SENATOR Robert Gardner

To amend sections 955.43, 1713.02, 1713.03, 1713.25,

1

2741.01, 3332.01, 3332.02, 3332.03, 3332.031,

2

3332.04, 3332.05, 3332.051, 3332.06, 3332.07,

3

3332.08, 3332.081, 3332.082, 3332.083, 3332.085,

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3332.09, 3332.091, 3332.092, 3332.10 to 3332.13,

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3332.18, 3333.043, 3333.12, 3333.29, 3334.01,

6

3365.01, 3365.15, 4742.05, 4742.06, 4743.03,

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4762.02, 4763.05, 5107.58, 5747.01, and 5919.34 of

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the Revised Code to make changes to the oversight

9

of career schools by changing the name of the State

10

Board of Proprietary School Registration to the

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State Board of Career Colleges and Schools,

12

directing the Board to establish the period of time

13

that a career school must maintain a surety bond,

14

requiring the corporate bonding company acting as

15

surety to have a specified credit quality rating,

16

eliminating the requirement that agents for career

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schools maintain surety bonds, altering the

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structure of the Board by adding an additional

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member with a background in career school

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management and by making the student representative

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a nonvoting member, establishing a fixed rate of

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compensation for Board members, eliminating the

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requirement that the Ohio Board of Regents

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recommend whether to approve applications for the

25

issuance or renewal of program authorizations for

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associate degree programs at career schools,

27

specifying that students are eligible for

28

reimbursement of prepaid tuition losses only in the

29

event of a school closure, paying reimbursements

30

for prepaid tuition losses from the career school's

31

surety bond beginning July 1, 2003, and by making

32

other revisions to the oversight of career schools,

33

and to enable students enrolled in eligible

34

institutions prior to July 1, 2000, to receive

35

student workforce development grants, and to amend

36

sections 3332.04, 3332.08, 3332.082, and 3332.084

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of the Revised Code effective July 1, 2003.

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

Section 1. That sections 955.43, 1713.02, 1713.03, 1713.25,	39
2741.01, 3332.01, 3332.02, 3332.03, 3332.031, 3332.04, 3332.05,	40
3332.051, 3332.06, 3332.07, 3332.08, 3332.081, 3332.082, 3332.083,	41
3332.085, 3332.09, 3332.091, 3332.092, 3332.10, 3332.11, 3332.12,	42
3332.13, 3332.18, 3333.043, 3333.12, 3333.29, 3334.01, 3365.01,	43
3365.15, 4742.05, 4742.06, 4743.03, 4762.02, 4763.05, 5107.58,	44
5747.01, and 5919.34 of the Revised Code be amended to read as	45
follows:	46

Sec. 955.43.  (A) When a blind, deaf, or mobility impaired	47
person is accompanied by a dog that serves as or is in training to	48
become a guide, leader, listener, or support dog for himthe	49
person, and hethe person can show proof by certificate or other	50
means that the dog leading himthe person, listening for himthe	51
person, or providing support or assistance for himthe person has	52
been or is being trained for that purpose by a nonprofit special	53
agency engaged in such work, the person is entitled to the full	54
and equal accommodations, advantages, facilities, and privileges	55
of all public conveyances, hotels, lodging places, all places of	56
public accommodation, amusement, or resort, all institutions of	57
education, and other places to which the general public is	58
invited, and may take the dog into such conveyances and places,	59
subject only to the conditions and limitations applicable to all	60
persons not so accompanied, except that:	61

(1) The dog shall not occupy a seat in any public	62
conveyance.	63

(2) The dog shall be upon a leash while using the facilities	64
of a common carrier.	65

(3) Any dog in training to become a guide, leader, listener,	66
or support dog shall be covered by a liability insurance policy	67
provided by the nonprofit special agency engaged in such work	68
protecting members of the public against personal injury or	69
property damage caused by the dog.	70

(B) No person shall deprive a blind, deaf, or mobility	71
impaired person of any of the advantages, facilities, or	72
privileges provided in division (A) of this section, nor charge	73
the blind, deaf, or mobility impaired person a fee or charge for	74
the dog.	75

(C) As used in this section, "institutions of education"	76
means:	77

(1) Any state university or college as defined in section	78
3345.32 of the Revised Code;	79

(2) Any private college or university that holds a	80
certificate of authorization issued by the Ohio board of regents	81
pursuant to Chapter 1713. of the Revised Code;	82

(3) Any elementary or secondary school operated by a board	83
of education;	84

(4) Any chartered or nonchartered nonpublic elementary or	85
secondary school;	86

(5) Any school issued a certificate of registration by the	87
state board of proprietary school registrationcareer colleges and	88
schools.	89

Sec. 1713.02.  (A) Any institution described in division (A)	90
of section 1713.01 of the Revised Code may become incorporated	91
under sections 1702.01 to 1702.58 of the Revised Code.	92

(B) Except as provided in division (E) of this section, no	93
nonprofit institution or corporation of the type described in	94
division (A) of section 1713.01 of the Revised Code that is	95
established after October 13, 1967, may confer degrees, diplomas,	96
or other written evidences of proficiency or achievement, until it	97
has received a certificate of authorization issued by the Ohio	98
board of regents, nor shall any such institution or corporation	99
identify itself as a "college" or "university" unless it has	100
received a certificate of authorization from the board.	101

(C) Except as provided in division (E) of this section, no	102
institution of the type described in division (A)(3) or (B) of	103
section 1713.01 of the Revised Code that intends to offer or	104
offers a course or courses within this state, but that did not	105
offer a course or courses within this state on or before October	106
13, 1967, may confer degrees, diplomas, or other written evidences	107
of proficiency or achievement or offer any course or courses	108
within this state until it has received a certificate of	109
authorization from the Ohio board of regents, nor shall the	110
institution identify itself as a "college" or "university" unless	111
it has received such a certificate from the board.	112

(D) Each certificate of authorization shall specify the	113
diplomas or degrees authorized to be given, courses authorized to	114
be offered, and the sites at which courses are to be conducted. A	115
copy of such certificate shall be filed with the secretary of	116
state if the institution is incorporated. Any institution or	117
corporation established or that offered a course or courses of	118
instruction in this state prior to October 13, 1967, may apply to	119
the board for a certificate of authorization, and the board shall	120
issue a certificate if it finds that such institution or	121
corporation meets the requirements established pursuant to	122
sections 1713.01, 1713.02, 1713.03, 1713.04, 1713.06, 1713.09, and	123
1713.25 of the Revised Code.	124

(E) An institution that clearly identifies itself in its	125
name with the phrase "bible college" or "bible institute" and has	126
not received a certificate of authorization may confer diplomas	127
and other written evidences of proficiency or achievement other	128
than associate, baccalaureate, master's, and doctoral degrees or	129
any other type of degree and may identify itself as a "bible	130
college" if such institution:	131

(1) Prominently discloses on any transcripts, diplomas, or	132
other written evidences of proficiency or achievement, and	133
includes with any promotional material or other literature	134
intended for the public, the statement: "this institution is not	135
certified by the board of regents or the state of Ohio."	136

(2) Limits its course of instruction to religion, theology,	137
or preparation for a religious vocation, or is operated by a	138
church or religious organization and limits its instruction to	139
preparation for service to churches or other religious	140
organizations.	141

(3) Confers only diplomas and other written evidences of	142
proficiency or achievement that bear titles clearly signifying the	143
religious nature of the instruction offered by the institution.	144

(F) Except as otherwise provided in section 3333.046 of the	145
Revised Code, no school of the type described in division (E) of	146
section 3332.01 of the Revised Code that intends to offer or	147
offers a degree program within this state or solicits students	148
within this state may confer a baccalaureate, master's, or	149
doctoral degree or solicit students for such degree programs until	150
it has received both a certificate of authorization from the board	151
of regents under this chapter and program authorization from the	152
state board of proprietary school registrationcareer colleges and	153
schools for such degree program under section 3332.05 of the	154
Revised Code.	155

Sec. 1713.03.  The Ohio board of regents shall establish	156
standards for certificates of authorization to be issued to	157
institutions as defined in section 1713.01 of the Revised Code, to	158
private institutions exempt from regulation under Chapter 3332. of	159
the Revised Code as prescribed in section 3333.046 of the Revised	160
Code, and to schools holding certificates of registration issued	161
by the state board of proprietary school registrationcareer	162
colleges and schools pursuant to division (C) of section 3332.05	163
of the Revised Code. A certificate of authorization may permit an	164
institution or school to award one or more types of degrees.	165

The standards for a certificate of authorization may include,	166
for various types of institutions, schools, or degrees, minimum	167
qualifications for faculty, library, laboratories, and other	168
facilities as adopted and published by the Ohio board of regents.	169
The standards shall be adopted by the board pursuant to Chapter	170
119. of the Revised Code.	171

An institution or school shall apply to the board for a	172
certificate of authorization on forms containing such information	173
as is prescribed by the board. Each institution or school with a	174
certificate of authorization shall file an annual report with the	175
board in such form and containing such information as the board	176
prescribes.	177

Sec. 1713.25.  The board of trustees of an institution of	178
learning incorporated under the authority of this state for the	179
sole purpose of promoting education, religion and morality, or the	180
fine arts, at a regular or special meeting of such board called	181
for that purpose, after thirty days' actual notice to each	182
trustee, may change the name and enlarge the purposes and objects	183
of such institution of learning, by amendment to its charter,	184
approved by a majority of the board.	185

No institution as defined in section 1713.01 of the Revised	186
Code or school that holds a certificate of registration issued by	187
the state board of proprietary school registrationcareer colleges	188
and schools pursuant to division (C) of section 3332.05 (C) of the	189
Revised Code, that has been issued a certificate of authorization	190
by the Ohio board of regents shall change the purposes of the	191
institution without giving written notice to the Ohio board of	192
regents, which shall issue an amended certificate of authorization	193
to the institution or school upon receipt of such notice.	194

Sec. 2741.01.  As used in this chapter:

195

(A) "Persona" means an individual's name, voice, signature,	196
photograph, image, likeness, or distinctive appearance, if any of	197
these aspects have commercial value.	198

(B) "Commercial purpose" means the use of or reference to an	199
aspect of an individual's persona in any of the following manners:	200

(1) On or in connection with a place, product, merchandise,	201
goods, services, or other commercial activities not expressly	202
exempted under this chapter;	203

(2) For advertising or soliciting the purchase of products,	204
merchandise, goods, services, or other commercial activities not	205
expressly exempted under this chapter;	206

(3) For the purpose of promoting travel to a place;

207

(4) For the purpose of fundraising.

208

(C) "Name" means the actual, assumed, or clearly	209
identifiable name of or reference to a living or deceased	210
individual that identifies the individual.	211

(D) "Right of publicity" means the property right in an	212
individual's persona to use the individual's persona for a	213
commercial purpose.	214

(E) "Trier of fact" means the jury or, in a nonjury action,	215
the court.	216

(F) "Written consent" includes written, electronic, digital,	217
or any other verifiable means of authorization.	218

(G) "Institution of higher education" means a state	219
institution of higher education as defined in section 3345.011 of	220
the Revised Code, a private nonprofit college or university	221
located in this state that possesses a certificate of	222
authorization issued by the Ohio board of regents pursuant to	223
Chapter 1713. of the Revised Code, or a school located in this	224
state that possesses a certificate of registration and one or more	225
program authorizations issued by the state board of proprietary	226
school registrationcareer colleges and schools under Chapter	227
3332. of the Revised Code.	228

Sec. 3332.01.  As used in this section and sections 3332.03	229
to 3332.99 of the Revised Code:	230

(A) "Agent" means any individual whose primary duties,	231
performed while on or off school premises, include distribution of	232
literature or information on behalf of a person offering a	233
program, and the solicitation of prospective students in Ohio to	234
enroll for a fee in a program.	235

(B) "Certificate of registration" means a certificate issued	236
by the state board of proprietary school registrationcareer	237
colleges and schools to the owner or operator of a for profit or	238
nonprofit private career school located within or without the	239
state of Ohio, that permits the school to solicit students and	240
offer and maintain a program in Ohio.	241

(C) "Program" means the completea course of study, whether	242
offered in a specific place, by correspondence using the mails, or	243
by any other means of communication, designed to prepare students	244
for potential employment in a recognized vocation, occupation, or	245
profession and lead to aat the certificate, diploma, or degree	246
level.	247

(D) "Program authorization" means written notification by	248
the board to a private career school granting approval for	249
offering programs and awarding certificates, diplomas, or degrees.	250

(E) "Private career school" or "school" means a person	251
possessing a certificate of registration and one or more program	252
authorizations.	253

Sec. 3332.02.  This chapter does not apply to the following	254
categories of courses, schools, or colleges:	255

(A) Tuition-free courses or schools conducted by employers	256
exclusively for their own employees;	257

(B) Nonprofit institutions with certificates of	258
authorization issued pursuant to section 1713.02 of the Revised	259
Code or that are nonprofit institutions exempted from the	260
requirement to obtain a certificate by division (E) of that	261
section;	262

(C) Schools, colleges, technical colleges, or universities	263
established by law or chartered by the Ohio board of regents;	264

(D) Courses of instruction required by law to be approved or	265
licensed, or given by institutions approved or licensed, by a	266
state board or agency other than the state board of school and	267
college registrationcareer colleges and schools, except that a	268
school so approved or licensed may apply to the state board of	269
proprietary school registrationcareer colleges and schools for a	270
certificate of registration to be issued in accordance with this	271
chapter;	272

(E) Schools for which minimum standards are prescribed by	273
the state board of education pursuant to division (D) of section	274
3301.07 of the Revised Code;	275

(F) Courses of instruction conducted by a public school	276
district or a combination of public school districts;	277

(G) Courses of instruction conducted outside the United	278
States;	279

(H) Private institutions exempt from regulation under this	280
chapter as prescribed in section 3333.046 of the Revised Code;	281

(I) Training courses for employees paid for by their	282
employers and conducted by outside service providers.	283

Sec. 3332.03.  There is hereby created the state board of	284
proprietary school registrationcareer colleges and schools to	285
consist of the state superintendent of public instruction or an	286
assistant superintendent designated by the superintendent, the	287
chancellor of the Ohio board of regents or a vice chancellor	288
designated by the chancellor, and fivesix members appointed by	289
the governor, with the advice and consent of the senate. Members'	290
terms of office shall be for five years, commencing on the	291
twenty-first day of November and ending on the twentieth day of	292
November. Each member shall hold office from the date of his	293
appointment until the end of the term for which hethe member was	294
appointed.	295

TwoThree of the members appointed by the governor shall have	296
been engaged for a period of not less than five years immediately	297
preceding appointment in an executive or managerial position in a	298
private, trade, technical, or other school subject to this	299
chapter. One member appointed by the governor shall be a	300
representative of students and shall have graduated with an	301
associate or baccalaureate degree, within five years prior to his	302
appointment, from a school subject to this chapter. Two members	303
appointed by the governor shall be representatives of the general	304
public and shall have had no affiliation with, or direct or	305
indirect interest in, schools subject to this chapter for at least	306
two years prior to appointment. In selecting the representatives	307
of the general public, the governor shall make an effort to find	308
individuals with background or experience in the regulation of	309
commerce, business, or education. The two members of the board	310
who are representatives of the general public shall not be	311
affiliated in any way with or have any direct or indirect interest	312
in any schools subject to this chapter during their terms. Except	313
for enrollment in a school subject to this chapter, the member	314
representing students shall have had no affiliation in any way	315
with, or have any direct or indirect interest in any school	316
subject to this chapter for at least two years prior to his	317
appointment or during histhe member's term.	318

Any vacancy shall be filled in the manner provided for	319
original appointment. Any member appointed to fill a vacancy	320
occurring prior to the expiration of the term for which histhe	321
member's predecessor was appointed shall hold office for the	322
remainder of such term. Any appointed member shall continue in	323
office subsequent to the expiration date of histhe member's term	324
until histhe member's successor takes office, or until a period	325
of sixty days has elapsed, whichever occurs first.	326

All seven membersMembers of the board have full voting	327
rights. The members shall not be paid for their services, but the,	328
except for the member representing students who shall be a	329
nonvoting member. Each member of the board appointed by the	330
governor shall be compensated at the rate established pursuant to	331
division (J) of section 124.15 of the Revised Code, but shall not	332
receive step advancements, for those days the member is engaged in	333
the discharge of official duties. In addition, members appointed	334
by the governor may be compensated for the expenses necessarily	335
incurred in the attendance at meetings or in performing other	336
services for the board. The chairmanchairperson of the board	337
shall annually be elected or determined as follows:	338

(A) If both members of the board representing the general	339
public have served on the board for at least one year, the members	340
shall elect one of these two members as chairmanchairperson. If	341
one of these members declines to be elected or serve, the other	342
member representing the general public shall be chairman	343
chairperson. If both members representing the general public	344
decline to be elected or serve, division (C) of this section shall	345
apply.	346

(B) If only one member of the board representing the general	347
public has served on the board for at least one year, this member	348
shall be chairmanchairperson. If this member declines to serve,	349
division (C) of this section shall apply.	350

(C) If neither member of the board representing the general	351
public has served on the board for at least one year or if this	352
division applies pursuant to division (A) or (B) of this section,	353
the members of the board shall elect a chairmanchairperson from	354
among any of the voting members of the board who have served on	355
the board for at least one year.	356

Sec. 3332.031.  The state board of proprietary school	357
registrationcareer colleges and schools shall:	358

(A) Adopt rules under Chapter 119. of the Revised Code	359
necessary to carry out its duties and responsibilities under this	360
chapter;	361

(B) Establish minimum standards for the registration and	362
operation of private career schools including but not necessarily	363
limited to standards to ensure school financial stability;	364

(C) Issue certificates of registration to private career	365
schools pursuant to division (A) of section 3332.05 of the Revised	366
Code;	367

(D) Suspend or revoke the certificate of registration of	368
schools pursuant to sections 3332.09 and 3332.091 of the Revised	369
Code;	370

(E) Establish minimum standards for certificate, diploma,	371
and degree programs offered by schools;	372

(F) Issue program authorization pursuant to divisions (B)	373
and (C) of section 3332.05 of the Revised Code;	374

(G) Suspend or revoke program authorization for schools	375
pursuant to sections 3332.09 and 3332.091 of the Revised Code;	376

(H) Establish minimum standards, including but not	377
necessarily limited to a code of ethics, for agents employed by	378
schools registered under this chapter to reasonably ensure that	379
such agents provide adequate, ethical, and accurate information to	380
prospective students;	381

(I) Grant permits to agents pursuant to sections 3332.10 and	382
3332.11 of the Revised Code;	383

(J) Suspend or revoke an agent's permit pursuant to section	384
3123.47 or 3332.12 of the Revised Code;	385

(K) Monitor recruitment and admissions practices of schools	386
holding certificates of registration to ensure compliance with	387
this chapter and the rules of the board;	388

(L)(1) Adopt rules requiring all schools to provide all	389
applicant students, prior to their signing enrollment agreements,	390
written information concerning the school's graduation and	391
placement rates for each of the preceding three years and any	392
other information the board deems pertinent.	393

(2) Adopt rules requiring all schools to provide any student	394
or applicant student, prior to the signing of any financial aid,	395
grant, or loan application, written information concerning the	396
obligations of a student obtaining such financial aid, grant, or	397
loan.	398

(3) Upon request, a school shall furnish the board with a	399
copy of all information required by this division. The board	400
shall monitor schools to ensure their compliance with this	401
division.	402

(M) Adopt a rule requiring all schools to include, in the	403
enrollment agreement, notice that any problems the student is	404
having with the school, or complaints the student has about the	405
school, may be directed to the board, which notice shall include	406
the telephone number of the executive director of the board;	407

(N) Report annually to the governor and the general assembly	408
on the activities of the board and private career schools, and	409
make legislative recommendations when necessary to enable the	410
board to better serve the student population and the schools	411
registered under this chapter;	412

(O) Adopt a rule requiring a uniform tuition refund policy	413
for all schools subject to this chapter. In adopting the rule,	414
the board shall consider the tuition refund policies effectuated	415
by state-supported colleges and universities. Each school subject	416
to this chapter shall furnish to each prospective student, prior	417
to the signing of an enrollment agreement, a copy of the tuition	418
refund policy.	419

(P) Adopt a rule establishing minimum standards for all	420
faculty and instructional staff in all instructional programs at a	421
school. In the case of full-time faculty members employed for	422
degree programs, such standards shall include all of the	423
following:	424

(1) A prohibition against employing on or after July 1,	425
1993, any new full-time faculty member to teach the general study	426
portion of any degree program, unless the person holds a master's	427
degree in the subject matter discipline or holds a master's degree	428
in education with proficiency in the subject matter discipline	429
demonstrated in accordance with the standards adopted by the	430
board.	431

(2) Except as provided under the standards adopted pursuant	432
to division (P)(3) of this section, a prohibition against	433
employing or reemploying on or after July 1, 1998, any full-time	434
faculty member to teach the general study portion of any degree	435
program, unless the person holds a master's degree in the subject	436
matter discipline or holds a master's degree in education with	437
proficiency in the subject matter discipline demonstrated in	438
accordance with the standards adopted by the board.	439

(3) Standards under which the board, upon written request	440
submitted to the board prior to July 1, 1994, by any school, may	441
exempt the school from the prohibition adopted pursuant to	442
division (P)(2) of this section with regard to any individual	443
full-time faculty member employed by the school who has	444
demonstrated outstanding teaching performance in the general study	445
portion of any degree program at the school for a period of at	446
least six years prior to July 1, 1993.	447

(4) Definitions of "full-time faculty member," "new faculty	448
member," and any other term the board considers necessary to	449
define.	450

(Q) Adopt a rule prohibiting a school or branch campus	451
thereof from claiming accreditation from an accrediting agency in	452
any of its advertising, recruiting, or promotional materials	453
unless the agency is recognized as an accrediting agency by the	454
United States department of education.	455

Sec. 3332.04.  The state board of proprietary school	456
registrationcareer colleges and schools may appoint an executive	457
director and such other staff as may be required for the	458
performance of the board's duties and provide necessary	459
facilities. In selecting an executive director, the board shall	460
appoint an individual with a background or experience in the	461
regulation of commerce, business, or education. The board may	462
also arrange for services and facilities to be provided by the	463
state board of education and the Ohio board of regents. All	464
receipts of the board shall be deposited in the state treasury to	465
the credit of the general revenue fund.	466

Sec. 3332.05.  (A) The state board of proprietary school	467
registrationcareer colleges and schools shall issue a certificate	468
of registration to an applicant of good reputation seeking to	469
offer one or more programs upon receipt of the fee established in	470
accordance with section 3332.07 of the Revised Code and upon	471
determining the applicant has the facilities, resources, and	472
faculty to provide students with the kind of instruction that it	473
proposes to offer and meets the minimum standards of the board. A	474
certificate of registration shall be granted or denied within one	475
hundred twenty days of the receipt of the application therefor by	476
the board. A person shall obtain a separate certificate for each	477
location at which the person offers programs. The first	478
certificate of registration issued on or after the effective date	479
of this amendmentJune 29, 1999, for each new location is valid	480
for one year, unless earlier revoked for cause by the board under	481
section 3332.09 of the Revised Code. Any other certificate of	482
registration is valid for two years, unless earlier revoked for	483
cause by the board under that section.	484

(B) The board shall issue program authorization for an	485
associate degree, certificate, or diploma program to an applicant	486
holding a certificate of registration issued pursuant to division	487
(A) of this section upon receipt of the fee established in	488
accordance with section 3332.07 of the Revised Code and upon	489
determining the applicant has the facilities, resources, and	490
faculty to provide students the kind of program it proposes to	491
offer and meets the minimum standards of the state board.	492

The state board shall promptly furnish the Ohio board of	493
regents a copy of all applications for issuance or renewal of	494
program authorization to offer any associate degree program. Prior	495
to the issuance or renewal of such program authorization the state	496
board shall conduct an on-site visit of the school proposing the	497
program. A representative of the board of regents shall	498
participate in the visit. Within twenty-one days of the on-site	499
visit the representative of the board of regents shall provide the	500
state board with a written statement recommending approval or	501
disapproval of the application.	502

Any program authorization issued by the board under this	503
division is valid only for the specified program at the location	504
for which it is issued and does not cover any other program	505
offered at the school or at other schools operated by the owner.	506
Program authorization is valid for the period of time specified by	507
the board, unless earlier suspended or revoked for cause by the	508
board under section 3332.09 of the Revised Code.	509

(C)(1) The state board shall accept and review applications	510
for program authorization for baccalaureate, master's, and	511
doctoral degree programs only from the following:	512

(a) Any school holding a certificate of registration issued	513
by the board that has held such certificate for the ten previous	514
consecutive years;	515

(b) Any school holding a certificate of registration issued	516
by the board that also holds an equivalent certificate issued by	517
another state and has held the equivalent certificate for the ten	518
previous consecutive years.	519

(2) After review the board shall refer any application it	520
finds valid to the Ohio board of regents for approval. The board	521
of regents shall review, and approve or disapprove, such degree	522
programs and if so approved, issue certificates of authorization	523
to such schools to offer such degree programs pursuant to Chapter	524
1713. of the Revised Code. The board of regents shall notify the	525
state board of proprietary school registrationcareer colleges and	526
schools of each school registered with the state board that	527
receives a certificate of authorization and the approval to offer	528
any degree program. Upon receipt of such notification and the fee	529
established in accordance with section 3332.07 of the Revised	530
Code, the state board shall review, and may issue program	531
authorization to offer, such a degree program. Any program	532
authorization issued by the board under this division is valid	533
only for the specified program at the location for which it is	534
issued and does not cover any other program offered at the school	535
or at other schools operated by the owner. Program authorization	536
is valid for the period of time specified by the board, unless	537
earlier suspended or revoked for cause by the board under section	538
3332.09 of the Revised Code. The state board shall not issue such	539
program authorization unless the degree program has been approved	540
by the board of regents.	541

(D) The board may cause an investigation to be made into the	542
correctness of the information submitted in any application	543
received under this section. If the board believes that false,	544
misleading, or incomplete information has been submitted to it in	545
connection with any application, the board shall conduct a hearing	546
on the matter pursuant to Chapter 119. of the Revised Code, and	547
may withhold a certificate of registration or program	548
authorization upon finding that the applicant has failed to meet	549
the standards for such certificate or program authorization or has	550
submitted false, misleading, or incomplete information to the	551
board. Application for a certificate of registration or program	552
authorization shall be made in writing to the board on forms	553
furnished by the board. A certificate of registration or program	554
authorization is not transferable and shall be prominently	555
displayed on the premises of an institution.	556

The board shall assign registration numbers to all schools	557
registered with it. Schools shall display their registration	558
numbers on all school publications and on all advertisements	559
bearing the name of the school.	560

Notwithstanding the requirements of this section for issuance	561
of certificates of registration and program authorization, the	562
board may, in accordance with rules adopted by it, grant	563
certificates of registration and program authorization to schools,	564
colleges, institutes, or universities that have been approved by	565
the state department of education pursuant to the "Act of March 3,	566
1966," 80 Stat. 20, 38 U.S.C.A. 1771.	567

Sec. 3332.051.  The state board of proprietary school	568
registrationcareer colleges and schools shall direct that a	569
written survey be obtained by schools subject to this chapter,	570
which shall be used to solicit comments from students enrolled at	571
such schools. The board shall establish the guidelines for the	572
survey by rule. The survey shall be designed to determine student	573
satisfaction with the quality of instruction, facilities, school	574
personnel, and business operations, including recruitment and	575
recruitment agents. The board shall adopt rules for the	576
administration of surveys and shall include provisions to ensure	577
student anonymity. Surveys shall be administered prior to the end	578
of each school year. Completed surveys shall be collected by the	579
holder of the certificate of registration or the director or	580
administrator of the school and shall be compiled by the school.	581
Each school shall retain the surveys and the compiled results on	582
file for at least three years and shall make them available to the	583
state board for examination upon request. The holder of a	584
certificate of registration shall be responsible for ensuring that	585
completed surveys are in no way altered.	586

Sec. 3332.06.  (A)(1) No program shall be established,	587
offered, or given for a charge, fee, or other contribution; no	588
certificate, diploma, degree, or other written evidence of	589
proficiency or achievement shall be offered whether in a specified	590
place, by correspondence, or any other means of communication, or	591
awarded; and no student enrollment in such program shall be	592
solicited through advertising, agents, mail circulars, or other	593
means, until the person planning to offer or offering such	594
program, certificate, diploma, or degree has obtained a	595
certificate of registration and appropriate program authorization	596
in accordance with section 3332.05 of the Revised Code. No school	597
shall offer a baccalaureate, master's, or doctoral degree program	598
unless it has received a certificate of authorization from the	599
Ohio board of regents and program authorization from the state	600
board of proprietary school registrationcareer colleges and	601
schools.	602

(2) No institution receiving a certificate of registration	603
after July 28, 1989, shall call itself a "university" unless it	604
meets all of the following conditions:	605

(a) It also holds an equivalent certificate issued by	606
another state;	607

(b) It calls itself a "university" in that other state, as	608
permitted under the terms of the other state's certificate;	609

(c) It has been issued degree program authorization under	610
division (C) of section 3332.05 of the Revised Code.	611

(B) The board shall petition the court of common pleas of	612
the county in which a person or agent, as defined in section	613
3332.01 of the Revised Code, offers one or more programs subject	614
to this chapter or advertises for the offering of such programs	615
without a certificate of registration and program authorization,	616
for an order enjoining such offering or advertising. The court	617
may grant such injunctive relief upon a showing that the	618
respondent named in the petition is offering or advertising one or	619
more programs without a certificate of registration and program	620
authorization.	621

Sec. 3332.07.  (A) Each application for issuance and renewal	622
of a certificate of registration, for the issuance and renewal of	623
program authorization, for issuance and renewal of agent's	624
permits, and for any other service specified by the state board of	625
proprietary school registrationcareer colleges and schools shall	626
be accompanied by the required fee. Fees submitted under this	627
section are not returnable even if approval or renewal is denied.	628

(B) Fee schedules for the issuance and renewal of	629
certificates of registration, for the issuance and renewal of	630
program authorization, for issuance and renewal of agent's	631
permits, and for any other service specified by the board shall be	632
established by rule adopted by the state board. The fee for a	633
one-year certificate of registration shall be one-half the fee for	634
a two-year certificate.	635

(C) If in any fiscal year the amount received in fees under	636
this section does not equal or exceed fifty per cent of board	637
expenditures for the fiscal year, the board shall increase fees	638
for the ensuing fiscal year by an amount estimated to be	639
sufficient to produce revenues equal to fifty per cent of	640
estimated expenditures for that ensuing fiscal year.	641

Sec. 3332.08.  The application for a certificate of	642
registration shall be accompanied by a surety bond in the penal	643
sum of ten thousand dollars with conditions and in a form	644
prescribed by the state board of proprietary school registration	645
career colleges and schools with at least one corporate bonding	646
company that has a AAA or AA rating from either Moody's investors	647
service or Standard & Poor's and that is approved by the	648
department of insurance as surety thereon. Bond shall be	649
maintained in effect for three years by any school that has	650
existed under the same ownership for five years immediately before	651
the effective date of this amendment, for five years after the	652
effective date of this amendment, or its later original	653
registration, for any other school; and for five years after the	654
approval of a change of ownership of any schoola period specified	655
by rule of the board. The board may permit a school to cancel its	656
bond if the school has been approved to participate in any federal	657
student financial assistance program authorized under Title IV of	658
the "Higher Education Act of 1965," 20 U.S.C.A. 1070 et seq., as	659
amended, or if the school meets standards of financial	660
responsibility otherwise established by the board. The bond shall	661
provide for the indemnification of any person suffering loss as	662
the result of any fraud or misrepresentation used in behalf of the	663
principal in procuring such person's enrollment in a program,	664
including repayment of tuition paid in advance by any student.	665

The liability of the surety on such bond for the school	666
covered shall not exceed the sum of ten thousand dollars as an	667
aggregate for all students for all breaches of the conditions of	668
the bond by the school. The term of the bond shall be continuous,	669
but it shall be subject to cancellation by the surety in the	670
manner described in this section. The bond shall provide blanket	671
coverage for the acts of all persons engaged as agents of the	672
school without naming them and without regard to the time they are	673
engaged during the term of the bond.	674

The surety may terminate the bond upon giving a sixty-day	675
written notice to the principal and to the state board of	676
proprietary school registrationcareer colleges and schools, but	677
the liability of the surety for acts of the principal and its	678
agents continues during the sixty days of cancellation notice. The	679
notice does not absolve the surety from liability which accrues	680
before the cancellation becomes final but which is discovered	681
after that date and which may have arisen at any time during the	682
term of the bond. Unless the bond is replaced by that of another	683
surety before the expiration of the sixty days notice of	684
cancellation, the certificate of registration shall be suspended.	685
Any person subject to this section required to file a bond with an	686
application for a certificate of registration may file, in lieu	687
thereof, cash, a certificate of deposit, letter of credit, or	688
government bonds in the amount of ten thousand dollars. The	689
deposit is subject to the same terms and conditions as are	690
provided for in the surety bond required herein. Any interest or	691
earnings on such deposits are payable to the depositor.	692

Sec. 3332.081.  The student tuition recovery authority is	693
created as a body corporate and politic of this state. The	694
purpose of the authority is to protect students of any school	695
registered by the state board of proprietary school registration	696
career colleges and schools from prepaid tuition loss for the	697
academic term, whether due to business failure or any other reason	698
for which the student is not legally responsiblea school closure.	699

The authority shall consist of five members as follows: the	700
executive director of the state board of proprietary school	701
registrationcareer colleges and schools, the executive director	702
of the Ohio council of privateassociation of career colleges and	703
schools, the treasurer of state or histhe treasurer of state's	704
designee, the chairmanchairperson of the senate committee that	705
primarily deals with education, and the chairmanchairperson of	706
the committee of the house of representatives that primarily deals	707
with education. Each member of the authority, before entering	708
upon histhe member's official duties, shall take an oath as	709
provided by Section 7 of Article XV, Ohio Constitution. The	710
authority shall elect one of its members as chairmanchairperson	711
and another as vice-chairmanvice-chairperson, and shall appoint a	712
secretary-treasurer who need not be a member of the authority.	713

All meetings of the authority shall be public. All final	714
actions of the authority shall be journalized and such journal and	715
the records of the authority shall be open to public inspection at	716
all reasonable times.	717

Sec. 3332.082.  The state board of proprietary school	718
registrationcareer colleges and schools may pursue any lawful	719
means of assuring that students of any school registered by the	720
state board do not suffer prepaid tuition loss as a result of a	721
business failure or other defaultthe closure of a school. This	722
may include lawsuits against a school or any individual who may	723
reasonably have liability as a result of the default, in which the	724
attorney general shall advise and represent the board. Any student	725
seeking reimbursement for a prepaid tuition loss shall submit a	726
claim for reimbursement to the board not later than one year	727
following the school's closure.	728

On and after January 1, 1991, anyAny reimbursement for a	729
prepaid tuition loss or advance against a possible prepaid tuition	730
loss of a student, and any expenses reasonably incurred by the	731
board in its pursuit of any remedy, shall be paid from the student	732
tuition recovery fund created by section 3332.083 of the Revised	733
Code. ThisTuition loss does not include moneys held by a school	734
in escrow accounts for tuition or fees for future terms, as	735
uncommitted grants, loans, or Pell grant money. If the fund is	736
not of sufficient size to pay the students the full amount of	737
their prepaid fee, the studentsstudent tuition recovery authority	738
shall determine the percentage of the amount that will be paid.	739

Any money recovered from the defaulting school, any	740
individual with liability for the default, or the surety under a	741
bond provided under section 3332.08 of the Revised Code shall be	742
deposited into the fund.	743

Sec. 3332.083.  The student tuition recovery fund is created	744
in the custody of the treasurer of state, but not as a part of the	745
state treasury. All revenues received from payments recieved	746
received under section 3332.085 of the Revised Code from schools	747
registered by the state board of proprietary school registration	748
career colleges and schools and any other sources shall be	749
deposited into the fund. The treasurer of state shall invest any	750
portion of the fund not needed for immediate use in the same	751
manner as in the investment of state funds. All investment	752
earnings of the fund shall be credited to the fund. The treasurer	753
of state shall disburse money from the fund on order of the	754
chairmanchairperson of the student tuition recovery authority or	755
histhe chairperson's designee.	756

All moneys and other assets acquired by the authority shall	757
be held in trust to carry out its powers and duties and shall be	758
used and reused to provide for the services described in this	759
chapter.	760

Sec. 3332.085.  (A) Not later than the thirty-first day of	761
August in each year, each school registered by the state board of	762
proprietary school registrationcareer colleges and schools shall	763
pay into the student tuition recovery fund in the following	764
amounts:	765

(1) Schools initially registered or sold on or after July	766
28, 1989, for the first five payments $500;	767

(2) Any other school, according to its prior year's tuition	768
receipts:	769

Checks shall be made payable to the student tuition recovery	774
fund and sent to the executive director of the state board, who	775
shall promptly forward all such receipts to the treasurer of	776
state. Failure of a school to make a payment is cause for	777
cancellation of its certificate of registration.	778

(B) The student tuition recovery authority may impose a	779
special assessment on the schools in an amount up to the amount of	780
an annual contribution if the draw on the money exceeds the money	781
on hand.	782

(C) Once the fund has assets in excess of liabilities of	783
approximately one million dollars, the authority may:	784

(1) Reduce or eliminate the annual contributions, except on	785
institutions that are required to contribute to the fund for at	786
least a five-year period. The reduction in contributions to the	787
fund will be at the discretion of the authority but they will be	788
guided by the objective to maintain assets in excess of	789
liabilities of approximately one million dollars.	790

(2) Utilize moneys in excess of the assets required to be	791
maintained in the fund by division (C)(1) of this section for the	792
purposes of disseminating consumer information about proprietary	793
private career schools and maintaining student records from closed	794
schools.	795

Sec. 3332.09.  The state board of proprietary school	796
registrationcareer colleges and schools may limit, suspend,	797
revoke, or refuse to issue or renew a certificate of registration	798
or program authorization or may impose a penalty pursuant to	799
section 3332.091 of the Revised Code for any one or combination of	800
the following causes:	801

(A) Violation of any provision of sections 3332.01 to	802
3332.09 of the Revised Code, the board's minimum standards, or any	803
rule made by the board;	804

(B) Furnishing of false, misleading, deceptive, altered, or	805
incomplete information or documents to the board;	806

(C) The signing of an application or the holding of a	807
certificate of registration by a person who has pleaded guilty or	808
has been found guilty of a felony or has pleaded guilty or been	809
found guilty of a crime involving moral turpitude;	810

(D) The signing of an application or the holding of a	811
certificate of registration by a person who is addicted to the use	812
of any controlled substance, or who is found to be mentally	813
incompetent;	814

(E) Violation of any commitment made in an application for a	815
certificate of registration or program authorization;	816

(F) Presenting to prospective students, either at the time	817
of solicitation or enrollment, or through advertising, mail	818
circulars, or phone solicitation, misleading, deceptive, false, or	819
fraudulent information relating to any program, employment	820
opportunity, or opportunities for enrollment in accredited	821
institutions of higher education after entering or completing	822
programs offered by the holder of a certificate of registration;	823

(G) Failure to provide or maintain premises or equipment for	824
offering programs in a safe and sanitary condition;	825

(H) Refusal by an agent to display the agent's permit upon	826
demand of a prospective student or other interested person;	827

(I) Failure to maintain financial resources adequate for the	828
satisfactory conduct of programs as presented in the plan of	829
operation or to retain a sufficient number and qualified staff of	830
instruction, except that nothing in this chapter requires an	831
instructor to be licensed by the state board of education or to	832
hold any type of post-high school degree;	833

(J) Offering training or programs other than those presented	834
in the application, except that schools may offer special courses	835
adapted to the needs of individual students when the special	836
courses are in the subject field specified in the application;	837

(K) Discrimination in the acceptance of students upon the	838
basis of race, color, religion, sex, or national origin;	839

(L) Accepting the services of an agent not holding a valid	840
permit issued under section 3332.10 or 3332.11 of the Revised	841
Code;	842

(M) The use of monetary or other valuable consideration by	843
the school's agents or representatives to induce prospective	844
students to enroll in the school, or the practice of awarding	845
monetary or other valuable considerations without board approval	846
to students in exchange for procuring the enrollment of others;	847

(N) Failure to provide at the request of the board, any	848
information, records, or files pertaining to the operation of the	849
school or recruitment and enrollment of students.	850

If the board modifies or adopts additional minimum standards	851
or rules pursuant to section 3332.031 of the Revised Code, all	852
schools and agents shall have sixty days from the effective date	853
of the modifications or additional standards or rules to comply	854
with such modifications or additions.	855

Sec. 3332.091.  (A)(1) Any person adversely affected by the	856
actions of a certificate holder may file a complaint with the	857
state board of proprietary school registrationcareer colleges and	858
schools alleging that any school registered with the board has	859
violated any provision of section 3332.09 of the Revised Code. The	860
complaint shall be in writing and signed by the complainant and	861
shall be filed with the board within six months after the	862
violations allegedly were committed. Upon receiving a complaint,	863
the board shall initiate a preliminary investigation to determine	864
whether it is probable that violations were committed. If the	865
board determines after preliminary investigation that it is not	866
probable that any violations were committed, it shall notify the	867
person who filed the complaint that it has so determined and that	868
it will not issue a formal complaint in the matter.	869

If the board determines after a preliminary investigation	870
that it is probable that violations were committed, it may issue a	871
formal complaint under division (A)(2) of this section or it may	872
endeavor to eliminate such practices by informal methods of	873
conference, conciliation, and persuasion. Nothing said or done	874
during these endeavors shall be disclosed by any member of the	875
board or its staff or be used as evidence in any subsequent	876
proceedings. If, after such investigation and conference, the	877
board is satisfied that such violations will be eliminated, it may	878
treat the complaint as conciliated, and entry of such disposition	879
shall be made in the records of the board.	880

(2) If as a result of any informal methods utilized under	881
division (A)(1) of this section, the board fails to effect the	882
elimination of violations or fails to obtain voluntary compliance	883
with this chapter, the board shall issue a formal complaint to the	884
holder of a certificate of registration of the school under	885
investigation. The formal complaint shall state the charges	886
against the school and requiregrant the certificate holder the	887
opportunity to appear before the board at a public hearing	888
pursuant to Chapter 119. of the Revised Code. The board shall	889
hold the public hearing not sooner than thirty days after issuance	890
of the formal complaint. Any formal complaint issued pursuant to	891
this section must be issued within one year after the state	892
board's receipt of a complaint from a person adversely affected by	893
the actions of a certificate holder.	894

If at the time of issuing a formal complaint, the board has	895
reasonable cause to believe that the violations that are the	896
subject of the complaint will continue and constitute an immediate	897
threat to the welfare of current and prospective students, the	898
board, for a period not to exceed the lesser of ninety days or the	899
period of time until a final adjudication order dismissing the	900
complaint or imposing a penalty is issued under this section, may:	901

(a) Issue an order prohibiting the school's agents from	902
personally contacting students;	903

(b) Issue an order prohibiting the school from using any	904
advertising, recruiting, or promotional materials unless such	905
materials have been approved by the board. The board must approve	906
or disapprove any materials submitted to it under such an order	907
within thirty days of their receipt.	908

(c) Issue an order prohibiting the operation of a school.

909

If, after a public hearing, the board determines that the	910
holder of a certificate of registration has violated any provision	911
of section 3332.09 of the Revised Code, the board shall issue a	912
final adjudication order levying a civil penalty pursuant to	913
division (B) of this section or limiting, suspending, or revoking	914
the certificate of registration or program authorization or any	915
combination thereof. The board may impose additional penalties	916
including but not necessarily limited to curtailment of	917
advertising, and discontinuation of enrollment of students in	918
specific programs. Upon suspension or revocation, the board	919
immediately shall also issue an order pursuant to Chapter 119. of	920
the Revised Code requiring such person immediately to cease all	921
sales, advertising, and enrollment activities.	922

(B) Pursuant to division (A) of this section, the board may	923
impose a civil penalty of not less than one thousand nor more than	924
three thousand five hundred dollars for each violation of section	925
3332.09 of the Revised Code, but not to exceed an aggregate	926
penalty of thirty-five thousand dollars in any six-month period.	927

(C) The board shall prepare an annual report that documents	928
the disposition of all complaints, their status, board action, and	929
the elapsed time from the initial filing of the complaint until	930
final resolution. The report shall be made available to anyone	931
upon request.	932

(D) The board may, upon its own initiative and independent	933
of the filing of any complaints, conduct a preliminary	934
investigation relating to any possible violations of section	935
3332.09 of the Revised Code.	936

At any time while a school is in session, the board or its	937
designee may conduct on-site inspections and reviews of a school	938
and its courses of instruction. The board shall conduct such	939
visits and reviews, including visits without prior notice to the	940
schools, as necessary to ensure compliance with this chapter.	941

All books, records, and files of a school shall be open for	942
inspection by the board, its designees, or staff during on-site	943
inspections, or whenever requested by the board for the purpose of	944
ensuring compliance with the provisions of this chapter.	945

For the purpose of conducting any investigation, inspection,	946
or review, the board may administer oaths, take the testimony of	947
any person under oath, issue subpoenas, compel the attendance of	948
witnesses, or require the production for examination of any books	949
and papers relating to any matter under investigation or in	950
question before the board.	951

(E) During the course of any investigation under division	952
(A) or (D) of this section, the board shall refer all possible	953
violations of Chapter 1345. of the Revised Code to the attorney	954
general.	955

Sec. 3332.092.  Any school subject to this chapter receiving	956
money under section 3333.12 of the Revised Code on behalf of a	957
student who is determined by the state board of proprietary school	958
registrationcareer colleges and schools to be ineligible under	959
such section because the program in which hethe student is	960
enrolled does not lead to an associate or baccalaureate degree,	961
shall be liable to the state for the amount specified in section	962
3333.12 of the Revised Code. The state board of proprietary	963
school registrationcareer colleges and schools shall suspend the	964
certificate of registration of a school receiving money under	965
section 3333.12 of the Revised Code for such ineligible student	966
until such time as the money is repaid to the Ohio board of	967
regents.	968

Sec. 3332.10.  (A) No individual shall sell any program or	969
solicit students therefor in this state unless hethe individual	970
is an employee of the school. Any individual whose primary duty,	971
whether on or off school premises, is to solicit prospective	972
students shall first secure a permit as an agent from the state	973
board of proprietary school registrationcareer colleges and	974
schools. If the agent represents more than one school, a separate	975
permit shall be obtained for each school represented by himthe	976
agent. An agent who represents a person that operates more than	977
one school in the same geographical area, as determined by the	978
board, need not obtain a separate permit for each such school.	979
Upon approval for a permit, the board shall issue a pocket card to	980
the individual, giving histhe individual's name, address, permit	981
number, and the name and address of histhe employing school, and	982
certifying that the individual whose name appears on the card is	983
an authorized agent of the school.	984

(B) The application for a permit shall be made on forms to	985
be furnished by the board and accompanied by the fee established	986
in accordance with section 3332.07 of the Revised Code and a	987
surety bond acceptable to the board in the penal sum of one	988
thousand dollars. A permit shall be renewed every twelve months	989
and shall be valid for up to thirty days after its expiration	990
date. The surety bond may be continuous and shall be conditioned	991
to provide indemnification to any student suffering loss as a	992
result of any fraud or misrepresentation used in procuring his	993
enrollment, and may be supplied by an agent of a school or by the	994
school itself as a blanket bond covering all of its agents in the	995
amount of one thousand dollars for each agent. The liability of	996
the surety on such bond for each agent covered shall not exceed	997
the sum of one thousand dollars as an aggregate for all students	998
for all breaches of the conditions of the bond by such agents. The	999
surety of any such bond may cancel the same upon giving thirty	1000
days' notice in writing to the board and is relieved of liability	1001
for any breach of condition occurring after the effective date of	1002
the cancellation. An application for renewal shall be accompanied	1003
by the fee established in accordance with section 3332.07 of the	1004
Revised Code and a surety bond as provided in this section, if a	1005
continuous bond has not been furnished.	1006

(C) Each school subject to this chapter shall assume full	1007
responsibility for the actions, statements, and conduct of its	1008
agents, and shall provide them with adequate training and arrange	1009
for proper supervision of their work. The board shall hold	1010
schools liable for the actions, statements, and conduct of agents	1011
that violate any provision of this chapter, unless an agent's acts	1012
or omissions were manifestly outside the scope of histhe agent's	1013
employment or official responsibilities.	1014

Sec. 3332.11.  Any agent's permit applied for pursuant to	1015
section 3332.10 of the Revised Code shall be granted or denied	1016
within thirty days of the receipt of the application by the state	1017
board of proprietary school registrationcareer colleges and	1018
schools. If the board has not completed its determination with	1019
respect to the issuance of a permit within such thirty-day period,	1020
it shall issue a temporary permit to the applicant, which permit	1021
is sufficient to meet the requirements of section 3332.10 of the	1022
Revised Code until such time as such determination is made.	1023

No permit shall be issued to any person found by the board	1024
not to be of good moral character.	1025

Sec. 3332.12.  Any agent's permit issued may be suspended or	1026
revoked by the state board of proprietary school registration	1027
career colleges and schools if the holder of the permit solicits	1028
or enrolls students through fraud, deception, or	1029
misrepresentation, upon a finding that the permit holder has	1030
violated any provision enumerated in division (A), (B), (F), (H),	1031
(J), (K), or (M) of section 3332.09 of the Revised Code, or upon	1032
finding that the permit holder is not of good moral character.	1033

Upon receipt of any written complaint from any person, the	1034
board shall conduct a preliminary investigation. If after such	1035
investigation or if as a result of any investigation conducted	1036
under division (A) or (D) of section 3332.091 of the Revised Code,	1037
the board determines it is probable violations were committed, the	1038
board shall hold informal conferences in the same manner as	1039
provided in section 3332.091 of the Revised Code with an agent	1040
believed to be in violation of one or more of the above	1041
conditions. If after sixty days these conferences fail to	1042
eliminate the agent's objectionable practices or procedures, the	1043
board shall issue a formal complaint to the agent and the school	1044
that employs the agent. The formal complaint shall state the	1045
charges against the agent and the holder of the certificate	1046
certificate of registration of the school and shall require them	1047
to appear before the board at a public hearing pursuant to Chapter	1048
119. of the Revised Code. If, after the public hearing, the board	1049
determines that an agent has violated one or more of the	1050
provisions described above, the board shall suspend or revoke the	1051
agent's permit.	1052

If after such hearing the board also determines that the	1053
school at which the agent was employed was negligent in its	1054
supervision of the agent or encouraged or caused the commission of	1055
the violations, the board shall levy penalties against such school	1056
in accordance with division (A) of section 3332.091 of the Revised	1057
Code. Nothing said or done in the informal conferences shall be	1058
disclosed by the board or any member of its staff nor be used as	1059
evidence in any subsequent proceedings.	1060

Sec. 3332.13.  The fact that a bond is in force pursuant to	1061
section 3332.103332.08 of the Revised Code does not limit nor	1062
impair any right of recovery otherwise available pursuant to law,	1063
nor is the amount of such bond relevant in determining the amount	1064
of damages or other relief to which any plaintiff may be entitled.	1065

Sec. 3332.18.  On receipt of a notice pursuant to section	1066
3123.43 of the Revised Code, the state board of proprietary school	1067
registrationcareer colleges and schools shall comply with	1068
sections 3123.41 to 3123.50 of the Revised Code and any applicable	1069
rules adopted under section 3123.63 of the Revised Code with	1070
respect to a permit issued pursuant to this chapter.	1071

Sec. 3333.043.  (A) As used in this section:

1072

(1) "Institution of higher education" means the state	1073
universities listed in section 3345.011 of the Revised Code,	1074
municipal educational institutions established under Chapter 3349.	1075
of the Revised Code, community colleges established under Chapter	1076
3354. of the Revised Code, university branches established under	1077
Chapter 3355. of the Revised Code, technical colleges established	1078
under Chapter 3357. of the Revised Code, state community colleges	1079
established under Chapter 3358. of the Revised Code, any	1080
institution of higher education with a certificate of registration	1081
from the state board of proprietary school registrationcareer	1082
colleges and schools, and any institution for which the Ohio board	1083
of regents receives a notice pursuant to division (C) of this	1084
section.	1085

(2) "Community service" has the same meaning as in section	1086
3313.605 of the Revised Code.	1087

(B)(1) The board of trustees or other governing entity of	1088
each institution of higher education shall encourage and promote	1089
participation of students in community service through a program	1090
appropriate to the mission, student population, and environment of	1091
each institution. The program may include, but not be limited to,	1092
providing information about community service opportunities during	1093
student orientation or in student publications; providing awards	1094
for exemplary community service; encouraging faculty members to	1095
incorporate community service into students' academic experiences	1096
wherever appropriate to the curriculum; encouraging recognized	1097
student organizations to undertake community service projects as	1098
part of their purposes; and establishing advisory committees of	1099
students, faculty members, and community and business leaders to	1100
develop cooperative programs that benefit the community and	1101
enhance student experience. The program shall be flexible in	1102
design so as to permit participation by the greatest possible	1103
number of students, including part-time students and students for	1104
whom participation may be difficult due to financial, academic,	1105
personal, or other considerations. The program shall emphasize	1106
community service opportunities that can most effectively use the	1107
skills of students, such as tutoring or literacy programs. The	1108
programs shall encourage students to perform services that will	1109
not supplant the hiring of, result in the displacement of, or	1110
impair any existing employment contracts of any particular	1111
employee of any private or governmental entity for which services	1112
are performed.	1113

(2) The Ohio board of regents shall encourage all	1114
institutions of higher education in the development of community	1115
service programs. With the assistance of the Ohio community	1116
service council created in section 121.40 of the Revised Code,	1117
the board of regents shall make available information about higher	1118
education community service programs to institutions of higher	1119
education and to statewide organizations involved with or	1120
promoting volunteerism, including information about model	1121
community service programs, teacher training courses, and	1122
community service curricula and teaching materials for possible	1123
use by institutions of higher education in their programs. The	1124
board shall encourage institutions of higher education to jointly	1125
coordinate higher education community service programs through	1126
consortia of institutions or other appropriate means of	1127
coordination.	1128

(C) The board of trustees of any nonprofit institution with	1129
a certificate of authorization issued by the Ohio board of regents	1130
pursuant to Chapter 1713. of the Revised Code or the governing	1131
authority of a private institution exempt from regulation under	1132
Chapter 3332. of the Revised Code as prescribed in section	1133
3333.046 of the Revised Code may notify the board of regents that	1134
it is making itself subject to divisions (A) and (B) of this	1135
section. Upon receipt of such a notice, these divisions shall	1136
apply to that institution.	1137

Sec. 3333.12.  (A) As used in this section:

1138

(1) "Eligible student" means an undergraduate student who is:

1139

(a) An Ohio resident;

1140

(b) Enrolled in either of the following:

1141

(i) An accredited institution of higher education in this	1142
state that meets the requirements of Title VI of the Civil Rights	1143
Act of 1964 and is state-assisted, is nonprofit and has a	1144
certificate of authorization from the Ohio board of regents	1145
pursuant to Chapter 1713. of the Revised Code, has a certificate	1146
of registration from the state board of proprietary school	1147
registrationcareer colleges and schools and program authorization	1148
to award an associate or bachelor's degree, or is a private	1149
institution exempt from regulation under Chapter 3332. of the	1150
Revised Code as prescribed in section 3333.046 of the Revised	1151
Code. Students who attend an institution that holds a certificate	1152
of registration shall be enrolled in a program leading to an	1153
associate or bachelor's degree for which associate or bachelor's	1154
degree program the institution has program authorization issued	1155
under section 3332.05 of the Revised Code.	1156

(ii) A technical education program of at least two years	1157
duration sponsored by a private institution of higher education in	1158
this state that meets the requirements of Title VI of the Civil	1159
Rights Act of 1964.	1160

(c) Enrolled as a full-time student or enrolled as a less	1161
than full-time student for the term expected to be the student's	1162
final term of enrollment and is enrolled for the number of credit	1163
hours necessary to complete the requirements of the program in	1164
which the student is enrolled.	1165

(2) "Gross income" includes all taxable and nontaxable income	1166
of the parents, the student, and the student's spouse, except	1167
income derived from an Ohio academic scholarship, income earned by	1168
the student between the last day of the spring term and the first	1169
day of the fall term, and other income exclusions designated by	1170
the board. Gross income may be verified to the board by the	1171
institution in which the student is enrolled using the federal	1172
financial aid eligibility verification process or by other means	1173
satisfactory to the board.	1174

(3) "Resident," "full-time student," "dependent,"	1175
"financially independent," and "accredited" shall be defined by	1176
rules adopted by the board.	1177

(B) The Ohio board of regents shall establish and administer	1178
an instructional grant program and may adopt rules to carry out	1179
this section. The general assembly shall support the	1180
instructional grant program by such sums and in such manner as it	1181
may provide, but the board may also receive funds from other	1182
sources to support the program. If the amounts available for	1183
support of the program are inadequate to provide grants to all	1184
eligible students, preference in the payment of grants shall be	1185
given in terms of income, beginning with the lowest income	1186
category of gross income and proceeding upward by category to the	1187
highest gross income category.	1188

An instructional grant shall be paid to an eligible student	1189
through the institution in which the student is enrolled, except	1190
that no instructional grant shall be paid to any person serving a	1191
term of imprisonment. Applications for such grants shall be made	1192
as prescribed by the board, and such applications may be made in	1193
conjunction with and upon the basis of information provided in	1194
conjunction with student assistance programs funded by agencies of	1195
the United States government or from financial resources of the	1196
institution of higher education. The institution shall certify	1197
that the student applicant meets the requirements set forth in	1198
divisions (A)(1)(b) and (c) of this section. Instructional grants	1199
shall be provided to an eligible student only as long as the	1200
student is making appropriate progress toward a nursing diploma or	1201
an associate or bachelor's degree. No student shall be eligible	1202
to receive a grant for more than ten semesters, fifteen quarters,	1203
or the equivalent of five academic years. A grant made to an	1204
eligible student on the basis of less than full-time enrollment	1205
shall be based on the number of credit hours for which the student	1206
is enrolled and shall be computed in accordance with a formula	1207
adopted by the board. No student shall receive more than one	1208
grant on the basis of less than full-time enrollment.	1209

An instructional grant shall not exceed the total	1210
instructional and general charges of the institution.	1211

(C) The tables in this division prescribe the maximum grant	1212
amounts covering two semesters, three quarters, or a comparable	1213
portion of one academic year. Grant amounts for additional terms	1214
in the same academic year shall be determined under division (D)	1215
of this section.	1216

For a full-time student who is a dependent and enrolled in a	1217
nonprofit educational institution that is not a state-assisted	1218
institution and that has a certificate of authorization issued	1219
pursuant to Chapter 1713. of the Revised Code, the amount of the	1220
instructional grant for two semesters, three quarters, or a	1221
comparable portion of the academic year shall be determined in	1222
accordance with the following table:	1223

Private Institution

1225

Table of Grants

1226

For a full-time student who is financially independent and	1247
enrolled in a nonprofit educational institution that is not a	1248
state-assisted institution and that has a certificate of	1249
authorization issued pursuant to Chapter 1713. of the Revised	1250
Code, the amount of the instructional grant for two semesters,	1251
three quarters, or a comparable portion of the academic year shall	1252
be determined in accordance with the following table:	1253

Private Institution

1255

Table of Grants

1256

For a full-time student who is a dependent and enrolled in an	1278
educational institution that holds a certificate of registration	1279
from the state board of proprietary school registrationcareer	1280
colleges and schools or a private institution exempt from	1281
regulation under Chapter 3332. of the Revised Code as prescribed	1282
in section 3333.046 of the Revised Code, the amount of the	1283
instructional grant for two semesters, three quarters, or a	1284
comparable portion of the academic year shall be determined in	1285
accordance with the following table:	1286

Proprietary Career Institution

1287

Table of Grants

1288

For a full-time student who is financially independent and	1309
enrolled in an educational institution that holds a certificate of	1310
registration from the state board of proprietary school	1311
registrationcareer colleges and schools or a private institution	1312
exempt from regulation under Chapter 3332. of the Revised Code as	1313
prescribed in section 3333.046 of the Revised Code, the amount of	1314
the instructional grant for two semesters, three quarters, or a	1315
comparable portion of the academic year shall be determined in	1316
accordance with the following table:	1317

Proprietary Career Institution

1318

Table of Grants

1319

For a full-time student who is a dependent and enrolled in a	1341
state-assisted educational institution, the amount of the	1342
instructional grant for two semesters, three quarters, or a	1343
comparable portion of the academic year shall be determined in	1344
accordance with the following table:	1345

Public Institution

1346

Table of Grants

1347

For a full-time student who is financially independent and	1368
enrolled in a state-assisted educational institution, the amount	1369
of the instructional grant for two semesters, three quarters, or a	1370
comparable portion of the academic year shall be determined in	1371
accordance with the following table:	1372

Public Institution

1373

Table of Grants

1374

(D) For a full-time student enrolled in an eligible	1396
institution for a semester or quarter in addition to the portion	1397
of the academic year covered by a grant determined under division	1398
(C) of this section, the maximum grant amount shall be a	1399
percentage of the maximum prescribed in the applicable table of	1400
that division. The maximum grant for a fourth quarter shall be	1401
one-third of the maximum amount prescribed under that division.	1402
The maximum grant for a third semester shall be one-half of the	1403
maximum amount prescribed under that division.	1404

(E) No grant shall be made to any student in a course of	1405
study in theology, religion, or other field of preparation for a	1406
religious profession unless such course of study leads to an	1407
accredited bachelor of arts, bachelor of science, associate of	1408
arts, or associate of science degree.	1409

(F)(1) Except as provided in division (F)(2) of this	1410
section, no grant shall be made to any student for enrollment	1411
during a fiscal year in an institution with a cohort default rate	1412
determined by the United States secretary of education pursuant to	1413
the "Higher Education Amendments of 1986," 100 Stat. 1278, 1408,	1414
20 U.S.C.A. 1085, as amended, as of the fifteenth day of June	1415
preceding the fiscal year, equal to or greater than thirty per	1416
cent for each of the preceding two fiscal years.	1417

(2) Division (F)(1) of this section does not apply to the	1418
following:	1419

(a) Any student enrolled in an institution that under the	1420
federal law appeals its loss of eligibility for federal financial	1421
aid and the United States secretary of education determines its	1422
cohort default rate after recalculation is lower than the rate	1423
specified in division (F)(1) of this section or the secretary	1424
determines due to mitigating circumstances the institution may	1425
continue to participate in federal financial aid programs. The	1426
board shall adopt rules requiring institutions to provide	1427
information regarding an appeal to the board.	1428

(b) Any student who has previously received a grant under	1429
this section who meets all other requirements of this section.	1430

(3) The board shall adopt rules for the notification of all	1431
institutions whose students will be ineligible to participate in	1432
the grant program pursuant to division (F)(1) of this section.	1433

(4) A student's attendance at an institution whose students	1434
lose eligibility for grants under division (F)(1) of this section	1435
shall not affect that student's eligibility to receive a grant	1436
when enrolled in another institution.	1437

(G) Institutions of higher education that enroll students	1438
receiving instructional grants under this section shall report to	1439
the board all students who have received instructional grants but	1440
are no longer eligible for all or part of such grants and shall	1441
refund any moneys due the state within thirty days after the	1442
beginning of the quarter or term immediately following the quarter	1443
or term in which the student was no longer eligible to receive all	1444
or part of the student's grant. There shall be an interest charge	1445
of one per cent per month on all moneys due and payable after such	1446
thirty-day period. The board shall immediately notify the office	1447
of budget and management and the legislative service commission	1448
of all refunds so received.	1449

Sec. 3333.29.  (A) As used in this section:

1450

(1) "Resident" has the meaning established for purposes of	1451
this section by rule of the Ohio board of regents.	1452

(2) "Eligible institution" means either:

1453

(a) A private career school registered in accordance with	1454
section 3332.05 of the Revised Code;	1455

(b) A private institution exempt from regulation under	1456
Chapter 3332. of the Revised Code as prescribed in section	1457
3333.046 of the Revised Code.	1458

(B) Beginning July 1, 2000, theThe Ohio board of regents	1459
shall establish and administer the student workforce development	1460
grant program and shall adopt rules for the administration of the	1461
program. Such rules shall be similar to the rules the Ohio board	1462
of regents adopts under section 3333.27 of the Revised Code.	1463

(C) The Ohio board of regents may make a grant to any	1464
resident of this state who is enrolled as a full-time student in	1465
an authorized baccalaureate degree or associate degree program at	1466
an eligible institution and who maintains an academic record that	1467
meets or exceeds a standard established by rule of the state board	1468
of proprietary school registration, except that no grant shall be	1469
made to any individual who was enrolled as a student in an	1470
eligible institution before July 1, 2000career colleges and	1471
schools. The size of an annual grant award shall be determined by	1472
the Ohio board of regents based on the amount of funds available	1473
for the program. The grant shall be prorated and paid in equal	1474
installments per academic term in accordance with division (E) of	1475
this section.	1476

(D) The Ohio board of regents shall prescribe the form and	1477
manner of application for grants and shall provide a method for	1478
eligible institutions to certify applicants who are enrolled in	1479
authorized baccalaureate degree or associate degree programs and	1480
have academic records meeting or exceeding the standard	1481
established by the state board of proprietary school registration	1482
career colleges and schools.	1483

(E) A grant awarded to an eligible student shall be paid to	1484
the eligible institution in which the student is enrolled, and	1485
the institution shall reduce the student's instructional and	1486
general charges by the amount of the grant. Each grant awarded	1487
shall be paid in accordance with division (C) of this section	1488
within thirty days after the start of each term of the academic	1489
year for which the grant is awarded. No student shall be eligible	1490
to receive grants for more than the equivalent of five academic	1491
years.	1492

(F) The receipt of a workforce development grant shall not	1493
affect a student's eligibility for assistance or the amount of	1494
such assistance granted under any other provision of state law. If	1495
a student receives assistance under one or more other provisions	1496
of state law, the grant made to the student under this section	1497
shall not exceed the difference between the total instructional	1498
and general charges assessed to the student by the eligible	1499
institution and the amount of total assistance the student	1500
receives under other provisions of state law.	1501

(G) The general assembly shall support the workforce	1502
development grant program with such appropriations as the general	1503
assembly sees fit. The Ohio board of regents may also receive	1504
funds from other sources to support the program.	1505

(H) Eligible institutions that enroll students receiving	1506
grants under this section shall report to the Ohio board of	1507
regents the name of each student who has received such a grant but	1508
who is no longer eligible for such a grant. In the event that an	1509
eligible student who has been awarded a grant under this section	1510
withdraws from enrollment at an institution during any term, the	1511
institution shall refund a prorated amount of the student's grant	1512
for that term to the Ohio board of regents in accordance with the	1513
school's refund policy.	1514

(I) Beginning July 1, 2000, theThe state board of	1515
proprietary school registrationcareer colleges and schools shall	1516
report to the Ohio board of regents each degree granting	1517
proprietaryprivate career school's job placement rate for the	1518
immediately preceding academic year. No grant awarded to an	1519
eligible student under this section shall be paid to a registered	1520
private career school if the school's job placement rate for	1521
baccalaureate degree and associate degree programs for the	1522
preceding academic year was less than seventy-five per cent.	1523

Sec. 3334.01.  As used in this chapter:

1524

(A) "Aggregate original principal amount" means the	1525
aggregate of the initial offering prices to the public of college	1526
savings bonds, exclusive of accrued interest, if any. "Aggregate	1527
original principal amount" does not mean the aggregate accreted	1528
amount payable at maturity or redemption of such bonds.	1529

(B) "Beneficiary" means:

1530

(1) An individual designated by the purchaser under a	1531
tuition payment contract or through a scholarship program as the	1532
individual on whose behalf tuition credits purchased under the	1533
contract or awarded through the scholarship program will be	1534
applied toward the payment of undergraduate, graduate, or	1535
professional tuition; or	1536

(2) An individual designated by the contributor under a	1537
variable college savings program contract as the individual whose	1538
tuition and other higher education expenses will be paid from a	1539
variable college savings program account.	1540

(C) "Capital appreciation bond" means a bond for which the	1541
following is true:	1542

(1) The principal amount is less than the amount payable at	1543
maturity or early redemption; and	1544

(2) No interest is payable on a current basis.

1545

(D) "Tuition credit" means a credit of the Ohio tuition	1546
trust authority purchased under section 3334.09 of the Revised	1547
Code.	1548

(E) "College savings bonds" means revenue and other	1549
obligations issued on behalf of the state or any agency or issuing	1550
authority thereof as a zero-coupon or capital appreciation bond,	1551
and designated as college savings bonds as provided in this	1552
chapter. "College savings bond issue" means any issue of bonds of	1553
which any part has been designated as college savings bonds.	1554

(F) "Institution of higher education" means a state	1555
institution of higher education, a private college, university, or	1556
other postsecondary institution located in this state that	1557
possesses a certificate of authorization issued by the Ohio board	1558
of regents pursuant to Chapter 1713. of the Revised Code or a	1559
certificate of registration issued by the state board of	1560
proprietary school registrationcareer colleges and schools under	1561
Chapter 3332. of the Revised Code, or an accredited college,	1562
university, or other postsecondary institution located outside	1563
this state that is accredited by an accrediting organization or	1564
professional association recognized by the authority. To be	1565
considered an institution of higher education, an institution	1566
shall meet the definition of an eligible educational institution	1567
under section 529 of the Internal Revenue Code.	1568

(G) "Issuing authority" means any authority, commission,	1569
body, agency, or individual empowered by the Ohio Constitution or	1570
the Revised Code to issue bonds or any other debt obligation of	1571
the state or any agency or department thereof. "Issuer" means the	1572
issuing authority or, if so designated under division (B) of	1573
section 3334.04 of the Revised Code, the treasurer of state.	1574

(H) "Tuition" means the charges imposed to attend an	1575
institution of higher education as an undergraduate, graduate, or	1576
professional student and all fees required as a condition of	1577
enrollment, as determined by the Ohio tuition trust authority.	1578
"Tuition" does not include laboratory fees, room and board, or	1579
other similar fees and charges.	1580

(I) "Weighted average tuition" means the tuition cost	1581
resulting from the following calculation:	1582

(1) Add the products of the annual undergraduate tuition	1583
charged to Ohio residents at each four-year state university	1584
multiplied by that institution's total number of undergraduate	1585
fiscal year equated students; and	1586

(2) Divide the gross total of the products from division	1587
(I)(1) of this section by the total number of undergraduate fiscal	1588
year equated students attending four-year state universities.	1589

(J) "Zero-coupon bond" means a bond which has a stated	1590
interest rate of zero per cent and on which no interest is payable	1591
until the maturity or early redemption of the bond, and is offered	1592
at a substantial discount from its original stated principal	1593
amount.	1594

(K) "State institution of higher education" includes the	1595
state universities listed in section 3345.011 of the Revised Code,	1596
community colleges created pursuant to Chapter 3354. of the	1597
Revised Code, university branches created pursuant to Chapter	1598
3355. of the Revised Code, technical colleges created pursuant to	1599
Chapter 3357. of the Revised Code, state community colleges	1600
created pursuant to Chapter 3358. of the Revised Code, the medical	1601
college of Ohio at Toledo, and the northeastern Ohio universities	1602
college of medicine.	1603

(L) "Four-year state university" means those state	1604
universities listed in section 3345.011 of the Revised Code.	1605

(M) "Principal amount" refers to the initial offering price	1606
to the public of an obligation, exclusive of the accrued interest,	1607
if any. "Principal amount" does not refer to the aggregate	1608
accreted amount payable at maturity or redemption of an	1609
obligation.	1610

(N) "Scholarship program" means a program registered with	1611
the Ohio tuition trust authority pursuant to section 3334.17 of	1612
the Revised Code.	1613

(O) "Internal Revenue Code" means the "Internal Revenue Code	1614
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1 et seq., as amended.	1615

(P) "Other higher education expenses" means room and board	1616
and books, supplies, equipment, and nontuition-related fees	1617
associated with the cost of attendance of a beneficiary at an	1618
institution of higher education, but only to the extent that such	1619
expenses meet the definition of "qualified higher education	1620
expenses" under section 529 of the Internal Revenue Code. "Other	1621
higher education expenses" does not include tuition as defined in	1622
division (H) of this section.	1623

(Q) "Purchaser" means the person signing the tuition payment	1624
contract, who controls the account and acquires tuition credits	1625
for an account under the terms and conditions of the contract.	1626

(R) "Contributor" means a person who signs a variable	1627
college savings program contract with the Ohio tuition trust	1628
authority and contributes to and owns the account created under	1629
the contract.	1630

Sec. 3365.01.  As used in sections 3365.01 to 3365.10 of the	1631
Revised Code:	1632

(A) "College" means any state-assisted college or university	1633
described in section 3333.041 of the Revised Code, any nonprofit	1634
institution holding a certificate of authorization pursuant to	1635
Chapter 1713. of the Revised Code, any private institution exempt	1636
from regulation under Chapter 3332. of the Revised Code as	1637
prescribed in section 3333.046 of the Revised Code, and any	1638
institution holding a certificate of registration from the state	1639
board of proprietary school registrationcareer colleges and	1640
schools and program authorization for an associate or bachelor's	1641
degree program issued under section 3332.05 of the Revised Code.	1642

(B) "School district," except as specified in division (G)	1643
of this section, means any school district to which a student is	1644
admitted under section 3313.64, 3313.65, 3313.98, or 3317.08 of	1645
the Revised Code and does not include a joint vocational or	1646
cooperative education school district.	1647

(C) "Parent" has the same meaning as in section 3313.64 of	1648
the Revised Code.	1649

(D) "Participant" means a student enrolled in a college	1650
under the post-secondary enrollment options program established by	1651
this chapter.	1652

(E) "Secondary grade" means the ninth through twelfth	1653
grades.	1654

(F) "School foundation payments" means the amount required	1655
to be paid to a school district for a fiscal year under Chapter	1656
3317. of the Revised Code.	1657

(G) "Tuition base" means, with respect to a participant's	1658
school district, the formula amount defined in division (B) of	1659
section 3317.02 of the Revised Code multiplied by the district's	1660
cost-of-doing-business factor defined in division (N) of section	1661
3317.02 of the Revised Code. The participant's "school district"	1662
in the case of a participant enrolled in a community school shall	1663
be the school district in which the student is entitled to attend	1664
school under section 3313.64 or 3313.65 of the Revised Code.	1665

(H) "Educational program" means enrollment in one or more	1666
school districts, in a nonpublic school, or in a college under	1667
division (B) of section 3365.04 of the Revised Code.	1668

(I) "Nonpublic school" means a chartered or nonchartered	1669
school for which minimum standards are prescribed by the state	1670
board of education pursuant to division (D) of section 3301.07 of	1671
the Revised Code.	1672

(J) "School year" means the year beginning on the first day	1673
of July and ending on the thirtieth day of June.	1674

(K) "Community school" means any school established pursuant	1675
to Chapter 3314. of the Revised Code that includes secondary	1676
grades.	1677

(L) "Community school payments" means payments made by the	1678
department of education to a community school pursuant to division	1679
(D) of section 3314.08 of the Revised Code.	1680

Sec. 3365.15.  This section does not apply to students	1681
enrolled in twelfth grade after July 1, 2001.	1682

No later than July 1, 1999, the board of regents shall adopt	1683
rules under which it shall award at least a five-hundred dollar	1684
scholarship to each student who both:	1685

(A) After July 1, 1998, and while the student attends	1686
twelfth grade, attains on all five tests at least the scores	1687
designated under former division (A)(3) of section 3301.0710 of	1688
the Revised Code;	1689

(B) Submits to the board of regents, in the form and manner	1690
and by any deadline prescribed by the rules, evidence of having	1691
enrolled in a state-assisted college or university, a nonprofit	1692
institution holding a certificate of authorization pursuant to	1693
Chapter 1713. of the Revised Code, or an institution registered by	1694
the state board of proprietary school registrationcareer colleges	1695
and schools that has program authorization to award an associate	1696
or bachelor's degree.	1697

The board of regents shall pay each scholarship awarded under	1698
this section to the student. It may be used to defray any	1699
educational expenses.	1700

Sec. 4742.05.  (A) A proprietarycareer school that holds a	1701
valid certificate of registration from the state board of	1702
proprietary school registrationcareer colleges and schools may	1703
apply to the state board of education for certification of a basic	1704
course of emergency service telecommunicator training or of	1705
continuing education coursework in emergency service	1706
telecommunicator training. The state board of education shall	1707
prescribe the form of the application.	1708

(B) Upon receipt of an application, the state board of	1709
education shall review it and consider whether the proposed course	1710
or coursework meets the requirements of division (A) or (B) of	1711
section 4742.03 of the Revised Code concerning course length and	1712
content. If the proposed course or coursework meets those	1713
requirements, the state board of education shall issue a	1714
certification of that fact to the proprietarycareer school.	1715
Inclusion of on-site verifiable electronic training as part of a	1716
proposed basic or continuing education course shall not be a	1717
reason for the state board to deny certification.	1718

(C) If, after receiving a certification from the state board	1719
of education under this section, the proprietarycareer school	1720
changes the approved course or coursework, the prior certification	1721
is canceled and the proprietarycareer school shall apply to the	1722
state board of education for certification of the changed course	1723
or coursework.	1724

Sec. 4742.06.  (A) A person may obtain certification as an	1725
emergency service telecommunicator by successfully completing a	1726
basic course of emergency service telecommunicator training that	1727
is conducted by a proprietarycareer school that has obtained	1728
certification of that course from the state board of education	1729
under section 4742.05 of the Revised Code. If a person	1730
successfully completes the course, the proprietarycareer school	1731
shall certify the person's successful completion.	1732

(B) A person may maintain certification as an emergency	1733
service telecommunicator by successfully completing continuing	1734
education coursework in emergency service telecommunicator	1735
training that is conducted by a proprietarycareer school that has	1736
obtained certification of that coursework from the state board of	1737
education under section 4742.05 of the Revised Code. If a person	1738
successfully completes the coursework, the proprietarycareer	1739
school shall certify the person's successful completion.	1740

(C) Upon certification of a person's successful completion	1741
under division (A) or (B) of this section, the proprietarycareer	1742
school shall send a copy of the certification to the person and to	1743
the emergency service provider that employs the person.	1744

(D) Tuition and materials costs for a person enrolled in a	1745
certified basic or continuing education course conducted by a	1746
proprietarycareer school shall be paid by the person, an	1747
emergency service provider, or any other entity on behalf of the	1748
person or an emergency service provider.	1749

Sec. 4743.03.  No board, commission, or agency created under	1750
or by virtue of Title 47 of the Revised Code shall restrict entry	1751
into any occupation, profession, or trade under its supervision or	1752
regulation by:	1753

(A) Unreasonably restricting the number of schools or other	1754
institutions it certifies or accredits for the purpose of	1755
fulfilling educational or training requirements for such	1756
occupation, profession, or trade;	1757

(B) Denying certification or accreditation for the purpose	1758
of fulfilling such educational or training requirements to any	1759
school, college, or other educational institution that has been	1760
certified by the Ohio board of regents or the state board of	1761
proprietary school registrationcareer colleges and schools or to	1762
a high school for which the state board of education prescribes	1763
minimum standards under division (D) of section 3301.07 of the	1764
Revised Code, unless the educational or training program offered	1765
by such school, college, or institution is not in substantial	1766
compliance with applicable standards of the occupation,	1767
profession, or trade.	1768

(C) Rules of state regulatory boards relevant to age and	1769
level of education required for admission to courses of study	1770
leading to examination and licensing in professions or occupations	1771
controlled by regulatory boards not requiring a technical,	1772
associate, or baccalaureate degree shall not apply to vocational	1773
education programs conducted in the public schools where such	1774
vocational education programs in all other respects meet the	1775
minimum standards and requirements of any regulatory board and	1776
students completing such programs are of the minimum age required	1777
for examination and licensing for the purpose of practicing	1778
professions or occupations controlled by regulatory boards.	1779

Nothing in this section shall prohibit a board, commission,	1780
or agency from prescribing and enforcing educational and training	1781
requirements and standards for certification and accreditation of	1782
schools and other institutions that constitute reasonable bases	1783
for maintaining necessary standards of performance in any	1784
occupation, profession, or trade.	1785

Sec. 4762.02.  (A) Except as provided in division (B) of	1786
this section, no person shall engage in the practice of	1787
acupuncture unless the person holds a valid certificate of	1788
registration as an acupuncturist issued by the state medical board	1789
under this chapter.	1790

(B) Division (A) of this section does not apply to a	1791
physician or to a person who performs acupuncture as part of a	1792
training program in acupuncture operated by an educational	1793
institution that holds an effective certificate of authorization	1794
issued by the Ohio board of regents under section 1713.02 of the	1795
Revised Code or a school that holds an effective certificate of	1796
registration issued by the state board of proprietary school	1797
registrationcareer colleges and schools under section 3332.05 of	1798
the Revised Code.	1799

Sec. 4763.05.  (A)(1) A person shall make application for an	1800
initial state-certified general real estate appraiser certificate,	1801
an initial state-certified residential real estate appraiser	1802
certificate, an initial state-licensed residential real estate	1803
appraiser license, or an initial state-registered real estate	1804
appraiser assistant registration in writing to the superintendent	1805
of real estate on a form the superintendent prescribes. The	1806
application shall include the address of the applicant's principal	1807
place of business and all other addresses at which the applicant	1808
currently engages in the business of preparing real estate	1809
appraisals and the address of the applicant's current residence.	1810
The superintendent shall retain the applicant's current residence	1811
address in a separate record which shall not constitute a public	1812
record for purposes of section 149.03 of the Revised Code. The	1813
application shall indicate whether the applicant seeks	1814
certification as a general real estate appraiser or as a	1815
residential real estate appraiser, licensure as a residential real	1816
estate appraiser, or registration as a real estate appraiser	1817
assistant and be accompanied by the prescribed examination and	1818
certification, registration, or licensure fees set forth in	1819
section 4763.09 of the Revised Code. The application also shall	1820
include a pledge, signed by the applicant, that the applicant will	1821
comply with the standards set forth in this chapter and a	1822
statement that the applicant understands the types of misconduct	1823
for which disciplinary proceedings may be initiated against the	1824
applicant pursuant to this chapter.	1825

(2) For purposes of providing funding for the real estate	1826
appraiser recovery fund established by section 4763.16 of the	1827
Revised Code, the real estate appraiser board shall levy an	1828
assessment against each person issued an initial certificate,	1829
registration, or license and against current licensees,	1830
registrants, and certificate holders, as required by board rule.	1831
The assessment is in addition to the application and examination	1832
fees for initial applicants required by division (A)(1) of this	1833
section and the renewal fees required for current certificate	1834
holders, registrants, and licensees. The superintendent shall	1835
deposit the assessment into the state treasury to the credit of	1836
the real estate appraiser recovery fund. The assessment for	1837
initial certificate holders, registrants, and licensees shall be	1838
paid prior to the issuance of a certificate, registration, or	1839
license, and for current certificate holders, registrants, and	1840
licensees, at the time of renewal.	1841

(B) An applicant for an initial general real estate	1842
appraiser certificate shall possess at least thirty months of	1843
experience in real estate appraisal, or any equivalent experience	1844
the board prescribes. An applicant for a residential real estate	1845
appraiser certificate or residential real estate appraiser license	1846
shall possess at least two years of experience in real estate	1847
appraisal, or any equivalent experience the board prescribes. In	1848
addition to any other information required by the board, the	1849
applicant shall furnish, under oath, a detailed listing of the	1850
appraisal reports or file memoranda for each year for which	1851
experience is claimed and, upon request of the superintendent or	1852
the board, shall make available for examination a sample of the	1853
appraisal reports prepared by the applicant in the course of the	1854
applicant's practice.	1855

(C)(1) Except as provided in division (C)(2) of this	1856
section, an applicant for an initial certificate, registration, or	1857
license shall be at least eighteen years of age, honest, truthful,	1858
and of good reputation and shall present satisfactory evidence to	1859
the superintendent of the following, as appropriate:	1860

(a) If the applicant is seeking a state-certified general	1861
real estate appraiser certificate, that the applicant has	1862
successfully completed at least one hundred sixty-five classroom	1863
hours of courses in subjects related to real estate appraisal,	1864
including at least one course devoted exclusively to federal,	1865
state, and municipal fair housing law, presented by a nationally	1866
recognized appraisal organization, an institution of higher	1867
education, a proprietarycareer school registered by the state	1868
board of proprietary school registrationcareer colleges and	1869
schools, a state or federal commission or agency, or any other	1870
organization that represents the interests of financial	1871
institutions or real estate brokers, appraisers, or agents and	1872
that provides appraisal education, plus fifteen classroom hours	1873
related to standards of professional practice and the provisions	1874
of this chapter;	1875

(b) If the applicant is seeking a state-certified	1876
residential real estate appraiser certificate, that the applicant	1877
has successfully completed at least one hundred five classroom	1878
hours of courses in subjects related to real estate appraisal,	1879
including at least one course devoted exclusively to federal,	1880
state, and municipal fair housing law, presented by a nationally	1881
recognized appraisal organization, an institution of higher	1882
education, a proprietarycareer school registered by the state	1883
board of proprietary school registrationcareer colleges and	1884
schools, or any other organization that represents the interests	1885
of financial institutions or real estate brokers, appraisers, or	1886
agents and that provides appraisal education, plus fifteen	1887
classroom hours related to standards of professional practice and	1888
the provisions of this chapter;	1889

(c) If the applicant is seeking a state-licensed residential	1890
real estate appraiser license, that the applicant has successfully	1891
completed at least seventy-five classroom hours of courses in	1892
subjects related to real estate appraisal, including at least one	1893
course devoted exclusively to federal, state, and municipal fair	1894
housing law, presented by a nationally recognized appraisal	1895
organization, an institution of higher education, a proprietary	1896
career school registered by the state board of proprietary school	1897
registrationcareer colleges and schools, a state or federal	1898
commission or agency, or any other organization that represents	1899
the interests of financial institutions or real estate brokers,	1900
appraisers, or agents and that provides appraisal education, plus	1901
fifteen classroom hours related to standards of professional	1902
practice and the provisions of this chapter;	1903

(d) If the applicant is seeking a state-registered real	1904
estate appraiser assistant registration, that the applicant has	1905
successfully completed at least seventy-five classroom hours of	1906
courses in subjects related to real estate appraisal, including at	1907
least one course devoted exclusively to federal, state, and	1908
municipal fair housing law, presented by a nationally recognized	1909
appraisal organization, an institution of higher education, a	1910
proprietarycareer school registered by the state board of	1911
proprietary school registrationcareer colleges and schools, or	1912
any other organization that represents the interests of financial	1913
institutions or real estate brokers, appraisers, or agents, and	1914
that provides appraisal education that included at least fifteen	1915
classroom hours of instruction related to standards of	1916
professional practice and the requirements of this chapter and the	1917
rules adopted under this chapter.	1918

(2) Each person who files an application for an initial	1919
certificate or license within one year of the date established by	1920
the board as the first date on which applications will be accepted	1921
under this section, which date shall be no later than September 1,	1922
1990, and who, at the time of filing that application, does not	1923
satisfy the educational requirements for the certification or	1924
licensure sought of either division (C)(1)(a) or (b) of this	1925
section is exempt from those educational requirements for the term	1926
of the initial certification or licensure. In applying for a	1927
renewal certificate or license pursuant to section 4763.06 of the	1928
Revised Code, a certificate holder or licensee who was exempted	1929
from the educational requirements of division (C)(1)(a) or (b) of	1930
this section when applying for the initial certificate or license	1931
shall present satisfactory evidence to the superintendent that the	1932
certificate holder or licensee has completed the educational	1933
requirements for the certification or licensure to be renewed of	1934
one of those divisions before the renewal certificate or license	1935
may be issued.	1936

(D) An applicant for an initial general real estate	1937
appraiser or residential real estate appraiser certificate or	1938
residential real estate appraiser license shall take and	1939
successfully complete a written examination in order to qualify	1940
for the certificate or license. The examination shall require the	1941
applicant to demonstrate all of the following:	1942

(1) Appropriate knowledge of technical terms commonly used	1943
in or related to real estate appraising, appraisal report writing,	1944
and the economic concepts applicable to real estate;	1945

(2) Understanding of the principles of land economics, real	1946
estate appraisal processes, and problems likely to be encountered	1947
in gathering, interpreting, and processing of data in carrying out	1948
appraisal disciplines;	1949

(3) Understanding of the standards for the development and	1950
communication of real estate appraisals as provided in this	1951
chapter and the rules adopted thereunder;	1952

(4) Knowledge of theories of depreciation, cost estimating,	1953
methods of capitalization, direct sales comparison, and the	1954
mathematics of real estate appraisal that are appropriate for the	1955
certification or licensure for which the applicant has applied;	1956

(5) Knowledge of other principles and procedures as	1957
appropriate for the certification or license;	1958

(6) Basic understanding of real estate law;

1959

(7) Understanding of the types of misconduct for which	1960
disciplinary proceedings may be initiated against a certificate	1961
holder and licensee.	1962

(E)(1) A nonresident, natural person of this state who has	1963
complied with this section may obtain a certificate, registration,	1964
or license. The board shall adopt rules relating to the	1965
certification, registration, and licensure of a nonresident	1966
applicant whose state of residence the board determines to have	1967
certification, registration, or licensure requirements that are	1968
substantially similar to those set forth in this chapter and the	1969
rules adopted thereunder.	1970

(2) A nonresident appraiser may apply for, and the board may	1971
issue, a temporary certificate or license if the board determines	1972
that the state in which the nonresident appraiser is licensed or	1973
certified has licensing or certification requirements that are	1974
substantially similar to the certification or licensure	1975
requirements set forth in this chapter and the rules adopted	1976
thereunder.	1977

The board shall adopt rules relating to the temporary	1978
certification and licensure of nonresident appraisers. Each	1979
temporary certificate and license issued by the board shall	1980
identify the location of the real estate property to be appraised	1981
and shall not authorize appraisal of more than one real estate	1982
property located in this state. The board shall not issue more	1983
than two temporary certificates or licenses in any one calendar	1984
year to any one applicant.	1985

(3) In addition to any other information required to be	1986
submitted with the nonresident applicant's or appraiser's	1987
application for a certificate, registration, license, or temporary	1988
certificate or license, each nonresident applicant or appraiser	1989
shall submit a statement consenting to the service of process upon	1990
the nonresident applicant or appraiser by means of delivering that	1991
process to the secretary of state if, in an action against the	1992
applicant, certificate holder, registrant, or licensee arising	1993
from the applicant's, certificate holder's, registrant's, or	1994
licensee's activities as a certificate holder, registrant, or	1995
licensee, the plaintiff, in the exercise of due diligence, cannot	1996
effect personal service upon the applicant, certificate holder,	1997
registrant, or licensee.	1998

(F) The superintendent shall not issue a certificate,	1999
registration, temporary certificate or license, or license to a	2000
corporation, partnership, or association. This prohibition shall	2001
not be construed to prevent a certificate holder or licensee from	2002
signing an appraisal report on behalf of a corporation,	2003
partnership, or association.	2004

(G) Every person licensed, registered, or certified under	2005
this chapter shall notify the superintendent, on a form provided	2006
by the superintendent, of a change in the address of the	2007
licensee's, registrant's, or certificate holder's principal place	2008
of business or residence within thirty days of the change. If a	2009
licensee's, registrant's, or certificate holder's license,	2010
registration, or certificate is revoked or not renewed, the	2011
licensee, registrant, or certificate holder immediately shall	2012
return the annual and any renewal certificate, registration, or	2013
license to the superintendent.	2014

(H) The superintendent shall not issue a certificate,	2015
registration, temporary certificate or license, or license to any	2016
person who does not meet applicable minimum criteria for state	2017
certification, registration, or licensure prescribed by federal	2018
law or rule.	2019

Sec. 5107.58.  In accordance with a federal waiver granted by	2020
the United States secretary of health and human services pursuant	2021
to a request made under former section 5101.09 of the Revised	2022
Code, county departments of job and family services may establish	2023
and administer as a work activity for minor heads of households	2024
and adults participating in Ohio works first an education program	2025
under which the participant is enrolled full-time in	2026
post-secondary education leading to vocation at a state	2027
institution of higher education, as defined in section 3345.031 of	2028
the Revised Code; a private nonprofit college or university that	2029
possesses a certificate of authorization issued by the Ohio board	2030
of regents pursuant to Chapter 1713. of the Revised Code, or is	2031
exempted by division (E) of section 1713.02 of the Revised Code	2032
from the requirement of a certificate; a school that holds a	2033
certificate of registration and program authorization issued by	2034
the state board of proprietary school registrationcareer colleges	2035
and schools under Chapter 3332. of the Revised Code; a private	2036
institution exempt from regulation under Chapter 3332. of the	2037
Revised Code as prescribed in section 3333.046 of the Revised	2038
Code; or a school that has entered into a contract with the county	2039
department of job and family services. The participant shall make	2040
reasonable efforts, as determined by the county department, to	2041
obtain a loan, scholarship, grant, or other assistance to pay for	2042
the tuition, including a federal Pell grant under 20 U.S.C.A.	2043
1070a and an Ohio instructional grant under section 3333.12 of the	2044
Revised Code. If the participant has made reasonable efforts but	2045
is unable to obtain sufficient assistance to pay the tuition the	2046
program may pay the tuition. On or after October 1, 1998, the	2047
county department may enter into a loan agreement with the	2048
participant to pay the tuition. The total period for which	2049
tuition is paid and loans made shall not exceed two years. If	2050
the participant, pursuant to division (B)(3) of section 5107.43 of	2051
the Revised Code, volunteers to participate in the education	2052
program for more hours each week than the participant is assigned	2053
to the program, the program may pay or the county department may	2054
loan the cost of the tuition for the additional voluntary hours as	2055
well as the cost of the tuition for the assigned number of hours.	2056
The participant may receive, for not more than three years,	2057
support services, including publicly funded child day-care under	2058
Chapter 5104. of the Revised Code and transportation, that the	2059
participant needs to participate in the program. To receive	2060
support services in the third year, the participant must be, as	2061
determined by the educational institution in which the participant	2062
is enrolled, in good standing with the institution.	2063

A county department that provides loans under this section	2064
shall establish procedures governing loan application for and	2065
approval and administration of loans granted pursuant to this	2066
section.	2067

Sec. 5747.01.  Except as otherwise expressly provided or	2068
clearly appearing from the context, any term used in this chapter	2069
has the same meaning as when used in a comparable context in the	2070
Internal Revenue Code, and all other statutes of the United States	2071
relating to federal income taxes.	2072

As used in this chapter:

2073

(A) "Adjusted gross income" or "Ohio adjusted gross income"	2074
means adjusted gross income as defined and used in the Internal	2075
Revenue Code, adjusted as provided in this section:	2076

(1) Add interest or dividends on obligations or securities	2077
of any state or of any political subdivision or authority of any	2078
state, other than this state and its subdivisions and authorities.	2079

(2) Add interest or dividends on obligations of any	2080
authority, commission, instrumentality, territory, or possession	2081
of the United States that are exempt from federal income taxes but	2082
not from state income taxes.	2083

(3) Deduct interest or dividends on obligations of the	2084
United States and its territories and possessions or of any	2085
authority, commission, or instrumentality of the United States to	2086
the extent included in federal adjusted gross income but exempt	2087
from state income taxes under the laws of the United States.	2088

(4) Deduct disability and survivor's benefits to the extent	2089
included in federal adjusted gross income.	2090

(5) Deduct benefits under Title II of the Social Security	2091
Act and tier 1 railroad retirement benefits to the extent included	2092
in federal adjusted gross income under section 86 of the Internal	2093
Revenue Code.	2094

(6) Add, in the case of a taxpayer who is a beneficiary of a	2095
trust that makes an accumulation distribution as defined in	2096
section 665 of the Internal Revenue Code, the portion, if any, of	2097
such distribution that does not exceed the undistributed net	2098
income of the trust for the three taxable years preceding the	2099
taxable year in which the distribution is made. "Undistributed	2100
net income of a trust" means the taxable income of the trust	2101
increased by (a)(i) the additions to adjusted gross income	2102
required under division (A) of this section and (ii) the personal	2103
exemptions allowed to the trust pursuant to section 642(b) of the	2104
Internal Revenue Code, and decreased by (b)(i) the deductions to	2105
adjusted gross income required under division (A) of this section,	2106
(ii) the amount of federal income taxes attributable to such	2107
income, and (iii) the amount of taxable income that has been	2108
included in the adjusted gross income of a beneficiary by reason	2109
of a prior accumulation distribution. Any undistributed net	2110
income included in the adjusted gross income of a beneficiary	2111
shall reduce the undistributed net income of the trust commencing	2112
with the earliest years of the accumulation period.	2113

(7) Deduct the amount of wages and salaries, if any, not	2114
otherwise allowable as a deduction but that would have been	2115
allowable as a deduction in computing federal adjusted gross	2116
income for the taxable year, had the targeted jobs credit allowed	2117
and determined under sections 38, 51, and 52 of the Internal	2118
Revenue Code not been in effect.	2119

(8) Deduct any interest or interest equivalent on public	2120
obligations and purchase obligations to the extent included in	2121
federal adjusted gross income.	2122

(9) Add any loss or deduct any gain resulting from the sale,	2123
exchange, or other disposition of public obligations to the extent	2124
included in federal adjusted gross income.	2125

(10) Deduct or add amounts, as provided under section	2126
5747.70 of the Revised Code, related to contributions to variable	2127
college savings program accounts made or tuition credits purchased	2128
pursuant to Chapter 3334. of the Revised Code.	2129

(11)(a) Deduct, to the extent not otherwise allowable as a	2130
deduction or exclusion in computing federal or Ohio adjusted gross	2131
income for the taxable year, the amount the taxpayer paid during	2132
the taxable year for medical care insurance and qualified	2133
long-term care insurance for the taxpayer, the taxpayer's spouse,	2134
and dependents. No deduction for medical care insurance under	2135
division (A)(11) of this section shall be allowed either to any	2136
taxpayer who is eligible to participate in any subsidized health	2137
plan maintained by any employer of the taxpayer or of the	2138
taxpayer's spouse, or to any taxpayer who is entitled to, or on	2139
application would be entitled to, benefits under part A of Title	2140
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	2141
301, as amended. For the purposes of division (A)(11)(a) of this	2142
section, "subsidized health plan" means a health plan for which	2143
the employer pays any portion of the plan's cost. The deduction	2144
allowed under division (A)(11)(a) of this section shall be the net	2145
of any related premium refunds, related premium reimbursements, or	2146
related insurance premium dividends received during the taxable	2147
year.	2148

(b) Deduct, to the extent not otherwise deducted or excluded	2149
in computing federal or Ohio adjusted gross income during the	2150
taxable year, the amount the taxpayer paid during the taxable	2151
year, not compensated for by any insurance or otherwise, for	2152
medical care of the taxpayer, the taxpayer's spouse, and	2153
dependents, to the extent the expenses exceed seven and one-half	2154
per cent of the taxpayer's federal adjusted gross income.	2155

(c) For purposes of division (A)(11) of this section,	2156
"medical care" has the meaning given in section 213 of the	2157
Internal Revenue Code, subject to the special rules, limitations,	2158
and exclusions set forth therein, and "qualified long-term care"	2159
has the same meaning given in section 7702(B)(b) of the Internal	2160
Revenue Code.	2161

(12)(a) Deduct any amount included in federal adjusted gross	2162
income solely because the amount represents a reimbursement or	2163
refund of expenses that in any year the taxpayer had deducted as	2164
an itemized deduction pursuant to section 63 of the Internal	2165
Revenue Code and applicable United States department of the	2166
treasury regulations. The deduction otherwise allowed under	2167
division (A)(12)(a) of this section shall be reduced to the extent	2168
the reimbursement is attributable to an amount the taxpayer	2169
deducted under this section in any taxable year.	2170

(b) Add any amount not otherwise included in Ohio adjusted	2171
gross income for any taxable year to the extent that the amount is	2172
attributable to the recovery during the taxable year of any amount	2173
deducted or excluded in computing federal or Ohio adjusted gross	2174
income in any taxable year.	2175

(13) Deduct any portion of the deduction described in	2176
section 1341(a)(2) of the Internal Revenue Code, for repaying	2177
previously reported income received under a claim of right, that	2178
meets both of the following requirements:	2179

(a) It is allowable for repayment of an item that was	2180
included in the taxpayer's adjusted gross income for a prior	2181
taxable year and did not qualify for a credit under division (A)	2182
or (B) of section 5747.05 of the Revised Code for that year;	2183

(b) It does not otherwise reduce the taxpayer's adjusted	2184
gross income for the current or any other taxable year.	2185

(14) Deduct an amount equal to the deposits made to, and net	2186
investment earnings of, a medical savings account during the	2187
taxable year, in accordance with section 3924.66 of the Revised	2188
Code. The deduction allowed by division (A)(14) of this section	2189
does not apply to medical savings account deposits and earnings	2190
otherwise deducted or excluded for the current or any other	2191
taxable year from the taxpayer's federal adjusted gross income.	2192

(15)(a) Add an amount equal to the funds withdrawn from a	2193
medical savings account during the taxable year, and the net	2194
investment earnings on those funds, when the funds withdrawn were	2195
used for any purpose other than to reimburse an account holder	2196
for, or to pay, eligible medical expenses, in accordance with	2197
section 3924.66 of the Revised Code;	2198

(b) Add the amounts distributed from a medical savings	2199
account under division (A)(2) of section 3924.68 of the Revised	2200
Code during the taxable year.	2201

(16) Add any amount claimed as a credit under section	2202
5747.059 of the Revised Code to the extent that such amount	2203
satisfies either of the following:	2204

(a) The amount was deducted or excluded from the computation	2205
of the taxpayer's federal adjusted gross income as required to be	2206
reported for the taxpayer's taxable year under the Internal	2207
Revenue Code;	2208

(b) The amount resulted in a reduction of the taxpayer's	2209
federal adjusted gross income as required to be reported for any	2210
of the taxpayer's taxable years under the Internal Revenue Code.	2211

(17) Deduct the amount contributed by the taxpayer to an	2212
individual development account program established by a county	2213
department of job and family services pursuant to sections 329.11	2214
to 329.14 of the Revised Code for the purpose of matching funds	2215
deposited by program participants. On request of the tax	2216
commissioner, the taxpayer shall provide any information that, in	2217
the tax commissioner's opinion, is necessary to establish the	2218
amount deducted under division (A)(17) of this section.	2219

(18) Beginning in taxable year 2001, if the taxpayer is	2220
married and files a joint return and the combined federal adjusted	2221
gross income of the taxpayer and the taxpayer's spouse for the	2222
taxable year does not exceed one hundred thousand dollars, or if	2223
the taxpayer is single and has a federal adjusted gross income for	2224
the taxable year not exceeding fifty thousand dollars, deduct	2225
amounts paid during the taxable year for qualified tuition and	2226
fees paid to an eligible institution for the taxpayer, the	2227
taxpayer's spouse, or any dependent of the taxpayer, who is a	2228
resident of this state and is enrolled in or attending a program	2229
that culminates in a degree or diploma at an eligible institution.	2230
The deduction may be claimed only to the extent that qualified	2231
tuition and fees are not otherwise deducted or excluded for any	2232
taxable year from federal or Ohio adjusted gross income. The	2233
deduction may not be claimed for educational expenses for which	2234
the taxpayer claims a credit under section 5747.27 of the Revised	2235
Code.	2236

(19) Add any reimbursement received during the taxable year	2237
of any amount the taxpayer deducted under division (A)(18) of this	2238
section in any previous taxable year to the extent the amount is	2239
not otherwise included in Ohio adjusted gross income.	2240

(B) "Business income" means income arising from	2241
transactions, activities, and sources in the regular course of a	2242
trade or business and includes income from tangible and intangible	2243
property if the acquisition, rental, management, and disposition	2244
of the property constitute integral parts of the regular course of	2245
a trade or business operation.	2246

(C) "Nonbusiness income" means all income other than	2247
business income and may include, but is not limited to,	2248
compensation, rents and royalties from real or tangible personal	2249
property, capital gains, interest, dividends and distributions,	2250
patent or copyright royalties, or lottery winnings, prizes, and	2251
awards.	2252

(D) "Compensation" means any form of remuneration paid to an	2253
employee for personal services.	2254

(E) "Fiduciary" means a guardian, trustee, executor,	2255
administrator, receiver, conservator, or any other person acting	2256
in any fiduciary capacity for any individual, trust, or estate.	2257

(F) "Fiscal year" means an accounting period of twelve	2258
months ending on the last day of any month other than December.	2259

(G) "Individual" means any natural person.

2260

(H) "Internal Revenue Code" means the "Internal Revenue Code	2261
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	2262

(I) "Resident" means:

2263

(1) An individual who is domiciled in this state, subject to	2264
section 5747.24 of the Revised Code;	2265

(2) The estate of a decedent who at the time of death was	2266
domiciled in this state. The domicile tests of section 5747.24 of	2267
the Revised Code and any election under section 5747.25 of the	2268
Revised Code are not controlling for purposes of division (I)(2)	2269
of this section.	2270

(J) "Nonresident" means an individual or estate that is not	2271
a resident. An individual who is a resident for only part of a	2272
taxable year is a nonresident for the remainder of that taxable	2273
year.	2274

(K) "Pass-through entity" has the same meaning as in section	2275
5733.04 of the Revised Code.	2276

(L) "Return" means the notifications and reports required to	2277
be filed pursuant to this chapter for the purpose of reporting the	2278
tax due and includes declarations of estimated tax when so	2279
required.	2280

(M) "Taxable year" means the calendar year or the taxpayer's	2281
fiscal year ending during the calendar year, or fractional part	2282
thereof, upon which the adjusted gross income is calculated	2283
pursuant to this chapter.	2284

(N) "Taxpayer" means any person subject to the tax imposed	2285
by section 5747.02 of the Revised Code or any pass-through entity	2286
that makes the election under division (D) of section 5747.08 of	2287
the Revised Code.	2288

(O) "Dependents" means dependents as defined in the Internal	2289
Revenue Code and as claimed in the taxpayer's federal income tax	2290
return for the taxable year or which the taxpayer would have been	2291
permitted to claim had the taxpayer filed a federal income tax	2292
return.	2293

(P) "Principal county of employment" means, in the case of a	2294
nonresident, the county within the state in which a taxpayer	2295
performs services for an employer or, if those services are	2296
performed in more than one county, the county in which the major	2297
portion of the services are performed.	2298

(Q) As used in sections 5747.50 to 5747.55 of the Revised	2299
Code:	2300

(1) "Subdivision" means any county, municipal corporation,	2301
park district, or township.	2302

(2) "Essential local government purposes" includes all	2303
functions that any subdivision is required by general law to	2304
exercise, including like functions that are exercised under a	2305
charter adopted pursuant to the Ohio Constitution.	2306

(R) "Overpayment" means any amount already paid that exceeds	2307
the figure determined to be the correct amount of the tax.	2308

(S) "Taxable income" applies to estates only and means	2309
taxable income as defined and used in the Internal Revenue Code	2310
adjusted as follows:	2311

(1) Add interest or dividends on obligations or securities	2312
of any state or of any political subdivision or authority of any	2313
state, other than this state and its subdivisions and authorities;	2314

(2) Add interest or dividends on obligations of any	2315
authority, commission, instrumentality, territory, or possession	2316
of the United States that are exempt from federal income taxes but	2317
not from state income taxes;	2318

(3) Add the amount of personal exemption allowed to the	2319
estate pursuant to section 642(b) of the Internal Revenue Code;	2320

(4) Deduct interest or dividends on obligations of the	2321
United States and its territories and possessions or of any	2322
authority, commission, or instrumentality of the United States	2323
that are exempt from state taxes under the laws of the United	2324
States;	2325

(5) Deduct the amount of wages and salaries, if any, not	2326
otherwise allowable as a deduction but that would have been	2327
allowable as a deduction in computing federal taxable income for	2328
the taxable year, had the targeted jobs credit allowed under	2329
sections 38, 51, and 52 of the Internal Revenue Code not been in	2330
effect;	2331

(6) Deduct any interest or interest equivalent on public	2332
obligations and purchase obligations to the extent included in	2333
federal taxable income;	2334

(7) Add any loss or deduct any gain resulting from sale,	2335
exchange, or other disposition of public obligations to the extent	2336
included in federal taxable income;	2337

(8) Except in the case of the final return of an estate, add	2338
any amount deducted by the taxpayer on both its Ohio estate tax	2339
return pursuant to section 5731.14 of the Revised Code, and on its	2340
federal income tax return in determining either federal adjusted	2341
gross income or federal taxable income;	2342

(9)(a) Deduct any amount included in federal taxable income	2343
solely because the amount represents a reimbursement or refund of	2344
expenses that in a previous year the decedent had deducted as an	2345
itemized deduction pursuant to section 63 of the Internal Revenue	2346
Code and applicable treasury regulations. The deduction otherwise	2347
allowed under division (S)(9)(a) of this section shall be reduced	2348
to the extent the reimbursement is attributable to an amount the	2349
taxpayer or decedent deducted under this section in any taxable	2350
year.	2351

(b) Add any amount not otherwise included in Ohio taxable	2352
income for any taxable year to the extent that the amount is	2353
attributable to the recovery during the taxable year of any amount	2354
deducted or excluded in computing federal or Ohio taxable income	2355
in any taxable year.	2356

(10) Deduct any portion of the deduction described in	2357
section 1341(a)(2) of the Internal Revenue Code, for repaying	2358
previously reported income received under a claim of right, that	2359
meets both of the following requirements:	2360

(a) It is allowable for repayment of an item that was	2361
included in the taxpayer's taxable income or the decedent's	2362
adjusted gross income for a prior taxable year and did not qualify	2363
for a credit under division (A) or (B) of section 5747.05 of the	2364
Revised Code for that year.	2365

(b) It does not otherwise reduce the taxpayer's taxable	2366
income or the decedent's adjusted gross income for the current or	2367
any other taxable year.	2368

(11) Add any amount claimed as a credit under section	2369
5747.059 of the Revised Code to the extent that the amount	2370
satisfies either of the following:	2371

(a) The amount was deducted or excluded from the computation	2372
of the taxpayer's federal taxable income as required to be	2373
reported for the taxpayer's taxable year under the Internal	2374
Revenue Code;	2375

(b) The amount resulted in a reduction in the taxpayer's	2376
federal taxable income as required to be reported for any of the	2377
taxpayer's taxable years under the Internal Revenue Code.	2378

(T) "School district income" and "school district income	2379
tax" have the same meanings as in section 5748.01 of the Revised	2380
Code.	2381

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	2382
of this section, "public obligations," "purchase obligations," and	2383
"interest or interest equivalent" have the same meanings as in	2384
section 5709.76 of the Revised Code.	2385

(V) "Limited liability company" means any limited liability	2386
company formed under Chapter 1705. of the Revised Code or under	2387
the laws of any other state.	2388

(W) "Pass-through entity investor" means any person who,	2389
during any portion of a taxable year of a pass-through entity, is	2390
a partner, member, shareholder, or investor in that pass-through	2391
entity.	2392

(X) "Banking day" has the same meaning as in section 1304.01	2393
of the Revised Code.	2394

(Y) "Month" means a calendar month.

2395

(Z) "Quarter" means the first three months, the second three	2396
months, the third three months, or the last three months of the	2397
taxpayer's taxable year.	2398

(AA)(1) "Eligible institution" means a state university or	2399
state institution of higher education as defined in section	2400
3345.011 of the Revised Code, or a private, nonprofit college,	2401
university, or other post-secondary institution located in this	2402
state that possesses a certificate of authorization issued by the	2403
Ohio board of regents pursuant to Chapter 1713. of the Revised	2404
Code or a certificate of registration issued by the state board of	2405
proprietary school registrationcareer colleges and schools under	2406
Chapter 3332. of the Revised Code.	2407

(2) "Qualified tuition and fees" means tuition and fees	2408
imposed by an eligible institution as a condition of enrollment or	2409
attendance, not exceeding two thousand five hundred dollars in	2410
each of the individual's first two years of post-secondary	2411
education. If the individual is a part-time student, "qualified	2412
tuition and fees" includes tuition and fees paid for the academic	2413
equivalent of the first two years of post-secondary education	2414
during a maximum of five taxable years, not exceeding a total of	2415
five thousand dollars. "Qualified tuition and fees" does not	2416
include:	2417

(a) Expenses for any course or activity involving sports,	2418
games, or hobbies unless the course or activity is part of the	2419
individual's degree or diploma program;	2420

(b) The cost of books, room and board, student activity	2421
fees, athletic fees, insurance expenses, or other expenses	2422
unrelated to the individual's academic course of instruction;	2423

(c) Tuition, fees, or other expenses paid or reimbursed	2424
through an employer, scholarship, grant in aid, or other	2425
educational benefit program.	2426

(BB) Any term used in this chapter that is not otherwise	2427
defined in this section and that is not used in a comparable	2428
context in the Internal Revenue Code and other statutes of the	2429
United States relating to federal income taxes has the same	2430
meaning as in section 5733.40 of the Revised Code.	2431

Sec. 5919.34.  (A) As used in this section:

2432

(1) "Academic term" means any one of the following:

2433

(a) Fall term, which consists of fall semester or fall	2434
quarter, as appropriate;	2435

(b) Winter term, which consists of winter semester, winter	2436
quarter, or spring semester, as appropriate;	2437

(c) Spring term, which consists of spring quarter;

2438

(d) Summer term, which consists of summer semester or summer	2439
quarter, as appropriate.	2440

(2) "Eligible applicant" means any individual to whom all of	2441
the following apply:	2442

(a) The individual does not possess a baccalaureate degree.

2443

(b) The individual has enlisted, re-enlisted, or extended	2444
current enlistment in the Ohio national guard.	2445

(c) The individual is actively enrolled as a full-time or	2446
part-time student for at least six credit hours of course work in	2447
a semester or quarter in a two-year or four-year degree-granting	2448
program at an institution of higher education or in a	2449
diploma-granting program at an institution of higher education	2450
that is a school of nursing.	2451

(d) The individual has not accumulated ninety-six	2452
eligibility units under division (E) of this section.	2453

(3) "Institution of higher education" means an Ohio	2454
institution of higher education that is state-assisted, that is	2455
nonprofit and has received a certificate of authorization from the	2456
Ohio board of regents pursuant to Chapter 1713. of the Revised	2457
Code, that is a private institution exempt from regulation under	2458
Chapter 3332. of the Revised Code as prescribed in section	2459
3333.046 of the Revised Code, or that holds a certificate of	2460
registration and program authorization issued by the state board	2461
of proprietary school registrationcareer colleges and schools	2462
pursuant to section 3332.05 of the Revised Code.	2463

(4) "State university" has the same meaning as in section	2464
3345.011 of the Revised Code.	2465

(B)(1) There is hereby created a scholarship program to be	2466
known as the Ohio national guard scholarship program. For the	2467
fiscal year 2000, the number of participants in the program for	2468
the fall term is limited to the equivalent of two thousand five	2469
hundred full-time participants; the number of participants in the	2470
program for the winter term is limited to the equivalent of two	2471
thousand five hundred full-time participants; the number of	2472
participants in the program for the spring term is limited to the	2473
equivalent of one thousand six hundred seventy-five full-time	2474
participants; and the number of participants in the program for	2475
the summer term is limited to the equivalent of six hundred	2476
full-time participants. Except as provided in division (B)(2) of	2477
this section for the fiscal year 2001 and succeeding fiscal years,	2478
the number of participants in the program for the fall term is	2479
limited to the equivalent of three thousand five hundred full-time	2480
participants; the number of participants in the program for the	2481
winter term is limited to the equivalent of three thousand five	2482
hundred full-time participants; the number of participants in the	2483
program for the spring term is limited to the equivalent of two	2484
thousand three hundred forty-five full-time participants; and the	2485
number of participants in the program for the summer term is	2486
limited to the equivalent of eight hundred full-time participants.	2487

(2) After the application deadline for any academic term in	2488
fiscal year 2001, the adjutant general may request the controlling	2489
board, if sufficient appropriated funds are available, to approve	2490
the following number of additional participants for that term:	2491

(a) For the fall or winter academic term, up to the	2492
equivalent of five hundred additional full-time participants;	2493

(b) For the spring academic term, up to the equivalent of	2494
three hundred seventy-five additional full-time participants;	2495

(c) For the summer academic term, up to the equivalent of	2496
one hundred twenty-five additional full-time participants.	2497

(C) If the adjutant general estimates that appropriations	2498
for all scholarships applied for under this section and likely to	2499
be used during an academic term are inadequate for all eligible	2500
applicants for that academic term to receive scholarships, the	2501
adjutant general shall promptly inform all applicants not	2502
receiving scholarships for that academic term of the next academic	2503
term that appropriations will be adequate for the scholarships.	2504
Any such eligible applicant may again apply for a scholarship	2505
beginning that academic term if the applicant is in compliance	2506
with all requirements established by this section and the adjutant	2507
general for the program. The adjutant general shall process all	2508
applications for scholarships for each academic term in the order	2509
in which they are received. The scholarships shall be made	2510
without regard to financial need. At no time shall one person be	2511
placed in priority over another because of sex, race, or religion.	2512

(D) Except as provided in division (H) of this section, for	2513
each academic term that an eligible applicant is approved for a	2514
scholarship under this section and remains a current member in	2515
good standing of the Ohio national guard, the institution of	2516
higher education in which the applicant is enrolled shall, if the	2517
applicant's enlistment obligation extends beyond the end of that	2518
academic term, be paid on the applicant's behalf the applicable	2519
one of the following amounts:	2520

(1) If the institution is state-assisted, an amount equal to	2521
one hundred per cent of the institution's tuition charges;	2522

(2) If the institution is a nonprofit private institution or	2523
a private institution exempt from regulation under Chapter 3332.	2524
of the Revised Code as prescribed in section 3333.046 of the	2525
Revised Code, an amount equal to one hundred per cent of the	2526
average tuition charges of all state universities;	2527

(3) If the institution is an institution that holds a	2528
certificate of registration from the state board of proprietary	2529
school registrationcareer colleges and schools, the lesser of the	2530
following:	2531

(a) An amount equal to one hundred per cent of the total	2532
instructional and general charges of the institution;	2533

(b) An amount equal to one hundred per cent of the average	2534
tuition charges of all state universities.	2535

(4) An eligible applicant's scholarship shall not be reduced	2536
by the amount of that applicant's benefits under "the Montgomery	2537
G.I. Bill Act of 1984," Pub. L. No. 98-525, 98 Stat. 2553 (1984).	2538

(E) A scholarship recipient under this section shall be	2539
entitled to receive scholarships under this section for the number	2540
of quarters or semesters it takes the recipient to accumulate	2541
ninety-six eligibility units as determined under divisions (E)(1)	2542
to (3) of this section.	2543

(1) To determine the maximum number of semesters or quarters	2544
for which a recipient is entitled to a scholarship under this	2545
section, the adjutant general shall convert a recipient's credit	2546
hours of enrollment for each academic term into eligibility units	2547
in accordance with the following table:	2548

(2) A scholarship recipient under this section may continue	2557
to apply for scholarships under this section until the recipient	2558
has accumulated ninety-six eligibility units.	2559

(3) If a scholarship recipient withdraws from courses prior	2560
to the end of an academic term so that the recipient's enrollment	2561
for that academic term is less than six credit hours, no	2562
scholarship shall be paid on behalf of that person for that	2563
academic term except that, if a scholarship has already been paid	2564
on behalf of the person for that academic term, the adjutant	2565
general shall add to that person's accumulated eligibility units	2566
the number of eligibility units for which the scholarship was	2567
paid.	2568

(F) A scholarship recipient under this section who fails to	2569
complete the term of enlistment, re-enlistment, or extension of	2570
current enlistment the recipient was serving at the time a	2571
scholarship was paid on behalf of the recipient under this section	2572
is liable to the state for repayment of a percentage of all Ohio	2573
national guard scholarships paid on behalf of the recipient under	2574
this section, plus interest at the rate of ten per cent per annum	2575
calculated from the dates the scholarships were paid. This	2576
percentage shall equal the percentage of the current term of	2577
enlistment, re-enlistment, or extension of enlistment a recipient	2578
has not completed as of the date the recipient is discharged from	2579
the Ohio national guard.	2580

The attorney general may commence a civil action on behalf of	2581
the adjutant general to recover the amount of the scholarships and	2582
the interest provided for in this division and the expenses	2583
incurred in prosecuting the action, including court costs and	2584
reasonable attorney's fees. A scholarship recipient is not liable	2585
under this division if the recipient's failure to complete the	2586
term of enlistment being served at the time a scholarship was paid	2587
on behalf of the recipient under this section is due to the	2588
recipient's death; discharge from the national guard due to	2589
disability; or the recipient's enlistment, for a term not less	2590
than the recipient's remaining term in the national guard, in the	2591
active component of the United States armed forces or the active	2592
reserve component of the United States armed forces.	2593

(G) On or before the first day of each academic term, the	2594
adjutant general shall provide an eligibility roster to each	2595
institution of higher education at which one or more scholarship	2596
recipients have applied for enrollment. The institution shall use	2597
the roster to certify the actual full-time or part-time enrollment	2598
of each scholarship recipient listed as enrolled at the	2599
institution and return the roster to the adjutant general within	2600
thirty days after the first day of the academic term. The	2601
adjutant general shall report to the Ohio board of regents the	2602
number of students in the Ohio national guard scholarship program	2603
at each institution of higher education. The Ohio board of	2604
regents shall provide for payment of the appropriate number and	2605
amount of scholarships to each institution of higher education	2606
pursuant to division (D) of this section. The adjutant general	2607
shall report on a quarterly basis to the director of budget and	2608
management, the speaker of the house of representatives, and the	2609
president of the senate the number of Ohio national guard	2610
scholarship recipients and a projection of the cost of the program	2611
for the remainder of the biennium.	2612

(H) The chancellor of the Ohio board of regents and the	2613
adjutant general may adopt rules pursuant to Chapter 119. of the	2614
Revised Code governing the administration and fiscal management of	2615
the Ohio national guard scholarship program and the procedure by	2616
which the Ohio board of regents and the department of the adjutant	2617
general may modify the amount of scholarships a member receives	2618
based on the amount other state financial aid a member receives.	2619

(I) Notwithstanding division (A) of section 127.14 of the	2620
Revised Code, the controlling board shall not transfer all or part	2621
of any appropriation for the Ohio national guard scholarship	2622
program.	2623

Section 2. That existing sections 955.43, 1713.02, 1713.03,	2624
1713.25, 2741.01, 3332.01, 3332.02, 3332.03, 3332.031, 3332.04,	2625
3332.05, 3332.051, 3332.06, 3332.07, 3332.08, 3332.081, 3332.082,	2626
3332.083, 3332.085, 3332.09, 3332.091, 3332.092, 3332.10, 3332.11,	2627
3332.12, 3332.13, 3332.18, 3333.043, 3333.12, 3333.29, 3334.01,	2628
3365.01, 3365.15, 4742.05, 4742.06, 4743.03, 4762.02, 4763.05,	2629
5107.58, 5747.01, and 5919.34 of the Revised Code are hereby	2630
repealed.	2631

Section 3. That sections 3332.04, 3332.08, 3332.082, and	2632
3332.084 of the Revised Code be amended to read as follows:	2633

Sec. 3332.04.  The state board of career colleges and schools	2634
may appoint an executive director and such other staff as may be	2635
required for the performance of the board's duties and provide	2636
necessary facilities. In selecting an executive director, the	2637
board shall appoint an individual with a background or experience	2638
in the regulation of commerce, business, or education. The board	2639
may also arrange for services and facilities to be provided by the	2640
state board of education and the Ohio board of regents. All	2641
receipts of the board shall be deposited in the career colleges	2642
and schools operating fund, which is hereby created in the state	2643
treasury to the credit of the general revenue fund. Moneys in the	2644
fund shall be used solely for the administration and enforcement	2645
of Chapter 3332. of the Revised Code. All investment earnings on	2646
the fund shall be credited to the fund.	2647

Sec. 3332.08.  The application for a certificate of	2648
registration for a school located within Ohio shall be accompanied	2649
by a surety bond in thea penal sum of ten thousand dollars	2650
established by rule of the state board of career colleges and	2651
schools with conditions and in a form prescribed by the state	2652
board of career colleges and schools with at least one corporate	2653
bonding company that has a AAA or AA rating from either Moody's	2654
investors service or Standard & Poor's and that is approved by	2655
the department of insurance as surety thereon. Bond shall be	2656
maintained in effect for a period specified by rule of the board.	2657
The board may permit a school to cancel its bond if the school has	2658
been approved to participate in any federal student financial	2659
assistance program authorized under Title IV of the "Higher	2660
Education Act of 1965," 20 U.S.C.A. 1070 et seq., as amended, or	2661
if the school meets standards of financial responsibility	2662
otherwise established by the board. The bond shall provide for	2663
the indemnification of any person suffering prepaid tuition loss	2664
as the result of any fraud or misrepresentation used in behalf of	2665
the principal in procuring such person's enrollment in a program,	2666
including repayment of tuition paid in advance by any studenta	2667
school closure in accordance with section 3332.082 of the Revised	2668
Code.	2669

The liability of the surety on such bond for the school	2670
covered shall not exceed the sum of ten thousand dollarsthe bond	2671
as an aggregate for all students for all breaches of the	2672
conditions of the bond by the school. The term of the bond shall	2673
be continuous, but it shall be subject to cancellation by the	2674
surety in the manner described in this section. The bond shall	2675
provide blanket coverage for the acts of all persons engaged as	2676
agents of the school without naming them and without regard to the	2677
time they are engaged during the term of the bond.	2678

The surety may terminate the bond upon giving a sixty-day	2679
written notice to the principal and to the state board of career	2680
colleges and schools, but the liability of the surety for acts of	2681
the principal and its agents continues during the sixty days of	2682
cancellation notice. The notice does not absolve the surety from	2683
liability which accrues before the cancellation becomes final but	2684
which is discovered after that date and which may have arisen at	2685
any time during the term of the bond. Unless the bond is replaced	2686
by that of another surety before the expiration of the sixty days	2687
notice of cancellation, the certificate of registration shall be	2688
suspended. Any person subject to this section required to file a	2689
bond with an application for a certificate of registration may	2690
file, in lieu thereof, cash, a certificate of deposit, letter of	2691
credit, or government bonds in the amount of ten thousand dollars	2692
established by the board. The deposit is subject to the same	2693
terms and conditions as are provided for in the surety bond	2694
required herein. Any interest or earnings on such deposits are	2695
payable to the depositor.	2696

Sec. 3332.082.  The state board of career colleges and	2697
schools may pursue any lawful means of assuring that students of	2698
any school registered by the state board do not suffer prepaid	2699
tuition loss as a result of the closure of a school. This may	2700
include lawsuits against a school or any individual who may	2701
reasonably have liability as a result of the default, in which the	2702
attorney general shall advise and represent the board. Any student	2703
seeking reimbursement for a prepaid tuition loss shall submit a	2704
claim for reimbursement to the board not later than one year	2705
following the school's closure.	2706

Any reimbursement for a prepaid tuition loss or advance	2707
against a possible prepaid tuition loss of a student, and any	2708
expenses reasonably incurred by the board in its pursuit of any	2709
remedy, shall be paid from the surety bond provided by the school	2710
pursuant to section 3332.08 of the Revised Code. If proceeds from	2711
the surety bond are not sufficient to cover such payments, any	2712
additional payments shall be paid from the student tuition	2713
recovery fund created by section 3332.083 of the Revised Code.	2714
Tuition loss does not include moneys held by a school in escrow	2715
accounts for tuition or fees for future terms, as uncommitted	2716
grants, loans, or Pell grant money. If the fund is not of	2717
sufficient size to pay the students the full amount of their	2718
prepaid fee, the student tuition recovery authority shall	2719
determine the percentage of the amount that will be paid.	2720

Any money recovered from the defaulting school,or any	2721
individual with liability for the default, or from the surety	2722
under a bond provided under section 3332.08 of the Revised Code in	2723
excess of any payments made under this section shall be deposited	2724
into the fund.	2725

Sec. 3332.084.  The student tuition recovery authority may:

2726

(A) Adopt bylaws for the regulation of its affairs and the	2727
conduct of its business;	2728

(B) Maintain a principal office at such place within the	2729
state as is designated by the authority;	2730

(C) Distribute moneys from the surety bond required by	2731
section 3332.08 of the Revised Code and the student tuition	2732
recovery fund to or on behalf of students who are determined	2733
eligible by the authority;	2734

(D) Reduce contributions to or utilize excess money in the	2735
fund, as provided in division (C) of section 3332.085 of the	2736
Revised Code.	2737

Section 4. That existing sections 3332.04, 3332.08, 3332.082,	2738
and 3332.084 of the Revised Code are hereby repealed.	2739

Section 5. Sections 3 and 4 of this act shall take effect	2740
July 1, 2003.	2741

Section 6. Within sixty days after the effective date of this	2742
act, the Governor shall appoint an additional member who has been	2743
engaged for at least the immediately preceding five years in an	2744
executive or managerial position at a career school to the State	2745
Board of Career Colleges and Schools pursuant to section 3332.03	2746
of the Revised Code, as amended by this act. Such member shall	2747
hold office until the twentieth day of November following the	2748
member's appointment and shall be eligible for reappointment to a	2749
full five-year term under that section.	2750