As Introduced 1
122nd General Assembly 4
Regular Session S. B. No. 6 5
1997-1998 6
SENATORS KEARNS-DIX-OELSLAGER-GILLMOR-SUHADOLNIK-CUPP-GAETH- 8
ZALESKI-DRAKE-HORN 9
11
A B I L L
To amend section 3345.99 and to enact sections 13
3333.045 and 3345.71 to 3345.78 of the Revised 14
Code to require the Ohio Board of Regents to
place a state university or college on a fiscal 15
watch under certain circumstances, to authorize 16
the Governor under certain circumstances to 17
replace the board of trustees of a state
university or college under a fiscal watch with a 18
conservator and alternative governance authority, 19
and to require the members of boards of trustees 20
of state universities and colleges to receive 21
training regarding their authority and
responsibilities. 22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That section 3345.99 be amended and sections 26
3333.045, 3345.71, 3345.72, 3345.73, 3345.74, 3345.75, 3345.76, 28
3345.77, and 3345.78 of the Revised Code be enacted to read as 29
follows:
Sec. 3333.045. AS USED IN THIS SECTION, "STATE UNIVERSITY 31
OR COLLEGE" MEANS ANY STATE UNIVERSITY LISTED IN SECTION 3345.011 33
OF THE REVISED CODE, THE NORTHEASTERN OHIO UNIVERSITIES COLLEGE 34
OF MEDICINE, THE MEDICAL COLLEGE OF OHIO AT TOLEDO, ANY COMMUNITY 35
COLLEGE UNDER CHAPTER 3354. OF THE REVISED CODE, ANY UNIVERSITY 37
BRANCH DISTRICT UNDER CHAPTER 3355. OF THE REVISED CODE, ANY 40
TECHNICAL COLLEGE UNDER CHAPTER 3357. OF THE REVISED CODE, AND 43
2
ANY STATE COMMUNITY COLLEGE UNDER CHAPTER 3358. OF THE REVISED 46
CODE.
THE OHIO BOARD OF REGENTS SHALL DEVELOP, IN CONSULTATION 49
WITH THE BOARDS OF TRUSTEES OF STATE UNIVERSITIES AND COLLEGES, A 50
TRAINING PROGRAM FOR THE MEMBERS OF THESE BOARDS OF TRUSTEES 51
REGARDING THE AUTHORITY AND RESPONSIBILITIES OF A BOARD OF 52
TRUSTEES AND ITS MEMBERS. THE BOARD OF REGENTS SHALL OFFER THIS 53
TRAINING PROGRAM AT LEAST TWICE ANNUALLY TO EACH MEMBER OF THESE 54
BOARDS OF TRUSTEES ON EITHER A STATEWIDE OR REGIONAL BASIS. 55
EACH MEMBER OF THE BOARD OF TRUSTEES OF A STATE UNIVERSITY 57
OR COLLEGE APPOINTED ON OR AFTER THE EFFECTIVE DATE OF THIS 58
SECTION SHALL COMPLETE THE TRAINING PROGRAM PROVIDED UNDER THIS 59
SECTION NO LATER THAN ONE YEAR AFTER THE DATE OF THE MEMBER'S 60
INITIAL APPOINTMENT. EACH MEMBER OF THE BOARD OF TRUSTEES OF A 61
STATE UNIVERSITY OR COLLEGE HOLDING OFFICE IMMEDIATELY PRECEDING 62
THE EFFECTIVE DATE OF THIS SECTION SHALL COMPLETE THE TRAINING 63
PROGRAM PROVIDED UNDER THIS SECTION NO LATER THAN ONE YEAR AFTER 64
THE EFFECTIVE DATE OF THIS SECTION. 65
UPON FAILURE OF A MEMBER OF THE BOARD OF TRUSTEES OF A 67
STATE UNIVERSITY OR COLLEGE TO COMPLETE A TRAINING PROGRAM AS 68
PRESCRIBED UNDER THIS SECTION AND NOTWITHSTANDING ANY OTHER LAW 69
PRESCRIBING THE TERM OF OFFICE OF THAT BOARD MEMBER, THE BOARD OF 71
REGENTS SHALL ADOPT A RESOLUTION DECLARING THAT MEMBER'S SEAT
VACANT, EFFECTIVE UPON ADOPTION OF THE RESOLUTION. THE VACANCY 72
SHALL BE FILLED FOR THE REMAINDER OF THE TERM IN THE MANNER 73
PRESCRIBED IN LAW FOR FILLING VACANCIES ON THAT BOARD OF 74
TRUSTEES. 75
THIS SECTION DOES NOT APPLY TO THE THREE MEMBERS OF THE 77
BOARD OF TRUSTEES OF THE NORTHEASTERN OHIO UNIVERSITIES COLLEGE 79
OF MEDICINE WHO ARE PRESIDENTS OF STATE UNIVERSITIES. 80
Sec. 3345.71. AS USED IN SECTIONS 3345.72 TO 3345.77 OF 83
THE REVISED CODE: 85
(A) "STATE UNIVERSITY OR COLLEGE" MEANS ANY STATE 88
UNIVERSITY LISTED IN SECTION 3345.011 OF THE REVISED CODE, THE 90
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NORTHEASTERN OHIO UNIVERSITIES COLLEGE OF MEDICINE, THE MEDICAL 92
COLLEGE OF OHIO AT TOLEDO, ANY COMMUNITY COLLEGE UNDER CHAPTER 95
3354. OF THE REVISED CODE, ANY TECHNICAL COLLEGE UNDER CHAPTER 98
3357. OF THE REVISED CODE, AND ANY STATE COMMUNITY COLLEGE UNDER 101
CHAPTER 3358. OF THE REVISED CODE. 103
(B) "FISCAL WATCH" MEANS THE EXISTENCE OF A FISCAL WATCH 106
DECLARED UNDER SECTION 3345.72 OF THE REVISED CODE. 108
Sec. 3345.72. (A) THE OHIO BOARD OF REGENTS SHALL ADOPT 111
RULES ESTABLISHING ALL OF THE FOLLOWING:
(1) CRITERIA FOR DETERMINING WHEN TO DECLARE A STATE 113
UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH; 114
(2) ACTIONS TO BE TAKEN BY THE BOARD OF TRUSTEES OF A 116
STATE UNIVERSITY OR COLLEGE WHILE UNDER A FISCAL WATCH; 117
(3) CRITERIA FOR DETERMINING WHEN TO DECLARE THE 119
TERMINATION OF THE FISCAL WATCH OF A STATE UNIVERSITY OR COLLEGE; 121
(4) THE FISCAL INFORMATION TO BE REPORTED TO THE BOARD OF 123
REGENTS BY EACH STATE UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH 124
FOR PURPOSES OF MAKING DETERMINATIONS UNDER DIVISION (D) OF THIS 126
SECTION AND DIVISION (A) OF SECTION 3345.74 OF THE REVISED CODE, 129
AND THE FREQUENCY AND DEADLINES FOR REPORTING THIS INFORMATION. 130
THE BOARD OF REGENTS SHALL ADOPT RULES UNDER THIS DIVISION 132
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE AND IN 133
CONSULTATION WITH THE AUDITOR OF STATE, THE DIRECTOR OF BUDGET 134
AND MANAGEMENT, AND PERSONS REPRESENTATIVE OF AT LEAST TEN STATE 135
UNIVERSITIES AND COLLEGES SELECTED BY THE BOARD OF REGENTS.
(B) THE BOARD OF REGENTS SHALL ADOPT A RESOLUTION 138
DECLARING A STATE UNIVERSITY OR COLLEGE TO BE IN A STATE OF 139
FISCAL WATCH IF THE BOARD OF REGENTS DETERMINES THAT THE CRITERIA 140
ADOPTED UNDER DIVISION (A)(1) OF THIS SECTION ARE SATISFIED WITH 142
RESPECT TO THAT STATE UNIVERSITY OR COLLEGE. FOR PURPOSES OF 143
MAKING THIS DETERMINATION, THE BOARD OF REGENTS SHALL ESTABLISH A 144
FINANCIAL TRACKING SYSTEM AND SHALL USE THE SYSTEM TO REGULARLY 145
ASSESS EACH STATE UNIVERSITY OR COLLEGE WITH RESPECT TO THE
CRITERIA ADOPTED UNDER DIVISION (A)(1) OF THIS SECTION. 146
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(C) WHILE A STATE UNIVERSITY OR COLLEGE IS UNDER A FISCAL 149
WATCH, THE BOARD OF TRUSTEES OF THE UNIVERSITY OR COLLEGE SHALL 150
TAKE THE ACTIONS AND REPORT THE FISCAL INFORMATION PRESCRIBED 151
UNDER DIVISIONS (A)(2) AND (4) OF THIS SECTION. 153
(D) THE BOARD OF REGENTS SHALL ADOPT A RESOLUTION 156
DECLARING THE TERMINATION OF THE FISCAL WATCH OF A STATE 157
UNIVERSITY OR COLLEGE IF THE BOARD OF REGENTS DETERMINES THAT THE 158
CRITERIA ADOPTED UNDER DIVISION (A)(3) OF THIS SECTION ARE 159
SATISFIED WITH RESPECT TO THAT STATE UNIVERSITY OR COLLEGE. 161
(E) IN MAKING ASSESSMENTS AND DETERMINATIONS UNDER 163
DIVISION (B) OR (D) OF THIS SECTION, THE BOARD OF REGENTS MAY USE 165
FINANCIAL REPORTS REQUIRED UNDER SECTION 3345.031 OR 3345.05 OF 166
THE REVISED CODE OR ANY OTHER DOCUMENTS, RECORDS, OR INFORMATION 169
AVAILABLE TO IT OR THE AUDITOR OF STATE RELATED TO THE CRITERIA 170
ADOPTED UNDER DIVISION (A)(1) OR (3) OF THIS SECTION. IN MAKING 172
DETERMINATIONS UNDER DIVISION (D) OF THIS SECTION, THE BOARD OF 174
REGENTS MAY ALSO USE THE FISCAL INFORMATION REPORTED UNDER
DIVISION (C) OF THIS SECTION. 176
(F) THE BOARD OF REGENTS SHALL CERTIFY EACH ACTION TAKEN 179
UNDER DIVISION (B) OR (D) OF THIS SECTION TO THE GOVERNOR, THE 182
DIRECTOR OF BUDGET AND MANAGEMENT, THE SPEAKER OF THE HOUSE OF 183
REPRESENTATIVES, AND THE PRESIDENT OF THE SENATE. 184
(G) A DETERMINATION BY THE BOARD OF REGENTS UNDER THIS 187
SECTION THAT A FISCAL WATCH EXISTS OR DOES NOT EXIST, OR THAT A 188
FISCAL WATCH IS TERMINATED OR IS NOT TERMINATED, IS FINAL AND 189
CONCLUSIVE AND NOT APPEALABLE. 190
Sec. 3345.73. THE OHIO BOARD OF REGENTS SHALL ADOPT RULES 194
ESTABLISHING THE FOLLOWING:
(A) THE FINANCIAL INDICATORS AND THE STANDARDS FOR USING 196
THOSE INDICATORS THAT THE BOARD OF REGENTS IS TO EMPLOY TO 197
DETERMINE WHETHER A UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH IS 199
EXPERIENCING SUFFICIENT FISCAL DIFFICULTIES TO WARRANT APPOINTING 200
A CONSERVATOR UNDER SECTION 3345.74 OF THE REVISED CODE; 202
(B) THE FINANCIAL INDICATORS AND THE STANDARDS FOR USING 204
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THOSE INDICATORS THAT A GOVERNANCE AUTHORITY ESTABLISHED FOR A 205
STATE UNIVERSITY OR COLLEGE UNDER SECTION 3345.75 OF THE REVISED 207
CODE IS TO EMPLOY TO DETERMINE WHETHER THE UNIVERSITY OR COLLEGE 209
IS EXPERIENCING SUFFICIENT FISCAL STABILITY TO WARRANT 210
TERMINATING THAT GOVERNANCE AUTHORITY IN ACCORDANCE WITH SECTION 211
3345.76 OF THE REVISED CODE. 213
THE BOARD OF REGENTS SHALL ADOPT RULES UNDER THIS SECTION 215
IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE AND IN 216
CONSULTATION WITH THE AUDITOR OF STATE, THE DIRECTOR OF BUDGET 217
AND MANAGEMENT, AND PERSONS REPRESENTATIVE OF AT LEAST TEN STATE 218
UNIVERSITIES AND COLLEGES SELECTED BY THE BOARD OF REGENTS.
THE INDICATORS AND STANDARDS ADOPTED UNDER THIS SECTION 221
SHALL BE DESIGNED SO AS TO TAKE INTO ACCOUNT AT LEAST THE 222
REVENUES, EXPENDITURES, ASSETS, LIABILITIES, AND FUND BALANCES OF 223
A STATE UNIVERSITY OR COLLEGE, AND SHALL BE DESIGNED SO AS TO 224
INDICATE THE FINANCIAL PERFORMANCE AND POSITION OF A STATE 225
UNIVERSITY OR COLLEGE. 226
Sec. 3345.74. (A) THE OHIO BOARD OF REGENTS AT LEAST 230
ANNUALLY SHALL APPLY THE INDICATORS AND STANDARDS ADOPTED UNDER
DIVISION (A) OF SECTION 3345.73 OF THE REVISED CODE TO DETERMINE 233
WHETHER A STATE UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH IS 234
EXPERIENCING SUFFICIENT FISCAL DIFFICULTIES TO WARRANT THE 235
APPOINTMENT OF A CONSERVATOR UNDER THIS SECTION. UPON MAKING A 236
DETERMINATION THAT APPOINTMENT OF A CONSERVATOR IS WARRANTED, THE 237
BOARD OF REGENTS SHALL CERTIFY THIS DETERMINATION TO THE 238
GOVERNOR.
NOTWITHSTANDING SECTION 3333.021 OF THE REVISED CODE, THAT 242
SECTION DOES NOT APPLY TO CERTIFICATION BY THE BOARD OF REGENTS 243
UNDER THIS SECTION. 244
A DETERMINATION BY THE BOARD OF REGENTS UNDER THIS DIVISION 247
THAT SUFFICIENT FISCAL DIFFICULTIES EXIST OR DO NOT EXIST TO 248
WARRANT APPOINTING A CONSERVATOR IS FINAL AND CONCLUSIVE AND NOT 249
APPEALABLE.
(B) THE GOVERNOR MAY APPOINT A CONSERVATOR FOR ANY STATE 252
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UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH, UPON CERTIFICATION BY 253
THE OHIO BOARD OF REGENTS UNDER DIVISION (A) OF THIS SECTION THAT 256
THE APPOINTMENT IS WARRANTED.
(C) UPON APPOINTMENT OF A CONSERVATOR UNDER THIS SECTION 259
FOR A STATE UNIVERSITY OR COLLEGE, ALL OF THE FOLLOWING SHALL 260
OCCUR EFFECTIVE IMMEDIATELY: 261
(1) NOTWITHSTANDING ANY SECTION OF THE REVISED CODE, THE 265
TERMS OF OFFICE OF THE MEMBERS OF THE BOARD OF TRUSTEES OF THE 266
UNIVERSITY OR COLLEGE TERMINATE AND THE BOARD CEASES TO EXIST 267
UNTIL A NEW BOARD IS APPOINTED UNDER SECTION 3345.76 OF THE 269
REVISED CODE; 270
(2) THE MANAGEMENT AND CONTROL OF THE STATE UNIVERSITY OR 272
COLLEGE IS ASSUMED BY THE CONSERVATOR; 273
(3) NOTWITHSTANDING ANY SECTION OF THE REVISED CODE, ALL 277
DUTIES, RESPONSIBILITIES, AND POWERS ASSIGNED BY LAW TO THE BOARD 278
OF TRUSTEES ARE ASSIGNED TO THE CONSERVATOR, AND THE CONSERVATOR 280
BECOMES THE SUCCESSOR TO, ASSUMES THE OBLIGATIONS OF, AND 281
OTHERWISE CONSTITUTES THE CONTINUATION OF THE BOARD OF TRUSTEES 282
FOR PURPOSES OF ALL PENDING LEGAL ACTIONS, CONTRACTS OR OTHER 283
AGREEMENTS, AND OBLIGATIONS OF THE UNIVERSITY OR COLLEGE; 284
(4) WHEREVER THE BOARD OF TRUSTEES IS REFERRED TO IN ANY 286
CONTRACT OR LEGAL DOCUMENT, THE REFERENCE IS DEEMED TO REFER TO 288
THE CONSERVATOR. NO VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, 289
OBLIGATION, OR LIABILITY IS LOST OR IMPAIRED BY REASON OF THE 290
ASSUMPTION OF THE BOARD'S AUTHORITY BY THE CONSERVATOR UNDER THIS 291
SECTION AND ANY SUCH VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, 292
OBLIGATION, OR LIABILITY SHALL BE ADMINISTERED BY THE 293
CONSERVATOR. NO ACTION OR PROCEEDING PENDING ON THE EFFECTIVE 294
DATE OF THE ASSUMPTION BY THE CONSERVATOR OF THE BOARD'S 295
AUTHORITY IS AFFECTED BY THAT ASSUMPTION AND ANY SUCH ACTION OR 296
PROCEEDING SHALL BE PROSECUTED OR DEFENDED IN THE NAME OF THE 297
CONSERVATOR.
(5) THE CONSERVATOR ASSUMES CUSTODY OF ALL EQUIPMENT, 299
RECORDS, FILES, EFFECTS, AND OTHER PROPERTY OF THE STATE 300
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UNIVERSITY OR COLLEGE; 301
(6) ALL EMPLOYEES OF THE STATE UNIVERSITY OR COLLEGE 303
BECOME EMPLOYEES OF THE CONSERVATOR. 304
(D) THE CONSERVATOR FOR A STATE UNIVERSITY OR COLLEGE 306
SHALL CONDUCT A PRELIMINARY PERFORMANCE EVALUATION OF THE 308
PRESIDENT OR CHIEF EXECUTIVE OFFICER OF THE UNIVERSITY OR COLLEGE 309
AND REPORT FINDINGS AND ANY RECOMMENDATIONS TO THE GOVERNANCE 311
AUTHORITY ESTABLISHED FOR THE UNIVERSITY OR COLLEGE UNDER SECTION 312
3345.75 OF THE REVISED CODE. BASED ON THE FINDINGS, THE 315
CONSERVATOR MAY SUSPEND ANY AUTHORITY AND REMOVE ANY DUTIES OF 317
THE PRESIDENT OR CHIEF EXECUTIVE OFFICER.
(E) NOTWITHSTANDING SECTIONS 9.85 TO 9.87 OF THE REVISED 322
CODE, A CONSERVATOR APPOINTED UNDER THIS SECTION IS NOT LIABLE IN 323
DAMAGES IN A TORT OR OTHER CIVIL ACTION FOR INJURY, DEATH, OR 324
LOSS TO PERSON OR PROPERTY ALLEGEDLY ARISING FROM THE 325
CONSERVATOR'S ACTIONS OR OMISSIONS DURING THE COURSE OF THE 326
CONSERVATOR'S DUTIES UNDER THIS SECTION, UNLESS THE CONSERVATOR'S 327
ACTIONS OR OMISSIONS CONSTITUTE WILLFUL OR WANTON MISCONDUCT OR 328
INTENTIONAL TORTIOUS CONDUCT.
(F) THE GOVERNOR SHALL SET THE COMPENSATION FOR A 331
CONSERVATOR APPOINTED FOR A STATE UNIVERSITY OR COLLEGE. THE 332
EXPENSES AND COMPENSATION OF THE CONSERVATOR AND OTHERS EMPLOYED 333
BY THE CONSERVATOR SHALL BE PAID OUT OF THE OPERATING FUNDS AND 334
REVENUES OF THAT UNIVERSITY OR COLLEGE. 335
Sec. 3345.75. (A) NOT LATER THAN THIRTY DAYS AFTER THE 338
DATE OF THE APPOINTMENT OF A CONSERVATOR FOR A STATE UNIVERSITY 339
OR COLLEGE UNDER SECTION 3345.74 OF THE REVISED CODE, THE 341
GOVERNOR SHALL APPOINT, WITH THE ADVICE AND CONSENT OF THE 342
SENATE, A GOVERNANCE AUTHORITY FOR THE UNIVERSITY OR COLLEGE 343
CONSISTING OF FIVE MEMBERS. THE MEMBERS SHALL SERVE AT THE 344
PLEASURE OF THE GOVERNOR AND ANY VACANCIES SHALL BE FILLED IN THE 345
SAME MANNER AS AN ORIGINAL APPOINTMENT. 346
THE GOVERNOR SHALL DESIGNATE ONE OF THE MEMBERS OF A 348
GOVERNANCE AUTHORITY AS THE CHAIRPERSON AND SHALL CALL THE FIRST 349
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MEETING OF THE AUTHORITY. A MAJORITY OF THE MEMBERS OF A 350
GOVERNANCE AUTHORITY CONSTITUTES A QUORUM AND THE AFFIRMATIVE 351
VOTE OF A MAJORITY OF A QUORUM SHALL BE NECESSARY FOR ANY ACTION 352
TAKEN BY AN AUTHORITY. MEETINGS OF A GOVERNANCE AUTHORITY SHALL 353
BE CALLED IN THE MANNER AND AT THE TIMES PRESCRIBED BY THE 354
AUTHORITY, BUT THE AUTHORITY SHALL MEET AT LEAST THREE TIMES 355
ANNUALLY AND AT OTHER TIMES NECESSARY FOR THE BEST INTEREST OF 356
THE UNIVERSITY OR COLLEGE. A GOVERNANCE AUTHORITY MAY ADOPT 357
PROCEDURES FOR THE CONDUCT OF ITS BUSINESS. 358
THE MEMBERS OF A GOVERNANCE AUTHORITY SHALL NOT RECEIVE 360
COMPENSATION FOR THEIR SERVICES, BUT SHALL BE PAID THEIR 361
REASONABLE AND NECESSARY EXPENSES WHILE ENGAGED IN THE DISCHARGE 362
OF THEIR OFFICIAL DUTIES. 363
(B)(1) A GOVERNANCE AUTHORITY ESTABLISHED UNDER THIS 366
SECTION SHALL APPOINT AN EXECUTIVE DIRECTOR WHO SHALL SERVE AT 367
THE PLEASURE OF THE AUTHORITY AND WITH THE COMPENSATION AND OTHER 368
TERMS AND CONDITIONS ESTABLISHED BY IT. WITH THE APPROVAL OF THE 369
CHAIRPERSON OF THE AUTHORITY, THE EXECUTIVE DIRECTOR MAY APPOINT 370
ADDITIONAL PERSONNEL AS THE DIRECTOR DEEMS APPROPRIATE. THE 371
EXECUTIVE DIRECTOR SHALL OVERSEE THE DAY-TO-DAY OPERATION OF THE 372
UNIVERSITY OR COLLEGE UNDER THE DIRECTION AND SUPERVISION OF THE 373
AUTHORITY. 374
(2) THE GOVERNANCE AUTHORITY SHALL CONDUCT A FINAL 376
PERFORMANCE EVALUATION OF THE PRESIDENT OR CHIEF EXECUTIVE 377
OFFICER OF THE UNIVERSITY OR COLLEGE. FOLLOWING THE EVALUATION, 378
THE GOVERNANCE AUTHORITY MAY REMOVE ANY DUTIES AND SUSPEND ANY 380
AUTHORITY OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER, MAY 381
REINSTATE ANY DUTIES OR AUTHORITY PREVIOUSLY REMOVED BY A 382
CONSERVATOR UNDER DIVISION (D) OF SECTION 3345.74 OF THE REVISED 383
CODE, OR MAY TERMINATE THE PRESIDENT OR CHIEF EXECUTIVE OFFICER
IN ACCORDANCE WITH THE TERMS OF THE PERSON'S EMPLOYMENT CONTRACT. 384
(C) UPON APPOINTMENT OF ALL MEMBERS OF A GOVERNANCE 387
AUTHORITY UNDER THIS SECTION AND UPON THE EFFECTIVE DATE FOR THE 388
COMMENCEMENT OF THE DUTIES OF THE EXECUTIVE DIRECTOR APPOINTED BY 390
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THAT AUTHORITY UNDER THIS SECTION, ALL AUTHORITY,
RESPONSIBILITIES, DUTIES, AND REFERENCES ASSUMED BY OR CONFERRED 391
UPON THE CONSERVATOR UNDER DIVISIONS (C)(2) TO (6) OF SECTION 394
3345.74 OF THE REVISED CODE SHALL TERMINATE AND ALL OF THE 396
FOLLOWING SHALL OCCUR, EFFECTIVE IMMEDIATELY:
(1) THE MANAGEMENT AND CONTROL OF THE STATE UNIVERSITY OR 398
COLLEGE IS ASSUMED BY THE GOVERNANCE AUTHORITY; 399
(2) NOTWITHSTANDING ANY SECTION OF THE REVISED CODE, ALL 403
DUTIES, RESPONSIBILITIES, AND POWERS ASSIGNED BY LAW TO THE BOARD 404
OF TRUSTEES OR TO THE CONSERVATOR ARE ASSIGNED TO THE GOVERNANCE 405
AUTHORITY AND THE GOVERNANCE AUTHORITY BECOMES THE SUCCESSOR TO, 406
ASSUMES THE OBLIGATIONS OF, AND OTHERWISE CONSTITUTES THE 407
CONTINUATION OF THE BOARD OF TRUSTEES AND THE CONSERVATOR FOR 408
PURPOSES OF ALL PENDING LEGAL ACTIONS, CONTRACTS OR OTHER 409
AGREEMENTS, AND OBLIGATIONS OF THE UNIVERSITY OR COLLEGE; 410
(3) WHEREVER THE BOARD OF TRUSTEES OR CONSERVATOR IS 412
REFERRED TO IN ANY CONTRACT OR LEGAL DOCUMENT, THE REFERENCE IS 414
DEEMED TO REFER TO THE GOVERNANCE AUTHORITY. NO VALIDATION, 415
CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY IS LOST 416
OR IMPAIRED BY REASON OF THE ASSUMPTION OF THE AUTHORITY OF THE 417
BOARD OF TRUSTEES AND THE CONSERVATOR BY THE GOVERNANCE AUTHORITY 418
UNDER THIS SECTION AND ANY SUCH VALIDATION, CURE, RIGHT, 419
PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY SHALL BE ADMINISTERED 420
BY THE GOVERNANCE AUTHORITY. NO ACTION OR PROCEEDING PENDING ON 421
THE EFFECTIVE DATE OF THE ASSUMPTION BY THE GOVERNANCE AUTHORITY 422
OF THE AUTHORITY OF THE BOARD OF TRUSTEES AND THE CONSERVATOR IS 423
AFFECTED BY THAT ASSUMPTION AND ANY SUCH ACTION OR PROCEEDING 424
SHALL BE PROSECUTED OR DEFENDED IN THE NAME OF THE GOVERNANCE 425
AUTHORITY.
(4) THE GOVERNANCE AUTHORITY ASSUMES CUSTODY OF ALL 427
EQUIPMENT, RECORDS, FILES, EFFECTS, AND OTHER PROPERTY OF THE 428
STATE UNIVERSITY OR COLLEGE; 429
(5) ALL EMPLOYEES OF THE STATE UNIVERSITY OR COLLEGE 431
BECOME EMPLOYEES OF THE GOVERNANCE AUTHORITY. 432
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(D) NOTWITHSTANDING SECTIONS 9.85 TO 9.87 OF THE REVISED 437
CODE, A GOVERNANCE AUTHORITY OR EXECUTIVE DIRECTOR APPOINTED 438
UNDER THIS SECTION IS NOT LIABLE IN DAMAGES IN A TORT OR OTHER 439
CIVIL ACTION FOR INJURY, DEATH, OR LOSS TO PERSON OR PROPERTY 440
ALLEGEDLY ARISING FROM THE GOVERNANCE AUTHORITY'S OR EXECUTIVE 441
DIRECTOR'S ACTIONS OR OMISSIONS DURING THE COURSE OF THEIR 443
RESPECTIVE DUTIES UNDER THIS SECTION, UNLESS THE GOVERNANCE
AUTHORITY'S OR EXECUTIVE DIRECTOR'S ACTIONS OR OMISSIONS 444
CONSTITUTE WILLFUL OR WANTON MISCONDUCT OR INTENTIONAL TORTIOUS 445
CONDUCT. 446
(E) THE EXPENSES AND COMPENSATION OF A GOVERNANCE 449
AUTHORITY AND EXECUTIVE DIRECTOR APPOINTED FOR A STATE UNIVERSITY 450
OR COLLEGE UNDER THIS SECTION AND OTHERS EMPLOYED BY THE 451
EXECUTIVE DIRECTOR UNDER THIS SECTION SHALL BE PAID OUT OF THE 452
OPERATING FUNDS AND REVENUES OF THAT UNIVERSITY OR COLLEGE. 453
(F) A GOVERNANCE AUTHORITY APPOINTED UNDER THIS SECTION 456
SHALL PREPARE, IN ACCORDANCE WITH RULES ADOPTED BY THE OHIO BOARD 457
OF REGENTS, AND SUBMIT TO THE BOARD OF REGENTS, THE GOVERNOR, THE 460
SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND THE PRESIDENT OF THE 461
SENATE A QUARTERLY REPORT SETTING FORTH ALL OF THE FOLLOWING: 462
(1) THE GENERAL CONDITION OF THE UNIVERSITY OR COLLEGE; 465
(2) THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS AND THE 467
ITEMS FOR WHICH THE DISBURSEMENTS WERE MADE; 468
(3) THE NUMBERS OF PROFESSORS, OFFICERS, TEACHERS, AND 470
OTHER EMPLOYEES AND THE POSITION AND COMPENSATION OF EACH AND THE 472
NUMBERS OF STUDENTS BY COURSES OF INSTRUCTION;
(4) AN ESTIMATE OF EXPENSES FOR THE ENSUING QUARTER; 475
(5) A STATEMENT OF THE GENERAL PROGRESS OF THE UNIVERSITY 477
OR COLLEGE WITH INDICATION OF ANY IMPROVEMENTS AND SPECIFICATION 478
OF ANY EXPERIMENTS WITH INSTITUTIONAL REFORM AND THE COSTS AND 479
RESULTS OF THOSE EXPERIMENTS; 480
(6) ANY OTHER MATTERS THE GOVERNANCE AUTHORITY DEEMS 482
USEFUL TO REPORT. 483
Sec. 3345.76. (A) A GOVERNANCE AUTHORITY APPOINTED FOR A 486
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STATE UNIVERSITY OR COLLEGE UNDER SECTION 3345.75 OF THE REVISED 488
CODE AT LEAST ANNUALLY SHALL APPLY THE INDICATORS AND STANDARDS 490
ADOPTED UNDER DIVISION (B) OF SECTION 3345.73 OF THE REVISED CODE 493
TO DETERMINE WHETHER THE UNIVERSITY OR COLLEGE IS EXPERIENCING 494
SUFFICIENT FISCAL STABILITY TO WARRANT TERMINATING THAT 495
GOVERNANCE AUTHORITY IN ACCORDANCE WITH THIS SECTION. UPON 496
MAKING A DETERMINATION THAT TERMINATION OF THE GOVERNANCE 497
AUTHORITY IS WARRANTED, THE GOVERNANCE AUTHORITY SHALL CERTIFY 498
THIS DETERMINATION TO THE GOVERNOR. 499
A DETERMINATION BY A GOVERNANCE AUTHORITY UNDER THIS 501
DIVISION THAT SUFFICIENT FISCAL STABILITY EXISTS OR DOES NOT 502
EXIST TO WARRANT TERMINATING THAT GOVERNANCE AUTHORITY IS FINAL 504
AND CONCLUSIVE AND NOT APPEALABLE.
(B) THE GOVERNOR MAY ISSUE AN ORDER, EFFECTIVE AS PROVIDED 507
UNDER DIVISION (D) OF THIS SECTION, TERMINATING THE GOVERNANCE 509
AUTHORITY APPOINTED UNDER 3345.75 OF THE REVISED CODE, UPON THE 511
OCCURRENCE OF EITHER OF THE FOLLOWING:
(1) CERTIFICATION BY THE GOVERNANCE AUTHORITY FOR THAT 513
STATE UNIVERSITY OR COLLEGE THE TERMINATION OF THAT GOVERNANCE 514
AUTHORITY IS WARRANTED; 515
(2) A FINDING THAT IN THE GOVERNOR'S OPINION TERMINATION 518
OF THE GOVERNANCE AUTHORITY IS IN THE BEST INTERESTS OF THE 519
STATE, THAT STATE UNIVERSITY OR COLLEGE, AND THE STUDENTS OF THAT 520
STATE UNIVERSITY OR COLLEGE.
(C) UPON ISSUANCE OF AN ORDER UNDER DIVISION (B) OF THIS 524
SECTION, A NEW BOARD OF TRUSTEES OF THE UNIVERSITY OR COLLEGE 525
SHALL BE APPOINTED AS FOLLOWS: 526
(1) FOR A UNIVERSITY LISTED IN SECTION 3345.011 OF THE 529
REVISED CODE OR THE MEDICAL COLLEGE OF OHIO AT TOLEDO, THE 532
GOVERNOR SHALL APPOINT NINE MEMBERS WITH THE ADVICE AND CONSENT 533
OF THE SENATE, THREE FOR TERMS OF THREE YEARS, THREE FOR TERMS OF 534
SIX YEARS, AND THREE FOR TERMS OF NINE YEARS. ALL SUBSEQUENT 535
APPOINTMENTS SHALL BE MADE AS OTHERWISE PROVIDED IN LAW. 536
(2) FOR THE NORTHEASTERN OHIO UNIVERSITIES COLLEGE OF 539
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MEDICINE, MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER SECTION 540
3350.10 OF THE REVISED CODE FOR THE INITIAL MEMBERS OF THE BOARD. 543
ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS PROVIDED UNDER THAT 544
SECTION. 545
(3) FOR A COMMUNITY COLLEGE UNDER CHAPTER 3354. OF THE 549
REVISED CODE, MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER 551
SECTION 3354.05 OF THE REVISED CODE FOR THE INITIAL MEMBERS OF 553
THE BOARD. ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS PROVIDED 555
UNDER THAT SECTION. 556
(4) FOR A TECHNICAL COLLEGE UNDER CHAPTER 3357. OF THE 560
REVISED CODE, NEW MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER 562
DIVISION (A) OR (B) OF SECTION 3357.05 OF THE REVISED CODE FOR 566
THE INITIAL MEMBERS OF THE BOARD. ALL SUBSEQUENT APPOINTMENTS 568
SHALL BE MADE AS PROVIDED UNDER THAT SECTION. 569
(5) FOR A STATE COMMUNITY COLLEGE UNDER CHAPTER 3358. OF 572
THE REVISED CODE, MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER 575
SECTION 3358.03 OF THE REVISED CODE FOR THE INITIAL MEMBERS OF 577
THE BOARD. ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS PROVIDED 579
UNDER THAT SECTION. 580
(D) THIRTY DAYS AFTER THE DATE ON WHICH THE OHIO BOARD OF 584
REGENTS DETERMINES THAT ALL MEMBERS OF A BOARD OF TRUSTEES HAVE 585
BEEN APPOINTED PURSUANT TO DIVISION (C) OF THIS SECTION, ALL 586
AUTHORITY, RESPONSIBILITIES, DUTIES, AND REFERENCES ASSUMED BY OR 588
CONFERRED UPON THE GOVERNANCE AUTHORITY OF THAT UNIVERSITY OR
COLLEGE UNDER DIVISION (C) OF SECTION 3345.75 OF THE REVISED CODE 592
SHALL TERMINATE AND ALL OF THE FOLLOWING SHALL OCCUR: 593
(1) THE MANAGEMENT AND CONTROL OF THE STATE UNIVERSITY OR 595
COLLEGE IS ASSUMED BY THE BOARD OF TRUSTEES APPOINTED PURSUANT TO 597
THIS SECTION;
(2) ALL DUTIES, RESPONSIBILITIES, AND POWERS ASSIGNED BY 599
LAW TO THE BOARD OF TRUSTEES ARE ASSUMED BY THE BOARD OF TRUSTEES 601
APPOINTED PURSUANT TO THIS SECTION AND THE BOARD BECOMES THE 602
SUCCESSOR TO, ASSUMES THE OBLIGATIONS OF, AND OTHERWISE 603
CONSTITUTES THE CONTINUATION OF THE PREVIOUS BOARD OF TRUSTEES, 604
13
THE CONSERVATOR, AND THE GOVERNANCE AUTHORITY, FOR PURPOSES OF 606
ALL PENDING LEGAL ACTIONS, CONTRACTS OR OTHER AGREEMENTS, AND
OBLIGATIONS OF THE UNIVERSITY OR COLLEGE; 607
(3) WHEREVER THE PREVIOUS BOARD OF TRUSTEES, THE 609
CONSERVATOR, OR THE GOVERNANCE AUTHORITY IS REFERRED TO IN ANY 610
CONTRACT OR LEGAL DOCUMENT, THE REFERENCE IS DEEMED TO REFER TO 612
THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION. NO 613
VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR 614
LIABILITY IS LOST OR IMPAIRED BY REASON OF THE ASSUMPTION BY THE 615
BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION OF THE AUTHORITY 616
OF THE PREVIOUS BOARD OF TRUSTEES, THE CONSERVATOR, AND THE 617
GOVERNANCE AUTHORITY AND ANY SUCH VALIDATION, CURE, RIGHT, 618
PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY SHALL BE ADMINISTERED 619
BY THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION. NO ACTION 620
OR PROCEEDING PENDING ON THE EFFECTIVE DATE OF THE ASSUMPTION BY 621
THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION OF THE 622
AUTHORITY OF THE PREVIOUS BOARD OF TRUSTEES, THE CONSERVATOR, AND 623
THE GOVERNANCE AUTHORITY IS AFFECTED BY THAT ASSUMPTION AND ANY 624
SUCH ACTION OR PROCEEDING SHALL BE PROSECUTED OR DEFENDED IN THE 625
NAME OF THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION. 626
(4) THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION 628
ASSUMES CUSTODY OF ALL EQUIPMENT, RECORDS, FILES, EFFECTS, AND 629
OTHER PROPERTY OF THE STATE UNIVERSITY OR COLLEGE; 630
(5) ALL EMPLOYEES OF THE STATE UNIVERSITY OR COLLEGE 632
BECOME EMPLOYEES OF THE BOARD OF TRUSTEES APPOINTED UNDER THIS 633
SECTION; 634
(6) EMPLOYMENT OF THE EXECUTIVE DIRECTOR APPOINTED FOR THE 637
UNIVERSITY OR COLLEGE UNDER SECTION 3345.75 OF THE REVISED CODE 639
IS TERMINATED;
(7) ANY DUTIES OR AUTHORITY OF THE PRESIDENT OR CHIEF 641
EXECUTIVE OFFICER OF THE UNIVERSITY OR COLLEGE REMOVED OR 642
SUSPENDED UNDER DIVISION (D) OF SECTION 3345.74 OR DIVISION 643
(B)(2) OF SECTION 3345.75 OF THE REVISED CODE ARE REINSTATED TO 644
THE PERSON HOLDING THAT POSITION, UNLESS OTHERWISE PROVIDED FOR
14
BY THE NEW BOARD OF TRUSTEES. 645
Sec. 3345.77. NOTWITHSTANDING ANY SECTION OF THE REVISED 648
CODE, A CONTRACT OF EMPLOYMENT ENTERED INTO ON AND AFTER THE 649
EFFECTIVE DATE OF THIS SECTION BETWEEN A BOARD OF TRUSTEES OF A 650
STATE UNIVERSITY OR COLLEGE AND THE PRESIDENT OR CHIEF EXECUTIVE 651
OFFICER OF THAT UNIVERSITY OR COLLEGE SHALL PROVIDE FOR THE 652
PERFORMANCE EVALUATION, THE REMOVAL OF THE DUTIES, THE SUSPENSION 653
OF THE AUTHORITY, AND THE TERMINATION OF THE EMPLOYMENT CONTRACT 654
OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER AS PROVIDED UNDER 655
DIVISION (D) OF SECTION 3345.74 AND DIVISION (B)(2) OF SECTION 657
3345.75 OF THE REVISED CODE. 659
Sec. 3345.78. NO CURRENT OR FORMER EMPLOYEE OR CURRENT OR 661
FORMER OFFICER OF A STATE UNIVERSITY OR COLLEGE SHALL KNOWINGLY 662
CONCEAL ANY INFORMATION FROM, WITHHOLD ANY INFORMATION REQUESTED 663
BY, FALSIFY ANY INFORMATION TO, OR IMPEDE THE WORK OF ANY OF THE 664
FOLLOWING:
(A) A CONSERVATOR, ALTERNATE GOVERNANCE AUTHORITY, OR 666
EXECUTIVE DIRECTOR APPOINTED FOR THE INSTITUTION UNDER SECTION 667
3345.74 OR 3345.75 OF THE REVISED CODE;
(B) ANY PERSONNEL APPOINTED BY THE CONSERVATOR OR 669
EXECUTIVE DIRECTOR UNDER DIVISION (F) OF SECTION 3345.74 OR 670
DIVISION (B)(1) OF SECTION 3345.75 OF THE REVISED CODE. 671
Sec. 3345.99. (A) Whoever violates section 3345.13 of the 680
Revised Code shall be fined not less than fifty nor more than one 681
hundred fifty dollars.
(B) Whoever violates division (A) or (B) of section 683
3345.34 of the Revised Code is guilty of a misdemeanor of the 684
first degree.
(C) WHOEVER VIOLATES SECTION 3345.78 OF THE REVISED CODE 686
IS GUILTY OF A FELONY OF THE FOURTH DEGREE. 687
Section 2. That existing section 3345.99 of the Revised 689
Code is hereby repealed. 690
Section 3. Under division (B) of section 119.03 of the 692
Revised Code, the Ohio Board of Regents shall initially file 693
15
proposed rules pursuant to sections 3345.72 and 3345.73 and 694
division (F) of section 3345.75 of the Revised Code no later than 695
thirty days after the effective date of this act.