As Reported by House Ethics and Standards Committee 1
123rd General Assembly 4
Regular Session Am. 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-REPRESENTATIVES MEAD-JACOBSON- 10
AMSTUTZ-JOLIVETTE-GOODMAN-J. BEATTY-BUEHRER-FERDERBER- 12
A. CORE-GOODING-BENDER
_________________________________________________________________ 13
A B I L L
To amend section 3345.14 of the Revised Code to 15
permit the board of trustees of a state college 16
or university to establish rules that describe 17
circumstances in which an employee of that
institution may solicit or may be given a 18
financial interest in any firm, corporation, or 19
other association to which the board has
assigned, licensed, transferred, or sold the 20
institution's interest in discoveries, 21
inventions, or patents resulting from research or 22
investigation conducted at or by employees of the
institution and to authorize the Ohio Ethics 24
Commission to assist with the development of the
rules. 25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 27
Section 1. That section 3345.14 of the Revised Code be 29
amended to read as follows: 30
Sec. 3345.14. (A) AS USED IN THIS SECTION, "STATE COLLEGE 39
OR UNIVERSITY" MEANS ANY STATE UNIVERSITY OR COLLEGE DEFINED IN 40
DIVISION (A)(1) OF SECTION 3345.12 OF THE REVISED CODE, AND ANY 41
OTHER INSTITUTION OF HIGHER EDUCATION DEFINED IN DIVISION (A)(2) 42
OF THAT SECTION.
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(B) All rights to and interests in discoveries or, 45
inventions, including OR patents thereon, which result from 47
research or investigation conducted in any experiment station, 48
bureau, laboratory, or research facility, OR OTHER FACILITY of 50
any state college or university, OR BY EMPLOYEES OF ANY STATE 51
COLLEGE OR UNIVERSITY ACTING WITHIN THE SCOPE OF THEIR EMPLOYMENT 52
OR WITH FUNDING, EQUIPMENT, OR INFRASTRUCTURE PROVIDED BY OR 53
THROUGH ANY STATE COLLEGE OR UNIVERSITY, shall be the sole 54
property of such THAT college or university. No person, firm, 56
association, corporation, or governmental agency which uses the 57
facilities of such college or university in connection with such 58
research or investigation and no faculty member, employee, or 59
student of such college or university participating in or making 60
such discoveries or inventions, shall have any rights to or 61
interests in such discoveries or inventions, including income 62
therefrom, except as may, by determination of the board of 63
trustees of such college or university, be assigned, licensed, 64
transferred, or paid to such persons or entities IN ACCORDANCE 65
WITH DIVISION (C) OF THIS SECTION OR IN ACCORDANCE WITH RULES 66
ADOPTED UNDER DIVISION (D) OF THIS SECTION. 67
(C) As may be determined from time to time by the board of 69
trustees of any state college or university, the college or 70
university may retain, assign, license, transfer, sell, or 71
otherwise dispose of, in whole or in part and upon such terms as 72
the board of trustees may direct, any and all rights to, 73
interests in, or income from any such discoveries, inventions, or 74
patents which the college or university owns or may acquire. 75
Such dispositions may be to any individual, firm, association, 76
corporation, or governmental agency, or to any faculty member, 77
employee, or student of the college or university as the board of 78
trustees may direct. Any and all income or proceeds derived or 79
retained from such dispositions shall be applied to the general 80
or special use of the college or university as determined by the 81
board of trustees of such college or university. 82
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(D)(1) NOTWITHSTANDING ANY PROVISION OF THE REVISED CODE 85
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 86
TRUSTEES OF ANY STATE COLLEGE OR UNIVERSITY MAY ADOPT RULES IN 87
ACCORDANCE WITH SECTION 111.15 OF THE REVISED CODE THAT SET FORTH 88
CIRCUMSTANCES UNDER WHICH AN EMPLOYEE OF THE COLLEGE OR
UNIVERSITY MAY SOLICIT OR ACCEPT, AND UNDER WHICH A PERSON MAY 89
GIVE OR PROMISE TO GIVE TO SUCH AN EMPLOYEE, A FINANCIAL INTEREST 90
IN ANY FIRM, CORPORATION, OR OTHER ASSOCIATION TO WHICH THE BOARD 91
HAS ASSIGNED, LICENSED, TRANSFERRED, OR SOLD THE COLLEGE OR 92
UNIVERSITY'S INTERESTS IN DISCOVERIES OR INVENTIONS MADE OR 93
CREATED BY THAT EMPLOYEE OR IN PATENTS ISSUED TO THAT EMPLOYEE. 94
(2) RULES ESTABLISHED UNDER DIVISION (D)(1) OF THIS 96
SECTION SHALL INCLUDE THE FOLLOWING: 97
(a) A REQUIREMENT THAT EACH COLLEGE OR UNIVERSITY EMPLOYEE 99
DISCLOSE TO THE COLLEGE OR UNIVERSITY BOARD OF TRUSTEES ANY 100
FINANCIAL INTEREST THE EMPLOYEE HOLDS IN A FIRM, CORPORATION, OR 101
OTHER ASSOCIATION AS DESCRIBED IN DIVISION (D)(1) OF THIS 102
SECTION;
(b) A REQUIREMENT THAT ALL DISCLOSURES MADE UNDER DIVISION 104
(D)(2)(a) OF THIS SECTION ARE REVIEWED BY OFFICIALS DESIGNATED BY 106
THE COLLEGE OR UNIVERSITY BOARD OF TRUSTEES. THE OFFICIALS 108
DESIGNATED UNDER THIS DIVISION SHALL DETERMINE THE INFORMATION
THAT SHALL BE DISCLOSED AND SAFEGUARDS THAT SHALL BE APPLIED IN 111
ORDER TO MANAGE, REDUCE, OR ELIMINATE ANY ACTUAL OR POTENTIAL 112
CONFLICT OF INTEREST.
(c) A REQUIREMENT THAT IN IMPLEMENTING DIVISION (D) OF 114
THIS SECTION ALL MEMBERS OF THE COLLEGE OR UNIVERSITY BOARD OF 115
TRUSTEES SHALL BE GOVERNED BY CHAPTER 102. AND SECTIONS 2921.42 116
AND 2921.43 OF THE REVISED CODE.
(d) GUIDELINES TO ENSURE THAT ANY FINANCIAL INTEREST HELD 118
BY ANY EMPLOYEE OF THE COLLEGE OR UNIVERSITY DOES NOT RESULT IN 119
MISUSE OF THE STUDENTS, EMPLOYEES, OR RESOURCES OF THE COLLEGE OR 121
UNIVERSITY FOR THE BENEFIT OF THE FIRM, CORPORATION, OR OTHER 122
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ASSOCIATION IN WHICH SUCH INTEREST IS HELD OR DOES NOT OTHERWISE 123
INTERFERE WITH THE DUTIES AND RESPONSIBILITIES OF THE EMPLOYEE 124
WHO HOLDS SUCH AN INTEREST.
(3) RULES ESTABLISHED UNDER DIVISION (D)(1) OF THIS 126
SECTION MAY INCLUDE OTHER PROVISIONS AT THE DISCRETION OF THE 127
COLLEGE OR UNIVERSITY BOARD OF TRUSTEES. 128
(E) NOTWITHSTANDING DIVISION (D) OF THIS SECTION, THE OHIO 131
ETHICS COMMISSION RETAINS AUTHORITY TO PROVIDE ASSISTANCE TO A
COLLEGE OR UNIVERSITY BOARD OF TRUSTEES IN THE IMPLEMENTATION OF 132
DIVISION (D)(2) OF THIS SECTION AND TO ADDRESS ANY MATTER THAT IS 133
OUTSIDE THE SCOPE OF THE EXCEPTION TO DIVISION (B) OF THIS 134
SECTION AS SET FORTH IN DIVISION (D) OF THIS SECTION OR AS SET 135
FORTH IN RULES ESTABLISHED UNDER DIVISION (D) OF THIS SECTION. 136
Section 2. That existing section 3345.14 of the Revised 138
Code is hereby repealed. 139
Section 3. Within ninety days after the effective date of 141
this section, a committee consisting of representatives of the 142
presidents of the state colleges and universities shall develop 143
in consultation with the Ohio Ethics Commission a model set of 144
rules for the board of trustees of each state college or 145
university to use in adopting its own rules under division (D) of 147
section 3345.14 of the Revised Code. Each state college or 148
university president may designate a representative to serve on 149
the committee. Organization of the committee shall be 150
coordinated by the executive director of the Inter-University 151
Council.