As Reported by the Senate Education Committee 1
123rd General Assembly 4
Regular Session Sub. S. B. No. 286 5
1999-2000 6
SENATORS GARDNER-OELSLAGER-SPADA-FINGERHUT-PRENTISS- 8
SHOEMAKER-HORN-KEARNS-BLESSING-McLIN-WHITE 9
_________________________________________________________________ 11
A B I L L
To amend section 3345.14 of the Revised Code to 13
permit the board of trustees of a state college 14
or university to establish rules that describe 15
circumstances in which an employee of that
institution may solicit or may be given a 16
financial interest in any firm, corporation, or 17
other association to which the board has
assigned, licensed, transferred, or sold the 18
institution's interest in discoveries, 19
inventions, or patents resulting from research 20
conducted at or by employees of the institution
and to authorize the Ohio Ethics Commission to 21
assist with the development of the rules. 22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That section 3345.14 of the Revised Code be 26
amended to read as follows: 27
Sec. 3345.14. (A) AS USED IN THIS SECTION, "STATE COLLEGE 36
OR UNIVERSITY" MEANS ANY STATE UNIVERSITY OR COLLEGE DEFINED IN 37
DIVISION (A)(1) OF SECTION 3345.12 OF THE REVISED CODE, AND ANY 38
OTHER INSTITUTION OF HIGHER EDUCATION DEFINED IN DIVISION (A)(2) 39
OF THAT SECTION.
(B) All rights to and interests in discoveries or, 42
inventions, including OR patents thereon, which result from 44
research or investigation conducted in, OR BY EMPLOYEES OF, any 46
experiment station, bureau, laboratory, or research facility, OR 47
2
OTHER FACILITY of any state college or university shall be the 49
sole property of such college or university. No person, firm, 50
association, corporation, or governmental agency which uses the 51
facilities of such college or university in connection with such 52
research or investigation and no faculty member, employee, or 53
student of such college or university participating in or making 54
such discoveries or inventions, shall have any rights to or 55
interests in such discoveries or inventions, including income 56
therefrom, except as may, by determination of the board of 57
trustees of such college or university, be assigned, licensed, 58
transferred, or paid to such persons or entities IN ACCORDANCE 59
WITH DIVISION (C) OF THIS SECTION OR IN ACCORDANCE WITH RULES 60
ADOPTED UNDER DIVISION (D) OF THIS SECTION. 61
(C) As may be determined from time to time by the board of 63
trustees of any state college or university, the college or 64
university may retain, assign, license, transfer, sell, or 65
otherwise dispose of, in whole or in part and upon such terms as 66
the board of trustees may direct, any and all rights to, 67
interests in, or income from any such discoveries, inventions, or 68
patents which the college or university owns or may acquire. 69
Such dispositions may be to any individual, firm, association, 70
corporation, or governmental agency, or to any faculty member, 71
employee, or student of the college or university as the board of 72
trustees may direct. Any and all income or proceeds derived or 73
retained from such dispositions shall be applied to the general 74
or special use of the college or university as determined by the 75
board of trustees of such college or university. 76
(D)(1) NOTWITHSTANDING ANY PROVISION OF THE REVISED CODE 79
TO THE CONTRARY, INCLUDING BUT NOT LIMITED TO SECTIONS 102.03,
102.04, 2921.42, AND 2921.43 OF THE REVISED CODE, THE BOARD OF 80
TRUSTEES OF ANY STATE COLLEGE OR UNIVERSITY MAY ADOPT RULES IN 81
ACCORDANCE WITH SECTION 111.15 OF THE REVISED CODE THAT SET FORTH 82
CIRCUMSTANCES UNDER WHICH AN EMPLOYEE OF THE COLLEGE OR
UNIVERSITY MAY SOLICIT OR ACCEPT, AND UNDER WHICH A PERSON MAY 83
3
GIVE OR PROMISE TO GIVE TO SUCH AN EMPLOYEE, A FINANCIAL INTEREST 84
IN ANY FIRM, CORPORATION, OR OTHER ASSOCIATION TO WHICH THE BOARD 85
HAS ASSIGNED, LICENSED, TRANSFERRED, OR SOLD THE COLLEGE OR 86
UNIVERSITY'S INTERESTS IN DISCOVERIES OR INVENTIONS MADE OR 87
CREATED BY THAT EMPLOYEE OR IN PATENTS ISSUED TO THAT EMPLOYEE. 88
(2) RULES ESTABLISHED UNDER DIVISION (D)(1) OF THIS 90
SECTION SHALL INCLUDE THE FOLLOWING: 91
(a) A REQUIREMENT THAT EACH COLLEGE OR UNIVERSITY EMPLOYEE 93
DISCLOSE TO THE COLLEGE OR UNIVERSITY BOARD OF TRUSTEES ANY 94
FINANCIAL INTEREST THE EMPLOYEE HOLDS IN A FIRM, CORPORATION, OR 95
OTHER ASSOCIATION AS DESCRIBED IN DIVISION (D)(1) OF THIS 96
SECTION;
(b) A REQUIREMENT THAT ALL DISCLOSURES MADE UNDER DIVISION 98
(D)(2)(a) OF THIS SECTION ARE REVIEWED BY OFFICIALS DESIGNATED BY 100
THE COLLEGE OR UNIVERSITY BOARD OF TRUSTEES. THE OFFICIALS 102
DESIGNATED UNDER THIS DIVISION SHALL DETERMINE THE INFORMATION
THAT SHALL BE DISCLOSED AND SAFEGUARDS THAT SHALL BE APPLIED IN 105
ORDER TO MANAGE, REDUCE, OR ELIMINATE ANY ACTUAL OR POTENTIAL 106
CONFLICT OF INTEREST.
(c) A REQUIREMENT THAT IN IMPLEMENTING DIVISION (D) OF 108
THIS SECTION ALL MEMBERS OF THE COLLEGE OR UNIVERSITY BOARD OF 109
TRUSTEES SHALL BE GOVERNED BY CHAPTER 102. AND SECTIONS 2921.42 110
AND 2921.43 OF THE REVISED CODE.
(d) GUIDELINES TO ENSURE THAT ANY FINANCIAL INTEREST HELD 112
BY ANY EMPLOYEE OF THE COLLEGE OR UNIVERSITY DOES NOT RESULT IN 113
MISUSE OF THE STUDENTS, EMPLOYEES, OR RESOURCES OF THE COLLEGE OR 115
UNIVERSITY FOR THE BENEFIT OF THE FIRM, CORPORATION, OR OTHER 116
ASSOCIATION IN WHICH SUCH INTEREST IS HELD OR DOES NOT OTHERWISE 117
INTERFERE WITH THE DUTIES AND RESPONSIBILITIES OF THE EMPLOYEE 118
WHO HOLDS SUCH AN INTEREST.
(3) RULES ESTABLISHED UNDER DIVISION (D)(1) OF THIS 120
SECTION MAY INCLUDE OTHER PROVISIONS AT THE DISCRETION OF THE 121
COLLEGE OR UNIVERSITY BOARD OF TRUSTEES. 122
(E) NOTWITHSTANDING DIVISION (D) OF THIS SECTION, THE OHIO 125
4
ETHICS COMMISSION RETAINS AUTHORITY TO PROVIDE ASSISTANCE TO A
COLLEGE OR UNIVERSITY BOARD OF TRUSTEES IN THE IMPLEMENTATION OF 126
DIVISION (D)(2) OF THIS SECTION AND TO ADDRESS ANY MATTER THAT IS 127
OUTSIDE THE SCOPE OF THE EXCEPTION TO DIVISION (B) OF THIS 128
SECTION AS SET FORTH IN DIVISION (D) OF THIS SECTION OR AS SET 129
FORTH IN RULES ESTABLISHED UNDER DIVISION (D) OF THIS SECTION. 130
Section 2. That existing section 3345.14 of the Revised 132
Code is hereby repealed. 133
Section 3. Within ninety days after the effective date of 135
this section, a committee consisting of representatives of the 136
presidents of the state colleges and universities shall develop 137
in consultation with the Ohio Ethics Commission a model set of 138
rules for the board of trustees of each state college or 139
university to use in adopting its own rules under division (D) of 141
section 3345.14 of the Revised Code. Each state college or 142
university president may designate a representative to serve on 143
the committee. Organization of the committee shall be 144
coordinated by the executive director of the Inter-University 145
Council.