As Reported by the House Finance and Appropriations Committee

127th General Assembly
Regular Session
2007-2008
H. B. No. 381


Representative Webster 

Cosponsors: Representatives Hottinger, Bacon, Bolon, Boyd, Budish, Chandler, Coley, Flowers, Hite, Jones, Mecklenborg, Patton, Sears, Strahorn 

A BILL
To amend Sections 375.10 and 375.20.40 of Am. Sub. 1
H.B. 119 of the 127th General Assembly, to amend 2
Section 235.10.40 of Am. Sub. H.B. 699 of the 3
126th General Assembly, and to repeal Section 4
375.20.80 of Am. Sub. H.B. 119 of the 127th 5
General Assembly to increase the funds available 6
for the Ohio Research Scholars Program and to 7
permit a nonpublic four-year Ohio university to 8
submit a proposal for the Ohio Research Scholars 9
Program if the proposal is to be implemented in 10
collaboration with a state college or university.11


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

       Section 1. That Sections 375.10 and 375.20.40 of Am. Sub. 12
H.B. 119 of the 127th General Assembly be amended to read as 13
follows:14

       Sec. 375.10. BOR BOARD OF REGENTS15

General Revenue Fund16

GRF 235-321 Operating Expenses $ 3,141,351 $ 3,141,351 17
GRF 235-401 Lease Rental Payments $ 203,177,900 $ 136,017,500 18
GRF 235-402 Sea Grants $ 300,000 $ 300,000 19
GRF 235-406 Articulation and Transfer $ 2,900,000 $ 2,900,000 20
GRF 235-408 Midwest Higher Education Compact $ 95,000 $ 95,000 21
GRF 235-409 Information System $ 1,175,172 $ 1,175,172 22
GRF 235-414 State Grants and Scholarship Administration $ 1,707,881 $ 1,707,881 23
GRF 235-415 Jobs Challenge $ 9,348,300 $ 9,348,300 24
GRF 235-417 Ohio Learning Network $ 3,119,496 $ 3,119,496 25
GRF 235-418 Access Challenge $ 66,585,769 $ 66,585,769 26
GRF 235-420 Success Challenge $ 53,653,973 $ 53,653,973 27
GRF 235-428 Appalachian New Economy Partnership $ 1,176,068 $ 1,176,068 28
GRF 235-433 Economic Growth Challenge $ 17,186,194 5,186,194 $ 17,186,194 5,186,194 29
GRF 235-434 College Readiness and Access $ 12,655,425 $ 12,655,425 30
GRF 235-435 Teacher Improvement Initiatives $ 4,797,506 $ 11,297,506 31
GRF 235-436 AccelerateOhio $ 1,250,000 $ 2,500,000 32
GRF 235-438 Choose Ohio First Scholarship $ 50,000,000 $ 50,000,000 33
GRF 235-439 Ohio Research Scholars $ 30,000,000 42,000,000 $ 0 13,000,000 34
GRF 235-451 Eminent Scholars $ 0 $ 1,000,000 35
GRF 235-455 EnterpriseOhio Network $ 1,373,941 $ 1,373,941 36
GRF 235-474 Area Health Education Centers Program Support $ 1,571,756 $ 1,571,756 37
GRF 235-501 State Share of Instruction $ 1,678,877,952 $ 1,842,965,747 38
GRF 235-502 Student Support Services $ 795,790 $ 795,790 39
GRF 235-503 Ohio Instructional Grants $ 42,533,966 $ 18,315,568 40
GRF 235-504 War Orphans Scholarships $ 4,812,321 $ 4,812,321 41
GRF 235-507 OhioLINK $ 7,387,824 $ 7,387,824 42
GRF 235-508 Air Force Institute of Technology $ 2,050,345 $ 2,050,345 43
GRF 235-510 Ohio Supercomputer Center $ 4,271,195 $ 4,271,195 44
GRF 235-511 Cooperative Extension Service $ 26,273,260 $ 26,273,260 45
GRF 235-513 Ohio University Voinovich Center $ 669,082 $ 669,082 46
GRF 235-514 Central State Supplement $ 11,756,414 $ 12,109,106 47
GRF 235-515 Case Western Reserve University School of Medicine $ 3,011,271 $ 3,011,271 48
GRF 235-518 Capitol Scholarship Program $ 125,000 $ 125,000 49
GRF 235-519 Family Practice $ 4,548,470 $ 4,548,470 50
GRF 235-520 Shawnee State Supplement $ 2,502,323 $ 2,577,393 51
GRF 235-521 The Ohio State University John Glenn School of Public Affairs $ 619,082 $ 619,082 52
GRF 235-524 Police and Fire Protection $ 171,959 $ 171,959 53
GRF 235-525 Geriatric Medicine $ 750,110 $ 750,110 54
GRF 235-526 Primary Care Residencies $ 2,245,688 $ 2,245,688 55
GRF 235-527 Ohio Aerospace Institute $ 1,764,957 $ 1,764,957 56
GRF 235-530 Academic Scholarships $ 7,800,000 $ 7,800,000 57
GRF 235-531 Student Choice Grants $ 38,485,376 $ 38,485,376 58
GRF 235-535 Ohio Agricultural Research and Development Center $ 37,174,292 $ 37,174,292 59
GRF 235-536 The Ohio State University Clinical Teaching $ 13,565,885 $ 13,565,885 60
GRF 235-537 University of Cincinnati Clinical Teaching $ 11,157,756 $ 11,157,756 61
GRF 235-538 University of Toledo Clinical Teaching $ 8,696,866 $ 8,696,866 62
GRF 235-539 Wright State University Clinical Teaching $ 4,225,107 $ 4,225,107 63
GRF 235-540 Ohio University Clinical Teaching $ 4,084,540 $ 4,084,540 64
GRF 235-541 Northeastern Ohio Universities College of Medicine Clinical Teaching $ 4,200,945 $ 4,200,945 65
GRF 235-543 Ohio College of Podiatric Medicine Clinic Subsidy $ 100,000 $ 100,000 66
GRF 235-547 School of International Business $ 450,000 $ 650,000 67
GRF 235-552 Capital Component $ 19,306,442 $ 19,306,442 68
GRF 235-553 Dayton Area Graduate Studies Institute $ 2,931,599 $ 2,931,599 69
GRF 235-554 Priorities in Collaborative Graduate Education $ 2,355,548 $ 2,355,548 70
GRF 235-555 Library Depositories $ 1,696,458 $ 1,696,458 71
GRF 235-556 Ohio Academic Resources Network $ 3,727,223 $ 3,727,223 72
GRF 235-558 Long-term Care Research $ 461,047 $ 461,047 73
GRF 235-561 Bowling Green State University Canadian Studies Center $ 100,015 $ 100,015 74
GRF 235-563 Ohio College Opportunity Grant $ 139,974,954 $ 151,113,781 75
GRF 235-567 Central State University Speed to Scale $ 4,400,000 $ 3,800,000 76
GRF 235-571 James A. Rhodes Scholarship $ 10,000,000 $ 0 77
GRF 235-572 The Ohio State University Clinic Support $ 1,277,019 $ 1,277,019 78
GRF 235-573 Ohio Humanities Council $ 25,000 $ 25,000 79
GRF 235-583 Urban University Program $ 5,825,937 $ 5,825,937 80
GRF 235-587 Rural University Projects $ 1,159,889 $ 1,159,889 81
GRF 235-596 Hazardous Materials Program $ 360,435 $ 360,435 82
GRF 235-599 National Guard Scholarship Program $ 16,611,063 $ 16,611,063 83
GRF 235-909 Higher Education General Obligation Debt Service $ 172,722,400 $ 208,747,200 84
TOTAL GRF General Revenue Fund $ 2,773,258,537 $ 2,861,908,923 85

General Services Fund Group86

220 235-614 Program Approval and Reauthorization $ 800,000 $ 800,000 87
456 235-603 Sales and Services $ 700,000 $ 700,000 88
TOTAL GSF General Services 89
Fund Group $ 1,500,000 $ 1,500,000 90

Federal Special Revenue Fund Group91

3BG 235-626 Star Schools $ 2,980,865 $ 2,990,746 92
3H2 235-608 Human Services Project $ 3,000,000 $ 3,000,000 93
3H2 235-622 Medical Collaboration Network $ 3,346,144 $ 3,346,144 94
3N6 235-605 State Student Incentive Grants $ 2,196,680 $ 2,196,680 95
3T0 235-610 National Health Service Corps - Ohio Loan Repayment $ 250,000 $ 250,000 96
312 235-609 Tech Prep $ 183,850 $ 183,850 97
312 235-611 Gear-up Grant $ 3,300,000 $ 3,300,000 98
312 235-612 Carl D. Perkins Grant/Plan Administration $ 112,960 $ 112,960 99
312 235-617 Improving Teacher Quality Grant $ 3,200,000 $ 3,200,000 100
312 235-621 Science Education Network $ 1,686,970 $ 1,686,970 101
TOTAL FED Federal Special Revenue 102
Fund Group $ 20,257,469 $ 20,267,350 103

State Special Revenue Fund Group104

4E8 235-602 Higher Educational Facility Commission Administration $ 50,000 $ 45,000 105
4P4 235-604 Physician Loan Repayment $ 476,870 $ 476,870 106
649 235-607 The Ohio State University Highway/Transportation Research $ 760,000 $ 760,000 107
682 235-606 Nursing Loan Program $ 893,000 $ 893,000 108
5DT 235-627 American Diploma Project $ 250,000 $ 0 109
TOTAL SSR State Special Revenue 110
Fund Group $ 2,429,870 $ 2,174,870 111
TOTAL ALL BUDGET FUND GROUPS $ 2,797,445,876 $ 2,885,851,143 112


       Sec. 375.20.40. ECONOMIC GROWTH CHALLENGE114

       The foregoing appropriation item 235-433, Economic Growth 115
Challenge, shall be used to enhance the basic research 116
capabilities of Ohio's public and private institutions of higher 117
education, support improved doctor of philosophy degree programs 118
throughout the state, and promote the transfer of technology 119
developed by Ohio colleges and universities to private industry 120
to further the economic goals of the state in collaboration with 121
the Third Frontier Project.122

       Of the foregoing appropriation item 235-433, Economic Growth123
Challenge, $12,000,000 in each fiscal year shall be used for the 124
Research Incentive Program to enhance the basic research125
capabilities of public colleges and universities and accredited126
Ohio institutions of higher education holding certificates of127
authorization issued under section 1713.02 of the Revised Code, in 128
order to strengthen academic research for pursuing Ohio's economic129
development goals. The Board of Regents, in consultation with the 130
colleges and universities, shall administer the Research Incentive 131
Program and utilize a means of matching, on a fractional basis, 132
external funds attracted in the previous year by institutions for 133
basic research. The program may include incentives for increasing 134
the amount of external research funds coming to eligible 135
institutions and for focusing research efforts upon critical state 136
needs. Colleges and universities shall submit for review and 137
approval to the Board of Regents plans for the institutional 138
allocation of state dollars received through the program. The 139
institutional plans shall provide the rationale for the allocation 140
in terms of the strategic targeting of funds for academic and 141
state purposes, for strengthening research programs, for 142
increasing the amount of external research funds, and shall 143
include an evaluation process to provide results of the increased 144
support. Institutional plans for the use of Research Incentive 145
funding must demonstrate a significant investment in Third 146
Frontier activities funded at the institution. For a college or 147
university with multiple Third Frontier grants, as much as ten per 148
cent of that institution's Research Incentive funding may be 149
invested in Third Frontier Project-related activities. Each 150
institutional plan for the investment of Research Incentive moneys 151
shall report on existing, planned, or possible relationships with 152
other state science and technology programs and funding recipients 153
in order to further ongoing statewide science and technology 154
collaboration objectives. The Board of Regents shall submit a 155
biennial report of progress to the General Assembly.156

       In each fiscal year, both those state-assisted doctor of 157
philosophy degree-granting universities and those accredited 158
doctor of philosophy degree-granting Ohio institutions of higher 159
education holding certificates of authorization under section 160
1713.02 of the Revised Code may elect to participate in the 161
Innovation Incentive Program and may continue to implement their 162
comprehensive plans that are designed to enhance doctor of 163
philosophy degree programs and areas of research that have the 164
greatest potential to attract preeminent researchers and build 165
research capacity; enhance regional or state economic growth by 166
creating new products and services to be commercialized; and 167
complement Ohio's Third Frontier Project.168

       In each fiscal year, funding for the Innovation Incentive 169
Program shall be generated from the funds reallocated by those 170
participating state-assisted doctor of philosophy degree-granting 171
universities and state matching funds provided in appropriation 172
item 235-433, Economic Growth Challenge. In each fiscal year, the 173
amount of funds each participating state-assisted university is 174
required to internally reallocate shall equal the sum of the funds 175
it was required to reallocate in the prior fiscal year plus one 176
and one-half per cent of current fiscal year's doctoral reserve 177
allocation as attributed by the Board of Regents. Additionally, 178
those participating accredited Ohio institutions of higher 179
education holding certificates of authorization under section 180
1713.02 of the Revised Code shall be required to set aside an 181
amount comparable to the participating state-assisted universities 182
as determined by the Board of Regents.183

       Of the foregoing appropriation item 235-433, Economic Growth 184
Challenge, $4,686,194 in each fiscal year shall match a portion of 185
the funds set aside by all participating universities for the 186
Innovation Incentive Program. The Controlling Board may increase 187
the set-aside amount in each fiscal year if the Chancellor of the 188
Board of Regents, after meeting all other obligations, identifies 189
unspent and unencumbered General Revenue Fund money within the 190
Board of Regents budget and requests the Controlling Board to 191
increase the set-aside for the Innovation Incentive Program. The 192
amount of the set-aside increased by the Controlling Board shall 193
not exceed the amount of available funds identified by the 194
Chancellor of the Board of Regents.195

       The participating universities shall use state matching funds 196
and the funds they internally reallocated to restructure their 197
array of doctor of philosophy degree programs.198

       The Board of Regents, in consultation with participating 199
universities and the Office of Budget and Management, shall 200
develop guidelines for the length of a transition period and 201
criteria for determining the acceptable level of participation in 202
the Innovation Incentive Program. After completion of the 203
transition period during implementation of the Innovation 204
Incentive Program, in each fiscal year the Board of Regents may 205
withhold up to fifty per cent of the funds each participating 206
state-assisted doctor of philosophy degree-granting university is 207
required to reallocate for that year if the university is not 208
internally reallocating the required amount or does not meet the 209
criteria established by the Board of Regents.210

       Of the foregoing appropriation item 235-433, Economic Growth 211
Challenge, $500,000 in each fiscal year shall be distributed for 212
the Technology Commercialization Incentive. The purpose of the 213
Technology Commercialization Incentive is to reward public and 214
private colleges and universities for successful technology 215
transfer to Ohio-based business and industry resulting in the 216
commercialization of new products, processes, and services and the 217
establishment of new business start-ups within the state. The 218
Third Frontier Commission, with counsel from the Third Frontier 219
Advisory Board, shall establish the eligibility criteria for 220
public and private colleges and universities interested in 221
applying for Technology Commercialization Incentive funding. To 222
qualify for the funds, public and private colleges and 223
universities must maintain a significant investment in their own 224
technology-transfer and commercialization operation and 225
capabilities, and possess a significant history of successful 226
research partnerships with Ohio-based business and industry.227

       The Board of Regents, in consultation with the colleges and 228
universities, shall administer the Research Incentive Program to 229
enhance the basic research capabilities of public colleges and 230
universities and accredited Ohio institutions of higher education 231
holding certificates of authorization issued under section 1713.02 232
of the Revised Code, and strengthen academic research for pursuing233
Ohio's economic development goals. The Board of Regents shall234
utilize a means of matching, on a fractional basis, external 235
funds attracted in the previous year by institutions for basic 236
research. The program may include incentives for increasing the 237
amount of external research funds coming to eligible institutions 238
and for focusing research efforts upon critical state needs. 239
Colleges and universities shall submit for review and approval to 240
the Board of Regents plans for the institutional allocation of 241
state dollars received through the program. The institutional 242
plans shall provide the rationale for the allocation in terms of 243
the strategic targeting of funds for academic and state purposes, 244
for strengthening research programs, for increasing the amount of245
external research funds, and shall include an evaluation process246
to provide results of the increased support. Institutional plans 247
for the use of Research Incentive funding must demonstrate a 248
significant investment in Third Frontier activities funded at the 249
institution. For a college or university with multiple Third 250
Frontier grants, as much as ten per cent of that institution's 251
Research Incentive funding may be invested in Third Frontier 252
Project-related activities. Each institutional plan for the 253
investment of Research Incentive moneys shall report on existing, 254
planned, or possible relationships with other state science and 255
technology programs and funding recipients in order to further 256
ongoing statewide science and technology collaboration 257
objectives. The Board of Regents shall submit a biennial report 258
of progress to the General Assembly.259

       Section 2. That existing Sections 375.10 and 375.20.40 of Am. 260
Sub. H.B. 119 of the 127th General Assembly are hereby repealed.261

       Section 3. That Section 235.10.40 of Am. Sub. H.B. 699 of the 262
126th General Assembly be amended to read as follows:263

       Sec. 235.10.40. RESEARCH FACILITY ACTION AND INVESTMENT FUNDS264

       TheOf the foregoing appropriation item CAP-032, Research 265
Facility Action and Investment Funds, up to $3,000,000 shall be 266
used to support the Ohio Research Scholars Program. Any money 267
from this earmark used for capital projects under the Ohio 268
Research Scholars Program shall not be subject to rule 3333-1-21 269
of the Administrative Code, but shall be subject to any rule 270
adopted to administer the Ohio Research Scholars Program.271

       The remainder of foregoing appropriation item CAP-032, 272
Research Facility Action and Investment Funds, shall be used for 273
a program of grants to be administered by the Board of Regents to 274
provide timely availability of capital facilities for research 275
programs and research-oriented instructional programs at or 276
involving state-supported and state-assisted institutions of277
higher education.278

       Section 4. That existing Section 235.10.40 of Am. Sub. H.B. 279
699 of the 126th General Assembly is hereby repealed.280

       Section 5. That Section 375.20.80 of Am. Sub. H.B. 119 of the 281
127th General Assembly is hereby repealed.282

       Section 6. Notwithstanding section 3333.67 of the Revised 283
Code, an institution of higher education shall not be required to 284
deposit into an endowment fund the grants awarded under the Ohio 285
Research Scholars Program other than those funded by GRF 286
appropriation item 235-439, Ohio Research Scholars, as originally 287
appropriated in Am. Sub. H.B. 119 of the 127th General Assembly. 288
The grant agreement for an Ohio Research Scholars award shall 289
specify, if applicable, the portion of the award that is required 290
to be deposited in an endowment fund and the portion that is 291
restricted for capital projects.292

       Notwithstanding sections 3333.61 to 3333.70 of the Revised 293
Code, a nonpublic four-year Ohio institution of higher education 294
may submit a proposal for the Ohio Research Scholars Program to 295
recruit scientists to the faculty of the nonpublic institution if 296
the proposal is to be implemented in collaboration with a state 297
university or college, as defined in section 3333.60 of the 298
Revised Code. If the Chancellor of the Board of Regents grants a 299
nonpublic institution an award under the Ohio Research Scholars 300
Program, the nonpublic institution shall comply with all 301
requirements of sections 3333.61 to 3333.70 of the Revised Code 302
and the rules adopted under section 3333.61 of the Revised Code 303
that apply to state universities or colleges awarded grants under 304
the Ohio Research Scholars Program.305

       Section 7. The sections of law contained in this act, and the 306
items of which they are composed, are not subject to referendum. 307
Therefore, under Ohio Constitution, Article II, Section 1d and 308
section 1.471 of the Revised Code, the sections and items of law 309
go into immediate effect when this act becomes law.310