As Passed by the House

126th General Assembly
Regular Session
2005-2006
Sub. H. B. No. 478


Representatives Wagoner, Ujvagi, Brown, Perry, Latta, Webster, Miller, Core, Hartnett, Evans, C., Hoops, McGregor, J., Sykes, Skindell, Coley, Barrett, Beatty, Blessing, Book, Buehrer, Calvert, Carano, Cassell, Collier, Combs, DeBose, DeGeeter, Distel, Dolan, Domenick, Evans, D., Fende, Flowers, Gilb, Hughes, Key, Martin, Mason, Mitchell, Otterman, Patton, S., Patton, T., Raga, Redfern, Reidelbach, Seitz, Setzer, Smith, G., Smith, S., Stewart, J., Willamowski, Williams, Woodard, Yates, Yuko 

A BILL
To amend sections 145.011, 151.04, 154.01, 3305.01, 1
3307.01, 3333.045, 3334.01, 3345.04, 3345.12, 2
3345.17, 3345.31, 3345.32, 3345.50, 3345.51, and 3
3345.71; to enact sections 3364.01, 3364.02, 4
3364.03, 3364.04, 3364.05, and 3364.06; to repeal 5
sections 3350.01, 3350.02, 3350.03, 3350.04, 6
3350.05, 3360.01, 3360.02, 3360.03, 3360.04, and 7
3360.05 of the Revised Code; and to amend Sections 8
209.63, 209.63.57, and 209.64.22 of Am. Sub. H.B. 9
66 of the 126th General Assembly to combine the 10
University of Toledo and the Medical University of 11
Ohio at Toledo.12


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

       Section 1.  That sections 3364.01, 3364.02, 3364.03, 3364.04, 13
3364.05, and 3364.06 of the Revised Code be enacted to read as 14
follows:15

       Sec. 3364.01. (A) The university of Toledo, as authorized 16
under former Chapter 3360. of the Revised Code, and the medical 17
university of Ohio at Toledo, as authorized under former sections 18
3350.01 to 3350.05 of the Revised Code, shall be combined as one 19
state university to be known as the "university of Toledo."20

       (B)(1) The government of the combined university of Toledo is 21
vested in a board of trustees which, except as prescribed in 22
division (B)(2) of this section, shall be appointed by the 23
governor with the advice and consent of the senate. The initial 24
board of trustees of the combined university shall be as 25
prescribed in division (B)(2) of this section. After the 26
abolishment of offices as prescribed in division (B)(2)(a) of this 27
section, the board of trustees of the combined university shall 28
consist of nine voting members, who shall serve for terms of nine 29
years, and two nonvoting members, who shall be students of the 30
combined university and who shall serve for terms of two years. 31
Terms of office of trustees shall begin on the second day of July 32
and end on the first day of July.33

       (2) The initial board of trustees of the combined university 34
shall consist of seventeen voting members who are the eight 35
members who made up the board of trustees of the medical 36
university of Ohio at Toledo prior to May 1, 2006, under former 37
section 3350.01 of the Revised Code, and whose terms would expire 38
under that section after May 1, 2006; the eight voting members who 39
made up the board of trustees of the university of Toledo, under 40
former section 3360.01 of the Revised Code, and whose terms would 41
expire under that section after July 1, 2006; and one additional 42
member appointed by the governor with the advice and consent of 43
the senate. The terms of office, abolishment of office, and 44
succession of the voting members of the initial board shall be as 45
prescribed in division (B)(2)(a) of this section. The initial 46
board also shall consist of two nonvoting members who are students 47
of the combined university, as prescribed in division (B)(2)(b) of 48
this section.49

       (a) The term of office of the voting member of the initial 50
board of trustees of the combined university who was not formerly 51
a member of either the board of trustees of the medical university 52
of Ohio at Toledo or the board of trustees of the university of 53
Toledo shall be for nine years, beginning on July 2, 2006, and 54
ending on July 1, 2015.55

       The terms of office of the sixteen other voting members of 56
the initial board of trustees shall expire on July 1 of the year 57
they otherwise would expire under former section 3350.01 or 58
3360.01 of the Revised Code.59

       The office of one voting member whose term expires on July 1, 60
2007, shall be abolished on that date. The governor, with the 61
advice and consent of the senate, shall appoint a successor to the 62
office of the other voting member whose term expires on that date 63
to a nine-year term beginning on July 2, 2007.64

       The office of one voting member whose term expires on July 1, 65
2008, shall be abolished on that date. The governor, with the 66
advice and consent of the senate, shall appoint a successor to the 67
office of the other voting member whose term expires on that date 68
to a nine-year term beginning on July 2, 2008.69

       The office of one voting member whose term expires on July 1, 70
2009, shall be abolished on that date. The governor, with the 71
advice and consent of the senate, shall appoint a successor to the 72
office of the other voting member whose term expires on that date 73
to a nine-year term beginning on July 2, 2009.74

       The office of one voting member whose term expires on July 1, 75
2010, shall be abolished on that date. The governor, with the 76
advice and consent of the senate, shall appoint a successor to the 77
office of the other voting member whose term expires on that date 78
to a nine-year term beginning on July 2, 2010.79

       The office of one voting member whose term expires on July 1, 80
2011, shall be abolished on that date. The governor, with the 81
advice and consent of the senate, shall appoint a successor to the 82
office of the other voting member whose term expires on that date 83
to a nine-year term beginning on July 2, 2011.84

       The office of one voting member whose term expires on July 1, 85
2012, shall be abolished on that date. The governor, with the 86
advice and consent of the senate, shall appoint a successor to the 87
office of the other voting member whose term expires on that date 88
to a nine-year term beginning on July 2, 2012.89

       The office of one voting member whose term expires on July 1, 90
2013, shall be abolished on that date. The governor, with the 91
advice and consent of the senate, shall appoint a successor to the 92
office of the other voting member whose term expires on that date 93
to a nine-year term beginning on July 2, 2013.94

       The office of one voting member whose term expires on July 1, 95
2014, shall be abolished on that date. The governor, with the 96
advice and consent of the senate, shall appoint a successor to the 97
office of the other voting member whose term expires on that date 98
to a nine-year term beginning on July 2, 2014.99

       The governor, with the advice and consent of the senate, 100
shall appoint a successor to the office of the voting member whose 101
term expires on July 1, 2015, to a nine-year term beginning on 102
July 2, 2015.103

       Thereafter the terms of office of all subsequent voting 104
members of the board of trustees shall be for nine years beginning 105
on the second day of July and ending on the first day of July.106

       (b) One of the student members of the initial board of 107
trustees shall be the student member of the former university of 108
Toledo board of trustees, appointed under former section 3360.01 109
of the Revised Code, whose term would expire under that section on 110
July 1, 2007. The term of that student member shall expire on July 111
1, 2007. The other student member shall be a new appointee, 112
representing the portion of the combined university that made up 113
the former medical university of Ohio at Toledo, appointed to a 114
two-year term beginning on July 2, 2006, and ending on July 1, 115
2008. That student trustee shall be appointed by the governor, 116
with the advice and consent of the senate, from a group of three 117
candidates selected pursuant to a procedure adopted by the 118
university's student governments and approved by the university's 119
board of trustees. Thereafter appointment and terms of office of 120
student members of the board of trustees shall be as prescribed by 121
division (B)(3) of this section.122

       (3) The student members of the board of trustees of the 123
combined university shall be appointed by the governor, with the 124
advice and consent of the senate, from a group of six candidates 125
selected pursuant to a procedure adopted by the university's 126
student governments and approved by the university's board of 127
trustees. Terms of office of student members shall be for two 128
years, each term ending on the same day of the same month of the 129
year as the term it succeeds. In the event that a student member 130
cannot fulfill a two-year term, a replacement shall be selected to 131
fill the unexpired term in the same manner used to make the 132
original selection.133

       (4) Each trustee shall hold office from the date of 134
appointment until the end of the term for which the trustee was 135
appointed. Any trustee appointed to fill a vacancy occurring prior 136
to the expiration of the term for which the trustee's predecessor 137
was appointed shall hold office for the remainder of such term. 138
Any trustee shall continue in office subsequent to the expiration 139
date of the trustee's term until the trustee's successor takes 140
office, or until a period of sixty days has elapsed, whichever 141
occurs first.142

       (5) No person who has served as a voting member of the board 143
of trustees for a full nine-year term or more than six years of 144
such a term and no person who is a voting member of the initial 145
board of trustees as prescribed in division (B)(2)(a) of this 146
section is eligible for reappointment to the board until a period 147
of four years has elapsed since the last day of the term for which 148
the person previously served.149

       No person who served as a voting member of the board of 150
trustees of the former university of Toledo, as authorized under 151
former Chapter 3360. of the Revised Code, for a full nine-year 152
term or more than six years of such a term, and no person who 153
served on the board of trustees of the former medical university 154
of Ohio at Toledo, as authorized under former sections 3350.01 to 155
3350.05 of the Revised Code, for a full nine-year term or more 156
than six years of such a term is eligible for appointment to the 157
board of trustees of the combined university until a period of 158
four years has elapsed since the last day of the term for which 159
the person previously served.160

       (C) The trustees shall receive no compensation for their 161
services but shall be paid their reasonable necessary expenses 162
while engaged in the discharge of their official duties. A 163
majority of the board constitutes a quorum. The student members of 164
the board have no voting power on the board. Student members shall 165
not be considered as members of the board in determining whether a 166
quorum is present. Student members shall not be entitled to attend 167
executive sessions of the board.168

       Sec. 3364.02.  The board of trustees of the university of 169
Toledo annually shall elect from among its members a chairperson 170
and a vice-chairperson, and also may appoint a secretary of the 171
board, a treasurer, and such other officers of the university as 172
the interest of the university requires, who may be members of the 173
board. The treasurer, before entering upon the discharge of 174
official duties, shall give bond to the state for the faithful 175
performance of the treasurer's duties and the proper accounting 176
for all moneys coming into the treasurer's care. The amount of 177
that bond shall be determined by the board, but shall not be for a178
sum less than the estimated amount which may come into the179
treasurer's control at any time, less any reasonable deductible.180

       Sec. 3364.03. The board of trustees of the university of 181
Toledo shall employ, fix the compensation of, and remove, the 182
president and such number of professors, teachers, and other 183
employees as may be deemed necessary. The board shall do all 184
things necessary for the creation, proper maintenance, and185
successful and continuous operation of the university and may 186
adopt and from time to time amend bylaws, rules, and regulations 187
for the conduct of the board and the government and conduct of the 188
university. The board may accept donations of lands and moneys for 189
the purposes of such university.190

       Sec. 3364.04.  The board of trustees of the university of 191
Toledo may receive and hold in trust, for the use and benefit of 192
the university, any grant or devise of land, and any donation or 193
bequest of money or other personal property, to be applied to the 194
general or special use of the university, unless otherwise 195
directed in the donation or bequest. The board of trustees of the 196
university of Toledo may make and enter into all contracts and197
agreements necessary or incidental to the acquisition of property 198
for and the operation of the university. Title to any property 199
taken in the name of the state of Ohio for the benefit of the 200
university of Toledo, the board of trustees of the university of 201
Toledo, the university of Toledo, the medical college of Ohio, or 202
the Toledo state college of medicine shall be deemed to have been 203
taken in the name of the board of trustees of the university of 204
Toledo.205

       Sec. 3364.05.  The general assembly shall support the 206
university of Toledo by such sums and in such manner as it may 207
provide, but support may also come from other sources.208

       Sec. 3364.06. (A) As used in this section, "constituent 209
institutions" means the university of Toledo, as authorized under 210
former Chapter 3360. of the Revised Code, and the medical 211
university of Ohio at Toledo, as authorized under former sections 212
3350.01 to 3350.05 of the Revised Code, which are combined as the 213
university of Toledo pursuant to section 3364.01 of the Revised 214
Code.215

       (B) When the combination of the constituent institutions 216
becomes effective, all of the following apply:217

       (1) The separate existence of each of the constituent 218
institutions shall cease, and the existence of each of the 219
constituent institutions shall be continued for all purposes as 220
the combined university of Toledo. The combination shall not cause 221
either of the constituent institutions to be extinguished, 222
terminated, dissolved, or liquidated and shall not constitute a 223
sale, assignment, conveyance, disposition, or transfer of any of 224
the rights or property of either of the constituent institutions. 225
Whenever an instrument of conveyance, assignment, or transfer or 226
deed or other act is necessary to vest property or rights in the 227
combined university, the officers, trustees, or other authorized 228
representatives of the respective constituent institutions shall 229
execute, acknowledge, and deliver such instruments and do such 230
acts. For these purposes, the existence of the respective 231
constituent institutions and the authority of their respective 232
officers, trustees, or other authorized representatives is 233
continued notwithstanding the combination.234

       (2) The combined university possesses all assets and property 235
of every description, and every interest in the assets and 236
property, wherever located, and the rights, privileges, 237
immunities, powers, franchises, and authority of each of the 238
constituent institutions, all of which are vested in the combined 239
university without further act or deed. Title to any real estate 240
or any interest in the real estate vested in either of the 241
constituent institutions shall not revert or in any way be 242
impaired by reason of the combination.243

       (3) The combined university is liable for all the obligations 244
of each of the constituent institutions to the combination. Any 245
claim existing or any action or proceeding pending by or against 246
either of the constituent institutions may be prosecuted to 247
judgment, with right of appeal, as if the combination had not 248
taken place, or the combined university may be substituted in its 249
place.250

       (4) All the rights of creditors of each of the constituent 251
institutions are preserved unimpaired, and all liens upon the 252
property of either of the constituent institutions are preserved 253
unimpaired, on only the property affected by such liens 254
immediately prior to the effective date of the combination.255

       Section 2.  That sections 145.011, 151.04, 154.01, 3305.01, 256
3307.01, 3333.045, 3334.01, 3345.04, 3345.12, 3345.17, 3345.31, 257
3345.32, 3345.50, 3345.51, and 3345.71 of the Revised Code be 258
amended to read as follows:259

       Sec. 145.011.  In addition to the membership of the public260
employees retirement system as prescribed in division (A) of261
section 145.01 of the Revised Code and notwithstanding Chapter262
3309. of the Revised Code, there shall be included in such263
membership all of the following:264

       (A) The nonteaching employees of the Cleveland state265
university, the medical university of Ohio at Toledo, and the266
northeastern Ohio universities college of medicine;267

       (B) Any person who elects to transfer from the school268
employees retirement system to the public employees retirement269
system under section 3309.312 of the Revised Code;270

       (C) Any person who is employed full-time on or after 271
September 16, 1998, pursuant to section 3345.04 of the Revised 272
Code by the university of Akron as a state university law 273
enforcement officer.274

       Such employees are included in the definition of member as275
used in Chapter 145. of the Revised Code. The universities and276
colleges shall be subject to the obligations imposed by Chapter277
145. of the Revised Code.278

       Sec. 151.04.  This section applies to obligations as defined279
in this section.280

       (A) As used in this section:281

       (1) "Costs of capital facilities" include related direct282
administrative expenses and allocable portions of direct costs of283
the using institution.284

       (2) "Obligations" means obligations as defined in section 285
151.01 of the Revised Code issued to pay costs of capital286
facilities for state-supported or state-assisted institutions of287
higher education.288

       (3) "State-supported or state-assisted institutions of higher289
education" means a state university or college, or community290
college district, technical college district, university branch291
district, or state community college, or other institution for292
education, including technical education, beyond the high school,293
receiving state support or assistance for its expenses of294
operation. "State university or college" means each of the state295
universities identified in section 3345.011 of the Revised Code,296
and the northeastern Ohio universities college of medicine, and 297
the medical university of Ohio at Toledo.298

       (4) "Using institution" means the state-supported or299
state-assisted institution of higher education, or two or more300
institutions acting jointly, that are the ultimate users of301
capital facilities for state-supported and state-assisted302
institutions of higher education financed with net proceeds of303
obligations.304

       (B) The issuing authority shall issue obligations to pay305
costs of capital facilities for state-supported and state-assisted306
institutions of higher education pursuant to Section 2n of Article307
VIII, Ohio Constitution, section 151.01 of the Revised Code, and308
this section.309

       (C) Net proceeds of obligations shall be deposited into the310
higher education improvement fund created by division (F) of311
section 154.21 of the Revised Code.312

       (D) There is hereby created in the state treasury the "higher313
education capital facilities bond service fund." All moneys314
received by the state and required by the bond proceedings,315
consistent with sections 151.01 and 151.04 of the Revised Code, to316
be deposited, transferred, or credited to the bond service fund,317
and all other moneys transferred or allocated to or received for318
the purposes of that fund, shall be deposited and credited to the319
bond service fund, subject to any applicable provisions of the320
bond proceedings but without necessity for any act of321
appropriation. During the period beginning with the date of the322
first issuance of obligations and continuing during the time that323
any obligations are outstanding in accordance with their terms, so324
long as moneys in the bond service fund are insufficient to pay325
debt service when due on those obligations payable from that fund326
(except the principal amounts of bond anticipation notes payable327
from the proceeds of renewal notes or bonds anticipated) and due328
in the particular fiscal year, a sufficient amount of revenues of329
the state is committed and, without necessity for further act of330
appropriation, shall be paid to the bond service fund for the331
purpose of paying that debt service when due.332

       Sec. 154.01.  As used in this chapter:333

       (A) "Commission" means the Ohio public facilities commission 334
created in section 151.02 of the Revised Code.335

       (B) "Obligations" means bonds, notes, or other evidences of 336
obligation, including interest coupons pertaining thereto, issued 337
pursuant to Chapter 154. of the Revised Code.338

       (C) "Bond proceedings" means the order or orders, resolution 339
or resolutions, trust agreement, indenture, lease, and other340
agreements, amendments and supplements to the foregoing, or any341
combination thereof, authorizing or providing for the terms and342
conditions applicable to, or providing for the security of,343
obligations issued pursuant to Chapter 154. of the Revised Code,344
and the provisions contained in such obligations.345

       (D) "State agencies" means the state of Ohio and officers,346
boards, commissions, departments, divisions, or other units or347
agencies of the state.348

       (E) "Governmental agency" means state agencies, state349
supported and assisted institutions of higher education, municipal 350
corporations, counties, townships, school districts, and any other 351
political subdivision or special district in this state 352
established pursuant to law, and, except where otherwise353
indicated, also means the United States or any department,354
division, or agency thereof, and any agency, commission, or355
authority established pursuant to an interstate compact or356
agreement.357

       (F) "Institutions of higher education" and "state supported 358
or state assisted institutions of higher education" means the 359
state universities identified in section 3345.011 of the Revised 360
Code, the medical university of Ohio at Toledo, the northeastern 361
Ohio universities college of medicine, state universities or 362
colleges at any time created, community college districts, 363
university branch districts, and technical college districts at 364
any time established or operating under Chapter 3354., 3355., or 365
3357. of the Revised Code, and other institutions for education, 366
including technical education, beyond the high school, receiving 367
state support or assistance for their expenses of operation.368

       (G) "Governing body" means:369

       (1) In the case of institutions of higher education, the370
board of trustees, board of directors, commission, or other body371
vested by law with the general management, conduct, and control of 372
one or more institutions of higher education;373

       (2) In the case of a county, the board of county374
commissioners or other legislative body; in the case of a375
municipal corporation, the council or other legislative body; in376
the case of a township, the board of township trustees; in the377
case of a school district, the board of education;378

       (3) In the case of any other governmental agency, the379
officer, board, commission, authority or other body having the380
general management thereof or having jurisdiction or authority in381
the particular circumstances.382

       (H) "Person" means any person, firm, partnership,383
association, or corporation.384

       (I) "Bond service charges" means principal, including385
mandatory sinking fund requirements for retirement of obligations, 386
and interest, and redemption premium, if any, required to be paid 387
by the state on obligations. If not prohibited by the applicable 388
bond proceedings, bond service charges may include costs relating 389
to credit enhancement facilities that are related to and 390
represent, or are intended to provide a source of payment of or 391
limitation on, other bond service charges.392

       (J) "Capital facilities" means buildings, structures, and393
other improvements, and equipment, real estate, and interests in394
real estate therefor, within the state, and any one, part of, or395
combination of the foregoing, to serve the general purposes for396
which the issuing authority is authorized to issue obligations 397
pursuant to Chapter 154. of the Revised Code, including, but not 398
limited to, drives, roadways, parking facilities, walks, lighting,399
machinery, furnishings, utilities, landscaping, wharves, docks,400
piers, reservoirs, dams, tunnels, bridges, retaining walls,401
riprap, culverts, ditches, channels, watercourses, retention402
basins, standpipes and water storage facilities, waste treatment403
and disposal facilities, heating, air conditioning and404
communications facilities, inns, lodges, cabins, camping sites,405
golf courses, boat and bathing facilities, athletic and406
recreational facilities, and site improvements.407

       (K) "Costs of capital facilities" means the costs of408
acquiring, constructing, reconstructing, rehabilitating,409
remodeling, renovating, enlarging, improving, equipping, or410
furnishing capital facilities, and the financing thereof,411
including the cost of clearance and preparation of the site and of 412
any land to be used in connection with capital facilities, the413
cost of any indemnity and surety bonds and premiums on insurance,414
all related direct administrative expenses and allocable portions415
of direct costs of the commission or issuing authority and416
department of administrative services, or other designees of the417
commission under section 154.17 of the Revised Code, cost of 418
engineering and architectural services, designs, plans, 419
specifications, surveys, and estimates of cost, legal fees, fees 420
and expenses of trustees, depositories, and paying agents for the 421
obligations, cost of issuance of the obligations and financing 422
charges and fees and expenses of financial advisers and 423
consultants in connection therewith, interest on obligations from 424
the date thereof to the time when interest is to be covered from 425
sources other than proceeds of obligations, amounts necessary to 426
establish reserves as required by the bond proceedings, costs of 427
audits, the reimbursement of all moneys advanced or applied by or 428
borrowed from any governmental agency, whether to or by the 429
commission or others, from whatever source provided, for the 430
payment of any item or items of cost of the capital facilities, 431
any share of the cost undertaken by the commission pursuant to 432
arrangements made with governmental agencies under division (H) of 433
section 154.06 of the Revised Code, and all other expenses 434
necessary or incident to planning or determining feasibility or 435
practicability with respect to capital facilities, and such other 436
expenses as may be necessary or incident to the acquisition, 437
construction, reconstruction, rehabilitation, remodeling, 438
renovation, enlargement, improvement, equipment, and furnishing of 439
capital facilities, the financing thereof and the placing of the 440
same in use and operation, including any one, part of, or 441
combination of such classes of costs and expenses.442

       (L) "Public service facilities" means inns, lodges, hotels, 443
cabins, camping sites, scenic trails, picnic sites, restaurants, 444
commissaries, golf courses, boating and bathing facilities and 445
other similar facilities in state parks.446

       (M) "State parks" means:447

       (1) State reservoirs described and identified in section448
1541.06 of the Revised Code;449

       (2) All lands or interests therein of the state identified as 450
administered by the division of parks and recreation in the451
"inventory of state owned lands administered by the department of452
natural resources as of June 1, 1963," as recorded in the journal453
of the director, which inventory was prepared by the real estate454
section of the department and is supported by maps now on file in455
said real estate section;456

       (3) All lands or interests in lands of the state designated 457
after June 1, 1963, as state parks in the journal of the director 458
with the approval of the recreation and resources council.459

       State parks do not include any lands or interest in lands of 460
the state administered jointly by two or more divisions of the461
department of natural resources. The designation of lands as state 462
parks under divisions (M)(1) to (3) of this section is conclusive 463
and such lands shall be under the control of and administered by 464
the division of parks and recreation. No order or proceeding 465
designating lands as state parks or park purchase areas is subject 466
to any appeal or review by any officer, board, commission, or 467
court.468

       (N) "Bond service fund" means the applicable fund created for 469
and pledged to the payment of bond service charges under section 470
154.20, 154.21, 154.22, or 154.23 of the Revised Code, including 471
all moneys and investments, and earnings from investments, 472
credited and to be credited thereto.473

       (O) "Improvement fund" means the applicable fund created for 474
the payment of costs of capital facilities under section 154.20, 475
154.21, 154.22, or 3383.09 of the Revised Code, including all 476
moneys and investments, and earnings from investments, credited 477
and to be credited thereto.478

       (P) "Special funds" or "funds" means, except where the479
context does not permit, the bond service funds, the improvements480
funds, and any other funds for similar or different purposes481
created under bond proceedings, including all moneys and482
investments, and earnings from investments, credited and to be483
credited thereto.484

       (Q) "Year" unless the context indicates a different meaning 485
or intent, means a calendar year beginning on the first day of 486
January and ending on the thirty-first day of December.487

       (R) "Fiscal year" means the period of twelve months beginning 488
on the first day of July and ending on the thirtieth day of June.489

       (S) "Issuing authority" means the treasurer of state or the490
officer or employee who by law performs the functions of that491
office.492

       (T) "Credit enhancement facilities" has the same meaning as 493
in section 133.01 of the Revised Code.494

       (U) "Ohio cultural facility" and "Ohio sports facility" have 495
the same meanings as in section 3383.01 of the Revised Code.496

       Sec. 3305.01.  As used in this chapter:497

       (A) "Public institution of higher education" means a state498
university as defined in section 3345.011 of the Revised Code, the499
medical university of Ohio at Toledo, the northeastern Ohio500
universities college of medicine, or a university branch,501
technical college, state community college, community college, or502
municipal university established or operating under Chapter 3345.,503
3349., 3354., 3355., 3357., or 3358. of the Revised Code.504

       (B) "State retirement system" means the public employees505
retirement system created under Chapter 145. of the Revised Code,506
the state teachers retirement system created under Chapter 3307.507
of the Revised Code, or the school employees retirement system508
created under Chapter 3309. of the Revised Code.509

       (C) "Eligible employee" means any person employed as a 510
full-time employee of a public institution of higher education.511

       In all cases of doubt, the board of trustees of the public512
institution of higher education shall determine whether any person513
is an eligible employee for purposes of this chapter, and the 514
board's decision shall be final.515

       (D) "Electing employee" means any eligible employee who 516
elects, pursuant to section 3305.05 or 3305.051 of the Revised517
Code, to participate in an alternative retirement plan provided518
pursuant to this chapter or an eligible employee who is required 519
to participate in an alternative retirement plan pursuant to 520
division (C)(4) of section 3305.05 or division (F) of section 521
3305.051 of the Revised Code.522

       (E) "Compensation," for purposes of an electing employee, has 523
the same meaning as the applicable one of the following:524

       (1) If the electing employee would be subject to Chapter 145.525
of the Revised Code had the employee not made an election pursuant 526
to section 3305.05 or 3305.051 of the Revised Code, "earnable 527
salary" as defined in division (R) of section 145.01 of the 528
Revised Code;529

       (2) If the electing employee would be subject to Chapter530
3307. of the Revised Code had the employee not made an election531
pursuant to section 3305.05 or 3305.051 of the Revised Code,532
"compensation" as defined in division (L) of section 3307.01 of 533
the Revised Code;534

       (3) If the electing employee would be subject to Chapter535
3309. of the Revised Code had the employee not made an election536
pursuant to section 3305.05 or 3305.051 of the Revised Code,537
"compensation" as defined in division (V) of section 3309.01 of 538
the Revised Code.539

       (F) "Provider" means an entity designated under section540
3305.03 of the Revised Code as a provider of investment options541
for an alternative retirement plan.542

       Sec. 3307.01.  As used in this chapter:543

       (A) "Employer" means the board of education, school district, 544
governing authority of any community school established under545
Chapter 3314. of the Revised Code, college, university,546
institution, or other agency within the state by which a teacher547
is employed and paid.548

       (B) "Teacher" means all of the following:549

       (1) Any person paid from public funds and employed in the550
public schools of the state under any type of contract described551
in section 3319.08 of the Revised Code in a position for which the552
person is required to have a license issued pursuant to sections553
3319.22 to 3319.31 of the Revised Code;554

       (2) Any person employed as a teacher by a community school555
pursuant to Chapter 3314. of the Revised Code;556

       (3) Any person having a license issued pursuant to sections557
3319.22 to 3319.31 of the Revised Code and employed in a public558
school in this state in an educational position, as determined by559
the state board of education, under programs provided for by560
federal acts or regulations and financed in whole or in part from561
federal funds, but for which no licensure requirements for the562
position can be made under the provisions of such federal acts or563
regulations;564

       (4) Any other teacher or faculty member employed in any565
school, college, university, institution, or other agency wholly566
controlled and managed, and supported in whole or in part, by the567
state or any political subdivision thereof, including Central568
state university, Cleveland state university, and the university 569
of Toledo, and the medical university of Ohio at Toledo;570

       (5) The educational employees of the department of education, 571
as determined by the state superintendent of public instruction.572

       In all cases of doubt, the state teachers retirement board573
shall determine whether any person is a teacher, and its decision574
shall be final.575

       "Teacher" does not include any eligible employee of a public576
institution of higher education, as defined in section 3305.01 of 577
the Revised Code, who elects to participate in an alternative 578
retirement plan established under Chapter 3305. of the Revised 579
Code.580

       (C) "Member" means any person included in the membership of581
the state teachers retirement system, which shall consist of all582
teachers and contributors as defined in divisions (B) and (D) of583
this section and all disability benefit recipients, as defined in584
section 3307.50 of the Revised Code. However, for purposes of this 585
chapter, the following persons shall not be considered members:586

       (1) A student, intern, or resident who is not a member while587
employed part-time by a school, college, or university at which588
the student, intern, or resident is regularly attending classes;589

       (2) A person denied membership pursuant to section 3307.24 of 590
the Revised Code;591

       (3) An other system retirant, as defined in section 3307.35592
of the Revised Code, or a superannuate;593

       (4) An individual employed in a program established pursuant594
to the "Job Training Partnership Act," 96 Stat. 1322 (1982), 29595
U.S.C.A. 1501.596

       (D) "Contributor" means any person who has an account in the597
teachers' savings fund or defined contribution fund.598

       (E) "Beneficiary" means any person eligible to receive, or in 599
receipt of, a retirement allowance or other benefit provided by600
this chapter.601

       (F) "Year" means the year beginning the first day of July and 602
ending with the thirtieth day of June next following, except that 603
for the purpose of determining final average salary under the plan604
described in sections 3307.50 to 3307.79 of the Revised Code,605
"year" may mean the contract year.606

       (G) "Local district pension system" means any school teachers 607
pension fund created in any school district of the state in 608
accordance with the laws of the state prior to September 1, 1920.609

       (H) "Employer contribution" means the amount paid by an610
employer, as determined by the employer rate, including the normal611
and deficiency rates, contributions, and funds wherever used in612
this chapter.613

       (I) "Five years of service credit" means employment covered614
under this chapter and employment covered under a former615
retirement plan operated, recognized, or endorsed by a college,616
institute, university, or political subdivision of this state617
prior to coverage under this chapter.618

       (J) "Actuary" means the actuarial consultant to the state619
teachers retirement board, who shall be either of the following:620

       (1) A member of the American academy of actuaries;621

       (2) A firm, partnership, or corporation of which at least one 622
person is a member of the American academy of actuaries.623

       (K) "Fiduciary" means a person who does any of the following:624

       (1) Exercises any discretionary authority or control with625
respect to the management of the system, or with respect to the626
management or disposition of its assets;627

       (2) Renders investment advice for a fee, direct or indirect,628
with respect to money or property of the system;629

       (3) Has any discretionary authority or responsibility in the630
administration of the system.631

       (L)(1) Except as provided in this division, "compensation"632
means all salary, wages, and other earnings paid to a teacher by633
reason of the teacher's employment, including compensation paid634
pursuant to a supplemental contract. The salary, wages, and other635
earnings shall be determined prior to determination of the amount636
required to be contributed to the teachers' savings fund or637
defined contribution fund under section 3307.26 of the Revised638
Code and without regard to whether any of the salary, wages, or639
other earnings are treated as deferred income for federal income640
tax purposes.641

       (2) Compensation does not include any of the following:642

       (a) Payments for accrued but unused sick leave or personal643
leave, including payments made under a plan established pursuant644
to section 124.39 of the Revised Code or any other plan645
established by the employer;646

       (b) Payments made for accrued but unused vacation leave,647
including payments made pursuant to section 124.13 of the Revised648
Code or a plan established by the employer;649

       (c) Payments made for vacation pay covering concurrent650
periods for which other salary, compensation, or benefits under651
this chapter are paid;652

       (d) Amounts paid by the employer to provide life insurance,653
sickness, accident, endowment, health, medical, hospital, dental,654
or surgical coverage, or other insurance for the teacher or the655
teacher's family, or amounts paid by the employer to the teacher656
in lieu of providing the insurance;657

       (e) Incidental benefits, including lodging, food, laundry,658
parking, or services furnished by the employer, use of the659
employer's property or equipment, and reimbursement for660
job-related expenses authorized by the employer, including moving661
and travel expenses and expenses related to professional662
development;663

       (f) Payments made by the employer in exchange for a member's664
waiver of a right to receive any payment, amount, or benefit665
described in division (L)(2) of this section;666

       (g) Payments by the employer for services not actually667
rendered;668

       (h) Any amount paid by the employer as a retroactive increase 669
in salary, wages, or other earnings, unless the increase is one of 670
the following:671

       (i) A retroactive increase paid to a member employed by a672
school district board of education in a position that requires a673
license designated for teaching and not designated for being an674
administrator issued under section 3319.22 of the Revised Code675
that is paid in accordance with uniform criteria applicable to all676
members employed by the board in positions requiring the licenses;677

       (ii) A retroactive increase paid to a member employed by a678
school district board of education in a position that requires a679
license designated for being an administrator issued under section680
3319.22 of the Revised Code that is paid in accordance with681
uniform criteria applicable to all members employed by the board682
in positions requiring the licenses;683

       (iii) A retroactive increase paid to a member employed by a684
school district board of education as a superintendent that is685
also paid as described in division (L)(2)(h)(i) of this section;686

       (iv) A retroactive increase paid to a member employed by an687
employer other than a school district board of education in688
accordance with uniform criteria applicable to all members689
employed by the employer.690

       (i) Payments made to or on behalf of a teacher that are in691
excess of the annual compensation that may be taken into account692
by the retirement system under division (a)(17) of section 401 of693
the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A.694
401(a)(17), as amended. For a teacher who first establishes695
membership before July 1, 1996, the annual compensation that may696
be taken into account by the retirement system shall be determined697
under division (d)(3) of section 13212 of the "Omnibus Budget698
Reconciliation Act of 1993," Pub. L. No. 103-66, 107 Stat. 472.699

       (j) Payments made under division (B), (C), or (E) of section700
5923.05 of the Revised Code, Section 4 of Substitute Senate Bill701
No. 3 of the 119th general assembly, Section 3 of Amended702
Substitute Senate Bill No. 164 of the 124th general assembly, or703
Amended Substitute House Bill No. 405 of the 124th general704
assembly;705

       (k) Anything of value received by the teacher that is based706
on or attributable to retirement or an agreement to retire.707

       (3) The retirement board shall determine by rule both of the708
following:709

       (a) Whether particular forms of earnings are included in any710
of the categories enumerated in this division;711

       (b) Whether any form of earnings not enumerated in this712
division is to be included in compensation.713

       Decisions of the board made under this division shall be714
final.715

       (M) "Superannuate" means both of the following:716

       (1) A former teacher receiving from the system a retirement717
allowance under section 3307.58 or 3307.59 of the Revised Code;718

       (2) A former teacher receiving a benefit from the system719
under a plan established under section 3307.81 of the Revised720
Code, except that "superannuate" does not include a former teacher721
who is receiving a benefit based on disability under a plan722
established under section 3307.81 of the Revised Code.723

       For purposes of sections 3307.35 and 3307.353 of the Revised 724
Code, "superannuate" also means a former teacher receiving from 725
the system a combined service retirement benefit paid in 726
accordance with section 3307.57 of the Revised Code, regardless of 727
which retirement system is paying the benefit.728

       Sec. 3333.045.  As used in this section, "state university or 729
college" means any state university listed in section 3345.011 of 730
the Revised Code, the northeastern Ohio universities college of 731
medicine, the medical university of Ohio at Toledo, any community 732
college under Chapter 3354. of the Revised Code, any university 733
branch district under Chapter 3355. of the Revised Code, any 734
technical college under Chapter 3357. of the Revised Code, and any 735
state community college under Chapter 3358. of the Revised Code.736

       The Ohio board of regents shall work with the attorney 737
general, the auditor of state, and the Ohio ethics commission to 738
develop a model for training members of the boards of trustees of 739
all state universities and colleges and members of the board of740
regents regarding the authority and responsibilities of a board of 741
trustees or the board of regents. This model shall include a 742
review of fiduciary responsibilities, ethics, and fiscal 743
management. Use of this model by members of boards of trustees and 744
the board of regents shall be voluntary.745

       This section does not apply to the three members of the board 746
of trustees of the northeastern Ohio universities college of747
medicine who are presidents of state universities.748

       Sec. 3334.01.  As used in this chapter:749

       (A) "Aggregate original principal amount" means the aggregate 750
of the initial offering prices to the public of college savings 751
bonds, exclusive of accrued interest, if any. "Aggregate original 752
principal amount" does not mean the aggregate accreted amount 753
payable at maturity or redemption of such bonds.754

       (B) "Beneficiary" means:755

       (1) An individual designated by the purchaser under a tuition 756
payment contract or through a scholarship program as the757
individual on whose behalf tuition units purchased under the758
contract or awarded through the scholarship program will be759
applied toward the payment of undergraduate, graduate, or760
professional tuition; or761

       (2) An individual designated by the contributor under a762
variable college savings program contract as the individual whose763
tuition and other higher education expenses will be paid from a764
variable college savings program account.765

       (C) "Capital appreciation bond" means a bond for which the766
following is true:767

       (1) The principal amount is less than the amount payable at768
maturity or early redemption; and769

       (2) No interest is payable on a current basis.770

       (D) "Tuition unit" means a credit of the Ohio tuition trust 771
authority purchased under section 3334.09 of the Revised Code. 772
"Tuition unit" includes a tuition credit purchased prior to July 773
1, 1994.774

       (E) "College savings bonds" means revenue and other775
obligations issued on behalf of the state or any agency or issuing776
authority thereof as a zero-coupon or capital appreciation bond,777
and designated as college savings bonds as provided in this778
chapter. "College savings bond issue" means any issue of bonds of779
which any part has been designated as college savings bonds.780

       (F) "Institution of higher education" means a state781
institution of higher education, a private college, university, or782
other postsecondary institution located in this state that783
possesses a certificate of authorization issued by the Ohio board784
of regents pursuant to Chapter 1713. of the Revised Code or a785
certificate of registration issued by the state board of career 786
colleges and schools under Chapter 3332. of the Revised Code, or 787
an accredited college, university, or other postsecondary 788
institution located outside this state that is accredited by an789
accrediting organization or professional association recognized by 790
the authority. To be considered an institution of higher 791
education, an institution shall meet the definition of an eligible 792
educational institution under section 529 of the Internal Revenue 793
Code.794

       (G) "Issuing authority" means any authority, commission,795
body, agency, or individual empowered by the Ohio Constitution or796
the Revised Code to issue bonds or any other debt obligation of797
the state or any agency or department thereof. "Issuer" means the798
issuing authority or, if so designated under division (B) of799
section 3334.04 of the Revised Code, the treasurer of state.800

       (H) "Tuition" means the charges imposed to attend an801
institution of higher education as an undergraduate, graduate, or802
professional student and all fees required as a condition of803
enrollment, as determined by the Ohio tuition trust authority.804
"Tuition" does not include laboratory fees, room and board, or805
other similar fees and charges.806

       (I) "Weighted average tuition" means the tuition cost807
resulting from the following calculation:808

       (1) Add the products of the annual undergraduate tuition809
charged to Ohio residents at each four-year state university810
multiplied by that institution's total number of undergraduate811
fiscal year equated students; and812

       (2) Divide the gross total of the products from division813
(I)(1) of this section by the total number of undergraduate fiscal814
year equated students attending four-year state universities.815

       When making this calculation, the "annual undergraduate 816
tuition charged to Ohio residents" shall not incorporate any 817
tuition reductions that vary in amount among individual recipients 818
and that are awarded to Ohio residents based upon their particular 819
circumstances, beyond any minimum amount awarded uniformly to all 820
Ohio residents. In addition, any tuition reductions awarded 821
uniformly to all Ohio residents shall be incorporated into this 822
calculation.823

       (J) "Zero-coupon bond" means a bond which has a stated824
interest rate of zero per cent and on which no interest is payable825
until the maturity or early redemption of the bond, and is offered826
at a substantial discount from its original stated principal827
amount.828

       (K) "State institution of higher education" includes the829
state universities listed in section 3345.011 of the Revised Code,830
community colleges created pursuant to Chapter 3354. of the831
Revised Code, university branches created pursuant to Chapter832
3355. of the Revised Code, technical colleges created pursuant to833
Chapter 3357. of the Revised Code, state community colleges834
created pursuant to Chapter 3358. of the Revised Code, the medical 835
university of Ohio at Toledo, and the northeastern Ohio 836
universities college of medicine.837

       (L) "Four-year state university" means those state838
universities listed in section 3345.011 of the Revised Code.839

       (M) "Principal amount" refers to the initial offering price840
to the public of an obligation, exclusive of the accrued interest,841
if any. "Principal amount" does not refer to the aggregate842
accreted amount payable at maturity or redemption of an843
obligation.844

       (N) "Scholarship program" means a program registered with the 845
Ohio tuition trust authority pursuant to section 3334.17 of the846
Revised Code.847

       (O) "Internal Revenue Code" means the "Internal Revenue Code848
of 1986," 100 Stat. 2085, 26 U.S.C.A. 1 et seq., as amended.849

       (P) "Other higher education expenses" means room and board850
and books, supplies, equipment, and nontuition-related fees851
associated with the cost of attendance of a beneficiary at an852
institution of higher education, but only to the extent that such853
expenses meet the definition of "qualified higher education854
expenses" under section 529 of the Internal Revenue Code. "Other855
higher education expenses" does not include tuition as defined in856
division (H) of this section.857

       (Q) "Purchaser" means the person signing the tuition payment858
contract, who controls the account and acquires tuition units for 859
an account under the terms and conditions of the contract.860

       (R) "Contributor" means a person who signs a variable college861
savings program contract with the Ohio tuition trust authority and862
contributes to and owns the account created under the contract.863

       (S) "Contribution" means any payment directly allocated to an 864
account for the benefit of the designated beneficiary of the 865
account.866

       Sec. 3345.04.  (A) As used in this section, "felony" has the867
same meaning as in section 109.511 of the Revised Code.868

       (B) Subject to division (C) of this section, the board of869
trustees of a state university, the board of trustees of the870
medical university of Ohio at Toledo, the board of trustees of the871
northeastern Ohio universities college of medicine, the board of872
trustees of a state community college, and the board of trustees873
of a technical college or community college district operating a874
technical or a community college may designate one or more875
employees of the institution, as a state university law876
enforcement officer, in accordance with section 109.77 of the877
Revised Code, and, as state university law enforcement officers,878
those employees shall take an oath of office, wear the badge of879
office, serve as peace officers for the college or university, and880
give bond to the state for the proper and faithful discharge of881
their duties in the amount that the board of trustees requires.882

       (C)(1) The board of trustees of an institution listed in883
division (B) of this section shall not designate an employee of884
the institution as a state university law enforcement officer885
pursuant to that division on a permanent basis, on a temporary886
basis, for a probationary term, or on other than a permanent basis887
if the employee previously has been convicted of or has pleaded888
guilty to a felony.889

       (2)(a) The board of trustees shall terminate the employment890
as a state university law enforcement officer of an employee891
designated as a state university law enforcement officer under892
division (B) of this section if that employee does either of the893
following:894

       (i) Pleads guilty to a felony;895

       (ii) Pleads guilty to a misdemeanor pursuant to a negotiated896
plea agreement as provided in division (D) of section 2929.43 of 897
the Revised Code in which the employee agrees to surrender the 898
certificate awarded to the employee under section 109.77 of the 899
Revised Code.900

       (b) The board of trustees shall suspend from employment as a901
state university law enforcement officer an employee designated as902
a state university law enforcement officer under division (B) of903
this section if that employee is convicted, after trial, of a904
felony. If the state university law enforcement officer files an905
appeal from that conviction and the conviction is upheld by the906
highest court to which the appeal is taken or if the state907
university law enforcement officer does not file a timely appeal,908
the board of trustees shall terminate the employment of that state909
university law enforcement officer. If the state university law910
enforcement officer files an appeal that results in that officer's911
acquittal of the felony or conviction of a misdemeanor, or in the912
dismissal of the felony charge against that officer, the board of913
trustees shall reinstate that state university law enforcement914
officer. A state university law enforcement officer who is915
reinstated under division (C)(2)(b) of this section shall not916
receive any back pay unless that officer's conviction of the917
felony was reversed on appeal, or the felony charge was dismissed,918
because the court found insufficient evidence to convict the919
officer of the felony.920

       (3) Division (C) of this section does not apply regarding an921
offense that was committed prior to January 1, 1997.922

       (4) The suspension from employment, or the termination of the 923
employment, of a state university law enforcement officer under 924
division (C)(2) of this section shall be in accordance with925
Chapter 119. of the Revised Code.926

       Sec. 3345.12.  (A) As used in this section and sections 927
3345.07 and 3345.11 of the Revised Code, in other sections of the 928
Revised Code that make reference to this section unless the 929
context does not permit, and in related bond proceedings unless 930
otherwise expressly provided:931

       (1) "State university or college" means each of the state932
universities identified in section 3345.011 of the Revised Code,933
and the northeastern Ohio universities college of medicine, and 934
the medical university of Ohio at Toledo, and includes its board 935
of trustees.936

       (2) "Institution of higher education" or "institution" means 937
a state university or college, or a community college district, 938
technical college district, university branch district, or state 939
community college, and includes the applicable board of trustees 940
or, in the case of a university branch district, any other 941
managing authority.942

       (3) "Housing and dining facilities" means buildings,943
structures, and other improvements, and equipment, real estate,944
and interests in real estate therefor, to be used for or in945
connection with dormitories or other living quarters and946
accommodations, or related dining halls or other food service and 947
preparation facilities, for students, members of the faculty, 948
officers, or employees of the institution of higher education, and 949
their spouses and families.950

       (4) "Auxiliary facilities" means buildings, structures, and 951
other improvements, and equipment, real estate, and interests in 952
real estate therefor, to be used for or in connection with student 953
activity or student service facilities, housing and dining954
facilities, dining halls, and other food service and preparation 955
facilities, vehicular parking facilities, bookstores, athletic and 956
recreational facilities, faculty centers, auditoriums, assembly 957
and exhibition halls, hospitals, infirmaries and other medical and 958
health facilities, research, and continuing education facilities.959

       (5) "Education facilities" means buildings, structures, and 960
other improvements, and equipment, real estate, and interests in 961
real estate therefor, to be used for or in connection with, 962
classrooms or other instructional facilities, libraries, 963
administrative and office facilities, and other facilities, other 964
than auxiliary facilities, to be used directly or indirectly for 965
or in connection with the conduct of the institution of higher966
education.967

       (6) "Facilities" means housing and dining facilities, 968
auxiliary facilities, or education facilities, and includes any 969
one, part of, or any combination of such facilities, and further 970
includes site improvements, utilities, machinery, furnishings, and 971
any separate or connected buildings, structures, improvements, 972
sites, open space and green space areas, utilities or equipment to 973
be used in, or in connection with the operation or maintenance of, 974
or supplementing or otherwise related to the services or 975
facilities to be provided by, such facilities.976

       (7) "Obligations" means bonds or notes or other evidences of 977
obligation, including interest coupons pertaining thereto,978
authorized to be issued under this section or section 3345.07, 979
3345.11, 3354.121, 3355.091, 3357.112, or 3358.10 of the Revised 980
Code.981

       (8) "Bond service charges" means principal, including any 982
mandatory sinking fund or redemption requirements for the 983
retirement of obligations, interest, or interest equivalent and 984
other accreted amounts, and any call premium required to be paid 985
on obligations.986

       (9) "Bond proceedings" means the resolutions, trust 987
agreement, indenture, and other agreements and credit enhancement 988
facilities, and amendments and supplements to the foregoing, or 989
any one or more or combination thereof, authorizing, awarding, or 990
providing for the terms and conditions applicable to, or providing 991
for the security or liquidity of, obligations, and the provisions 992
contained in those obligations.993

       (10) "Costs of facilities" means the costs of acquiring, 994
constructing, reconstructing, rehabilitating, remodeling, 995
renovating, enlarging, improving, equipping, or furnishing 996
facilities, and the financing thereof, including the cost of 997
clearance and preparation of the site and of any land to be used 998
in connection with facilities, the cost of any indemnity and 999
surety bonds and premiums on insurance, all related direct 1000
administrative expenses and allocable portions of direct costs of 1001
the institution of higher education or state agency, cost of 1002
engineering, architectural services, design, plans, specifications 1003
and surveys, estimates of cost, legal fees, fees and expenses of 1004
trustees, depositories, bond registrars, and paying agents for the1005
obligations, cost of issuance of the obligations and financing1006
costs and fees and expenses of financial advisers and consultants 1007
in connection therewith, interest on the obligations from the date 1008
thereof to the time when interest is to be covered by available 1009
receipts or other sources other than proceeds of the obligations,1010
amounts necessary to establish reserves as required by the bond1011
proceedings, costs of audits, the reimbursements of all moneys1012
advanced or applied by or borrowed from the institution or others, 1013
from whatever source provided, including any temporary advances 1014
from state appropriations, for the payment of any item or items of 1015
cost of facilities, and all other expenses necessary or incident 1016
to planning or determining feasibility or practicability with 1017
respect to facilities, and such other expenses as may be necessary 1018
or incident to the acquisition, construction, reconstruction, 1019
rehabilitation, remodeling, renovation, enlargement, improvement, 1020
equipment, and furnishing of facilities, the financing thereof and 1021
the placing of them in use and operation, including any one, part1022
of, or combination of such classes of costs and expenses.1023

       (11) "Available receipts" means all moneys received by the1024
institution of higher education, including income, revenues, and1025
receipts from the operation, ownership, or control of facilities,1026
grants, gifts, donations, and pledges and receipts therefrom,1027
receipts from fees and charges, and the proceeds of the sale of1028
obligations, including proceeds of obligations issued to refund1029
obligations previously issued, but excluding any special fee, and1030
receipts therefrom, charged pursuant to division (D) of section1031
154.21 of the Revised Code.1032

       (12) "Credit enhancement facilities" has the meaning given in1033
division (H) of section 133.01 of the Revised Code.1034

       (13) "Financing costs" has the meaning given in division (K) 1035
of section 133.01 of the Revised Code.1036

       (14) "Interest" or "interest equivalent" has the meaning 1037
given in division (R) of section 133.01 of the Revised Code.1038

       (B) Obligations issued under section 3345.07 or 3345.11 of1039
the Revised Code by a state university or college shall be1040
authorized by resolution of its board of trustees. Obligations1041
issued by any other institution of higher education shall be1042
authorized by resolution of its board of trustees, or managing1043
directors in the case of certain university branch districts, as 1044
applicable. Sections 9.96 and 9.98 to 9.983 of the Revised Code 1045
apply to obligations. Obligations may be issued to pay costs of 1046
facilities even if the institution anticipates the possibility of 1047
a future state appropriation to pay all or a portion of such1048
costs.1049

       (C) Obligations shall be secured by a pledge of and lien on 1050
all or such part of the available receipts of the institution of1051
higher education as it provides for in the bond proceedings,1052
excluding moneys raised by taxation and state appropriations. Such 1053
pledge and lien may be made prior to all other expenses, claims, 1054
or payments, excepting any pledge of such available receipts 1055
previously made to the contrary and except as provided by any 1056
existing restrictions on the use thereof, or such pledge and lien 1057
may be made subordinate to such other expenses, claims, or 1058
payments, as provided in the bond proceedings. Obligations may be1059
additionally secured by covenants of the institution to make, fix, 1060
adjust, collect, and apply such charges, rates, fees, rentals, and 1061
other items of available receipts as will produce pledged 1062
available receipts sufficient to meet bond service charges, 1063
reserve, and other requirements provided for in the bond 1064
proceedings. Notwithstanding this and any other sections of the 1065
Revised Code, the holders or owners of the obligations shall not 1066
be given the right and shall have no right to have excises or 1067
taxes levied by the general assembly for the payment of bond 1068
service charges thereon, and each such obligation shall bear on 1069
its face a statement to that effect and to the effect that the 1070
right to such payment is limited to the available receipts and 1071
special funds pledged to such purpose under the bond proceedings.1072

       All pledged available receipts and funds and the proceeds of 1073
obligations are trust funds and, subject to the provisions of this 1074
section and the applicable bond proceedings, shall be held, 1075
deposited, invested, reinvested, disbursed, applied, and used to 1076
such extent, in such manner, at such times, and for such purposes, 1077
as are provided in the bond proceedings.1078

       (D) The bond proceedings for obligations shall provide for 1079
the purpose thereof and the principal amount or maximum principal 1080
amount, and provide for or authorize the manner of determining the 1081
principal maturity or maturities, the sale price including any 1082
permitted discount, the interest rate or rates, which may be a 1083
variable rate or rates, or the maximum interest rate, the date of 1084
the obligations and the date or dates of payment of interest 1085
thereon, their denominations, the manner of sale thereof, and the 1086
establishment within or without the state of a place or places of 1087
payment of bond service charges. The bond proceedings also shall1088
provide for a pledge of and lien on available receipts of the1089
institution of higher education as provided in division (C) of 1090
this section, and a pledge of and lien on such fund or funds 1091
provided in the bond proceedings arising from available receipts, 1092
which pledges and liens may provide for parity with obligations1093
theretofore or thereafter issued by the institution. The available1094
receipts so pledged and thereafter received by the institution and 1095
the funds so pledged are immediately subject to the lien of such 1096
pledge without any physical delivery thereof or further act, and 1097
the lien of any such pledge is valid and binding against all 1098
parties having claims of any kind against the institution, 1099
irrespective of whether such parties have notice thereof, and 1100
shall create a perfected security interest for all purposes of 1101
Chapter 1309. of the Revised Code, without the necessity for 1102
separation or delivery of funds or for the filing or recording of 1103
the bond proceedings by which such pledge is created or any 1104
certificate, statement, or other document with respect thereto; 1105
and the pledge of such available receipts and funds shall be 1106
effective and the money therefrom and thereof may be applied to 1107
the purposes for which pledged without necessity for any act of 1108
appropriation.1109

       (E) The bond proceedings may contain additional provisions1110
customary or appropriate to the financing or to the obligations or 1111
to particular obligations, including:1112

       (1) The acquisition, construction, reconstruction, equipment, 1113
furnishing, improvement, operation, alteration, enlargement, 1114
maintenance, insurance, and repair of facilities, and the duties 1115
of the institution of higher education with reference thereto;1116

       (2) The terms of the obligations, including provisions for1117
their redemption prior to maturity at the option of the 1118
institution of higher education at such price or prices and under 1119
such terms and conditions as are provided in the bond proceedings;1120

       (3) Limitations on the purposes to which the proceeds of the 1121
obligations may be applied;1122

       (4) The rates or rentals or other charges for the use of or 1123
right to use the facilities financed by the obligations, or other 1124
properties the revenues or receipts from which are pledged to the 1125
obligations, and rules for assuring use and occupancy thereof, 1126
including limitations upon the right to modify such rates, 1127
rentals, other charges, or regulations;1128

       (5) The use and expenditure of the pledged available receipts 1129
in such manner and to such extent as shall be determined, which 1130
may include provision for the payment of the expenses of 1131
operation, maintenance, and repair of facilities so that such 1132
expenses, or part thereof, shall be paid or provided as a charge 1133
prior or subsequent to the payment of bond service charges and any 1134
other payments required to be made by the bond proceedings;1135

       (6) Limitations on the issuance of additional obligations;1136

       (7) The terms of any trust agreement or indenture securing1137
the obligations or under which the same may be issued;1138

       (8) The deposit, investment, and application of funds, and1139
the safeguarding of funds on hand or on deposit without regard to1140
Chapter 131. or 135. of the Revised Code, and any bank or trust1141
company or other financial institution that acts as depository of 1142
any moneys under the bond proceedings shall furnish such 1143
indemnifying bonds or pledge such securities as required by the 1144
bond proceedings or otherwise by the institution of higher 1145
education;1146

       (9) The binding effect of any or every provision of the bond 1147
proceedings upon such officer, board, commission, authority,1148
agency, department, or other person or body as may from time to1149
time have the authority under law to take such actions as may be1150
necessary to perform all or any part of the duty required by such1151
provision;1152

       (10) Any provision that may be made in a trust agreement or 1153
indenture;1154

       (11) Any other or additional agreements with respect to the 1155
facilities of the institution of higher education, their 1156
operation, the available receipts and funds pledged, and insurance 1157
of facilities and of the institution its officers and employees.1158

       (F) Such obligations may have the seal of the institution of 1159
higher education or a facsimile thereof affixed thereto or printed 1160
thereon and shall be executed by such officers as are designated 1161
in the bond proceedings, which execution may be by facsimile 1162
signatures. Any obligations may be executed by an officer who, on 1163
the date of execution, is the proper officer although on the date 1164
of such obligations such person was not the proper officer. In 1165
case any officer whose signature or a facsimile of whose signature 1166
appears on any such obligation ceases to be such officer before 1167
delivery thereof, such signature or facsimile is nevertheless 1168
valid and sufficient for all purposes as if the person had 1169
remained such officer until such delivery; and in case the seal of 1170
the institution has been changed after a facsimile of the seal has 1171
been imprinted on such obligations, such facsimile seal continues 1172
to be sufficient as to such obligations and obligations issued in 1173
substitution or exchange therefor.1174

       (G) All such obligations are negotiable instruments and1175
securities under Chapter 1308. of the Revised Code, subject to the 1176
provisions of the bond proceedings as to registration. The1177
obligations may be issued in coupon or in registered form, or1178
both. Provision may be made for the registration of any1179
obligations with coupons attached thereto as to principal alone or 1180
as to both principal and interest, their exchange for obligations 1181
so registered, and for the conversion or reconversion into 1182
obligations with coupons attached thereto of any obligations1183
registered as to both principal and interest, and for reasonable1184
charges for such registration, exchange, conversion, and1185
reconversion.1186

       (H) Pending preparation of definitive obligations, the1187
institution of higher education may issue interim receipts or1188
certificates which shall be exchanged for such definitive1189
obligations.1190

       (I) Such obligations may be secured additionally by a trust 1191
agreement or indenture between the institution of higher education1192
and a corporate trustee, which may be any trust company or bank 1193
having the powers of a trust company within or without this state 1194
but authorized to exercise trust powers within this state. Any 1195
such agreement or indenture may contain the resolution authorizing 1196
the issuance of the obligations, any provisions that may be 1197
contained in the bond proceedings as authorized by this section, 1198
and other provisions which are customary or appropriate in an 1199
agreement or indenture of such type, including:1200

       (1) Maintenance of each pledge, trust agreement, and1201
indenture, or other instrument comprising part of the bond1202
proceedings until the institution of higher education has fully 1203
paid the bond service charges on the obligations secured thereby, 1204
or provision therefor has been made;1205

       (2) In the event of default in any payments required to be1206
made by the bond proceedings, or any other agreement of the 1207
institution of higher education made as a part of the contract 1208
under which the obligations were issued, enforcement of such 1209
payments or agreement by mandamus, the appointment of a receiver, 1210
suit in equity, action at law, or any combination of the 1211
foregoing;1212

       (3) The rights and remedies of the holders of obligations and 1213
of the trustee, and provisions for protecting and enforcing them, 1214
including limitations on rights of individual holders of1215
obligations;1216

       (4) The replacement of any obligations that become mutilated 1217
or are destroyed, lost, or stolen;1218

       (5) Such other provisions as the trustee and the institution 1219
of higher education agree upon, including limitations, conditions, 1220
or qualifications relating to any of the foregoing.1221

       (J) Each duty of the institution of higher education and its 1222
officers or employees, undertaken pursuant to the bond proceedings 1223
or any related agreement or lease made under authority of law, is 1224
hereby established as a duty of such institution, and of each such 1225
officer or employee having authority to perform such duty, 1226
specially enjoined by law resulting from an office, trust, or 1227
station within the meaning of section 2731.01 of the Revised Code. 1228
The persons who are at the time the members of the board of 1229
trustees or the managing directors of the institution or its 1230
officers or employees are not liable in their personal capacities1231
on such obligations, or lease, or other agreement of the 1232
institution.1233

       (K) The authority to issue obligations includes authority to:1234

       (1) Issue obligations in the form of bond anticipation notes 1235
and to renew them from time to time by the issuance of new notes. 1236
Such notes are payable solely from the available receipts and1237
funds that may be pledged to the payment of such bonds, or from1238
the proceeds of such bonds or renewal notes, or both, as the1239
institution of higher education provides in its resolution1240
authorizing such notes. Such notes may be additionally secured by 1241
covenants of the institution to the effect that it will do such or 1242
all things necessary for the issuance of such bonds or renewal 1243
notes in appropriate amount, and either exchange such bonds or 1244
renewal notes therefor or apply the proceeds thereof to the extent 1245
necessary, to make full payment of the bond service charges on 1246
such notes at the time or times contemplated, as provided in such 1247
resolution. Subject to the provisions of this division, all 1248
references to obligations in this section apply to such 1249
anticipation notes.1250

       (2) Issue obligations to refund, including funding and 1251
retirement of, obligations previously issued to pay costs of1252
facilities. Such obligations may be issued in amounts sufficient1253
for payment of the principal amount of the obligations to be so1254
refunded, any redemption premiums thereon, principal maturities of 1255
any obligations maturing prior to the redemption of any other1256
obligations on a parity therewith to be so refunded, interest1257
accrued or to accrue to the maturity date or dates of redemption1258
of such obligations, and any expenses incurred or to be incurred1259
in connection with such refunding or the issuance of the1260
obligations.1261

       (L) Obligations are lawful investments for banks, societies 1262
for savings, savings and loan associations, deposit guarantee 1263
associations, trust companies, trustees, fiduciaries, insurance 1264
companies, including domestic for life and domestic not for life, 1265
trustees or other officers having charge of sinking and bond 1266
retirement or other special funds of political subdivisions and 1267
taxing districts of this state, the commissioners of the sinking 1268
fund, the administrator of workers' compensation in accordance 1269
with the investment policy established by the workers' 1270
compensation oversight commission pursuant to section 4121.12 of 1271
the Revised Code, the state teachers retirement system, the public 1272
employees retirement system, the school employees retirement 1273
system, and the Ohio police and fire pension fund, notwithstanding 1274
any other provisions of the Revised Code or rules adopted pursuant 1275
thereto by any state agency with respect to investments by them, 1276
and are also acceptable as security for the deposit of public 1277
moneys.1278

       (M) All facilities purchased, acquired, constructed, or owned 1279
by an institution of higher education, or financed in whole or in 1280
part by obligations issued by an institution, and used for the 1281
purposes of the institution or other publicly owned and controlled 1282
college or university, is public property used exclusively for a 1283
public purpose, and such property and the income therefrom is 1284
exempt from all taxation and assessment within this state, 1285
including ad valorem and excise taxes. The obligations, the 1286
transfer thereof, and the income therefrom, including any profit 1287
made on the sale thereof, are at all times free from taxation 1288
within the state. The transfer of tangible personal property by 1289
lease under authority of this section or section 3345.07, 3345.11,1290
3354.121, 3355.091, 3357.112, or 3358.10 of the Revised Code is 1291
not a sale as used in Chapter 5739. of the Revised Code.1292

       (N) The authority granted by this section is cumulative with 1293
the authority granted to institutions of higher education under 1294
Chapter 154. of the Revised Code, and nothing in this section 1295
impairs or limits the authority granted by Chapter 154. of the 1296
Revised Code. In any lease, agreement, or commitment made by an 1297
institution of higher education under Chapter 154. of the Revised 1298
Code, it may agree to restrict or subordinate any pledge it may 1299
thereafter make under authority of this section.1300

       (O) Title to lands acquired under this section and sections 1301
3345.07 and 3345.11 of the Revised Code by a state university or1302
college shall be taken in the name of the state.1303

       (P) Except where costs of facilities are to be paid in whole 1304
or in part from funds appropriated by the general assembly, 1305
section 125.81 of the Revised Code and the requirement for 1306
certification with respect thereto under section 153.04 of the 1307
Revised Code do not apply to such facilities.1308

       (Q) A state university or college may sell or lease lands or 1309
interests in land owned by it or by the state for its use, or1310
facilities authorized to be acquired or constructed by it under1311
section 3345.07 or 3345.11 of the Revised Code, to permit the1312
purchasers or lessees thereof to acquire, construct, equip, 1313
furnish, reconstruct, alter, enlarge, remodel, renovate, 1314
rehabilitate, improve, maintain, repair, or maintain and operate 1315
thereon and to provide by lease or otherwise to such institution, 1316
facilities authorized in section 3345.07 or 3345.11 of the Revised 1317
Code. Such land or interests therein shall be sold for such 1318
appraised value, or leased, and on such terms as the board of 1319
trustees determines. All deeds or other instruments relating to 1320
such sales or leases shall be executed by such officer of the 1321
state university or college as the board of trustees designates. 1322
The state university or college shall hold, invest, or use the 1323
proceeds of such sales or leases for the same purposes for which 1324
proceeds of borrowings may be used under sections 3345.07 and 1325
3345.11 of the Revised Code.1326

       (R) An institution of higher education may pledge available1327
receipts, to the extent permitted by division (C) of this section 1328
with respect to obligations, to secure the payments to be made by 1329
it under any lease, lease with option to purchase, or 1330
lease-purchase agreement authorized under this section or section 1331
3345.07, 3345.11, 3354.121, 3355.091, 3357.112, or 3358.10 of the 1332
Revised Code.1333

       Sec. 3345.17.  All property, personal, real, or mixed of the 1334
boards of trustees and of the housing commissions of the state 1335
universities, the medical university of Ohio at Toledo, the 1336
northeastern Ohio universities college of medicine, and of the 1337
state held for the use and benefit of any such institution, which 1338
is used for the support of such institution, is exempt from1339
taxation so long as such property is used for the support of such 1340
university or college.1341

       Sec. 3345.31.  The boards of trustees of a state university, 1342
the board of trustees of the medical university of Ohio at Toledo,1343
the board of trustees of the northeastern Ohio universities 1344
college of medicine, the board of trustees of a technical college 1345
or community college district, and the board of control of the 1346
Ohio agricultural research and development center may establish 1347
compensation plans, including schedules of hourly rates, for the 1348
compensation of all employees and may establish rules or policies 1349
for the administration of their respective compensation plans.1350

       The provisions of this section do not apply to employees for 1351
whom the state employment relations board establishes appropriate 1352
bargaining units pursuant to section 4117.06 of the Revised Code.1353

       Sec. 3345.32.  (A) As used in this section:1354

       (1) "State university or college" means the institutions1355
described in section 3345.27 of the Revised Code,and the1356
northeastern Ohio universities college of medicine, and the1357
medical university of Ohio at Toledo.1358

       (2) "Resident" has the meaning specified by rule of the Ohio 1359
board of regents.1360

       (3) "Statement of selective service status" means a statement 1361
certifying one of the following:1362

       (a) That the individual filing the statement has registered 1363
with the selective service system in accordance with the "Military 1364
Selective Service Act," 62 Stat. 604, 50 U.S.C. App. 453, as 1365
amended;1366

       (b) That the individual filing the statement is not required 1367
to register with the selective service for one of the following 1368
reasons:1369

       (i) The individual is under eighteen or over twenty-six years 1370
of age;.1371

       (ii) The individual is on active duty with the armed forces1372
of the United States other than for training in a reserve or 1373
national guard unit;.1374

       (iii) The individual is a nonimmigrant alien lawfully in the1375
United States in accordance with section 101 (a)(15) of the1376
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended;.1377

       (iv) The individual is not a citizen of the United States and 1378
is a permanent resident of the Trust Territory of the Pacific 1379
Islands or the Northern Mariana Islands.1380

       (4) "Institution of higher education" means any eligible1381
institution approved by the United States department of education 1382
pursuant to the "Higher Education Act of 1965," 79 Stat. 1219, as 1383
amended, or any institution whose students are eligible for 1384
financial assistance under any of the programs described by 1385
division (E) of this section.1386

       (B) The Ohio board of regents shall, by rule, specify the1387
form of statements of selective service status to be filed in1388
compliance with divisions (C) to (F) of this section. Each1389
statement of selective service status shall contain a section1390
wherein a male student born after December 31, 1959, certifies1391
that the student has registered with the selective service system 1392
in accordance with the "Military Selective Service Act," 62 Stat.1393
604, 50 U.S.C. App. 453, as amended. For those students not 1394
required to register with the selective service, as specified in 1395
divisions (A)(2)(b)(i) to (iv) of this section, a section shall be 1396
provided on the statement of selective service status for the 1397
certification of nonregistration and for an explanation of the 1398
reason for the exemption. The board of regents may require that 1399
such statements be accompanied by documentation specified by rule 1400
of the board.1401

       (C) A state university or college that enrolls in any course, 1402
class, or program a male student born after December 31, 1959, who 1403
has not filed a statement of selective service status with the 1404
university or college shall, regardless of the student's1405
residency, charge the student any tuition surcharge charged1406
students who are not residents of this state.1407

       (D) No male born after December 31, 1959, shall be eligible 1408
to receive any loan, grant, scholarship, or other financial 1409
assistance for educational expenses under section 3315.33, 1410
3333.12, 3333.122, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03,1411
5910.032, or 5919.34 of the Revised Code unless that person has 1412
filed a statement of selective service status with that person's 1413
institution of higher education.1414

       (E) If an institution of higher education receives a1415
statement from an individual certifying that the individual has 1416
registered with the selective service system in accordance with 1417
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. App.1418
453, as amended or that the individual is exempt from registration 1419
for a reason other than that the individual is under eighteen 1420
years of age, the institution shall not require the individual to 1421
file any further statements. If it receives a statement certifying 1422
that the individual is not required to register because the 1423
individual is under eighteen years of age, the institution shall 1424
require the individual to file a new statement of selective 1425
service status each time the individual seeks to enroll for a new 1426
academic term or makes application for a new loan or loan 1427
guarantee or for any form of financial assistance for educational 1428
expenses, until it receives a statement certifying that the 1429
individual has registered with the selective service system or is 1430
exempt from registration for a reason other than that the 1431
individual is under eighteen years of age.1432

       Sec. 3345.50.  Notwithstanding anything to the contrary in 1433
sections 123.01 and 123.15 of the Revised Code, a state 1434
university, the medical university of Ohio at Toledo, a state 1435
community college, or the northeastern Ohio universities college 1436
of medicine not certified pursuant to section 123.17 of the 1437
Revised Code may administer any capital facilities project for the 1438
construction, reconstruction, improvement, renovation,1439
enlargement, or alteration of a public improvement under its 1440
jurisdiction for which the total amount of funds expected to be 1441
appropriated by the general assembly does not exceed four million 1442
dollars without the supervision, control, or approval of the 1443
department of administrative services as specified in those 1444
sections, if both of the following occur:1445

       (A) Within sixty days after the effective date of the section 1446
of an act in which the general assembly initially makes an 1447
appropriation for the project, the board of trustees of the 1448
institution notifies the Ohio board of regents in writing of its 1449
intent to administer the capital facilities project;1450

       (B) The board of trustees complies with the guidelines 1451
established pursuant to section 153.16 of the Revised Code and all 1452
laws that govern the selection of consultants, preparation and 1453
approval of contract documents, receipt of bids, and award of 1454
contracts with respect to the project.1455

       The board of regents shall adopt rules in accordance with1456
Chapter 119. of the Revised Code that establish criteria for the 1457
administration by any such institution of higher education of a 1458
capital facilities project for which the total amount of funds 1459
expected to be appropriated by the general assembly exceeds four 1460
million dollars. The criteria, to be developed with the department 1461
of administrative services and higher education representatives 1462
selected by the board of regents, shall include such matters as 1463
the adequacy of the staffing levels and expertise needed for the 1464
institution to administer the project, past performance of the 1465
institution in administering such projects, and the amount of 1466
institutional or other nonstate money to be used in financing the 1467
project. The board of regents and the department of administrative 1468
services shall approve the request of any such institution of 1469
higher education that seeks to administer any such capital 1470
facilities project and meets the criteria set forth in the rules 1471
and in the requirements of division (B) of this section.1472

       Sec. 3345.51.  (A) Notwithstanding anything to the contrary 1473
in sections 123.01 and 123.15 of the Revised Code, a state 1474
university, the medical university of Ohio at Toledo, the1475
northeastern Ohio universities college of medicine, or a state 1476
community college may administer any capital facilities project 1477
for the construction, reconstruction, improvement, renovation,1478
enlargement, or alteration of a public improvement under its 1479
jurisdiction for which funds are appropriated by the general1480
assembly without the supervision, control, or approval of the 1481
department of administrative services as specified in those 1482
sections, if all of the following occur:1483

       (1) The institution is certified by the state architect under 1484
section 123.17 of the Revised Code;1485

       (2) Within sixty days after the effective date of the section 1486
of an act in which the general assembly initially makes an 1487
appropriation for the project, the board of trustees of the 1488
institution notifies the Ohio board of regents in writing of its 1489
request to administer the capital facilities project and the board 1490
of regents approves that request pursuant to division (B) of this 1491
section;1492

       (3) The board of trustees passes a resolution stating its 1493
intent to comply with section 153.13 of the Revised Code and the 1494
guidelines established pursuant to section 153.16 of the Revised 1495
Code and all laws that govern the selection of consultants, 1496
preparation and approval of contract documents, receipt of bids, 1497
and award of contracts with respect to the project.1498

       (B) The board of regents shall adopt rules in accordance with1499
Chapter 119. of the Revised Code that establish criteria for the 1500
administration by any such institution of higher education of a 1501
capital facilities project for which the general assembly 1502
appropriates funds. The criteria, to be developed with the 1503
department of administrative services and higher education 1504
representatives selected by the board of regents, shall include 1505
such matters as the adequacy of the staffing levels and expertise 1506
needed for the institution to administer the project, past 1507
performance of the institution in administering such projects, and 1508
the amount of institutional or other nonstate money to be used in 1509
financing the project. The board of regents shall approve the 1510
request of any such institution of higher education that seeks to 1511
administer any such capital facilities project and meets the 1512
criteria set forth in the rules and the requirements of division 1513
(A) of this section.1514

       (C) Any institution that administers a capital facilities 1515
project under this section shall conduct biennial audits for the 1516
duration of the project to ensure that the institution is 1517
complying with Chapters 9., 123., and 153. of the Revised Code and 1518
that the institution is using its certification issued under 1519
section 123.17 of the Revised Code appropriately. The board of 1520
regents, in consultation with higher education representatives 1521
selected by the board, shall adopt rules in accordance with 1522
Chapter 119. of the Revised Code that establish criteria for the 1523
conduct of the audits. The criteria shall include documentation 1524
necessary to determine compliance with Chapters 9., 123., and 153. 1525
of the Revised Code and a method to determine whether an 1526
institution is using its certification issued under section 123.17 1527
of the Revised Code appropriately.1528

       (D) The board of regents, in consultation with higher 1529
education representatives selected by the board, shall adopt rules 1530
in accordance with Chapter 119. of the Revised Code establishing 1531
criteria for monitoring capital facilities projects administered 1532
by institutions under this section. The criteria shall include the 1533
following:1534

       (1) Conditions under which the board of regents may revoke 1535
the authority of an institution to administer a capital facilities 1536
project under this section, including the failure of an 1537
institution to maintain a sufficient number of employees who have 1538
successfully completed the certification program under section 1539
123.17 of the Revised Code;1540

       (2) A process for institutions to remedy any problems found 1541
by an audit conducted pursuant to division (C) of this section, 1542
including the improper use of state funds or violations of Chapter 1543
9., 123., or 153. of the Revised Code.1544

       (E) If the board of regents revokes an institution's 1545
authority to administer a capital facilities project, the 1546
department of administrative services shall administer the capital 1547
facilities project. The board of regents also may require an 1548
institution, for which the board revoked authority to administer a 1549
capital facilities project, to acquire a new local administration 1550
competency certification pursuant to section 123.17 of the Revised 1551
Code.1552

       Sec. 3345.71.  As used in sections 3345.72 to 3345.77 of the 1553
Revised Code:1554

       (A) "State university or college" means any state university 1555
listed in section 3345.011 of the Revised Code, the northeastern 1556
Ohio universities college of medicine, the medical university of 1557
Ohio at Toledo, any community college under Chapter 3354. of the 1558
Revised Code, any technical college under Chapter 3357. of the 1559
Revised Code, and any state community college under Chapter 3358. 1560
of the Revised Code.1561

       (B) "Fiscal watch" means the existence of a fiscal watch 1562
declared under section 3345.72 of the Revised Code.1563

       Section 3.  That existing sections 145.011, 151.04, 154.01, 1564
3305.01, 3307.01, 3333.045, 3334.01, 3345.04, 3345.12, 3345.17, 1565
3345.31, 3345.32, 3345.50, 3345.51, and 3345.71 and sections 1566
3350.01, 3350.02, 3350.03, 3350.04, 3350.05, 3360.01, 3360.02, 1567
3360.03, 3360.04, and 3360.05 of the Revised Code are hereby 1568
repealed.1569

       Section 4. The boards of trustees of the University of Toledo 1570
and the Medical University of Ohio at Toledo are authorized to 1571
enter into a memorandum of understanding regarding the combination 1572
of the two institutions of higher education into a single state 1573
university as prescribed by section 3364.01 of the Revised Code. 1574
That memorandum may address such matters as the boards of trustees 1575
of the University of Toledo and the Medical University of Ohio at 1576
Toledo deem necessary and appropriate to provide for the 1577
transition of the two institutions into a combined institution, 1578
including, without limitation, the identification of the initial 1579
president of the combined institution, the process for selection 1580
of the initial chairperson of the board of trustees of the 1581
combined institution, the relationship to the combined institution 1582
of the existing foundations supporting the two separate 1583
institutions, accounting of funds, and administration of grants.1584

       Section 5. That Sections 209.63, 209.63.57, and 209.64.22 of 1585
Am. Sub. H.B. 66 of the 126th General Assembly be amended to read 1586
as follows: 1587

       Sec. 209.63.  BOR BOARD OF REGENTS1588

General Revenue Fund1589

GRF 235-321 Operating Expenses $ 2,897,659 $ 2,966,351 1590
GRF 235-401 Lease Rental Payments $ 200,619,200 $ 200,795,300 1591
GRF 235-402 Sea Grants $ 231,925 $ 231,925 1592
GRF 235-406 Articulation and Transfer $ 2,900,000 $ 2,900,000 1593
GRF 235-408 Midwest Higher Education Compact $ 90,000 $ 90,000 1594
GRF 235-409 Information System $ 1,146,510 $ 1,175,172 1595
GRF 235-414 State Grants and Scholarship Administration $ 1,352,811 $ 1,382,881 1596
GRF 235-415 Jobs Challenge $ 9,348,300 $ 9,348,300 1597
GRF 235-417 Ohio Learning Network $ 3,119,496 $ 3,119,496 1598
GRF 235-418 Access Challenge $ 73,513,302 $ 73,004,671 1599
GRF 235-420 Success Challenge $ 52,601,934 $ 52,601,934 1600
GRF 235-428 Appalachian New Economy Partnership $ 1,176,068 $ 1,176,068 1601
GRF 235-433 Economic Growth Challenge $ 20,343,097 $ 23,186,194 1602
GRF 235-434 College Readiness and Access $ 6,375,975 $ 7,655,425 1603
GRF 235-435 Teacher Improvement Initiatives $ 2,697,506 $ 2,697,506 1604
GRF 235-451 Eminent Scholars $ 0 $ 1,370,988 1605
GRF 235-455 EnterpriseOhio Network $ 1,373,941 $ 1,373,941 1606
GRF 235-474 Area Health Education Centers Program Support $ 1,571,756 $ 1,571,756 1607
GRF 235-501 State Share of Instruction $ 1,559,096,031 $ 1,589,096,031 1608
GRF 235-502 Student Support Services $ 795,790 $ 795,790 1609
GRF 235-503 Ohio Instructional Grants $ 121,151,870 $ 92,496,969 1610
GRF 235-504 War Orphans Scholarships $ 4,672,321 $ 4,672,321 1611
GRF 235-507 OhioLINK $ 6,887,824 $ 6,887,824 1612
GRF 235-508 Air Force Institute of Technology $ 1,925,345 $ 1,925,345 1613
GRF 235-510 Ohio Supercomputer Center $ 4,271,195 $ 4,271,195 1614
GRF 235-511 Cooperative Extension Service $ 25,644,863 $ 25,644,863 1615
GRF 235-513 Ohio University Voinovich Center $ 336,082 $ 336,082 1616
GRF 235-515 Case Western Reserve University School of Medicine $ 3,011,271 $ 3,011,271 1617
GRF 235-518 Capitol Scholarship Program $ 125,000 $ 125,000 1618
GRF 235-519 Family Practice $ 4,548,470 $ 4,548,470 1619
GRF 235-520 Shawnee State Supplement $ 1,918,830 $ 1,822,889 1620
GRF 235-521 The Ohio State University Glenn Institute $ 286,082 $ 286,082 1621
GRF 235-524 Police and Fire Protection $ 171,959 $ 171,959 1622
GRF 235-525 Geriatric Medicine $ 750,110 $ 750,110 1623
GRF 235-526 Primary Care Residencies $ 2,245,688 $ 2,245,688 1624
GRF 235-527 Ohio Aerospace Institute $ 1,764,957 $ 1,764,957 1625
GRF 235-530 Academic Scholarships $ 7,800,000 $ 7,800,000 1626
GRF 235-531 Student Choice Grants $ 50,853,276 $ 52,985,376 1627
GRF 235-534 Student Workforce Development Grants $ 2,137,500 $ 2,137,500 1628
GRF 235-535 Ohio Agricultural Research and Development Center $ 35,955,188 $ 35,955,188 1629
GRF 235-536 The Ohio State University Clinical Teaching $ 13,565,885 $ 13,565,885 1630
GRF 235-537 University of Cincinnati Clinical Teaching $ 11,157,756 $ 11,157,756 1631
GRF 235-538 Medical University of Ohio at Toledo Clinical Teaching $ 8,696,866 $ 8,696,866 1632
GRF 235-539 Wright State University Clinical Teaching $ 4,225,107 $ 4,225,107 1633
GRF 235-540 Ohio University Clinical Teaching $ 4,084,540 $ 4,084,540 1634
GRF 235-541 Northeastern Ohio Universities College of Medicine Clinical Teaching $ 4,200,945 $ 4,200,945 1635
GRF 235-543 Ohio College of Podiatric Medicine Clinic Subsidy $ 250,000 $ 250,000 1636
GRF 235-547 School of International Business $ 450,000 $ 450,000 1637
GRF 235-549 Part-time Student Instructional Grants $ 14,457,721 $ 10,534,617 1638
GRF 235-552 Capital Component $ 19,058,863 $ 19,058,863 1639
GRF 235-553 Dayton Area Graduate Studies Institute $ 2,806,599 $ 2,806,599 1640
GRF 235-554 Priorities in Collaborative Graduate Education $ 2,355,548 $ 2,355,548 1641
GRF 235-555 Library Depositories $ 1,696,458 $ 1,696,458 1642
GRF 235-556 Ohio Academic Resources Network $ 3,727,223 $ 3,727,223 1643
GRF 235-558 Long-term Care Research $ 211,047 $ 211,047 1644
GRF 235-561 Bowling Green State University Canadian Studies Center $ 100,015 $ 100,015 1645
GRF 235-563 Ohio College Opportunity Grant $ 0 $ 58,144,139 1646
GRF 235-572 The Ohio State University Clinic Support $ 1,277,019 $ 1,277,019 1647
GRF 235-583 Urban University Program $ 4,992,937 $ 4,992,937 1648
GRF 235-587 Rural University Projects $ 1,147,889 $ 1,147,889 1649
GRF 235-596 Hazardous Materials Program $ 360,435 $ 360,435 1650
GRF 235-599 National Guard Scholarship Program $ 15,128,472 $ 16,611,063 1651
GRF 235-909 Higher Education General Obligation Debt Service $ 137,600,300 $ 152,114,100 1652
TOTAL GRF General Revenue Fund $ 2,469,260,757 $ 2,548,147,869 1653

General Services Fund Group1654

220 235-614 Program Approval and Reauthorization $ 400,000 $ 400,000 1655
456 235-603 Sales and Services $ 700,000 $ 900,000 1656
TOTAL GSF General Services 1657
Fund Group $ 1,100,000 $ 1,300,000 1658

Federal Special Revenue Fund Group1659

3H2 235-608 Human Services Project $ 1,500,000 $ 1,500,000 1660
3H2 235-622 Medical Collaboration Network $ 3,346,143 $ 3,346,143 1661
3N6 235-605 State Student Incentive Grants $ 2,196,680 $ 2,196,680 1662
3T0 235-610 National Health Service Corps - Ohio Loan Repayment $ 150,001 $ 150,001 1663
312 235-609 Tech Prep $ 183,850 $ 183,850 1664
312 235-611 Gear-up Grant $ 1,370,691 $ 1,370,691 1665
312 235-612 Carl D. Perkins Grant/Plan Administration $ 112,960 $ 112,960 1666
312 235-615 Professional Development $ 523,129 $ 523,129 1667
312 235-617 Improving Teacher Quality Grant $ 2,900,000 $ 2,900,000 1668
312 235-619 Ohio Supercomputer Center $ 6,000,000 $ 6,000,000 1669
312 235-621 Science Education Network $ 1,686,970 $ 1,686,970 1670
312 235-631 Federal Grants $ 250,590 $ 250,590 1671
TOTAL FED Federal Special Revenue 1672
Fund Group $ 20,221,014 $ 20,221,014 1673

State Special Revenue Fund Group1674

4E8 235-602 Higher Educational Facility Commission Administration $ 55,000 $ 55,000 1675
4P4 235-604 Physician Loan Repayment $ 476,870 $ 476,870 1676
649 235-607 The Ohio State University Highway/Transportation Research $ 760,000 $ 760,000 1677
682 235-606 Nursing Loan Program $ 893,000 $ 893,000 1678
TOTAL SSR State Special Revenue 1679
Fund Group $ 2,184,870 $ 2,184,870 1680
TOTAL ALL BUDGET FUND GROUPS $ 2,492,766,641 $ 2,571,853,753 1681


       Sec. 209.63.57. STATE SHARE OF INSTRUCTION1683

       As soon as practicable during each fiscal year of the1684
biennium ending June 30, 2007, in accordance with instructions of 1685
the Board of Regents, each state-assisted institution of higher1686
education shall report its actual enrollment to the Board of1687
Regents.1688

       The Board of Regents shall establish procedures required by1689
the system of formulas set out below and for the assignment of1690
individual institutions to categories described in the formulas.1691
The system of formulas establishes the manner in which aggregate1692
expenditure requirements shall be determined for each of the three1693
components of institutional operations. In addition to other1694
adjustments and calculations described below, the subsidy1695
entitlement of an institution shall be determined by subtracting1696
from the institution's aggregate expenditure requirements income1697
to be derived from the local contributions assumed in calculating1698
the subsidy entitlements. The local contributions for purposes of1699
determining subsidy support shall not limit the authority of the1700
individual boards of trustees to establish fee levels.1701

       The General Studies and Technical models shall be adjusted by1702
the Board of Regents so that the share of state subsidy earned by1703
those models is not altered by changes in the overall local share.1704
A lower-division fee differential shall be used to maintain the1705
relationship that would have occurred between these models and the1706
baccalaureate models had an assumed share of 37.5 per cent been 1707
funded.1708

       In defining the number of full-time equivalent (FTE) students1709
for state subsidy purposes, the Board of Regents shall exclude all 1710
undergraduate students who are not residents of Ohio, except those 1711
charged in-state fees in accordance with reciprocity agreements 1712
made under section 3333.17 of the Revised Code or employer 1713
contracts entered into under section 3333.32 of the Revised Code.1714

       (A) AGGREGATE EXPENDITURE PER FULL-TIME EQUIVALENT STUDENT1715

       (1) INSTRUCTION AND SUPPORT SERVICES1716

MODEL FY 2006 FY 2007 1717
General Studies I $ 4,655 $ 4,655 1718
General Studies II $ 5,135 $ 5,135 1719
General Studies III $ 6,365 $ 6,365 1720
Technical I $ 5,926 $ 5,926 1721
Technical III $ 9,107 $ 9,107 1722
Baccalaureate I $ 7,160 $ 7,160 1723
Baccalaureate II $ 8,235 $ 8,235 1724
Baccalaureate III $11,841 $11,841 1725
Masters and Professional I $19,088 $19,088 1726
Masters and Professional II $20,984 $20,984 1727
Masters and Professional III $27,234 $27,234 1728
Medical I $29,143 $29,143 1729
Medical II $37,172 $37,172 1730
MPD I $13,645 $13,645 1731

       (2) STUDENT SERVICES1732

       For this purpose, FTE counts shall be weighted to reflect1733
differences among institutions in the numbers of students enrolled1734
on a part-time basis. The student services subsidy per FTE shall 1735
be $890 in each fiscal year for all models.1736

       (B) PLANT OPERATION AND MAINTENANCE (POM)1737

       (1) DETERMINATION OF THE SQUARE-FOOT-BASED POM SUBSIDY1738

       Space undergoing renovation shall be funded at the rate1739
allowed for storage space.1740

       In the calculation of square footage for each campus, square1741
footage shall be weighted to reflect differences in space1742
utilization.1743

       The space inventories for each campus shall be those1744
determined in the fiscal year 2003 state share of instruction 1745
calculation, adjusted for changes attributable to the construction 1746
or renovation of facilities for which state appropriations were1747
made or local commitments were made prior to January 1, 1995.1748

       Only 50 per cent of the space permanently taken out of1749
operation in fiscal year 2006 or fiscal year 2007 that is not1750
otherwise replaced by a campus shall be deleted from the plant 1751
operation and maintenance space inventory.1752

       The square-foot-based plant operation and maintenance subsidy1753
for each campus shall be determined as follows:1754

       (a) For each standard room type category shown below, the1755
subsidy-eligible net assignable square feet (NASF) for each campus1756
shall be multiplied by the following rates, and the amounts summed1757
for each campus to determine the total gross square-foot-based POM1758
expenditure requirement:1759

FY 2006 FY 2007 1760
Classrooms $5.86 $5.86 1761
Laboratories $7.31 $7.31 1762
Offices $5.86 $5.86 1763
Audio Visual Data Processing $7.31 $7.31 1764
Storage $2.59 $2.59 1765
Circulation $7.39 $7.39 1766
Other $5.86 $5.86 1767

       (b) The total gross square-foot POM expenditure requirement1768
shall be allocated to models in proportion to each campus's 1769
activity-based POM weight multiplied by the two- or five-year 1770
average subsidy-eligible FTEs for all models.1771

       (c) The amounts allocated to models in division (B)(1)(b) of1772
this section shall be multiplied by the ratio of subsidy-eligible1773
FTE students to total FTE students reported in each model, and the1774
amounts summed for all models. To this total amount shall be added 1775
an amount to support roads and grounds expenditures, which shall 1776
also be multiplied by the ratio of subsidy-eligible FTE students 1777
to total FTEs reported for each model. From this total amount, the 1778
amounts for Doctoral I and Doctoral II shall be subtracted to1779
produce the square-foot-based POM subsidy.1780

       (2) DETERMINATION OF THE ACTIVITY-BASED POM SUBSIDY1781

       (a) The number of subsidy-eligible FTE students in each model 1782
shall be multiplied by the following rates for each campus for 1783
each fiscal year.1784

FY 2006 FY 2007 1785
General Studies I $ 512 $ 512 1786
General Studies II $ 662 $ 662 1787
General Studies III $1,464 $1,464 1788
Technical I $ 752 $ 752 1789
Technical III $1,343 $1,343 1790
Baccalaureate I $ 639 $ 639 1791
Baccalaureate II $1,149 $1,149 1792
Baccalaureate III $1,262 $1,262 1793
Masters and Professional I $1,258 $1,258 1794
Masters and Professional II $2,446 $2,446 1795
Masters and Professional III $3,276 $3,276 1796
Medical I $1,967 $1,967 1797
Medical II $3,908 $3,908 1798
MPD I $1,081 $1,081 1799

       (b) The sum of the products for each campus determined in1800
division (B)(2)(a) of this section for all models except Doctoral1801
I and Doctoral II for each fiscal year shall be weighted by a1802
factor to reflect sponsored research activity and job1803
training-related public services expenditures to determine the1804
total activity-based POM subsidy.1805

       (C) CALCULATION OF CORE SUBSIDY ENTITLEMENTS AND ADJUSTMENTS1806

       (1) CALCULATION OF CORE SUBSIDY ENTITLEMENTS1807

       The calculation of the core subsidy entitlement shall consist1808
of the following components:1809

       (a) For each campus in each fiscal year, the core subsidy 1810
entitlement shall be determined by multiplying the amounts listed 1811
above in divisions (A)(1) and (2) and (B)(2) of this section less 1812
assumed local contributions, by (i) average subsidy-eligible FTEs 1813
for the two-year period ending in the prior year for all models 1814
except Doctoral I and Doctoral II; and (ii) average1815
subsidy-eligible FTEs for the five-year period ending in the prior 1816
year for all models except Doctoral I and Doctoral II.1817

       (b) In calculating the core subsidy entitlements for Medical1818
II models only, the Board of Regents shall use the following count1819
of FTE students:1820

       (i) For those medical schools whose current year enrollment, 1821
including students repeating terms, is below the base enrollment, 1822
the Medical II FTE enrollment shall equal: 65 per cent of the base1823
enrollment plus 35 per cent of the current year enrollment 1824
including students repeating terms, where the base enrollment is:1825

The Ohio State University 1010 1826
University of Cincinnati 833 1827
Medical University of Ohio at Toledo 650 1828
Wright State University 433 1829
Ohio University 433 1830
Northeastern Ohio Universities College of Medicine 433 1831

       (ii) For those medical schools whose current year enrollment, 1832
excluding students repeating terms, is equal to or greater than 1833
the base enrollment, the Medical II FTE enrollment shall equal the1834
base enrollment plus the FTE for repeating students.1835

       (iii) Students repeating terms may be no more than five per 1836
cent of current year enrollment.1837

       (c) The Board of Regents shall compute the sum of the two1838
calculations listed in division (C)(1)(a) of this section and use1839
the greater sum as the core subsidy entitlement.1840

       The POM subsidy for each campus shall equal the greater of1841
the square-foot-based subsidy or the activity-based POM subsidy1842
component of the core subsidy entitlement.1843

       (d) The state share of instruction provided for doctoral1844
students shall be based on a fixed percentage of the total1845
appropriation. In each fiscal year of the biennium not more than1846
10.34 per cent of the total state share of instruction shall be1847
reserved to implement the recommendations of the Graduate Funding1848
Commission. It is the intent of the General Assembly that the1849
doctoral reserve not exceed 10.34 per cent of the total state1850
share of instruction to implement the recommendations of the1851
Graduate Funding Commission. The Board of Regents may reallocate 1852
up to two per cent in each fiscal year of the reserve among the1853
state-assisted universities on the basis of a quality review as1854
specified in the recommendations of the Graduate Funding1855
Commission. No such reallocation shall occur unless the Board of 1856
Regents, in consultation with representatives of state-assisted 1857
universities, determines that sufficient funds are available for 1858
this purpose.1859

       The amount so reserved shall be allocated to universities in1860
proportion to their share of the total number of Doctoral I1861
equivalent FTEs as calculated on an institutional basis using the1862
greater of the two-year or five-year FTEs for the period fiscal1863
year 1994 through fiscal year 1998 with annualized FTEs for fiscal1864
years 1994 through 1997 and all-term FTEs for fiscal year 1998 as1865
adjusted to reflect the effects of doctoral review and subsequent 1866
changes in Doctoral I equivalent enrollments. For the purposes of 1867
this calculation, Doctoral I equivalent FTEs shall equal the sum 1868
of Doctoral I FTEs plus 1.5 times the sum of Doctoral II FTEs.1869

       If a university participates in the Innovation Incentive 1870
Program outlined in appropriation item 235-433, Economic Growth 1871
Challenge, then the Board of Regents shall withhold 1.5 per cent 1872
in fiscal year 2006 and three per cent in fiscal year 2007 of the 1873
participating university's allocation of the doctoral reserve. 1874
This withholding is intended to increase incrementally with a goal 1875
of setting aside 15 per cent of the total doctoral reserve by 1876
fiscal year 2016.1877

        The Board of Regents shall use the combined amount of each 1878
participating state-assisted university's set aside of the 1879
doctoral reserve that has been withheld, the state matching funds 1880
earmarked under appropriation item 235-433, Economic Growth 1881
Challenge, and the amount set aside by each accredited Ohio 1882
institution of higher education holding a certificate of 1883
authorization under section 1713.02 of the Revised Code electing 1884
to participate in the Innovation Incentive Program to make awards 1885
through a competitive process under the Innovation Incentive 1886
Program. Only universities electing to set aside the prescribed 1887
amount shall be eligible to compete for and receive Innovation 1888
Incentive awards. The participating universities shall use these 1889
awards to restructure their array of doctoral programs.1890

       (2) ANNUAL STATE SHARE OF INSTRUCTION FUNDING STOP LOSS1891

       In addition to and after the other adjustment noted above, in 1892
each fiscal year, no campus shall receive a state share of 1893
instruction allocation that is less than 97 per cent of the prior 1894
year's state share of instruction amount.1895

       (3) REDUCTIONS IN EARNINGS1896

       If the total state share of instruction earnings in any 1897
fiscal year exceeds the total appropriations available for such1898
purposes, the Board of Regents shall proportionately reduce the1899
state share of instruction earnings for all campuses by a uniform1900
percentage so that the system wide sum equals available1901
appropriations.1902

       (4) CAPITAL COMPONENT DEDUCTION1903

       After all other adjustments have been made, state share of 1904
instruction earnings shall be reduced for each campus by the 1905
amount, if any, by which debt service charged in Am. H.B. No. 748 1906
of the 121st General Assembly, Am. Sub. H.B. No. 850 of the 122nd1907
General Assembly, Am. Sub. H.B. No. 640 of the 123rd General 1908
Assembly, and H.B. No. 675 of the 124th General Assembly, and Am. 1909
Sub. H.B. 16 of the 126th General Assembly for that campus exceeds1910
that campus's capital component earnings. The sum of the amounts 1911
deducted shall be transferred to appropriation item 235-552, 1912
Capital Component, in each fiscal year.1913

       (D) EXCEPTIONAL CIRCUMSTANCES1914

       Adjustments may be made to the state share of instruction1915
payments and other subsidies distributed by the Board of Regents1916
to state-assisted colleges and universities for exceptional1917
circumstances. No adjustments for exceptional circumstances may be 1918
made without the recommendation of the Chancellor and the approval 1919
of the Controlling Board.1920

       (E) MID-YEAR APPROPRIATION REDUCTIONS TO THE STATE SHARE OF 1921
INSTRUCTION1922

       The standard provisions of the state share of instruction 1923
calculation as described in the preceding sections of temporary 1924
law shall apply to any reductions made to appropriation item 1925
235-501, State Share of Instruction, before the Board of Regents 1926
has formally approved the final allocation of the state share of 1927
instruction funds for any fiscal year.1928

       Any reductions made to appropriation item 235-501, State 1929
Share of Instruction, after the Board of Regents has formally 1930
approved the final allocation of the state share of instruction 1931
funds for any fiscal year, shall be uniformly applied to each 1932
campus in proportion to its share of the final allocation.1933

       (F) DISTRIBUTION OF STATE SHARE OF INSTRUCTION1934

       The state share of instruction payments to the institutions1935
shall be in substantially equal monthly amounts during the fiscal1936
year, unless otherwise determined by the Director of Budget and1937
Management pursuant to section 126.09 of the Revised Code.1938
Payments during the first six months of the fiscal year shall be1939
based upon the state share of instruction appropriation estimates1940
made for the various institutions of higher education according to1941
Board of Regents enrollment estimates. Payments during the last1942
six months of the fiscal year shall be distributed after approval1943
of the Controlling Board upon the request of the Board of Regents.1944

       (G) LAW SCHOOL SUBSIDY1945

       The state share of instruction to state-supported1946
universities for students enrolled in law schools in fiscal year1947
2006 and fiscal year 2007 shall be calculated by using the number1948
of subsidy-eligible FTE law school students funded by state1949
subsidy in fiscal year 1995 or the actual number of1950
subsidy-eligible FTE law school students at the institution in the1951
fiscal year, whichever is less.1952

       (H) FUNDS REQUIRING CONTROLLING BOARD APPROVAL1953

       Of the foregoing appropriation item 235-501, State Share of 1954
Instruction, $30,000,000 in fiscal year 2007 shall not be 1955
disbursed without approval of the Controlling Board. Within ten 1956
days after the issuance of the report of the Higher Education 1957
Funding Study Council required by Section 209.63.58 of this act1958
Am. Sub. H.B. 66 of the 126th General Assembly, the Board of 1959
Regents shall seek the Controlling Board's approval to disburse 1960
the $30,000,000 appropriation.1961

       Sec. 209.64.22. STATE UNIVERSITY CLINICAL TEACHING1962

       The foregoing appropriation items 235-536, The Ohio State 1963
University Clinical Teaching; 235-537, University of Cincinnati 1964
Clinical Teaching; 235-538, Medical University of Ohio at Toledo 1965
Clinical Teaching; 235-539, Wright State University Clinical 1966
Teaching; 235-540, Ohio University Clinical Teaching; and 235-541, 1967
Northeastern Ohio Universities College of Medicine Clinical 1968
Teaching, shall be distributed through the Board of Regents.1969

       Of the foregoing appropriation item 235-539, Wright State 1970
University Clinical Teaching, $124,644 in each fiscal year of the 1971
biennium shall be for the use of Wright State University's Ellis 1972
Institute for Clinical Teaching Studies to operate the clinical 1973
facility to serve the Greater Dayton area.1974

       The Board of Regents, in consultation with representatives of 1975
each of the six state-assisted colleges of medicine, shall study 1976
and propose recommendations for a formula to allocate 1977
appropriations for clinical teaching support. The consultation 1978
shall consider factors that reward medical schools for serving 1979
Ohio's health care needs in an equitable and efficient manner. 1980
Recommendations shall be submitted to the Office of Budget and 1981
Management and the General Assembly for consideration by November 1982
15, 2006. A new method, approved by the Office of Budget and 1983
Management and the General Assembly, shall be implemented in 1984
fiscal years 2008 and 2009 for distributing funds for clinical 1985
teaching support.1986

       Section 6. That existing Sections 209.63, 209.63.57, and 1987
209.64.22 of Am. Sub. H.B. 66 of the 126th General Assembly are 1988
hereby repealed.1989

       Section 7. The combination of the Medical University of Ohio 1990
at Toledo and the University of Toledo into the combined 1991
University of Toledo by this act does not change the status of any 1992
employee of either university in the Public Employees Retirement 1993
System. It is the intent of the General Assembly in amending 1994
section 145.011 of the Revised Code to ensure continued membership 1995
in the Public Employees Retirement System for nonteaching 1996
employees of the former Medical University of Ohio at Toledo and 1997
not to add to the category of employees eligible for membership in 1998
the system.1999

       Section 8. Sections 1, 2, 3, 5, 6, and 7 of this act take 2000
effect July 1, 2006. Section 4 of this act shall take effect on 2001
the earliest date permitted by law.2002