which the necessary statistical data are          1,343        

available next preceding the date of investment, the corporation,  1,344        

trust, or partnership, as disclosed by its annual fiscal           1,345        

statements, had an average annual pre-tax income plus its average  1,346        

annual fixed charges at least equal to two times its average       1,347        

annual fixed charges for the same period; provided, that in        1,348        

neither of the last two years of that period shall the sum of its  1,349        

annual net income and its annual fixed charges have been less      1,350        

than two times its fixed charges for the same period.  As used in  1,351        

this division, "fixed charges" means interest on funded or         1,352        

unfunded debt, contingent interest charges, amortization of debt   1,353        

discount, and expense and one-third of rentals for leased          1,354        

property, and includes, in the case of consolidated earnings       1,355        

statements of parent and subsidiary entities, which shall be used  1,356        

if available, all fixed charges of the subsidiaries.               1,357        

      (b)  Derivative instruments based on the corporate, trust,   1,359        

or partnership obligations described in division (K)(18)(a) of     1,361        

this section;                                                                   

      (c)  Various forms of commercial paper issued by any         1,363        

corporation that is incorporated under the laws of the United      1,364        

States or any state thereof; banker's acceptances that are         1,365        

eligible for discount at any federal reserve bank; negotiable      1,366        

time certificates of deposit issued by commercial banks and        1,367        

domestic savings and loan associations as defined in section       1,368        

1151.01 of the Revised Code, if the obligations mature within      1,369        

nine months from the date of purchase; and repurchase agreements   1,370        

secured by obligations of the United States treasury or federal    1,371        

                                                          34     

                                                                 
agencies or by any other money market instruments specified in     1,372        

this section;                                                      1,373        

      (d)  Corporate debentures convertible or exchangeable into   1,375        

common stock, provided that at the time of acquisition the         1,376        

requirements of division (K)(20) of this section are met.          1,377        

      (19)  In real estate located within the United States;       1,379        

provided, that the aggregate of all investments made under this    1,380        

division shall not exceed twenty-five per cent of the total value  1,381        

of all funds invested by the commission, except that no            1,383        

investment in real estate made under authority granted elsewhere   1,384        

in this section shall be counted toward this limitation.           1,385        

      The commission may invest under this division in any         1,387        

direct, indirect, or beneficial interest in real property,         1,388        

including, but not limited to, improved or unimproved real         1,389        

property, suitable or adaptable without excessive cost for more    1,390        

than one use, and whether or not income-producing; mortgages;      1,391        

deeds of trust; notes secured by real property; leaseholds;        1,392        

leases; ground leases; air rights; limited partnerships; real      1,393        

property interests owned, developed, or managed by joint ventures  1,394        

or limited partnerships; variable notes secured by real property;  1,395        

participations, created by any person regularly engaged in the     1,396        

business of making, or acting as a broker of, mortgage loans, in   1,397        

notes secured by real property; interests in collective            1,398        

investment funds; corporations, trusts, or associations that       1,399        

qualify as real estate investment trusts under section 856 of the  1,400        

"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 856,  1,402        

as amended; interests in or real property for the development of   1,403        

natural resources, excluding oil or gas; and condominium           1,404        

interests, provided that liability is limited to the amount of     1,405        

the investment.  Unimproved real property or interests in the      1,406        

property acquired shall be subject to a commercial development     1,407        

plan or a natural resources development plan.                      1,408        

      Real property purchased under this division may be improved  1,410        

by the commission.  Expenditures for improvements may include,     1,411        

                                                          35     

                                                                 
but are not limited to, expenditures for demolition of existing    1,412        

structures, grading and landscaping, construction of new           1,413        

structures, modification of existing structures, fixtures,         1,414        

equipment, and related personal property.  The commission may      1,415        

manage the real property or may contract for management            1,416        

responsibilities with firms having expertise in the management of  1,417        

similar real property.                                             1,418        

      Real property purchased or improved under this division:     1,420        

      (a)  Shall be geographically dispersed;                      1,422        

      (b)  May be leased to corporations, partnerships, or sole    1,424        

proprietorships with or without purchase option provisions, and    1,425        

lease payments may, but need not, include all or part of the       1,426        

purchase and improvement costs;                                    1,427        

      (c)  May be mortgaged to facilitate activities authorized    1,429        

in this division.                                                  1,430        

      (20)(a)  In common and preferred stocks and American         1,432        

depositary receipts, provided the stocks are issued or guaranteed  1,433        

by a corporation created or existing under the laws of the United  1,434        

States or any state thereof and the following criteria are met;    1,435        

or the stocks or American depositary receipts are, at the time of  1,436        

the commission's acquisition, included in the Standard and Poor's  1,438        

Composite 500-Stock Index or 400 Mid-Cap Index, or listed on the   1,440        

New York or American stock exchange; or the American depositary    1,442        

receipts meet the following criteria:                              1,443        

      (i)  For a period of five fiscal years for which the         1,445        

necessary statistical data are available next preceding the date   1,446        

of investment, the corporation, as disclosed by its published      1,447        

fiscal annual statements, has had an average annual net income     1,448        

plus its average annual fixed charges at least equal to one and    1,449        

one-half times the sum of its average annual dividend or           1,450        

distribution requirement for preferred stock and its average       1,451        

annual fixed charges for the same period; provided, during         1,452        

neither of the last two years of the period shall the sum of its   1,453        

annual net income and its annual fixed charges be less than one    1,454        

                                                          36     

                                                                 
and one-half times the sum of its dividend or distribution         1,455        

requirements for preferred stock and its fixed charges for the     1,456        

same period.  As used in this paragraph, "fixed charges" means     1,457        

interest on funded or unfunded debt, contingent interest charges,  1,458        

amortization of debt discount, and expense and rentals for leased  1,459        

property and, in the case of consolidated earnings statements of   1,460        

parent and subsidiary corporations, includes all fixed charges     1,461        

and preferred dividend or distribution requirements, if any, of    1,462        

the subsidiaries.                                                  1,463        

      (ii)  The corporation has no arrears of dividends or         1,465        

distributions on its preferred stock;                              1,466        

      (iii)  The common stock or American depositary receipt is    1,468        

registered on a national securities exchange as provided in the    1,469        

"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.A. 77b,  1,472        

or, if traded only in the over-the-counter market, at least five   1,473        

member firms of the national association of securities dealers     1,474        

make markets in the stock or American depositary receipt.          1,475        

Registration is not required of the common stock of a bank that    1,476        

is a member of the federal deposit insurance corporation or a      1,477        

bank holding company and has capital funds, represented by         1,478        

capital, surplus, and undivided profits, of at least twenty        1,479        

million dollars; the common stock of a life insurance or an        1,480        

insurance holding company that has capital funds, represented by   1,481        

capital, special surplus funds, and unassigned surplus, of at      1,482        

least fifty million dollars; or the common stock of a fire or      1,483        

casualty insurance company, or a combination thereof, that has     1,484        

capital funds represented by capital, net surplus, and voluntary   1,485        

reserves, of at least fifty million dollars;                       1,486        

      (iv)  The preferred stock of the corporation, if any is      1,488        

outstanding, qualifies for investment under division (K)(18)(a)    1,490        

of this section;                                                                

      (v)  The corporation, having no preferred stock              1,492        

outstanding, has had either earnings before interest and taxes     1,493        

for the five fiscal years next preceding the date of investment    1,494        

                                                          37     

                                                                 
of at least twice the interest on all mortgages, bonds,            1,495        

debentures, and funded debts, if any, after deduction of the       1,496        

proper charges for replacements, depreciation, and obsolescence    1,497        

or the corporation's senior subordinated debt obligations are      1,498        

rated "A-" or higher quality rating according to the Standard and  1,499        

Poor's rating service or the equivalent rating in another          1,500        

standard rating service;                                           1,501        

      (vi)  The corporation has paid a cash dividend or            1,503        

distribution on its common stock in at least three years of the    1,504        

five-year period next preceding the date of investment, and the    1,505        

aggregate net earnings available for dividends or distributions    1,506        

on the common stock of the corporation for the whole of the        1,507        

period has been at least equal to the amount of the dividends or   1,508        

distributions paid, except that ten per cent of the total value    1,509        

of all funds invested by the commission may be invested in         1,510        

nondividend paying common stocks;                                  1,511        

      (vii)  In applying the earnings test under this division to  1,513        

any issuing, assuming, or guaranteeing corporation, where the      1,514        

corporation has acquired its property or any substantial part      1,515        

thereof within a five-year period immediately preceding the date   1,516        

of investment by consolidations, merger, or by the purchase of     1,517        

all or a substantial portion of the property of any other          1,518        

corporation or corporations, or has acquired the assets of any     1,519        

unincorporated business enterprise by purchase or otherwise, net   1,520        

income, fixed charges, and preferred dividends or distributions    1,521        

of the several predecessor or constituent corporations or          1,522        

enterprises shall be consolidated and adjusted so as to ascertain  1,523        

whether or not the applicable requirements of this section have    1,524        

been complied with.                                                1,525        

      (b)  In derivative instruments based on the stocks or        1,527        

American depositary receipts that qualify for investment under     1,528        

division (K)(20)(a) of this section;                               1,529        

      (c)  In beneficial interests in commingled stock investment  1,531        

funds;                                                             1,532        

                                                          38     

                                                                 
      (d)  The total value of common and preferred stocks,         1,534        

American depositary receipts, derivative instruments, and          1,535        

commingled stock investment fund investments made under this       1,536        

division shall not exceed fifty per cent of the total value of     1,537        

all funds invested by the commission, provided:                    1,538        

      (i)  Not more than one and one-half per cent of the total    1,540        

value of the funds is invested in the common stock of a single     1,541        

corporation;                                                       1,542        

      (ii)  The total number of common shares in a single          1,544        

corporation does not exceed ten per cent of the issued and         1,545        

outstanding common stock of such corporation.                      1,546        

      (e)  As used in division (K)(20)(d) of this section,         1,548        

"value" consists of cash, the par value of unpaid balance of all   1,549        

unmatured or unpaid investments requiring the payment of a fixed   1,550        

amount at payment date, and the cost of all other investments.     1,551        

      (21)(a)  In debt or equity interests in either of the        1,553        

following:                                                         1,554        

      (i)  Any corporation, partnership, proprietorship, or other  1,556        

entity not otherwise meeting the investment requirements of this   1,557        

section, provided more than one-half of its assets are within      1,558        

this state, more than one-half of its employees are employed       1,559        

within this state, or its principal office is located within this  1,560        

state, and provided liability is limited to the amount of the      1,561        

investment;                                                        1,562        

      (ii)  Venture capital firms having an office within this     1,564        

state, provided that, as a condition of the commission making an   1,565        

investment in a venture capital firm, the firm shall agree to use  1,566        

its best efforts to make investments, in an aggregate amount at    1,567        

least equal to the investment to be made by the commission in      1,568        

that venture capital firm, in small businesses having their        1,569        

principal offices within this state and having either more than    1,570        

one-half of their assets within this state or more than one-half   1,571        

of their employees employed within this state.                     1,572        

      (b)  Investments made under division (K)(21) of this         1,574        

                                                          39     

                                                                 
section shall not exceed in the aggregate five per cent of the     1,575        

total value of all funds invested by the commission.               1,576        

      (c)  As used in division (K)(21) of this section:            1,578        

      (i)  "Venture capital firm" means any corporation,           1,580        

partnership, proprietorship, or other entity, the principal        1,581        

business of which is or will be the making of investments in       1,582        

small businesses.                                                  1,583        

      (ii)  "Small business" means any corporation, partnership,   1,585        

proprietorship, or other entity that either does not have more     1,586        

than four hundred employees when the investment is made or would   1,587        

qualify as a small business for the purpose of receiving           1,588        

financial assistance from small business investment companies      1,589        

licensed under the "Small Business Investment Act of 1958," 72     1,590        

Stat. 689, 15 U.S.C.A. 661, as amended, and rules of the small     1,591        

business administration.                                           1,592        

      (iii)  "Equity interests" means limited partnership          1,594        

interests and other equity interests in which liability is         1,595        

limited to the amount of the investment, but does not mean         1,596        

general partnership interests or other interests involving         1,597        

general liability.                                                 1,598        

      (22)  In the following Canadian obligations, which shall     1,600        

not exceed fifteen per cent of the total value of all funds        1,601        

invested by the commission:  bonds, debentures, notes, or other    1,603        

obligations issued, guaranteed, or assumed as to both principal    1,604        

and interest by the government of Canada, by any province of       1,605        

Canada, or by any city of Canada that has a population of not      1,606        

less than one hundred fifty thousand, if all of the following      1,607        

apply:                                                                          

      (a)  The faith and credit of the issuer, guarantor, or       1,609        

assumer of the bonds, debentures, notes, or other obligations is   1,610        

pledged for the payment of principal and interest thereof, and     1,611        

the principal and interest thereof is payable in United States     1,613        

funds, either unconditionally or at the option of the holder;      1,614        

      (b)  Any such city, if the issuer, guarantor, or assumer is  1,616        

                                                          40     

                                                                 
a city, has power to levy taxes on the taxable real property       1,617        

therein or to collect other revenues for the payment of both       1,618        

principal and interest of the bonds, debentures, notes, or other   1,619        

obligations without limitation of rate or amount;                  1,620        

      (c)  The issuer, guarantor, or assumer of the bonds,         1,622        

debentures, notes, or other obligations has not within ten years   1,623        

prior to the making of the investment defaulted in payment of      1,624        

principal or interest of any debt evidenced by its bonds,          1,625        

debentures, notes, or other obligations for more than ninety       1,626        

days;                                                              1,627        

      (d)  The bonds, debentures, notes, or other obligations are  1,629        

rated at the time of purchase the equivalent of an "A-" or higher  1,630        

quality rating according to the Standard and Poor's rating         1,631        

service by at least two standard rating services or, if not        1,632        

rated, are certified in writing by two or more such services to    1,633        

be of investment quality equivalent to or higher than the quality  1,634        

of bonds rated an "A-".                                            1,635        

      (23)  In obligations issued, assumed, or guaranteed by the   1,637        

international bank for reconstruction and development, the Asian   1,638        

development bank, the inter-American development bank, the         1,639        

African development bank, the international finance corporation,   1,640        

or other similar development bank in which the president, as       1,641        

authorized by congress and on behalf of the United States, has     1,643        

accepted membership;                                               1,644        

      (24)  In general obligations backed by the full faith and    1,646        

credit of the state of Israel.  All interest and principal shall   1,647        

be denominated and payable in United States funds.                 1,648        

      (25)  In debt or equity interests in or issued by foreign    1,650        

entities or any instrument based on, derived from, or related to   1,651        

those interests and foreign currency denominated contracts or      1,652        

obligations.  The investments made under this division shall not   1,653        

exceed in the aggregate ten per cent of the total value of all     1,654        

funds invested by the commission.                                  1,655        

      Sec. 3365.08.  (A)  A college that expects to receive or     1,664        

                                                          41     

                                                                 
receives reimbursement under section 3365.07 of the Revised Code   1,665        

shall furnish to a participant all textbooks and materials         1,666        

directly related to a course taken by the participant under        1,667        

division (B) of section 3365.04 of the Revised Code.  No college   1,668        

shall charge such participant for tuition, textbooks, materials,   1,669        

or other fees directly related to any such course.                 1,670        

      (B)  No student enrolled under this chapter in a course for  1,672        

which credit toward high school graduation is awarded is eligible  1,673        

for any SHALL RECEIVE DIRECT financial aid under Chapter 3351. of  1,675        

the Revised Code THROUGH ANY STATE OR FEDERAL PROGRAM.                          

      (C)  If a school district provides transportation for        1,677        

resident school students in grades eleven and twelve under         1,678        

section 3327.01 of the Revised Code, a parent of a pupil enrolled  1,679        

in a course under division (B) of section 3365.04 of the Revised   1,680        

Code may apply to the board of education for full or partial       1,681        

reimbursement for the necessary costs of transporting the student  1,682        

between the secondary school he THE STUDENT attends and the        1,683        

college in which he THE STUDENT is enrolled.  Reimbursement may    1,684        

be paid solely from funds received by the district under division  1,685        

(K) of section 3317.024 of the Revised Code.  The state board of   1,687        

education shall establish guidelines, based on financial need,     1,688        

under which a district may provide such reimbursement.             1,689        

      Sec. 3366.01.  As used in this chapter, the following words  1,699        

and terms have the following meanings unless the context           1,700        

indicates a different meaning or intent:                                        

      (A)  "Bond proceedings" means the order, trust, agreement,   1,703        

indenture and other agreements, or amendments and supplements to   1,704        

the foregoing, or any one or more or combination thereof,          1,705        

authorizing or providing for the terms and conditions applicable   1,706        

to, or providing for the issuance, security, or liquidity of,      1,707        

obligations and the provisions contained in such obligations.      1,708        

      (B)  "Bond service charges" means principal, including       1,711        

mandatory sinking fund requirements for retirement of              1,712        

obligations, and interest, and redemption premium, if any,         1,713        

                                                          42     

                                                                 
required to be paid on obligations.                                             

      (C)  "Bond service fund" means the applicable fund and       1,716        

accounts therein created in the bond proceedings for and pledged   1,717        

to the payment of bond service charges, including all moneys and   1,718        

investments, and earnings from investments, credited and to be     1,719        

credited thereto.                                                               

      (D)  "Costs of attendance" means all costs of a student      1,722        

incurred in connection with a program of study at an eligible      1,723        

institution, as determined by the institution, including tuition;  1,724        

instructional fees; room and board; books, computers, and          1,725        

supplies; and other related fees, charges, and expenses.           1,726        

      (E)  "Designated nonprofit corporation" means the nonprofit  1,729        

corporation designated under division (F)(D) of section 3351.07    1,730        

of the Revised Code to operate exclusively for charitable and      1,732        

educational purposes by expanding access to higher education       1,733        

financing programs for students and families in need of student    1,734        

financial aid.                                                                  

      (F)  "Education loan" means a loan made by an eligible       1,737        

lender pursuant to the policy guidelines to or for the benefit of  1,739        

a student for the purpose of financing part or all of the                       

student's costs of attendance.                                     1,740        

      (G)  "Eligible borrower" means any of the following:         1,743        

      (1)  Individuals who are residents of the state, and who     1,745        

are attending and are in good standing in, or who have been        1,746        

accepted for attendance at, any eligible institution located in    1,747        

this state or elsewhere, on a part-time or full-time basis, to     1,748        

pursue an associate, baccalaureate, or advanced degree or a        1,749        

nursing diploma;                                                   1,750        

      (2)  Individuals who reside outside the state and who have   1,753        

been accepted for attendance at, or who are attending and are in   1,754        

good standing in, any eligible institution located in this state,  1,755        

on a part-time or full-time basis, to pursue an associate,                      

baccalaureate, or advanced degree or a nursing diploma;            1,756        

      (3)  Individuals who are parents or legal guardians of, or   1,759        

                                                          43     

                                                                 
other persons, as set forth in the policy guidelines, borrowing    1,760        

under an education loan for the benefit of individuals meeting     1,761        

requirements set forth in division (G)(1) or (2) of this section,  1,762        

in order to assist them in paying costs of attendance.             1,763        

      (H)(1)  "Eligible institution" means an institution          1,766        

described in any of divisions (H)(1)(a), (b), or (c) of this       1,767        

section that satisfies all of the requirements set forth in        1,769        

divisions (H)(2), (3), and (4) of this section.                    1,770        

      (a)  The institution is a state-assisted post-secondary      1,773        

educational institution within this state.                                      

      (b)  The institution is a nonprofit institution within this  1,776        

state having a certificate of authorization from the Ohio board    1,777        

of regents pursuant to Chapter 1713. of the Revised Code.          1,778        

      (c)  The institution is a post-secondary educational         1,781        

institution similar to one described in division (H)(1)(a) or (b)  1,782        

of this section that is located outside this state and that is     1,783        

similarly approved by the appropriate agency of that state.        1,784        

      (2)  The institution is accredited by the appropriate        1,786        

regional and, when appropriate, professional accrediting           1,787        

associations within whose jurisdiction it falls.                   1,788        

      (3)  The institution satisfies the eligibility requirements  1,791        

for participation in the federal family education loan program     1,792        

authorized under Title IV, Part B, of the "Higher Education Act    1,794        

of 1965," 20 U.S.C.A. 1071 et seq., as amended, as long as that    1,796        

program remains in existence.                                                   

      (4)  The institution satisfies the other conditions set      1,798        

forth in the policy guidelines.                                    1,799        

      (I)  "Eligible lender" means a bank, national banking        1,801        

association, savings bank, savings and loan association, or        1,802        

credit union having an office in this state that satisfies the     1,803        

criteria for eligible lenders established pursuant to the policy   1,804        

guidelines.                                                        1,805        

      (J)  "Governmental agency" means the state and any state     1,808        

department, division, commission, institution, or authority; the   1,809        

                                                          44     

                                                                 
United States or any agency thereof; or any agency, commission,    1,810        

or authority established pursuant to an interstate compact or      1,811        

agreement; or any combination of the foregoing.                    1,812        

      (K)  "Issuing authority" means the treasurer of state, or    1,815        

the officer who by law performs the functions of the treasurer of  1,816        

state.                                                                          

      (L)  "Obligations" means the bonds, notes, or securities of  1,819        

this state issued by the issuing authority pursuant to this        1,820        

chapter.                                                                        

      (M)  "Person" means any individual, corporation, business    1,823        

trust, estate, trust, partnership, or association, any federal,    1,824        

state, interstate, regional, or local governmental agency, any     1,825        

subdivision of the state, or any combination of these.             1,826        

      (N)  "Pledged receipts" means, to the extent the following   1,829        

are pledged by the bond proceedings for the payment of bond        1,830        

service charges:  all receipts representing moneys accruing from   1,831        

or in connection with the repayment of education loans, including  1,832        

interest and payments from any guarantee or insurance in respect   1,833        

to such education loans; accrued interest received from the sale   1,834        

of obligations; the balances in the special funds; income from     1,835        

the investment of the special funds; all right, title, or          1,836        

interest of the state in any education loans and any guarantees    1,837        

or insurance in respect thereof; all right, title, and interest    1,838        

of the designated nonprofit corporation in the education loans     1,839        

and any guarantees or insurance in respect thereof, and any money  1,840        

representing the proceeds of obligations or any income from or     1,841        

interest on those proceeds; or any other gifts, grants,            1,842        

donations, and pledges and any income and receipts therefrom,      1,843        

available and pledged for the payment of bond service charges.     1,844        

      (O)  "Policy guidelines" means the rules adopted pursuant    1,847        

to division (A) of section 3366.03 of the Revised Code.            1,848        

      (P)  "Proceeds loan" means the transfer, pursuant to a loan  1,851        

agreement or agency agreement, of the proceeds of the              1,852        

obligations, or the deposit of the proceeds of the obligations     1,853        

                                                          45     

                                                                 
with a trustee in trust under a trust agreement, indenture, or     1,854        

other trust document under the bond proceedings pending their      1,855        

disbursement for the purposes authorized by this chapter.          1,856        

      (Q)  "Resident" means any student who would qualify as a     1,859        

resident of this state for state subsidy and tuition surcharge     1,860        

purposes under rules adopted by the Ohio board of regents under    1,861        

section 3333.31 of the Revised Code.                               1,862        

      (R)  "Special funds" or "funds" means the bond service fund  1,865        

and any other funds, including reserve funds, created under the    1,866        

bond proceedings, including all moneys and investments, and        1,867        

earnings from investment, credited and to be credited thereto.     1,868        

      (S)  "Student" means an individual described in division     1,871        

(G)(1) or (2) of this section who meets requirements established   1,872        

under the policy guidelines.  "Student" includes dependent and     1,873        

independent undergraduate, graduate, and professional students.    1,874        

      (T)  "Subdivision" has the same meaning as in division (MM)  1,877        

of section 133.01 of the Revised Code.                             1,878        

      Sec. 4501.02.  (A)  There is hereby created in the           1,887        

department of public safety a bureau of motor vehicles, which      1,888        

shall be administered by a registrar of motor vehicles.  The       1,889        

registrar shall be appointed by the director of public safety and  1,890        

shall serve at his THE DIRECTOR'S pleasure.                        1,891        

      The registrar shall administer the laws of the state         1,893        

relative to the registration of and certificates of title for      1,894        

motor vehicles, and the licensing of motor vehicle dealers, motor  1,895        

vehicle leasing dealers, distributors, and salespersons, and of    1,896        

motor vehicle salvage dealers, salvage motor vehicle auctions,     1,897        

and salvage motor vehicle pools.  The registrar also shall, in     1,898        

accordance with section 4503.61 of the Revised Code, take those    1,899        

steps necessary to enter this state into membership in the         1,900        

international registration plan and carry out his THE REGISTRAR'S  1,902        

other duties under that section.  The registrar, with the          1,903        

approval of the director of public safety, may do all of the       1,904        

following:                                                                      

                                                          46     

                                                                 
      (1)  Adopt such forms and rules as are necessary to carry    1,906        

out all laws he THE REGISTRAR is required to administer;           1,907        

      (2)  Appoint such number of assistants, deputies, clerks,    1,909        

stenographers, and other employees as are necessary to carry out   1,910        

such laws;                                                         1,911        

      (3)  Acquire or lease such facilities as are necessary to    1,913        

carry out the duties of his THE REGISTRAR'S office.                1,914        

      The registrar shall give a bond for the faithful             1,916        

performance of his THE REGISTRAR'S duties in such amount and with  1,918        

such security as the director approves.  When in the opinion of    1,919        

the director it is advisable, any deputy or other employee may be  1,920        

required to give bond in such amount and with such security as     1,921        

the director approves.  In the discretion of the director, the     1,922        

bonds authorized to be taken on deputies or other employees may    1,923        

be individual, schedule, or blanket bonds.                         1,924        

      The registrar shall furnish the director of the Ohio         1,926        

student aid commission with the information required under         1,927        

division (C) of section 3351.071 of the Revised Code.              1,928        

      The director of public safety may investigate the            1,930        

activities of the bureau and have access to its records at any     1,931        

time, and the registrar shall make a report to the director at     1,932        

any time upon request.                                             1,933        

      All laws relating to the licensing of motor vehicle          1,935        

dealers, motor vehicle leasing dealers, distributors, and          1,936        

salespersons, and of motor vehicle salvage dealers, salvage motor  1,937        

vehicle auctions, and salvage motor vehicle pools, designating     1,938        

and granting power to the registrar shall be liberally construed   1,939        

to the end that the practice or commission of fraud in the         1,940        

business of selling motor vehicles and of disposing of salvage     1,941        

motor vehicles may be prohibited and prevented.                    1,942        

      (B)  There is hereby created in the department of public     1,944        

safety a division of emergency medical services, which shall be    1,945        

administered by an executive director of emergency medical         1,946        

services appointed under section 4765.03 of the Revised Code.      1,947        

                                                          47     

                                                                 
      Section 2.  That existing sections 111.15, 131.15, 135.18,   1,949        

135.181, 3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02  1,951        

and sections 3351.05, 3351.06, 3351.071, 3351.08, 3351.09,         1,952        

3351.10, 3351.11, 3351.12, 3351.13, and 3351.131 of the Revised    1,953        

Code are hereby repealed.                                                       

      Section 3.  Section 135.18 of the Revised Code is presented  1,955        

in this act as a composite of the section as amended by both Am.   1,957        

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      1,959        

letters.  Section 135.181 of the Revised Code is presented in      1,960        

this act as a composite of the section as amended by Am. Sub.      1,961        

S.B. 81, Am. Sub. S.B. 293, and Am. Sub. H.B. 538 of the 121st     1,962        

General Assembly, with the new language of none of the acts shown  1,964        

in capital letters.  Sections 3333.25 and 3351.07 of the Revised   1,965        

Code is presented in this act as composites of the sections as     1,966        

amended by both Am. Sub. H.B. 627 and Am. Sub. S.B. 82 of the      1,967        

121st General Assembly, with the new language of neither of the    1,969        

acts shown in capital letters.  This is in recognition of the      1,970        

principle stated in division (B) of section 1.52 of the Revised    1,971        

Code that such amendments are to be harmonized where not           1,972        

substantively irreconcilable and constitutes a legislative         1,973        

finding that such is the resulting version in effect prior to the  1,974        

effective date of this act.