SENATORS Robert Gardner, Armbruster, Randy Gardner, Harris, Shoemaker, Prentiss

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,

4

3332.09, 3332.091, 3332.092, 3332.10 to 3332.13,

5

3332.18, 3333.043, 3333.12, 3333.29, 3334.01,

6

3365.01, 3365.15, 4742.05, 4742.06, 4743.03,

7

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

11

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

eliminating the requirement that agents for career

15

schools maintain surety bonds, altering the

16

structure of the Board by adding an additional

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member with a background in career school

18

management and by making the student representative

19

a nonvoting member, establishing a fixed rate of

20

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

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issuance or renewal of program authorizations for

24

associate degree programs at career schools, making

25

the legislative members of the Student Tuition

26

Recovery Authority nonvoting ex officio members,

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

37

of the Revised Code effective July 1, 2003.

38

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 approved by the department of insurance as surety thereon.	647
Bond shall be maintained in effect for three years by any school	648
that has existed under the same ownership for five years	649
immediately before the effective date of this amendment, for five	650
years after the effective date of this amendment, or its later	651
original registration, for any other school; and for five years	652
after the approval of a change of ownership of any schoola period	653
specified by rule of the board. The board may permit a school to	654
cancel its bond if the school has been approved to participate in	655
any federal student financial assistance program authorized under	656
Title IV of the "Higher Education Act of 1965," 20 U.S.C.A. 1070	657
et seq., as amended, or if the school meets standards of financial	658
responsibility otherwise established by the board. The bond shall	659
provide for the indemnification of any person suffering loss as	660
the result of any fraud or misrepresentation used in behalf of the	661
principal in procuring such person's enrollment in a program,	662
including repayment of tuition paid in advance by any student.	663

The liability of the surety on such bond for the school	664
covered shall not exceed the sum of ten thousand dollars as an	665
aggregate for all students for all breaches of the conditions of	666
the bond by the school. The term of the bond shall be continuous,	667
but it shall be subject to cancellation by the surety in the	668
manner described in this section. The bond shall provide blanket	669
coverage for the acts of all persons engaged as agents of the	670
school without naming them and without regard to the time they are	671
engaged during the term of the bond.	672

The surety may terminate the bond upon giving a sixty-day	673
written notice to the principal and to the state board of	674
proprietary school registrationcareer colleges and schools, but	675
the liability of the surety for acts of the principal and its	676
agents continues during the sixty days of cancellation notice. The	677
notice does not absolve the surety from liability which accrues	678
before the cancellation becomes final but which is discovered	679
after that date and which may have arisen at any time during the	680
term of the bond. Unless the bond is replaced by that of another	681
surety before the expiration of the sixty days notice of	682
cancellation, the certificate of registration shall be suspended.	683
Any person subject to this section required to file a bond with an	684
application for a certificate of registration may file, in lieu	685
thereof, cash, a certificate of deposit, letter of credit, or	686
government bonds in the amount of ten thousand dollars. The	687
deposit is subject to the same terms and conditions as are	688
provided for in the surety bond required herein. Any interest or	689
earnings on such deposits are payable to the depositor.	690

Sec. 3332.081.  The student tuition recovery authority is	691
created as a body corporate and politic of this state. The	692
purpose of the authority is to protect students of any school	693
registered by the state board of proprietary school registration	694
career colleges and schools from prepaid tuition loss for the	695
academic term, whether due to business failure or any other reason	696
for which the student is not legally responsiblea school closure.	697

The authority shall consist of five members as follows: the	698
executive director of the state board of proprietary school	699
registrationcareer colleges and schools, the executive director	700
of the Ohio council of privateassociation of career colleges and	701
schools, the treasurer of state or histhe treasurer of state's	702
designee, the chairmanchairperson of the senate committee that	703
primarily deals with education, and the chairmanchairperson of	704
the committee of the house of representatives that primarily deals	705
with education. The chairpersons of the legislative committees	706
that primarily deal with education shall be nonvoting ex officio	707
members. Each voting 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 voting members as chairman	711
chairperson and another as vice-chairmanvice-chairperson, and	712
shall appoint a secretary-treasurer who need not be a member of	713
the authority.	714

All meetings of the authority shall be public. All final	715
actions of the authority shall be journalized and such journal and	716
the records of the authority shall be open to public inspection at	717
all reasonable times.	718

Sec. 3332.082.  The state board of proprietary school	719
registrationcareer colleges and schools may pursue any lawful	720
means of assuring that students of any school registered by the	721
state board do not suffer prepaid tuition loss as a result of a	722
business failure or other defaultthe closure of a school. This	723
may include lawsuits against a school or any individual who may	724
reasonably have liability as a result of the default, in which the	725
attorney general shall advise and represent the board. Any student	726
seeking reimbursement for a prepaid tuition loss shall submit a	727
claim for reimbursement to the board not later than one year	728
following the school's closure.	729

On and after January 1, 1991, anyAny reimbursement for a	730
prepaid tuition loss or advance against a possible prepaid tuition	731
loss of a student, and any expenses reasonably incurred by the	732
board in its pursuit of any remedy, shall be paid from the student	733
tuition recovery fund created by section 3332.083 of the Revised	734
Code. ThisTuition loss does not include moneys held by a school	735
in escrow accounts for tuition or fees for future terms, as	736
uncommitted grants, loans, or Pell grant money. If the fund is	737
not of sufficient size to pay the students the full amount of	738
their prepaid fee, the studentsstudent tuition recovery authority	739
shall determine the percentage of the amount that will be paid.	740

Any money recovered from the defaulting school, any	741
individual with liability for the default, or the surety under a	742
bond provided under section 3332.08 of the Revised Code shall be	743
deposited into the fund.	744

Sec. 3332.083.  The student tuition recovery fund is created	745
in the custody of the treasurer of state, but not as a part of the	746
state treasury. All revenues received from payments recieved	747
received under section 3332.085 of the Revised Code from schools	748
registered by the state board of proprietary school registration	749
career colleges and schools and any other sources shall be	750
deposited into the fund. The treasurer of state shall invest any	751
portion of the fund not needed for immediate use in the same	752
manner as in the investment of state funds. All investment	753
earnings of the fund shall be credited to the fund. The treasurer	754
of state shall disburse money from the fund on order of the	755
chairmanchairperson of the student tuition recovery authority or	756
histhe chairperson's designee.	757

All moneys and other assets acquired by the authority shall	758
be held in trust to carry out its powers and duties and shall be	759
used and reused to provide for the services described in this	760
chapter.	761

Sec. 3332.085.  (A) Not later than the thirty-first day of	762
August in each year, each school registered by the state board of	763
proprietary school registrationcareer colleges and schools shall	764
pay into the student tuition recovery fund in the following	765
amounts:	766

(1) Schools initially registered or sold on or after July	767
28, 1989, for the first five payments $500;	768

(2) Any other school, according to its prior year's tuition	769
receipts:	770

Checks shall be made payable to the student tuition recovery	775
fund and sent to the executive director of the state board, who	776
shall promptly forward all such receipts to the treasurer of	777
state. Failure of a school to make a payment is cause for	778
cancellation of its certificate of registration.	779

(B) The student tuition recovery authority may impose a	780
special assessment on the schools in an amount up to the amount of	781
an annual contribution if the draw on the money exceeds the money	782
on hand.	783

(C) Once the fund has assets in excess of liabilities of	784
approximately one million dollars, the authority may:	785

(1) Reduce or eliminate the annual contributions, except on	786
institutions that are required to contribute to the fund for at	787
least a five-year period. The reduction in contributions to the	788
fund will be at the discretion of the authority but they will be	789
guided by the objective to maintain assets in excess of	790
liabilities of approximately one million dollars.	791

(2) Utilize moneys in excess of the assets required to be	792
maintained in the fund by division (C)(1) of this section for the	793
purposes of disseminating consumer information about proprietary	794
private career schools and maintaining student records from closed	795
schools.	796

Sec. 3332.09.  The state board of proprietary school	797
registrationcareer colleges and schools may limit, suspend,	798
revoke, or refuse to issue or renew a certificate of registration	799
or program authorization or may impose a penalty pursuant to	800
section 3332.091 of the Revised Code for any one or combination of	801
the following causes:	802

(A) Violation of any provision of sections 3332.01 to	803
3332.09 of the Revised Code, the board's minimum standards, or any	804
rule made by the board;	805

(B) Furnishing of false, misleading, deceptive, altered, or	806
incomplete information or documents to the board;	807

(C) The signing of an application or the holding of a	808
certificate of registration by a person who has pleaded guilty or	809
has been found guilty of a felony or has pleaded guilty or been	810
found guilty of a crime involving moral turpitude;	811

(D) The signing of an application or the holding of a	812
certificate of registration by a person who is addicted to the use	813
of any controlled substance, or who is found to be mentally	814
incompetent;	815

(E) Violation of any commitment made in an application for a	816
certificate of registration or program authorization;	817

(F) Presenting to prospective students, either at the time	818
of solicitation or enrollment, or through advertising, mail	819
circulars, or phone solicitation, misleading, deceptive, false, or	820
fraudulent information relating to any program, employment	821
opportunity, or opportunities for enrollment in accredited	822
institutions of higher education after entering or completing	823
programs offered by the holder of a certificate of registration;	824

(G) Failure to provide or maintain premises or equipment for	825
offering programs in a safe and sanitary condition;	826

(H) Refusal by an agent to display the agent's permit upon	827
demand of a prospective student or other interested person;	828

(I) Failure to maintain financial resources adequate for the	829
satisfactory conduct of programs as presented in the plan of	830
operation or to retain a sufficient number and qualified staff of	831
instruction, except that nothing in this chapter requires an	832
instructor to be licensed by the state board of education or to	833
hold any type of post-high school degree;	834

(J) Offering training or programs other than those presented	835
in the application, except that schools may offer special courses	836
adapted to the needs of individual students when the special	837
courses are in the subject field specified in the application;	838

(K) Discrimination in the acceptance of students upon the	839
basis of race, color, religion, sex, or national origin;	840

(L) Accepting the services of an agent not holding a valid	841
permit issued under section 3332.10 or 3332.11 of the Revised	842
Code;	843

(M) The use of monetary or other valuable consideration by	844
the school's agents or representatives to induce prospective	845
students to enroll in the school, or the practice of awarding	846
monetary or other valuable considerations without board approval	847
to students in exchange for procuring the enrollment of others;	848

(N) Failure to provide at the request of the board, any	849
information, records, or files pertaining to the operation of the	850
school or recruitment and enrollment of students.	851

If the board modifies or adopts additional minimum standards	852
or rules pursuant to section 3332.031 of the Revised Code, all	853
schools and agents shall have sixty days from the effective date	854
of the modifications or additional standards or rules to comply	855
with such modifications or additions.	856

Sec. 3332.091.  (A)(1) Any person adversely affected by the	857
actions of a certificate holder may file a complaint with the	858
state board of proprietary school registrationcareer colleges and	859
schools alleging that any school registered with the board has	860
violated any provision of section 3332.09 of the Revised Code. The	861
complaint shall be in writing and signed by the complainant and	862
shall be filed with the board within six months after the	863
violations allegedly were committed. Upon receiving a complaint,	864
the board shall initiate a preliminary investigation to determine	865
whether it is probable that violations were committed. If the	866
board determines after preliminary investigation that it is not	867
probable that any violations were committed, it shall notify the	868
person who filed the complaint that it has so determined and that	869
it will not issue a formal complaint in the matter.	870

If the board determines after a preliminary investigation	871
that it is probable that violations were committed, it may issue a	872
formal complaint under division (A)(2) of this section or it may	873
endeavor to eliminate such practices by informal methods of	874
conference, conciliation, and persuasion. Nothing said or done	875
during these endeavors shall be disclosed by any member of the	876
board or its staff or be used as evidence in any subsequent	877
proceedings. If, after such investigation and conference, the	878
board is satisfied that such violations will be eliminated, it may	879
treat the complaint as conciliated, and entry of such disposition	880
shall be made in the records of the board.	881

(2) If as a result of any informal methods utilized under	882
division (A)(1) of this section, the board fails to effect the	883
elimination of violations or fails to obtain voluntary compliance	884
with this chapter, the board shall issue a formal complaint to the	885
holder of a certificate of registration of the school under	886
investigation. The formal complaint shall state the charges	887
against the school and requiregrant the certificate holder the	888
opportunity to appear before the board at a public hearing	889
pursuant to Chapter 119. of the Revised Code. The board shall	890
hold the public hearing not sooner than thirty days after issuance	891
of the formal complaint. Any formal complaint issued pursuant to	892
this section must be issued within one year after the state	893
board's receipt of a complaint from a person adversely affected by	894
the actions of a certificate holder.	895

If at the time of issuing a formal complaint, the board has	896
reasonable cause to believe that the violations that are the	897
subject of the complaint will continue and constitute an immediate	898
threat to the welfare of current and prospective students, the	899
board, for a period not to exceed the lesser of ninety days or the	900
period of time until a final adjudication order dismissing the	901
complaint or imposing a penalty is issued under this section, may:	902

(a) Issue an order prohibiting the school's agents from	903
personally contacting students;	904

(b) Issue an order prohibiting the school from using any	905
advertising, recruiting, or promotional materials unless such	906
materials have been approved by the board. The board must approve	907
or disapprove any materials submitted to it under such an order	908
within thirty days of their receipt.	909

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

910

If, after a public hearing, the board determines that the	911
holder of a certificate of registration has violated any provision	912
of section 3332.09 of the Revised Code, the board shall issue a	913
final adjudication order levying a civil penalty pursuant to	914
division (B) of this section or limiting, suspending, or revoking	915
the certificate of registration or program authorization or any	916
combination thereof. The board may impose additional penalties	917
including but not necessarily limited to curtailment of	918
advertising, and discontinuation of enrollment of students in	919
specific programs. Upon suspension or revocation, the board	920
immediately shall also issue an order pursuant to Chapter 119. of	921
the Revised Code requiring such person immediately to cease all	922
sales, advertising, and enrollment activities.	923

(B) Pursuant to division (A) of this section, the board may	924
impose a civil penalty of not less than one thousand nor more than	925
three thousand five hundred dollars for each violation of section	926
3332.09 of the Revised Code, but not to exceed an aggregate	927
penalty of thirty-five thousand dollars in any six-month period.	928

(C) The board shall prepare an annual report that documents	929
the disposition of all complaints, their status, board action, and	930
the elapsed time from the initial filing of the complaint until	931
final resolution. The report shall be made available to anyone	932
upon request.	933

(D) The board may, upon its own initiative and independent	934
of the filing of any complaints, conduct a preliminary	935
investigation relating to any possible violations of section	936
3332.09 of the Revised Code.	937

At any time while a school is in session, the board or its	938
designee may conduct on-site inspections and reviews of a school	939
and its courses of instruction. The board shall conduct such	940
visits and reviews, including visits without prior notice to the	941
schools, as necessary to ensure compliance with this chapter.	942

All books, records, and files of a school shall be open for	943
inspection by the board, its designees, or staff during on-site	944
inspections, or whenever requested by the board for the purpose of	945
ensuring compliance with the provisions of this chapter.	946

For the purpose of conducting any investigation, inspection,	947
or review, the board may administer oaths, take the testimony of	948
any person under oath, issue subpoenas, compel the attendance of	949
witnesses, or require the production for examination of any books	950
and papers relating to any matter under investigation or in	951
question before the board.	952

(E) During the course of any investigation under division	953
(A) or (D) of this section, the board shall refer all possible	954
violations of Chapter 1345. of the Revised Code to the attorney	955
general.	956

Sec. 3332.092.  Any school subject to this chapter receiving	957
money under section 3333.12 of the Revised Code on behalf of a	958
student who is determined by the state board of proprietary school	959
registrationcareer colleges and schools to be ineligible under	960
such section because the program in which hethe student is	961
enrolled does not lead to an associate or baccalaureate degree,	962
shall be liable to the state for the amount specified in section	963
3333.12 of the Revised Code. The state board of proprietary	964
school registrationcareer colleges and schools shall suspend the	965
certificate of registration of a school receiving money under	966
section 3333.12 of the Revised Code for such ineligible student	967
until such time as the money is repaid to the Ohio board of	968
regents.	969

Sec. 3332.10.  (A) No individual shall sell any program or	970
solicit students therefor in this state unless hethe individual	971
is an employee of the school. Any individual whose primary duty,	972
whether on or off school premises, is to solicit prospective	973
students shall first secure a permit as an agent from the state	974
board of proprietary school registrationcareer colleges and	975
schools. If the agent represents more than one school, a separate	976
permit shall be obtained for each school represented by himthe	977
agent. An agent who represents a person that operates more than	978
one school in the same geographical area, as determined by the	979
board, need not obtain a separate permit for each such school.	980
Upon approval for a permit, the board shall issue a pocket card to	981
the individual, giving histhe individual's name, address, permit	982
number, and the name and address of histhe employing school, and	983
certifying that the individual whose name appears on the card is	984
an authorized agent of the school.	985

(B) The application for a permit shall be made on forms to	986
be furnished by the board and accompanied by the fee established	987
in accordance with section 3332.07 of the Revised Code and a	988
surety bond acceptable to the board in the penal sum of one	989
thousand dollars. A permit shall be renewed every twelve months	990
and shall be valid for up to thirty days after its expiration	991
date. The surety bond may be continuous and shall be conditioned	992
to provide indemnification to any student suffering loss as a	993
result of any fraud or misrepresentation used in procuring his	994
enrollment, and may be supplied by an agent of a school or by the	995
school itself as a blanket bond covering all of its agents in the	996
amount of one thousand dollars for each agent. The liability of	997
the surety on such bond for each agent covered shall not exceed	998
the sum of one thousand dollars as an aggregate for all students	999
for all breaches of the conditions of the bond by such agents. The	1000
surety of any such bond may cancel the same upon giving thirty	1001
days' notice in writing to the board and is relieved of liability	1002
for any breach of condition occurring after the effective date of	1003
the cancellation. An application for renewal shall be accompanied	1004
by the fee established in accordance with section 3332.07 of the	1005
Revised Code and a surety bond as provided in this section, if a	1006
continuous bond has not been furnished.	1007

(C) Each school subject to this chapter shall assume full	1008
responsibility for the actions, statements, and conduct of its	1009
agents, and shall provide them with adequate training and arrange	1010
for proper supervision of their work. The board shall hold	1011
schools liable for the actions, statements, and conduct of agents	1012
that violate any provision of this chapter, unless an agent's acts	1013
or omissions were manifestly outside the scope of histhe agent's	1014
employment or official responsibilities.	1015

Sec. 3332.11.  Any agent's permit applied for pursuant to	1016
section 3332.10 of the Revised Code shall be granted or denied	1017
within thirty days of the receipt of the application by the state	1018
board of proprietary school registrationcareer colleges and	1019
schools. If the board has not completed its determination with	1020
respect to the issuance of a permit within such thirty-day period,	1021
it shall issue a temporary permit to the applicant, which permit	1022
is sufficient to meet the requirements of section 3332.10 of the	1023
Revised Code until such time as such determination is made.	1024

No permit shall be issued to any person found by the board	1025
not to be of good moral character.	1026

Sec. 3332.12.  Any agent's permit issued may be suspended or	1027
revoked by the state board of proprietary school registration	1028
career colleges and schools if the holder of the permit solicits	1029
or enrolls students through fraud, deception, or	1030
misrepresentation, upon a finding that the permit holder has	1031
violated any provision enumerated in division (A), (B), (F), (H),	1032
(J), (K), or (M) of section 3332.09 of the Revised Code, or upon	1033
finding that the permit holder is not of good moral character.	1034

Upon receipt of any written complaint from any person, the	1035
board shall conduct a preliminary investigation. If after such	1036
investigation or if as a result of any investigation conducted	1037
under division (A) or (D) of section 3332.091 of the Revised Code,	1038
the board determines it is probable violations were committed, the	1039
board shall hold informal conferences in the same manner as	1040
provided in section 3332.091 of the Revised Code with an agent	1041
believed to be in violation of one or more of the above	1042
conditions. If after sixty days these conferences fail to	1043
eliminate the agent's objectionable practices or procedures, the	1044
board shall issue a formal complaint to the agent and the school	1045
that employs the agent. The formal complaint shall state the	1046
charges against the agent and the holder of the certificate	1047
certificate of registration of the school and shall require them	1048
to appear before the board at a public hearing pursuant to Chapter	1049
119. of the Revised Code. If, after the public hearing, the board	1050
determines that an agent has violated one or more of the	1051
provisions described above, the board shall suspend or revoke the	1052
agent's permit.	1053

If after such hearing the board also determines that the	1054
school at which the agent was employed was negligent in its	1055
supervision of the agent or encouraged or caused the commission of	1056
the violations, the board shall levy penalties against such school	1057
in accordance with division (A) of section 3332.091 of the Revised	1058
Code. Nothing said or done in the informal conferences shall be	1059
disclosed by the board or any member of its staff nor be used as	1060
evidence in any subsequent proceedings.	1061

Sec. 3332.13.  The fact that a bond is in force pursuant to	1062
section 3332.103332.08 of the Revised Code does not limit nor	1063
impair any right of recovery otherwise available pursuant to law,	1064
nor is the amount of such bond relevant in determining the amount	1065
of damages or other relief to which any plaintiff may be entitled.	1066

Sec. 3332.18.  On receipt of a notice pursuant to section	1067
3123.43 of the Revised Code, the state board of proprietary school	1068
registrationcareer colleges and schools shall comply with	1069
sections 3123.41 to 3123.50 of the Revised Code and any applicable	1070
rules adopted under section 3123.63 of the Revised Code with	1071
respect to a permit issued pursuant to this chapter.	1072

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

1073

(1) "Institution of higher education" means the state	1074
universities listed in section 3345.011 of the Revised Code,	1075
municipal educational institutions established under Chapter 3349.	1076
of the Revised Code, community colleges established under Chapter	1077
3354. of the Revised Code, university branches established under	1078
Chapter 3355. of the Revised Code, technical colleges established	1079
under Chapter 3357. of the Revised Code, state community colleges	1080
established under Chapter 3358. of the Revised Code, any	1081
institution of higher education with a certificate of registration	1082
from the state board of proprietary school registrationcareer	1083
colleges and schools, and any institution for which the Ohio board	1084
of regents receives a notice pursuant to division (C) of this	1085
section.	1086

(2) "Community service" has the same meaning as in section	1087
3313.605 of the Revised Code.	1088

(B)(1) The board of trustees or other governing entity of	1089
each institution of higher education shall encourage and promote	1090
participation of students in community service through a program	1091
appropriate to the mission, student population, and environment of	1092
each institution. The program may include, but not be limited to,	1093
providing information about community service opportunities during	1094
student orientation or in student publications; providing awards	1095
for exemplary community service; encouraging faculty members to	1096
incorporate community service into students' academic experiences	1097
wherever appropriate to the curriculum; encouraging recognized	1098
student organizations to undertake community service projects as	1099
part of their purposes; and establishing advisory committees of	1100
students, faculty members, and community and business leaders to	1101
develop cooperative programs that benefit the community and	1102
enhance student experience. The program shall be flexible in	1103
design so as to permit participation by the greatest possible	1104
number of students, including part-time students and students for	1105
whom participation may be difficult due to financial, academic,	1106
personal, or other considerations. The program shall emphasize	1107
community service opportunities that can most effectively use the	1108
skills of students, such as tutoring or literacy programs. The	1109
programs shall encourage students to perform services that will	1110
not supplant the hiring of, result in the displacement of, or	1111
impair any existing employment contracts of any particular	1112
employee of any private or governmental entity for which services	1113
are performed.	1114

(2) The Ohio board of regents shall encourage all	1115
institutions of higher education in the development of community	1116
service programs. With the assistance of the Ohio community	1117
service council created in section 121.40 of the Revised Code,	1118
the board of regents shall make available information about higher	1119
education community service programs to institutions of higher	1120
education and to statewide organizations involved with or	1121
promoting volunteerism, including information about model	1122
community service programs, teacher training courses, and	1123
community service curricula and teaching materials for possible	1124
use by institutions of higher education in their programs. The	1125
board shall encourage institutions of higher education to jointly	1126
coordinate higher education community service programs through	1127
consortia of institutions or other appropriate means of	1128
coordination.	1129

(C) The board of trustees of any nonprofit institution with	1130
a certificate of authorization issued by the Ohio board of regents	1131
pursuant to Chapter 1713. of the Revised Code or the governing	1132
authority of a private institution exempt from regulation under	1133
Chapter 3332. of the Revised Code as prescribed in section	1134
3333.046 of the Revised Code may notify the board of regents that	1135
it is making itself subject to divisions (A) and (B) of this	1136
section. Upon receipt of such a notice, these divisions shall	1137
apply to that institution.	1138

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

1139

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

1140

(a) An Ohio resident;

1141

(b) Enrolled in either of the following:

1142

(i) An accredited institution of higher education in this	1143
state that meets the requirements of Title VI of the Civil Rights	1144
Act of 1964 and is state-assisted, is nonprofit and has a	1145
certificate of authorization from the Ohio board of regents	1146
pursuant to Chapter 1713. of the Revised Code, has a certificate	1147
of registration from the state board of proprietary school	1148
registrationcareer colleges and schools and program authorization	1149
to award an associate or bachelor's degree, or is a private	1150
institution exempt from regulation under Chapter 3332. of the	1151
Revised Code as prescribed in section 3333.046 of the Revised	1152
Code. Students who attend an institution that holds a certificate	1153
of registration shall be enrolled in a program leading to an	1154
associate or bachelor's degree for which associate or bachelor's	1155
degree program the institution has program authorization issued	1156
under section 3332.05 of the Revised Code.	1157

(ii) A technical education program of at least two years	1158
duration sponsored by a private institution of higher education in	1159
this state that meets the requirements of Title VI of the Civil	1160
Rights Act of 1964.	1161

(c) Enrolled as a full-time student or enrolled as a less	1162
than full-time student for the term expected to be the student's	1163
final term of enrollment and is enrolled for the number of credit	1164
hours necessary to complete the requirements of the program in	1165
which the student is enrolled.	1166

(2) "Gross income" includes all taxable and nontaxable income	1167
of the parents, the student, and the student's spouse, except	1168
income derived from an Ohio academic scholarship, income earned by	1169
the student between the last day of the spring term and the first	1170
day of the fall term, and other income exclusions designated by	1171
the board. Gross income may be verified to the board by the	1172
institution in which the student is enrolled using the federal	1173
financial aid eligibility verification process or by other means	1174
satisfactory to the board.	1175

(3) "Resident," "full-time student," "dependent,"	1176
"financially independent," and "accredited" shall be defined by	1177
rules adopted by the board.	1178

(B) The Ohio board of regents shall establish and administer	1179
an instructional grant program and may adopt rules to carry out	1180
this section. The general assembly shall support the	1181
instructional grant program by such sums and in such manner as it	1182
may provide, but the board may also receive funds from other	1183
sources to support the program. If the amounts available for	1184
support of the program are inadequate to provide grants to all	1185
eligible students, preference in the payment of grants shall be	1186
given in terms of income, beginning with the lowest income	1187
category of gross income and proceeding upward by category to the	1188
highest gross income category.	1189

An instructional grant shall be paid to an eligible student	1190
through the institution in which the student is enrolled, except	1191
that no instructional grant shall be paid to any person serving a	1192
term of imprisonment. Applications for such grants shall be made	1193
as prescribed by the board, and such applications may be made in	1194
conjunction with and upon the basis of information provided in	1195
conjunction with student assistance programs funded by agencies of	1196
the United States government or from financial resources of the	1197
institution of higher education. The institution shall certify	1198
that the student applicant meets the requirements set forth in	1199
divisions (A)(1)(b) and (c) of this section. Instructional grants	1200
shall be provided to an eligible student only as long as the	1201
student is making appropriate progress toward a nursing diploma or	1202
an associate or bachelor's degree. No student shall be eligible	1203
to receive a grant for more than ten semesters, fifteen quarters,	1204
or the equivalent of five academic years. A grant made to an	1205
eligible student on the basis of less than full-time enrollment	1206
shall be based on the number of credit hours for which the student	1207
is enrolled and shall be computed in accordance with a formula	1208
adopted by the board. No student shall receive more than one	1209
grant on the basis of less than full-time enrollment.	1210

An instructional grant shall not exceed the total	1211
instructional and general charges of the institution.	1212

(C) The tables in this division prescribe the maximum grant	1213
amounts covering two semesters, three quarters, or a comparable	1214
portion of one academic year. Grant amounts for additional terms	1215
in the same academic year shall be determined under division (D)	1216
of this section.	1217

For a full-time student who is a dependent and enrolled in a	1218
nonprofit educational institution that is not a state-assisted	1219
institution and that has a certificate of authorization issued	1220
pursuant to Chapter 1713. of the Revised Code, the amount of the	1221
instructional grant for two semesters, three quarters, or a	1222
comparable portion of the academic year shall be determined in	1223
accordance with the following table:	1224

Private Institution

1226

Table of Grants

1227

For a full-time student who is financially independent and	1248
enrolled in a nonprofit educational institution that is not a	1249
state-assisted institution and that has a certificate of	1250
authorization issued pursuant to Chapter 1713. of the Revised	1251
Code, the amount of the instructional grant for two semesters,	1252
three quarters, or a comparable portion of the academic year shall	1253
be determined in accordance with the following table:	1254

Private Institution

1256

Table of Grants

1257

For a full-time student who is a dependent and enrolled in an	1279
educational institution that holds a certificate of registration	1280
from the state board of proprietary school registrationcareer	1281
colleges and schools or a private institution exempt from	1282
regulation under Chapter 3332. of the Revised Code as prescribed	1283
in section 3333.046 of the Revised Code, the amount of the	1284
instructional grant for two semesters, three quarters, or a	1285
comparable portion of the academic year shall be determined in	1286
accordance with the following table:	1287

Proprietary Career Institution

1288

Table of Grants

1289

For a full-time student who is financially independent and	1310
enrolled in an educational institution that holds a certificate of	1311
registration from the state board of proprietary school	1312
registrationcareer colleges and schools or a private institution	1313
exempt from regulation under Chapter 3332. of the Revised Code as	1314
prescribed in section 3333.046 of the Revised Code, the amount of	1315
the instructional grant for two semesters, three quarters, or a	1316
comparable portion of the academic year shall be determined in	1317
accordance with the following table:	1318

Proprietary Career Institution

1319

Table of Grants

1320

For a full-time student who is a dependent and enrolled in a	1342
state-assisted educational institution, the amount of the	1343
instructional grant for two semesters, three quarters, or a	1344
comparable portion of the academic year shall be determined in	1345
accordance with the following table:	1346

Public Institution

1347

Table of Grants

1348

For a full-time student who is financially independent and	1369
enrolled in a state-assisted educational institution, the amount	1370
of the instructional grant for two semesters, three quarters, or a	1371
comparable portion of the academic year shall be determined in	1372
accordance with the following table:	1373

Public Institution

1374

Table of Grants

1375

(D) For a full-time student enrolled in an eligible	1397
institution for a semester or quarter in addition to the portion	1398
of the academic year covered by a grant determined under division	1399
(C) of this section, the maximum grant amount shall be a	1400
percentage of the maximum prescribed in the applicable table of	1401
that division. The maximum grant for a fourth quarter shall be	1402
one-third of the maximum amount prescribed under that division.	1403
The maximum grant for a third semester shall be one-half of the	1404
maximum amount prescribed under that division.	1405

(E) No grant shall be made to any student in a course of	1406
study in theology, religion, or other field of preparation for a	1407
religious profession unless such course of study leads to an	1408
accredited bachelor of arts, bachelor of science, associate of	1409
arts, or associate of science degree.	1410

(F)(1) Except as provided in division (F)(2) of this	1411
section, no grant shall be made to any student for enrollment	1412
during a fiscal year in an institution with a cohort default rate	1413
determined by the United States secretary of education pursuant to	1414
the "Higher Education Amendments of 1986," 100 Stat. 1278, 1408,	1415
20 U.S.C.A. 1085, as amended, as of the fifteenth day of June	1416
preceding the fiscal year, equal to or greater than thirty per	1417
cent for each of the preceding two fiscal years.	1418

(2) Division (F)(1) of this section does not apply to the	1419
following:	1420

(a) Any student enrolled in an institution that under the	1421
federal law appeals its loss of eligibility for federal financial	1422
aid and the United States secretary of education determines its	1423
cohort default rate after recalculation is lower than the rate	1424
specified in division (F)(1) of this section or the secretary	1425
determines due to mitigating circumstances the institution may	1426
continue to participate in federal financial aid programs. The	1427
board shall adopt rules requiring institutions to provide	1428
information regarding an appeal to the board.	1429

(b) Any student who has previously received a grant under	1430
this section who meets all other requirements of this section.	1431

(3) The board shall adopt rules for the notification of all	1432
institutions whose students will be ineligible to participate in	1433
the grant program pursuant to division (F)(1) of this section.	1434

(4) A student's attendance at an institution whose students	1435
lose eligibility for grants under division (F)(1) of this section	1436
shall not affect that student's eligibility to receive a grant	1437
when enrolled in another institution.	1438

(G) Institutions of higher education that enroll students	1439
receiving instructional grants under this section shall report to	1440
the board all students who have received instructional grants but	1441
are no longer eligible for all or part of such grants and shall	1442
refund any moneys due the state within thirty days after the	1443
beginning of the quarter or term immediately following the quarter	1444
or term in which the student was no longer eligible to receive all	1445
or part of the student's grant. There shall be an interest charge	1446
of one per cent per month on all moneys due and payable after such	1447
thirty-day period. The board shall immediately notify the office	1448
of budget and management and the legislative service commission	1449
of all refunds so received.	1450

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

1451

(1) "Resident" has the meaning established for purposes of	1452
this section by rule of the Ohio board of regents.	1453

(2) "Eligible institution" means either:

1454

(a) A private career school registered in accordance with	1455
section 3332.05 of the Revised Code;	1456

(b) A private institution exempt from regulation under	1457
Chapter 3332. of the Revised Code as prescribed in section	1458
3333.046 of the Revised Code.	1459

(B) Beginning July 1, 2000, theThe Ohio board of regents	1460
shall establish and administer the student workforce development	1461
grant program and shall adopt rules for the administration of the	1462
program. Such rules shall be similar to the rules the Ohio board	1463
of regents adopts under section 3333.27 of the Revised Code.	1464

(C) The Ohio board of regents may make a grant to any	1465
resident of this state who is enrolled as a full-time student in	1466
an authorized baccalaureate degree or associate degree program at	1467
an eligible institution and who maintains an academic record that	1468
meets or exceeds a standard established by rule of the state board	1469
of proprietary school registration, except that no grant shall be	1470
made to any individual who was enrolled as a student in an	1471
eligible institution before July 1, 2000career colleges and	1472
schools. The size of an annual grant award shall be determined by	1473
the Ohio board of regents based on the amount of funds available	1474
for the program. The grant shall be prorated and paid in equal	1475
installments per academic term in accordance with division (E) of	1476
this section.	1477

(D) The Ohio board of regents shall prescribe the form and	1478
manner of application for grants and shall provide a method for	1479
eligible institutions to certify applicants who are enrolled in	1480
authorized baccalaureate degree or associate degree programs and	1481
have academic records meeting or exceeding the standard	1482
established by the state board of proprietary school registration	1483
career colleges and schools.	1484

(E) A grant awarded to an eligible student shall be paid to	1485
the eligible institution in which the student is enrolled, and	1486
the institution shall reduce the student's instructional and	1487
general charges by the amount of the grant. Each grant awarded	1488
shall be paid in accordance with division (C) of this section	1489
within thirty days after the start of each term of the academic	1490
year for which the grant is awarded. No student shall be eligible	1491
to receive grants for more than the equivalent of five academic	1492
years.	1493

(F) The receipt of a workforce development grant shall not	1494
affect a student's eligibility for assistance or the amount of	1495
such assistance granted under any other provision of state law. If	1496
a student receives assistance under one or more other provisions	1497
of state law, the grant made to the student under this section	1498
shall not exceed the difference between the total instructional	1499
and general charges assessed to the student by the eligible	1500
institution and the amount of total assistance the student	1501
receives under other provisions of state law.	1502

(G) The general assembly shall support the workforce	1503
development grant program with such appropriations as the general	1504
assembly sees fit. The Ohio board of regents may also receive	1505
funds from other sources to support the program.	1506

(H) Eligible institutions that enroll students receiving	1507
grants under this section shall report to the Ohio board of	1508
regents the name of each student who has received such a grant but	1509
who is no longer eligible for such a grant. In the event that an	1510
eligible student who has been awarded a grant under this section	1511
withdraws from enrollment at an institution during any term, the	1512
institution shall refund a prorated amount of the student's grant	1513
for that term to the Ohio board of regents in accordance with the	1514
school's refund policy.	1515

(I) Beginning July 1, 2000, theThe state board of	1516
proprietary school registrationcareer colleges and schools shall	1517
report to the Ohio board of regents each degree granting	1518
proprietaryprivate career school's job placement rate for the	1519
immediately preceding academic year. No grant awarded to an	1520
eligible student under this section shall be paid to a registered	1521
private career school if the school's job placement rate for	1522
baccalaureate degree and associate degree programs for the	1523
preceding academic year was less than seventy-five per cent.	1524

Sec. 3334.01.  As used in this chapter:

1525

(A) "Aggregate original principal amount" means the	1526
aggregate of the initial offering prices to the public of college	1527
savings bonds, exclusive of accrued interest, if any. "Aggregate	1528
original principal amount" does not mean the aggregate accreted	1529
amount payable at maturity or redemption of such bonds.	1530

(B) "Beneficiary" means:

1531

(1) An individual designated by the purchaser under a	1532
tuition payment contract or through a scholarship program as the	1533
individual on whose behalf tuition credits purchased under the	1534
contract or awarded through the scholarship program will be	1535
applied toward the payment of undergraduate, graduate, or	1536
professional tuition; or	1537

(2) An individual designated by the contributor under a	1538
variable college savings program contract as the individual whose	1539
tuition and other higher education expenses will be paid from a	1540
variable college savings program account.	1541

(C) "Capital appreciation bond" means a bond for which the	1542
following is true:	1543

(1) The principal amount is less than the amount payable at	1544
maturity or early redemption; and	1545

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

1546

(D) "Tuition credit" means a credit of the Ohio tuition	1547
trust authority purchased under section 3334.09 of the Revised	1548
Code.	1549

(E) "College savings bonds" means revenue and other	1550
obligations issued on behalf of the state or any agency or issuing	1551
authority thereof as a zero-coupon or capital appreciation bond,	1552
and designated as college savings bonds as provided in this	1553
chapter. "College savings bond issue" means any issue of bonds of	1554
which any part has been designated as college savings bonds.	1555

(F) "Institution of higher education" means a state	1556
institution of higher education, a private college, university, or	1557
other postsecondary institution located in this state that	1558
possesses a certificate of authorization issued by the Ohio board	1559
of regents pursuant to Chapter 1713. of the Revised Code or a	1560
certificate of registration issued by the state board of	1561
proprietary school registrationcareer colleges and schools under	1562
Chapter 3332. of the Revised Code, or an accredited college,	1563
university, or other postsecondary institution located outside	1564
this state that is accredited by an accrediting organization or	1565
professional association recognized by the authority. To be	1566
considered an institution of higher education, an institution	1567
shall meet the definition of an eligible educational institution	1568
under section 529 of the Internal Revenue Code.	1569

(G) "Issuing authority" means any authority, commission,	1570
body, agency, or individual empowered by the Ohio Constitution or	1571
the Revised Code to issue bonds or any other debt obligation of	1572
the state or any agency or department thereof. "Issuer" means the	1573
issuing authority or, if so designated under division (B) of	1574
section 3334.04 of the Revised Code, the treasurer of state.	1575

(H) "Tuition" means the charges imposed to attend an	1576
institution of higher education as an undergraduate, graduate, or	1577
professional student and all fees required as a condition of	1578
enrollment, as determined by the Ohio tuition trust authority.	1579
"Tuition" does not include laboratory fees, room and board, or	1580
other similar fees and charges.	1581

(I) "Weighted average tuition" means the tuition cost	1582
resulting from the following calculation:	1583

(1) Add the products of the annual undergraduate tuition	1584
charged to Ohio residents at each four-year state university	1585
multiplied by that institution's total number of undergraduate	1586
fiscal year equated students; and	1587

(2) Divide the gross total of the products from division	1588
(I)(1) of this section by the total number of undergraduate fiscal	1589
year equated students attending four-year state universities.	1590

(J) "Zero-coupon bond" means a bond which has a stated	1591
interest rate of zero per cent and on which no interest is payable	1592
until the maturity or early redemption of the bond, and is offered	1593
at a substantial discount from its original stated principal	1594
amount.	1595

(K) "State institution of higher education" includes the	1596
state universities listed in section 3345.011 of the Revised Code,	1597
community colleges created pursuant to Chapter 3354. of the	1598
Revised Code, university branches created pursuant to Chapter	1599
3355. of the Revised Code, technical colleges created pursuant to	1600
Chapter 3357. of the Revised Code, state community colleges	1601
created pursuant to Chapter 3358. of the Revised Code, the medical	1602
college of Ohio at Toledo, and the northeastern Ohio universities	1603
college of medicine.	1604

(L) "Four-year state university" means those state	1605
universities listed in section 3345.011 of the Revised Code.	1606

(M) "Principal amount" refers to the initial offering price	1607
to the public of an obligation, exclusive of the accrued interest,	1608
if any. "Principal amount" does not refer to the aggregate	1609
accreted amount payable at maturity or redemption of an	1610
obligation.	1611

(N) "Scholarship program" means a program registered with	1612
the Ohio tuition trust authority pursuant to section 3334.17 of	1613
the Revised Code.	1614

(O) "Internal Revenue Code" means the "Internal Revenue Code	1615
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1 et seq., as amended.	1616

(P) "Other higher education expenses" means room and board	1617
and books, supplies, equipment, and nontuition-related fees	1618
associated with the cost of attendance of a beneficiary at an	1619
institution of higher education, but only to the extent that such	1620
expenses meet the definition of "qualified higher education	1621
expenses" under section 529 of the Internal Revenue Code. "Other	1622
higher education expenses" does not include tuition as defined in	1623
division (H) of this section.	1624

(Q) "Purchaser" means the person signing the tuition payment	1625
contract, who controls the account and acquires tuition credits	1626
for an account under the terms and conditions of the contract.	1627

(R) "Contributor" means a person who signs a variable	1628
college savings program contract with the Ohio tuition trust	1629
authority and contributes to and owns the account created under	1630
the contract.	1631

Sec. 3365.01.  As used in sections 3365.01 to 3365.10 of the	1632
Revised Code:	1633

(A) "College" means any state-assisted college or university	1634
described in section 3333.041 of the Revised Code, any nonprofit	1635
institution holding a certificate of authorization pursuant to	1636
Chapter 1713. of the Revised Code, any private institution exempt	1637
from regulation under Chapter 3332. of the Revised Code as	1638
prescribed in section 3333.046 of the Revised Code, and any	1639
institution holding a certificate of registration from the state	1640
board of proprietary school registrationcareer colleges and	1641
schools and program authorization for an associate or bachelor's	1642
degree program issued under section 3332.05 of the Revised Code.	1643

(B) "School district," except as specified in division (G)	1644
of this section, means any school district to which a student is	1645
admitted under section 3313.64, 3313.65, 3313.98, or 3317.08 of	1646
the Revised Code and does not include a joint vocational or	1647
cooperative education school district.	1648

(C) "Parent" has the same meaning as in section 3313.64 of	1649
the Revised Code.	1650

(D) "Participant" means a student enrolled in a college	1651
under the post-secondary enrollment options program established by	1652
this chapter.	1653

(E) "Secondary grade" means the ninth through twelfth	1654
grades.	1655

(F) "School foundation payments" means the amount required	1656
to be paid to a school district for a fiscal year under Chapter	1657
3317. of the Revised Code.	1658

(G) "Tuition base" means, with respect to a participant's	1659
school district, the formula amount defined in division (B) of	1660
section 3317.02 of the Revised Code multiplied by the district's	1661
cost-of-doing-business factor defined in division (N) of section	1662
3317.02 of the Revised Code. The participant's "school district"	1663
in the case of a participant enrolled in a community school shall	1664
be the school district in which the student is entitled to attend	1665
school under section 3313.64 or 3313.65 of the Revised Code.	1666

(H) "Educational program" means enrollment in one or more	1667
school districts, in a nonpublic school, or in a college under	1668
division (B) of section 3365.04 of the Revised Code.	1669

(I) "Nonpublic school" means a chartered or nonchartered	1670
school for which minimum standards are prescribed by the state	1671
board of education pursuant to division (D) of section 3301.07 of	1672
the Revised Code.	1673

(J) "School year" means the year beginning on the first day	1674
of July and ending on the thirtieth day of June.	1675

(K) "Community school" means any school established pursuant	1676
to Chapter 3314. of the Revised Code that includes secondary	1677
grades.	1678

(L) "Community school payments" means payments made by the	1679
department of education to a community school pursuant to division	1680
(D) of section 3314.08 of the Revised Code.	1681

Sec. 3365.15.  This section does not apply to students	1682
enrolled in twelfth grade after July 1, 2001.	1683

No later than July 1, 1999, the board of regents shall adopt	1684
rules under which it shall award at least a five-hundred dollar	1685
scholarship to each student who both:	1686

(A) After July 1, 1998, and while the student attends	1687
twelfth grade, attains on all five tests at least the scores	1688
designated under former division (A)(3) of section 3301.0710 of	1689
the Revised Code;	1690

(B) Submits to the board of regents, in the form and manner	1691
and by any deadline prescribed by the rules, evidence of having	1692
enrolled in a state-assisted college or university, a nonprofit	1693
institution holding a certificate of authorization pursuant to	1694
Chapter 1713. of the Revised Code, or an institution registered by	1695
the state board of proprietary school registrationcareer colleges	1696
and schools that has program authorization to award an associate	1697
or bachelor's degree.	1698

The board of regents shall pay each scholarship awarded under	1699
this section to the student. It may be used to defray any	1700
educational expenses.	1701

Sec. 4742.05.  (A) A proprietarycareer school that holds a	1702
valid certificate of registration from the state board of	1703
proprietary school registrationcareer colleges and schools may	1704
apply to the state board of education for certification of a basic	1705
course of emergency service telecommunicator training or of	1706
continuing education coursework in emergency service	1707
telecommunicator training. The state board of education shall	1708
prescribe the form of the application.	1709

(B) Upon receipt of an application, the state board of	1710
education shall review it and consider whether the proposed course	1711
or coursework meets the requirements of division (A) or (B) of	1712
section 4742.03 of the Revised Code concerning course length and	1713
content. If the proposed course or coursework meets those	1714
requirements, the state board of education shall issue a	1715
certification of that fact to the proprietarycareer school.	1716
Inclusion of on-site verifiable electronic training as part of a	1717
proposed basic or continuing education course shall not be a	1718
reason for the state board to deny certification.	1719

(C) If, after receiving a certification from the state board	1720
of education under this section, the proprietarycareer school	1721
changes the approved course or coursework, the prior certification	1722
is canceled and the proprietarycareer school shall apply to the	1723
state board of education for certification of the changed course	1724
or coursework.	1725

Sec. 4742.06.  (A) A person may obtain certification as an	1726
emergency service telecommunicator by successfully completing a	1727
basic course of emergency service telecommunicator training that	1728
is conducted by a proprietarycareer school that has obtained	1729
certification of that course from the state board of education	1730
under section 4742.05 of the Revised Code. If a person	1731
successfully completes the course, the proprietarycareer school	1732
shall certify the person's successful completion.	1733

(B) A person may maintain certification as an emergency	1734
service telecommunicator by successfully completing continuing	1735
education coursework in emergency service telecommunicator	1736
training that is conducted by a proprietarycareer school that has	1737
obtained certification of that coursework from the state board of	1738
education under section 4742.05 of the Revised Code. If a person	1739
successfully completes the coursework, the proprietarycareer	1740
school shall certify the person's successful completion.	1741

(C) Upon certification of a person's successful completion	1742
under division (A) or (B) of this section, the proprietarycareer	1743
school shall send a copy of the certification to the person and to	1744
the emergency service provider that employs the person.	1745

(D) Tuition and materials costs for a person enrolled in a	1746
certified basic or continuing education course conducted by a	1747
proprietarycareer school shall be paid by the person, an	1748
emergency service provider, or any other entity on behalf of the	1749
person or an emergency service provider.	1750

Sec. 4743.03.  No board, commission, or agency created under	1751
or by virtue of Title 47 of the Revised Code shall restrict entry	1752
into any occupation, profession, or trade under its supervision or	1753
regulation by:	1754

(A) Unreasonably restricting the number of schools or other	1755
institutions it certifies or accredits for the purpose of	1756
fulfilling educational or training requirements for such	1757
occupation, profession, or trade;	1758

(B) Denying certification or accreditation for the purpose	1759
of fulfilling such educational or training requirements to any	1760
school, college, or other educational institution that has been	1761
certified by the Ohio board of regents or the state board of	1762
proprietary school registrationcareer colleges and schools or to	1763
a high school for which the state board of education prescribes	1764
minimum standards under division (D) of section 3301.07 of the	1765
Revised Code, unless the educational or training program offered	1766
by such school, college, or institution is not in substantial	1767
compliance with applicable standards of the occupation,	1768
profession, or trade.	1769

(C) Rules of state regulatory boards relevant to age and	1770
level of education required for admission to courses of study	1771
leading to examination and licensing in professions or occupations	1772
controlled by regulatory boards not requiring a technical,	1773
associate, or baccalaureate degree shall not apply to vocational	1774
education programs conducted in the public schools where such	1775
vocational education programs in all other respects meet the	1776
minimum standards and requirements of any regulatory board and	1777
students completing such programs are of the minimum age required	1778
for examination and licensing for the purpose of practicing	1779
professions or occupations controlled by regulatory boards.	1780

Nothing in this section shall prohibit a board, commission,	1781
or agency from prescribing and enforcing educational and training	1782
requirements and standards for certification and accreditation of	1783
schools and other institutions that constitute reasonable bases	1784
for maintaining necessary standards of performance in any	1785
occupation, profession, or trade.	1786

Sec. 4762.02.  (A) Except as provided in division (B) of	1787
this section, no person shall engage in the practice of	1788
acupuncture unless the person holds a valid certificate of	1789
registration as an acupuncturist issued by the state medical board	1790
under this chapter.	1791

(B) Division (A) of this section does not apply to a	1792
physician or to a person who performs acupuncture as part of a	1793
training program in acupuncture operated by an educational	1794
institution that holds an effective certificate of authorization	1795
issued by the Ohio board of regents under section 1713.02 of the	1796
Revised Code or a school that holds an effective certificate of	1797
registration issued by the state board of proprietary school	1798
registrationcareer colleges and schools under section 3332.05 of	1799
the Revised Code.	1800

Sec. 4763.05.  (A)(1) A person shall make application for an	1801
initial state-certified general real estate appraiser certificate,	1802
an initial state-certified residential real estate appraiser	1803
certificate, an initial state-licensed residential real estate	1804
appraiser license, or an initial state-registered real estate	1805
appraiser assistant registration in writing to the superintendent	1806
of real estate on a form the superintendent prescribes. The	1807
application shall include the address of the applicant's principal	1808
place of business and all other addresses at which the applicant	1809
currently engages in the business of preparing real estate	1810
appraisals and the address of the applicant's current residence.	1811
The superintendent shall retain the applicant's current residence	1812
address in a separate record which shall not constitute a public	1813
record for purposes of section 149.03 of the Revised Code. The	1814
application shall indicate whether the applicant seeks	1815
certification as a general real estate appraiser or as a	1816
residential real estate appraiser, licensure as a residential real	1817
estate appraiser, or registration as a real estate appraiser	1818
assistant and be accompanied by the prescribed examination and	1819
certification, registration, or licensure fees set forth in	1820
section 4763.09 of the Revised Code. The application also shall	1821
include a pledge, signed by the applicant, that the applicant will	1822
comply with the standards set forth in this chapter and a	1823
statement that the applicant understands the types of misconduct	1824
for which disciplinary proceedings may be initiated against the	1825
applicant pursuant to this chapter.	1826

(2) For purposes of providing funding for the real estate	1827
appraiser recovery fund established by section 4763.16 of the	1828
Revised Code, the real estate appraiser board shall levy an	1829
assessment against each person issued an initial certificate,	1830
registration, or license and against current licensees,	1831
registrants, and certificate holders, as required by board rule.	1832
The assessment is in addition to the application and examination	1833
fees for initial applicants required by division (A)(1) of this	1834
section and the renewal fees required for current certificate	1835
holders, registrants, and licensees. The superintendent shall	1836
deposit the assessment into the state treasury to the credit of	1837
the real estate appraiser recovery fund. The assessment for	1838
initial certificate holders, registrants, and licensees shall be	1839
paid prior to the issuance of a certificate, registration, or	1840
license, and for current certificate holders, registrants, and	1841
licensees, at the time of renewal.	1842

(B) An applicant for an initial general real estate	1843
appraiser certificate shall possess at least thirty months of	1844
experience in real estate appraisal, or any equivalent experience	1845
the board prescribes. An applicant for a residential real estate	1846
appraiser certificate or residential real estate appraiser license	1847
shall possess at least two years of experience in real estate	1848
appraisal, or any equivalent experience the board prescribes. In	1849
addition to any other information required by the board, the	1850
applicant shall furnish, under oath, a detailed listing of the	1851
appraisal reports or file memoranda for each year for which	1852
experience is claimed and, upon request of the superintendent or	1853
the board, shall make available for examination a sample of the	1854
appraisal reports prepared by the applicant in the course of the	1855
applicant's practice.	1856

(C)(1) Except as provided in division (C)(2) of this	1857
section, an applicant for an initial certificate, registration, or	1858
license shall be at least eighteen years of age, honest, truthful,	1859
and of good reputation and shall present satisfactory evidence to	1860
the superintendent of the following, as appropriate:	1861

(a) If the applicant is seeking a state-certified general	1862
real estate appraiser certificate, that the applicant has	1863
successfully completed at least one hundred sixty-five classroom	1864
hours of courses in subjects related to real estate appraisal,	1865
including at least one course devoted exclusively to federal,	1866
state, and municipal fair housing law, presented by a nationally	1867
recognized appraisal organization, an institution of higher	1868
education, a proprietarycareer school registered by the state	1869
board of proprietary school registrationcareer colleges and	1870
schools, a state or federal commission or agency, or any other	1871
organization that represents the interests of financial	1872
institutions or real estate brokers, appraisers, or agents and	1873
that provides appraisal education, plus fifteen classroom hours	1874
related to standards of professional practice and the provisions	1875
of this chapter;	1876

(b) If the applicant is seeking a state-certified	1877
residential real estate appraiser certificate, that the applicant	1878
has successfully completed at least one hundred five classroom	1879
hours of courses in subjects related to real estate appraisal,	1880
including at least one course devoted exclusively to federal,	1881
state, and municipal fair housing law, presented by a nationally	1882
recognized appraisal organization, an institution of higher	1883
education, a proprietarycareer school registered by the state	1884
board of proprietary school registrationcareer colleges and	1885
schools, or any other organization that represents the interests	1886
of financial institutions or real estate brokers, appraisers, or	1887
agents and that provides appraisal education, plus fifteen	1888
classroom hours related to standards of professional practice and	1889
the provisions of this chapter;	1890

(c) If the applicant is seeking a state-licensed residential	1891
real estate appraiser license, that the applicant has successfully	1892
completed at least seventy-five classroom hours of courses in	1893
subjects related to real estate appraisal, including at least one	1894
course devoted exclusively to federal, state, and municipal fair	1895
housing law, presented by a nationally recognized appraisal	1896
organization, an institution of higher education, a proprietary	1897
career school registered by the state board of proprietary school	1898
registrationcareer colleges and schools, a state or federal	1899
commission or agency, or any other organization that represents	1900
the interests of financial institutions or real estate brokers,	1901
appraisers, or agents and that provides appraisal education, plus	1902
fifteen classroom hours related to standards of professional	1903
practice and the provisions of this chapter;	1904

(d) If the applicant is seeking a state-registered real	1905
estate appraiser assistant registration, that the applicant has	1906
successfully completed at least seventy-five classroom hours of	1907
courses in subjects related to real estate appraisal, including at	1908
least one course devoted exclusively to federal, state, and	1909
municipal fair housing law, presented by a nationally recognized	1910
appraisal organization, an institution of higher education, a	1911
proprietarycareer school registered by the state board of	1912
proprietary school registrationcareer colleges and schools, or	1913
any other organization that represents the interests of financial	1914
institutions or real estate brokers, appraisers, or agents, and	1915
that provides appraisal education that included at least fifteen	1916
classroom hours of instruction related to standards of	1917
professional practice and the requirements of this chapter and the	1918
rules adopted under this chapter.	1919

(2) Each person who files an application for an initial	1920
certificate or license within one year of the date established by	1921
the board as the first date on which applications will be accepted	1922
under this section, which date shall be no later than September 1,	1923
1990, and who, at the time of filing that application, does not	1924
satisfy the educational requirements for the certification or	1925
licensure sought of either division (C)(1)(a) or (b) of this	1926
section is exempt from those educational requirements for the term	1927
of the initial certification or licensure. In applying for a	1928
renewal certificate or license pursuant to section 4763.06 of the	1929
Revised Code, a certificate holder or licensee who was exempted	1930
from the educational requirements of division (C)(1)(a) or (b) of	1931
this section when applying for the initial certificate or license	1932
shall present satisfactory evidence to the superintendent that the	1933
certificate holder or licensee has completed the educational	1934
requirements for the certification or licensure to be renewed of	1935
one of those divisions before the renewal certificate or license	1936
may be issued.	1937

(D) An applicant for an initial general real estate	1938
appraiser or residential real estate appraiser certificate or	1939
residential real estate appraiser license shall take and	1940
successfully complete a written examination in order to qualify	1941
for the certificate or license. The examination shall require the	1942
applicant to demonstrate all of the following:	1943

(1) Appropriate knowledge of technical terms commonly used	1944
in or related to real estate appraising, appraisal report writing,	1945
and the economic concepts applicable to real estate;	1946

(2) Understanding of the principles of land economics, real	1947
estate appraisal processes, and problems likely to be encountered	1948
in gathering, interpreting, and processing of data in carrying out	1949
appraisal disciplines;	1950

(3) Understanding of the standards for the development and	1951
communication of real estate appraisals as provided in this	1952
chapter and the rules adopted thereunder;	1953

(4) Knowledge of theories of depreciation, cost estimating,	1954
methods of capitalization, direct sales comparison, and the	1955
mathematics of real estate appraisal that are appropriate for the	1956
certification or licensure for which the applicant has applied;	1957

(5) Knowledge of other principles and procedures as	1958
appropriate for the certification or license;	1959

(6) Basic understanding of real estate law;

1960

(7) Understanding of the types of misconduct for which	1961
disciplinary proceedings may be initiated against a certificate	1962
holder and licensee.	1963

(E)(1) A nonresident, natural person of this state who has	1964
complied with this section may obtain a certificate, registration,	1965
or license. The board shall adopt rules relating to the	1966
certification, registration, and licensure of a nonresident	1967
applicant whose state of residence the board determines to have	1968
certification, registration, or licensure requirements that are	1969
substantially similar to those set forth in this chapter and the	1970
rules adopted thereunder.	1971

(2) A nonresident appraiser may apply for, and the board may	1972
issue, a temporary certificate or license if the board determines	1973
that the state in which the nonresident appraiser is licensed or	1974
certified has licensing or certification requirements that are	1975
substantially similar to the certification or licensure	1976
requirements set forth in this chapter and the rules adopted	1977
thereunder.	1978

The board shall adopt rules relating to the temporary	1979
certification and licensure of nonresident appraisers. Each	1980
temporary certificate and license issued by the board shall	1981
identify the location of the real estate property to be appraised	1982
and shall not authorize appraisal of more than one real estate	1983
property located in this state. The board shall not issue more	1984
than two temporary certificates or licenses in any one calendar	1985
year to any one applicant.	1986

(3) In addition to any other information required to be	1987
submitted with the nonresident applicant's or appraiser's	1988
application for a certificate, registration, license, or temporary	1989
certificate or license, each nonresident applicant or appraiser	1990
shall submit a statement consenting to the service of process upon	1991
the nonresident applicant or appraiser by means of delivering that	1992
process to the secretary of state if, in an action against the	1993
applicant, certificate holder, registrant, or licensee arising	1994
from the applicant's, certificate holder's, registrant's, or	1995
licensee's activities as a certificate holder, registrant, or	1996
licensee, the plaintiff, in the exercise of due diligence, cannot	1997
effect personal service upon the applicant, certificate holder,	1998
registrant, or licensee.	1999

(F) The superintendent shall not issue a certificate,	2000
registration, temporary certificate or license, or license to a	2001
corporation, partnership, or association. This prohibition shall	2002
not be construed to prevent a certificate holder or licensee from	2003
signing an appraisal report on behalf of a corporation,	2004
partnership, or association.	2005

(G) Every person licensed, registered, or certified under	2006
this chapter shall notify the superintendent, on a form provided	2007
by the superintendent, of a change in the address of the	2008
licensee's, registrant's, or certificate holder's principal place	2009
of business or residence within thirty days of the change. If a	2010
licensee's, registrant's, or certificate holder's license,	2011
registration, or certificate is revoked or not renewed, the	2012
licensee, registrant, or certificate holder immediately shall	2013
return the annual and any renewal certificate, registration, or	2014
license to the superintendent.	2015

(H) The superintendent shall not issue a certificate,	2016
registration, temporary certificate or license, or license to any	2017
person who does not meet applicable minimum criteria for state	2018
certification, registration, or licensure prescribed by federal	2019
law or rule.	2020

Sec. 5107.58.  In accordance with a federal waiver granted by	2021
the United States secretary of health and human services pursuant	2022
to a request made under former section 5101.09 of the Revised	2023
Code, county departments of job and family services may establish	2024
and administer as a work activity for minor heads of households	2025
and adults participating in Ohio works first an education program	2026
under which the participant is enrolled full-time in	2027
post-secondary education leading to vocation at a state	2028
institution of higher education, as defined in section 3345.031 of	2029
the Revised Code; a private nonprofit college or university that	2030
possesses a certificate of authorization issued by the Ohio board	2031
of regents pursuant to Chapter 1713. of the Revised Code, or is	2032
exempted by division (E) of section 1713.02 of the Revised Code	2033
from the requirement of a certificate; a school that holds a	2034
certificate of registration and program authorization issued by	2035
the state board of proprietary school registrationcareer colleges	2036
and schools under Chapter 3332. of the Revised Code; a private	2037
institution exempt from regulation under Chapter 3332. of the	2038
Revised Code as prescribed in section 3333.046 of the Revised	2039
Code; or a school that has entered into a contract with the county	2040
department of job and family services. The participant shall make	2041
reasonable efforts, as determined by the county department, to	2042
obtain a loan, scholarship, grant, or other assistance to pay for	2043
the tuition, including a federal Pell grant under 20 U.S.C.A.	2044
1070a and an Ohio instructional grant under section 3333.12 of the	2045
Revised Code. If the participant has made reasonable efforts but	2046
is unable to obtain sufficient assistance to pay the tuition the	2047
program may pay the tuition. On or after October 1, 1998, the	2048
county department may enter into a loan agreement with the	2049
participant to pay the tuition. The total period for which	2050
tuition is paid and loans made shall not exceed two years. If	2051
the participant, pursuant to division (B)(3) of section 5107.43 of	2052
the Revised Code, volunteers to participate in the education	2053
program for more hours each week than the participant is assigned	2054
to the program, the program may pay or the county department may	2055
loan the cost of the tuition for the additional voluntary hours as	2056
well as the cost of the tuition for the assigned number of hours.	2057
The participant may receive, for not more than three years,	2058
support services, including publicly funded child day-care under	2059
Chapter 5104. of the Revised Code and transportation, that the	2060
participant needs to participate in the program. To receive	2061
support services in the third year, the participant must be, as	2062
determined by the educational institution in which the participant	2063
is enrolled, in good standing with the institution.	2064

A county department that provides loans under this section	2065
shall establish procedures governing loan application for and	2066
approval and administration of loans granted pursuant to this	2067
section.	2068

Sec. 5747.01.  Except as otherwise expressly provided or	2069
clearly appearing from the context, any term used in this chapter	2070
has the same meaning as when used in a comparable context in the	2071
Internal Revenue Code, and all other statutes of the United States	2072
relating to federal income taxes.	2073

As used in this chapter:

2074

(A) "Adjusted gross income" or "Ohio adjusted gross income"	2075
means adjusted gross income as defined and used in the Internal	2076
Revenue Code, adjusted as provided in this section:	2077

(1) Add interest or dividends on obligations or securities	2078
of any state or of any political subdivision or authority of any	2079
state, other than this state and its subdivisions and authorities.	2080

(2) Add interest or dividends on obligations of any	2081
authority, commission, instrumentality, territory, or possession	2082
of the United States that are exempt from federal income taxes but	2083
not from state income taxes.	2084

(3) Deduct interest or dividends on obligations of the	2085
United States and its territories and possessions or of any	2086
authority, commission, or instrumentality of the United States to	2087
the extent included in federal adjusted gross income but exempt	2088
from state income taxes under the laws of the United States.	2089

(4) Deduct disability and survivor's benefits to the extent	2090
included in federal adjusted gross income.	2091

(5) Deduct benefits under Title II of the Social Security	2092
Act and tier 1 railroad retirement benefits to the extent included	2093
in federal adjusted gross income under section 86 of the Internal	2094
Revenue Code.	2095

(6) Add, in the case of a taxpayer who is a beneficiary of a	2096
trust that makes an accumulation distribution as defined in	2097
section 665 of the Internal Revenue Code, the portion, if any, of	2098
such distribution that does not exceed the undistributed net	2099
income of the trust for the three taxable years preceding the	2100
taxable year in which the distribution is made. "Undistributed	2101
net income of a trust" means the taxable income of the trust	2102
increased by (a)(i) the additions to adjusted gross income	2103
required under division (A) of this section and (ii) the personal	2104
exemptions allowed to the trust pursuant to section 642(b) of the	2105
Internal Revenue Code, and decreased by (b)(i) the deductions to	2106
adjusted gross income required under division (A) of this section,	2107
(ii) the amount of federal income taxes attributable to such	2108
income, and (iii) the amount of taxable income that has been	2109
included in the adjusted gross income of a beneficiary by reason	2110
of a prior accumulation distribution. Any undistributed net	2111
income included in the adjusted gross income of a beneficiary	2112
shall reduce the undistributed net income of the trust commencing	2113
with the earliest years of the accumulation period.	2114

(7) Deduct the amount of wages and salaries, if any, not	2115
otherwise allowable as a deduction but that would have been	2116
allowable as a deduction in computing federal adjusted gross	2117
income for the taxable year, had the targeted jobs credit allowed	2118
and determined under sections 38, 51, and 52 of the Internal	2119
Revenue Code not been in effect.	2120

(8) Deduct any interest or interest equivalent on public	2121
obligations and purchase obligations to the extent included in	2122
federal adjusted gross income.	2123

(9) Add any loss or deduct any gain resulting from the sale,	2124
exchange, or other disposition of public obligations to the extent	2125
included in federal adjusted gross income.	2126

(10) Deduct or add amounts, as provided under section	2127
5747.70 of the Revised Code, related to contributions to variable	2128
college savings program accounts made or tuition credits purchased	2129
pursuant to Chapter 3334. of the Revised Code.	2130

(11)(a) Deduct, to the extent not otherwise allowable as a	2131
deduction or exclusion in computing federal or Ohio adjusted gross	2132
income for the taxable year, the amount the taxpayer paid during	2133
the taxable year for medical care insurance and qualified	2134
long-term care insurance for the taxpayer, the taxpayer's spouse,	2135
and dependents. No deduction for medical care insurance under	2136
division (A)(11) of this section shall be allowed either to any	2137
taxpayer who is eligible to participate in any subsidized health	2138
plan maintained by any employer of the taxpayer or of the	2139
taxpayer's spouse, or to any taxpayer who is entitled to, or on	2140
application would be entitled to, benefits under part A of Title	2141
XVIII of the "Social Security Act," 49 Stat. 620 (1935), 42 U.S.C.	2142
301, as amended. For the purposes of division (A)(11)(a) of this	2143
section, "subsidized health plan" means a health plan for which	2144
the employer pays any portion of the plan's cost. The deduction	2145
allowed under division (A)(11)(a) of this section shall be the net	2146
of any related premium refunds, related premium reimbursements, or	2147
related insurance premium dividends received during the taxable	2148
year.	2149

(b) Deduct, to the extent not otherwise deducted or excluded	2150
in computing federal or Ohio adjusted gross income during the	2151
taxable year, the amount the taxpayer paid during the taxable	2152
year, not compensated for by any insurance or otherwise, for	2153
medical care of the taxpayer, the taxpayer's spouse, and	2154
dependents, to the extent the expenses exceed seven and one-half	2155
per cent of the taxpayer's federal adjusted gross income.	2156

(c) For purposes of division (A)(11) of this section,	2157
"medical care" has the meaning given in section 213 of the	2158
Internal Revenue Code, subject to the special rules, limitations,	2159
and exclusions set forth therein, and "qualified long-term care"	2160
has the same meaning given in section 7702(B)(b) of the Internal	2161
Revenue Code.	2162

(12)(a) Deduct any amount included in federal adjusted gross	2163
income solely because the amount represents a reimbursement or	2164
refund of expenses that in any year the taxpayer had deducted as	2165
an itemized deduction pursuant to section 63 of the Internal	2166
Revenue Code and applicable United States department of the	2167
treasury regulations. The deduction otherwise allowed under	2168
division (A)(12)(a) of this section shall be reduced to the extent	2169
the reimbursement is attributable to an amount the taxpayer	2170
deducted under this section in any taxable year.	2171

(b) Add any amount not otherwise included in Ohio adjusted	2172
gross income for any taxable year to the extent that the amount is	2173
attributable to the recovery during the taxable year of any amount	2174
deducted or excluded in computing federal or Ohio adjusted gross	2175
income in any taxable year.	2176

(13) Deduct any portion of the deduction described in	2177
section 1341(a)(2) of the Internal Revenue Code, for repaying	2178
previously reported income received under a claim of right, that	2179
meets both of the following requirements:	2180

(a) It is allowable for repayment of an item that was	2181
included in the taxpayer's adjusted gross income for a prior	2182
taxable year and did not qualify for a credit under division (A)	2183
or (B) of section 5747.05 of the Revised Code for that year;	2184

(b) It does not otherwise reduce the taxpayer's adjusted	2185
gross income for the current or any other taxable year.	2186

(14) Deduct an amount equal to the deposits made to, and net	2187
investment earnings of, a medical savings account during the	2188
taxable year, in accordance with section 3924.66 of the Revised	2189
Code. The deduction allowed by division (A)(14) of this section	2190
does not apply to medical savings account deposits and earnings	2191
otherwise deducted or excluded for the current or any other	2192
taxable year from the taxpayer's federal adjusted gross income.	2193

(15)(a) Add an amount equal to the funds withdrawn from a	2194
medical savings account during the taxable year, and the net	2195
investment earnings on those funds, when the funds withdrawn were	2196
used for any purpose other than to reimburse an account holder	2197
for, or to pay, eligible medical expenses, in accordance with	2198
section 3924.66 of the Revised Code;	2199

(b) Add the amounts distributed from a medical savings	2200
account under division (A)(2) of section 3924.68 of the Revised	2201
Code during the taxable year.	2202

(16) Add any amount claimed as a credit under section	2203
5747.059 of the Revised Code to the extent that such amount	2204
satisfies either of the following:	2205

(a) The amount was deducted or excluded from the computation	2206
of the taxpayer's federal adjusted gross income as required to be	2207
reported for the taxpayer's taxable year under the Internal	2208
Revenue Code;	2209

(b) The amount resulted in a reduction of the taxpayer's	2210
federal adjusted gross income as required to be reported for any	2211
of the taxpayer's taxable years under the Internal Revenue Code.	2212

(17) Deduct the amount contributed by the taxpayer to an	2213
individual development account program established by a county	2214
department of job and family services pursuant to sections 329.11	2215
to 329.14 of the Revised Code for the purpose of matching funds	2216
deposited by program participants. On request of the tax	2217
commissioner, the taxpayer shall provide any information that, in	2218
the tax commissioner's opinion, is necessary to establish the	2219
amount deducted under division (A)(17) of this section.	2220

(18) Beginning in taxable year 2001, if the taxpayer is	2221
married and files a joint return and the combined federal adjusted	2222
gross income of the taxpayer and the taxpayer's spouse for the	2223
taxable year does not exceed one hundred thousand dollars, or if	2224
the taxpayer is single and has a federal adjusted gross income for	2225
the taxable year not exceeding fifty thousand dollars, deduct	2226
amounts paid during the taxable year for qualified tuition and	2227
fees paid to an eligible institution for the taxpayer, the	2228
taxpayer's spouse, or any dependent of the taxpayer, who is a	2229
resident of this state and is enrolled in or attending a program	2230
that culminates in a degree or diploma at an eligible institution.	2231
The deduction may be claimed only to the extent that qualified	2232
tuition and fees are not otherwise deducted or excluded for any	2233
taxable year from federal or Ohio adjusted gross income. The	2234
deduction may not be claimed for educational expenses for which	2235
the taxpayer claims a credit under section 5747.27 of the Revised	2236
Code.	2237

(19) Add any reimbursement received during the taxable year	2238
of any amount the taxpayer deducted under division (A)(18) of this	2239
section in any previous taxable year to the extent the amount is	2240
not otherwise included in Ohio adjusted gross income.	2241

(B) "Business income" means income arising from	2242
transactions, activities, and sources in the regular course of a	2243
trade or business and includes income from tangible and intangible	2244
property if the acquisition, rental, management, and disposition	2245
of the property constitute integral parts of the regular course of	2246
a trade or business operation.	2247

(C) "Nonbusiness income" means all income other than	2248
business income and may include, but is not limited to,	2249
compensation, rents and royalties from real or tangible personal	2250
property, capital gains, interest, dividends and distributions,	2251
patent or copyright royalties, or lottery winnings, prizes, and	2252
awards.	2253

(D) "Compensation" means any form of remuneration paid to an	2254
employee for personal services.	2255

(E) "Fiduciary" means a guardian, trustee, executor,	2256
administrator, receiver, conservator, or any other person acting	2257
in any fiduciary capacity for any individual, trust, or estate.	2258

(F) "Fiscal year" means an accounting period of twelve	2259
months ending on the last day of any month other than December.	2260

(G) "Individual" means any natural person.

2261

(H) "Internal Revenue Code" means the "Internal Revenue Code	2262
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1, as amended.	2263

(I) "Resident" means:

2264

(1) An individual who is domiciled in this state, subject to	2265
section 5747.24 of the Revised Code;	2266

(2) The estate of a decedent who at the time of death was	2267
domiciled in this state. The domicile tests of section 5747.24 of	2268
the Revised Code and any election under section 5747.25 of the	2269
Revised Code are not controlling for purposes of division (I)(2)	2270
of this section.	2271

(J) "Nonresident" means an individual or estate that is not	2272
a resident. An individual who is a resident for only part of a	2273
taxable year is a nonresident for the remainder of that taxable	2274
year.	2275

(K) "Pass-through entity" has the same meaning as in section	2276
5733.04 of the Revised Code.	2277

(L) "Return" means the notifications and reports required to	2278
be filed pursuant to this chapter for the purpose of reporting the	2279
tax due and includes declarations of estimated tax when so	2280
required.	2281

(M) "Taxable year" means the calendar year or the taxpayer's	2282
fiscal year ending during the calendar year, or fractional part	2283
thereof, upon which the adjusted gross income is calculated	2284
pursuant to this chapter.	2285

(N) "Taxpayer" means any person subject to the tax imposed	2286
by section 5747.02 of the Revised Code or any pass-through entity	2287
that makes the election under division (D) of section 5747.08 of	2288
the Revised Code.	2289

(O) "Dependents" means dependents as defined in the Internal	2290
Revenue Code and as claimed in the taxpayer's federal income tax	2291
return for the taxable year or which the taxpayer would have been	2292
permitted to claim had the taxpayer filed a federal income tax	2293
return.	2294

(P) "Principal county of employment" means, in the case of a	2295
nonresident, the county within the state in which a taxpayer	2296
performs services for an employer or, if those services are	2297
performed in more than one county, the county in which the major	2298
portion of the services are performed.	2299

(Q) As used in sections 5747.50 to 5747.55 of the Revised	2300
Code:	2301

(1) "Subdivision" means any county, municipal corporation,	2302
park district, or township.	2303

(2) "Essential local government purposes" includes all	2304
functions that any subdivision is required by general law to	2305
exercise, including like functions that are exercised under a	2306
charter adopted pursuant to the Ohio Constitution.	2307

(R) "Overpayment" means any amount already paid that exceeds	2308
the figure determined to be the correct amount of the tax.	2309

(S) "Taxable income" applies to estates only and means	2310
taxable income as defined and used in the Internal Revenue Code	2311
adjusted as follows:	2312

(1) Add interest or dividends on obligations or securities	2313
of any state or of any political subdivision or authority of any	2314
state, other than this state and its subdivisions and authorities;	2315

(2) Add interest or dividends on obligations of any	2316
authority, commission, instrumentality, territory, or possession	2317
of the United States that are exempt from federal income taxes but	2318
not from state income taxes;	2319

(3) Add the amount of personal exemption allowed to the	2320
estate pursuant to section 642(b) of the Internal Revenue Code;	2321

(4) Deduct interest or dividends on obligations of the	2322
United States and its territories and possessions or of any	2323
authority, commission, or instrumentality of the United States	2324
that are exempt from state taxes under the laws of the United	2325
States;	2326

(5) Deduct the amount of wages and salaries, if any, not	2327
otherwise allowable as a deduction but that would have been	2328
allowable as a deduction in computing federal taxable income for	2329
the taxable year, had the targeted jobs credit allowed under	2330
sections 38, 51, and 52 of the Internal Revenue Code not been in	2331
effect;	2332

(6) Deduct any interest or interest equivalent on public	2333
obligations and purchase obligations to the extent included in	2334
federal taxable income;	2335

(7) Add any loss or deduct any gain resulting from sale,	2336
exchange, or other disposition of public obligations to the extent	2337
included in federal taxable income;	2338

(8) Except in the case of the final return of an estate, add	2339
any amount deducted by the taxpayer on both its Ohio estate tax	2340
return pursuant to section 5731.14 of the Revised Code, and on its	2341
federal income tax return in determining either federal adjusted	2342
gross income or federal taxable income;	2343

(9)(a) Deduct any amount included in federal taxable income	2344
solely because the amount represents a reimbursement or refund of	2345
expenses that in a previous year the decedent had deducted as an	2346
itemized deduction pursuant to section 63 of the Internal Revenue	2347
Code and applicable treasury regulations. The deduction otherwise	2348
allowed under division (S)(9)(a) of this section shall be reduced	2349
to the extent the reimbursement is attributable to an amount the	2350
taxpayer or decedent deducted under this section in any taxable	2351
year.	2352

(b) Add any amount not otherwise included in Ohio taxable	2353
income for any taxable year to the extent that the amount is	2354
attributable to the recovery during the taxable year of any amount	2355
deducted or excluded in computing federal or Ohio taxable income	2356
in any taxable year.	2357

(10) Deduct any portion of the deduction described in	2358
section 1341(a)(2) of the Internal Revenue Code, for repaying	2359
previously reported income received under a claim of right, that	2360
meets both of the following requirements:	2361

(a) It is allowable for repayment of an item that was	2362
included in the taxpayer's taxable income or the decedent's	2363
adjusted gross income for a prior taxable year and did not qualify	2364
for a credit under division (A) or (B) of section 5747.05 of the	2365
Revised Code for that year.	2366

(b) It does not otherwise reduce the taxpayer's taxable	2367
income or the decedent's adjusted gross income for the current or	2368
any other taxable year.	2369

(11) Add any amount claimed as a credit under section	2370
5747.059 of the Revised Code to the extent that the amount	2371
satisfies either of the following:	2372

(a) The amount was deducted or excluded from the computation	2373
of the taxpayer's federal taxable income as required to be	2374
reported for the taxpayer's taxable year under the Internal	2375
Revenue Code;	2376

(b) The amount resulted in a reduction in the taxpayer's	2377
federal taxable income as required to be reported for any of the	2378
taxpayer's taxable years under the Internal Revenue Code.	2379

(T) "School district income" and "school district income	2380
tax" have the same meanings as in section 5748.01 of the Revised	2381
Code.	2382

(U) As used in divisions (A)(8), (A)(9), (S)(6), and (S)(7)	2383
of this section, "public obligations," "purchase obligations," and	2384
"interest or interest equivalent" have the same meanings as in	2385
section 5709.76 of the Revised Code.	2386

(V) "Limited liability company" means any limited liability	2387
company formed under Chapter 1705. of the Revised Code or under	2388
the laws of any other state.	2389

(W) "Pass-through entity investor" means any person who,	2390
during any portion of a taxable year of a pass-through entity, is	2391
a partner, member, shareholder, or investor in that pass-through	2392
entity.	2393

(X) "Banking day" has the same meaning as in section 1304.01	2394
of the Revised Code.	2395

(Y) "Month" means a calendar month.

2396

(Z) "Quarter" means the first three months, the second three	2397
months, the third three months, or the last three months of the	2398
taxpayer's taxable year.	2399

(AA)(1) "Eligible institution" means a state university or	2400
state institution of higher education as defined in section	2401
3345.011 of the Revised Code, or a private, nonprofit college,	2402
university, or other post-secondary institution located in this	2403
state that possesses a certificate of authorization issued by the	2404
Ohio board of regents pursuant to Chapter 1713. of the Revised	2405
Code or a certificate of registration issued by the state board of	2406
proprietary school registrationcareer colleges and schools under	2407
Chapter 3332. of the Revised Code.	2408

(2) "Qualified tuition and fees" means tuition and fees	2409
imposed by an eligible institution as a condition of enrollment or	2410
attendance, not exceeding two thousand five hundred dollars in	2411
each of the individual's first two years of post-secondary	2412
education. If the individual is a part-time student, "qualified	2413
tuition and fees" includes tuition and fees paid for the academic	2414
equivalent of the first two years of post-secondary education	2415
during a maximum of five taxable years, not exceeding a total of	2416
five thousand dollars. "Qualified tuition and fees" does not	2417
include:	2418

(a) Expenses for any course or activity involving sports,	2419
games, or hobbies unless the course or activity is part of the	2420
individual's degree or diploma program;	2421

(b) The cost of books, room and board, student activity	2422
fees, athletic fees, insurance expenses, or other expenses	2423
unrelated to the individual's academic course of instruction;	2424

(c) Tuition, fees, or other expenses paid or reimbursed	2425
through an employer, scholarship, grant in aid, or other	2426
educational benefit program.	2427

(BB) Any term used in this chapter that is not otherwise	2428
defined in this section and that is not used in a comparable	2429
context in the Internal Revenue Code and other statutes of the	2430
United States relating to federal income taxes has the same	2431
meaning as in section 5733.40 of the Revised Code.	2432

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

2433

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

2434

(a) Fall term, which consists of fall semester or fall	2435
quarter, as appropriate;	2436

(b) Winter term, which consists of winter semester, winter	2437
quarter, or spring semester, as appropriate;	2438

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

2439

(d) Summer term, which consists of summer semester or summer	2440
quarter, as appropriate.	2441

(2) "Eligible applicant" means any individual to whom all of	2442
the following apply:	2443

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

2444

(b) The individual has enlisted, re-enlisted, or extended	2445
current enlistment in the Ohio national guard.	2446

(c) The individual is actively enrolled as a full-time or	2447
part-time student for at least six credit hours of course work in	2448
a semester or quarter in a two-year or four-year degree-granting	2449
program at an institution of higher education or in a	2450
diploma-granting program at an institution of higher education	2451
that is a school of nursing.	2452

(d) The individual has not accumulated ninety-six	2453
eligibility units under division (E) of this section.	2454

(3) "Institution of higher education" means an Ohio	2455
institution of higher education that is state-assisted, that is	2456
nonprofit and has received a certificate of authorization from the	2457
Ohio board of regents pursuant to Chapter 1713. of the Revised	2458
Code, that is a private institution exempt from regulation under	2459
Chapter 3332. of the Revised Code as prescribed in section	2460
3333.046 of the Revised Code, or that holds a certificate of	2461
registration and program authorization issued by the state board	2462
of proprietary school registrationcareer colleges and schools	2463
pursuant to section 3332.05 of the Revised Code.	2464

(4) "State university" has the same meaning as in section	2465
3345.011 of the Revised Code.	2466

(B)(1) There is hereby created a scholarship program to be	2467
known as the Ohio national guard scholarship program. For the	2468
fiscal year 2000, the number of participants in the program for	2469
the fall term is limited to the equivalent of two thousand five	2470
hundred full-time participants; the number of participants in the	2471
program for the winter term is limited to the equivalent of two	2472
thousand five hundred full-time participants; the number of	2473
participants in the program for the spring term is limited to the	2474
equivalent of one thousand six hundred seventy-five full-time	2475
participants; and the number of participants in the program for	2476
the summer term is limited to the equivalent of six hundred	2477
full-time participants. Except as provided in division (B)(2) of	2478
this section for the fiscal year 2001 and succeeding fiscal years,	2479
the number of participants in the program for the fall term is	2480
limited to the equivalent of three thousand five hundred full-time	2481
participants; the number of participants in the program for the	2482
winter term is limited to the equivalent of three thousand five	2483
hundred full-time participants; the number of participants in the	2484
program for the spring term is limited to the equivalent of two	2485
thousand three hundred forty-five full-time participants; and the	2486
number of participants in the program for the summer term is	2487
limited to the equivalent of eight hundred full-time participants.	2488

(2) After the application deadline for any academic term in	2489
fiscal year 2001, the adjutant general may request the controlling	2490
board, if sufficient appropriated funds are available, to approve	2491
the following number of additional participants for that term:	2492

(a) For the fall or winter academic term, up to the	2493
equivalent of five hundred additional full-time participants;	2494

(b) For the spring academic term, up to the equivalent of	2495
three hundred seventy-five additional full-time participants;	2496

(c) For the summer academic term, up to the equivalent of	2497
one hundred twenty-five additional full-time participants.	2498

(C) If the adjutant general estimates that appropriations	2499
for all scholarships applied for under this section and likely to	2500
be used during an academic term are inadequate for all eligible	2501
applicants for that academic term to receive scholarships, the	2502
adjutant general shall promptly inform all applicants not	2503
receiving scholarships for that academic term of the next academic	2504
term that appropriations will be adequate for the scholarships.	2505
Any such eligible applicant may again apply for a scholarship	2506
beginning that academic term if the applicant is in compliance	2507
with all requirements established by this section and the adjutant	2508
general for the program. The adjutant general shall process all	2509
applications for scholarships for each academic term in the order	2510
in which they are received. The scholarships shall be made	2511
without regard to financial need. At no time shall one person be	2512
placed in priority over another because of sex, race, or religion.	2513

(D) Except as provided in division (H) of this section, for	2514
each academic term that an eligible applicant is approved for a	2515
scholarship under this section and remains a current member in	2516
good standing of the Ohio national guard, the institution of	2517
higher education in which the applicant is enrolled shall, if the	2518
applicant's enlistment obligation extends beyond the end of that	2519
academic term, be paid on the applicant's behalf the applicable	2520
one of the following amounts:	2521

(1) If the institution is state-assisted, an amount equal to	2522
one hundred per cent of the institution's tuition charges;	2523

(2) If the institution is a nonprofit private institution or	2524
a private institution exempt from regulation under Chapter 3332.	2525
of the Revised Code as prescribed in section 3333.046 of the	2526
Revised Code, an amount equal to one hundred per cent of the	2527
average tuition charges of all state universities;	2528

(3) If the institution is an institution that holds a	2529
certificate of registration from the state board of proprietary	2530
school registrationcareer colleges and schools, the lesser of the	2531
following:	2532

(a) An amount equal to one hundred per cent of the total	2533
instructional and general charges of the institution;	2534

(b) An amount equal to one hundred per cent of the average	2535
tuition charges of all state universities.	2536

(4) An eligible applicant's scholarship shall not be reduced	2537
by the amount of that applicant's benefits under "the Montgomery	2538
G.I. Bill Act of 1984," Pub. L. No. 98-525, 98 Stat. 2553 (1984).	2539

(E) A scholarship recipient under this section shall be	2540
entitled to receive scholarships under this section for the number	2541
of quarters or semesters it takes the recipient to accumulate	2542
ninety-six eligibility units as determined under divisions (E)(1)	2543
to (3) of this section.	2544

(1) To determine the maximum number of semesters or quarters	2545
for which a recipient is entitled to a scholarship under this	2546
section, the adjutant general shall convert a recipient's credit	2547
hours of enrollment for each academic term into eligibility units	2548
in accordance with the following table:	2549

(2) A scholarship recipient under this section may continue	2558
to apply for scholarships under this section until the recipient	2559
has accumulated ninety-six eligibility units.	2560

(3) If a scholarship recipient withdraws from courses prior	2561
to the end of an academic term so that the recipient's enrollment	2562
for that academic term is less than six credit hours, no	2563
scholarship shall be paid on behalf of that person for that	2564
academic term except that, if a scholarship has already been paid	2565
on behalf of the person for that academic term, the adjutant	2566
general shall add to that person's accumulated eligibility units	2567
the number of eligibility units for which the scholarship was	2568
paid.	2569

(F) A scholarship recipient under this section who fails to	2570
complete the term of enlistment, re-enlistment, or extension of	2571
current enlistment the recipient was serving at the time a	2572
scholarship was paid on behalf of the recipient under this section	2573
is liable to the state for repayment of a percentage of all Ohio	2574
national guard scholarships paid on behalf of the recipient under	2575
this section, plus interest at the rate of ten per cent per annum	2576
calculated from the dates the scholarships were paid. This	2577
percentage shall equal the percentage of the current term of	2578
enlistment, re-enlistment, or extension of enlistment a recipient	2579
has not completed as of the date the recipient is discharged from	2580
the Ohio national guard.	2581

The attorney general may commence a civil action on behalf of	2582
the adjutant general to recover the amount of the scholarships and	2583
the interest provided for in this division and the expenses	2584
incurred in prosecuting the action, including court costs and	2585
reasonable attorney's fees. A scholarship recipient is not liable	2586
under this division if the recipient's failure to complete the	2587
term of enlistment being served at the time a scholarship was paid	2588
on behalf of the recipient under this section is due to the	2589
recipient's death; discharge from the national guard due to	2590
disability; or the recipient's enlistment, for a term not less	2591
than the recipient's remaining term in the national guard, in the	2592
active component of the United States armed forces or the active	2593
reserve component of the United States armed forces.	2594

(G) On or before the first day of each academic term, the	2595
adjutant general shall provide an eligibility roster to each	2596
institution of higher education at which one or more scholarship	2597
recipients have applied for enrollment. The institution shall use	2598
the roster to certify the actual full-time or part-time enrollment	2599
of each scholarship recipient listed as enrolled at the	2600
institution and return the roster to the adjutant general within	2601
thirty days after the first day of the academic term. The	2602
adjutant general shall report to the Ohio board of regents the	2603
number of students in the Ohio national guard scholarship program	2604
at each institution of higher education. The Ohio board of	2605
regents shall provide for payment of the appropriate number and	2606
amount of scholarships to each institution of higher education	2607
pursuant to division (D) of this section. The adjutant general	2608
shall report on a quarterly basis to the director of budget and	2609
management, the speaker of the house of representatives, and the	2610
president of the senate the number of Ohio national guard	2611
scholarship recipients and a projection of the cost of the program	2612
for the remainder of the biennium.	2613

(H) The chancellor of the Ohio board of regents and the	2614
adjutant general may adopt rules pursuant to Chapter 119. of the	2615
Revised Code governing the administration and fiscal management of	2616
the Ohio national guard scholarship program and the procedure by	2617
which the Ohio board of regents and the department of the adjutant	2618
general may modify the amount of scholarships a member receives	2619
based on the amount other state financial aid a member receives.	2620

(I) Notwithstanding division (A) of section 127.14 of the	2621
Revised Code, the controlling board shall not transfer all or part	2622
of any appropriation for the Ohio national guard scholarship	2623
program.	2624

Section 2. That existing sections 955.43, 1713.02, 1713.03,	2625
1713.25, 2741.01, 3332.01, 3332.02, 3332.03, 3332.031, 3332.04,	2626
3332.05, 3332.051, 3332.06, 3332.07, 3332.08, 3332.081, 3332.082,	2627
3332.083, 3332.085, 3332.09, 3332.091, 3332.092, 3332.10, 3332.11,	2628
3332.12, 3332.13, 3332.18, 3333.043, 3333.12, 3333.29, 3334.01,	2629
3365.01, 3365.15, 4742.05, 4742.06, 4743.03, 4762.02, 4763.05,	2630
5107.58, 5747.01, and 5919.34 of the Revised Code are hereby	2631
repealed.	2632

Section 3. That sections 3332.04, 3332.08, 3332.082, and	2633
3332.084 of the Revised Code be amended to read as follows:	2634

Sec. 3332.04.  The state board of career colleges and schools	2635
may appoint an executive director and such other staff as may be	2636
required for the performance of the board's duties and provide	2637
necessary facilities. In selecting an executive director, the	2638
board shall appoint an individual with a background or experience	2639
in the regulation of commerce, business, or education. The board	2640
may also arrange for services and facilities to be provided by the	2641
state board of education and the Ohio board of regents. All	2642
receipts of the board shall be deposited in the career colleges	2643
and schools operating fund, which is hereby created in the state	2644
treasury to the credit of the general revenue fund. Moneys in the	2645
fund shall be used solely for the administration and enforcement	2646
of Chapter 3332. of the Revised Code. All investment earnings on	2647
the fund shall be credited to the fund.	2648

Sec. 3332.08.  The application for a certificate of	2649
registration for a school located within Ohio shall be accompanied	2650
by a surety bond in thea penal sum of ten thousand dollars	2651
established by rule of the state board of career colleges and	2652
schools pursuant to Chapter 119. of the Revised Code with	2653
conditions and in a form prescribed by the state board of career	2654
colleges and schools with at least one corporate bonding company	2655
approved by the department of insurance as surety thereon. Bond	2656
shall be maintained in effect for a period specified by rule of	2657
the board. The board may permit a school to cancel its bond if the	2658
school has been approved to participate in any federal student	2659
financial assistance program authorized under Title IV of the	2660
"Higher Education Act of 1965," 20 U.S.C.A. 1070 et seq., as	2661
amended, or if the school meets standards of financial	2662
responsibility otherwise established by the board. The bond shall	2663
provide for the indemnification of any person suffering prepaid	2664
tuition loss as the result of any fraud or misrepresentation used	2665
in behalf of the principal in procuring such person's enrollment	2666
in a program, including repayment of tuition paid in advance by	2667
any studenta school closure in accordance with section 3332.082	2668
of the Revised 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 by the surety on the bond provided by the	2710
school pursuant to section 3332.08 of the Revised Code. If	2711
proceeds from the surety bond are not sufficient to cover such	2712
payments, any additional payments shall be paid from the student	2713
tuition recovery fund created by section 3332.083 of the Revised	2714
Code. Tuition loss does not include moneys held by a school in	2715
escrow accounts for tuition or fees for future terms, as	2716
uncommitted grants, loans, or Pell grant money. If the fund is	2717
not of sufficient size to pay the students the full amount of	2718
their 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) DistributeDirect moneys fromto be paid by the surety on	2731
the bond required by section 3332.08 of the Revised Code and	2732
distribute moneys from the student tuition recovery fund to or on	2733
behalf of students who are determined 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