As Passed by the Senate 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-WATTS-MUMPER- 9
HERINGTON-ESPY-RAY-HAGAN 10
_________________________________________________________________ 12
A B I L L
To amend section 3345.14 of the Revised Code to 14
permit the board of trustees of a state college 15
or university to establish rules that describe 16
circumstances in which an employee of that
institution may solicit or may be given a 17
financial interest in any firm, corporation, or 18
other association to which the board has
assigned, licensed, transferred, or sold the 19
institution's interest in discoveries, 20
inventions, or patents resulting from research 21
conducted at or by employees of the institution
and to authorize the Ohio Ethics Commission to 22
assist with the development of the rules. 23
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 25
Section 1. That section 3345.14 of the Revised Code be 27
amended to read as follows: 28
Sec. 3345.14. (A) AS USED IN THIS SECTION, "STATE COLLEGE 37
OR UNIVERSITY" MEANS ANY STATE UNIVERSITY OR COLLEGE DEFINED IN 38
DIVISION (A)(1) OF SECTION 3345.12 OF THE REVISED CODE, AND ANY 39
OTHER INSTITUTION OF HIGHER EDUCATION DEFINED IN DIVISION (A)(2) 40
OF THAT SECTION.
(B) All rights to and interests in discoveries or, 43
inventions, including OR patents thereon, which result from 45
research or investigation conducted in, OR BY EMPLOYEES OF, any 47
2
experiment station, bureau, laboratory, or research facility, OR 48
OTHER FACILITY of any state college or university shall be the 50
sole property of such college or university. No person, firm, 51
association, corporation, or governmental agency which uses the 52
facilities of such college or university in connection with such 53
research or investigation and no faculty member, employee, or 54
student of such college or university participating in or making 55
such discoveries or inventions, shall have any rights to or 56
interests in such discoveries or inventions, including income 57
therefrom, except as may, by determination of the board of 58
trustees of such college or university, be assigned, licensed, 59
transferred, or paid to such persons or entities IN ACCORDANCE 60
WITH DIVISION (C) OF THIS SECTION OR IN ACCORDANCE WITH RULES 61
ADOPTED UNDER DIVISION (D) OF THIS SECTION. 62
(C) As may be determined from time to time by the board of 64
trustees of any state college or university, the college or 65
university may retain, assign, license, transfer, sell, or 66
otherwise dispose of, in whole or in part and upon such terms as 67
the board of trustees may direct, any and all rights to, 68
interests in, or income from any such discoveries, inventions, or 69
patents which the college or university owns or may acquire. 70
Such dispositions may be to any individual, firm, association, 71
corporation, or governmental agency, or to any faculty member, 72
employee, or student of the college or university as the board of 73
trustees may direct. Any and all income or proceeds derived or 74
retained from such dispositions shall be applied to the general 75
or special use of the college or university as determined by the 76
board of trustees of such college or university. 77
(D)(1) NOTWITHSTANDING ANY PROVISION OF THE REVISED CODE 80
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 81
TRUSTEES OF ANY STATE COLLEGE OR UNIVERSITY MAY ADOPT RULES IN 82
ACCORDANCE WITH SECTION 111.15 OF THE REVISED CODE THAT SET FORTH 83
CIRCUMSTANCES UNDER WHICH AN EMPLOYEE OF THE COLLEGE OR
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UNIVERSITY MAY SOLICIT OR ACCEPT, AND UNDER WHICH A PERSON MAY 84
GIVE OR PROMISE TO GIVE TO SUCH AN EMPLOYEE, A FINANCIAL INTEREST 85
IN ANY FIRM, CORPORATION, OR OTHER ASSOCIATION TO WHICH THE BOARD 86
HAS ASSIGNED, LICENSED, TRANSFERRED, OR SOLD THE COLLEGE OR 87
UNIVERSITY'S INTERESTS IN DISCOVERIES OR INVENTIONS MADE OR 88
CREATED BY THAT EMPLOYEE OR IN PATENTS ISSUED TO THAT EMPLOYEE. 89
(2) RULES ESTABLISHED UNDER DIVISION (D)(1) OF THIS 91
SECTION SHALL INCLUDE THE FOLLOWING: 92
(a) A REQUIREMENT THAT EACH COLLEGE OR UNIVERSITY EMPLOYEE 94
DISCLOSE TO THE COLLEGE OR UNIVERSITY BOARD OF TRUSTEES ANY 95
FINANCIAL INTEREST THE EMPLOYEE HOLDS IN A FIRM, CORPORATION, OR 96
OTHER ASSOCIATION AS DESCRIBED IN DIVISION (D)(1) OF THIS 97
SECTION;
(b) A REQUIREMENT THAT ALL DISCLOSURES MADE UNDER DIVISION 99
(D)(2)(a) OF THIS SECTION ARE REVIEWED BY OFFICIALS DESIGNATED BY 101
THE COLLEGE OR UNIVERSITY BOARD OF TRUSTEES. THE OFFICIALS 103
DESIGNATED UNDER THIS DIVISION SHALL DETERMINE THE INFORMATION
THAT SHALL BE DISCLOSED AND SAFEGUARDS THAT SHALL BE APPLIED IN 106
ORDER TO MANAGE, REDUCE, OR ELIMINATE ANY ACTUAL OR POTENTIAL 107
CONFLICT OF INTEREST.
(c) A REQUIREMENT THAT IN IMPLEMENTING DIVISION (D) OF 109
THIS SECTION ALL MEMBERS OF THE COLLEGE OR UNIVERSITY BOARD OF 110
TRUSTEES SHALL BE GOVERNED BY CHAPTER 102. AND SECTIONS 2921.42 111
AND 2921.43 OF THE REVISED CODE.
(d) GUIDELINES TO ENSURE THAT ANY FINANCIAL INTEREST HELD 113
BY ANY EMPLOYEE OF THE COLLEGE OR UNIVERSITY DOES NOT RESULT IN 114
MISUSE OF THE STUDENTS, EMPLOYEES, OR RESOURCES OF THE COLLEGE OR 116
UNIVERSITY FOR THE BENEFIT OF THE FIRM, CORPORATION, OR OTHER 117
ASSOCIATION IN WHICH SUCH INTEREST IS HELD OR DOES NOT OTHERWISE 118
INTERFERE WITH THE DUTIES AND RESPONSIBILITIES OF THE EMPLOYEE 119
WHO HOLDS SUCH AN INTEREST.
(3) RULES ESTABLISHED UNDER DIVISION (D)(1) OF THIS 121
SECTION MAY INCLUDE OTHER PROVISIONS AT THE DISCRETION OF THE 122
COLLEGE OR UNIVERSITY BOARD OF TRUSTEES. 123
4
(E) NOTWITHSTANDING DIVISION (D) OF THIS SECTION, THE OHIO 126
ETHICS COMMISSION RETAINS AUTHORITY TO PROVIDE ASSISTANCE TO A
COLLEGE OR UNIVERSITY BOARD OF TRUSTEES IN THE IMPLEMENTATION OF 127
DIVISION (D)(2) OF THIS SECTION AND TO ADDRESS ANY MATTER THAT IS 128
OUTSIDE THE SCOPE OF THE EXCEPTION TO DIVISION (B) OF THIS 129
SECTION AS SET FORTH IN DIVISION (D) OF THIS SECTION OR AS SET 130
FORTH IN RULES ESTABLISHED UNDER DIVISION (D) OF THIS SECTION. 131
Section 2. That existing section 3345.14 of the Revised 133
Code is hereby repealed. 134
Section 3. Within ninety days after the effective date of 136
this section, a committee consisting of representatives of the 137
presidents of the state colleges and universities shall develop 138
in consultation with the Ohio Ethics Commission a model set of 139
rules for the board of trustees of each state college or 140
university to use in adopting its own rules under division (D) of 142
section 3345.14 of the Revised Code. Each state college or 143
university president may designate a representative to serve on 144
the committee. Organization of the committee shall be 145
coordinated by the executive director of the Inter-University 146
Council.