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(122nd General Assembly)(Substitute House Bill Number 562)
AN ACT
To amend sections 111.15, 131.15, 135.18, 135.181, 3333.25, 3345.32, 3351.07,
3365.08, 3366.01, and 4501.02 and to repeal sections
3351.05,
3351.06, 3351.071, 3351.08, 3351.09, 3351.10,
3351.11,
3351.12, 3351.13, and
3351.131 of the Revised Code to remove statutory
references to the Ohio
Student Aid Commission.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 111.15, 131.15, 135.18, 135.181, 3333.25, 3345.32,
3351.07, 3365.08, 3366.01, and 4501.02 of the Revised Code be amended to read
as follows:
Sec. 111.15. (A) As used in this section: (1) "Rule" includes any rule, regulation, bylaw, or
standard having a general and uniform operation adopted by an
agency under the authority of the laws governing the agency; any
appendix to a rule; and any internal management rule. "Rule"
does not include any guideline adopted pursuant to section
3301.0714 of the Revised Code, any order respecting the duties of
employees, any finding, any determination of a question of law or
fact in a matter presented to an agency, or any rule promulgated
pursuant to Chapter 119., section 4141.14, division (C)(1) or (2)
of section 5117.02, or section 5703.14 of the Revised Code.
"Rule" includes any amendment or rescission of a rule. (2) "Agency" means any governmental entity of the state
and includes, but is not limited to, any board, department,
division, commission, bureau, society, council, institution,
state college or university, community college district,
technical college district, or state community college. "Agency"
does not include the general assembly, the adjutant general's department, or
any court. (3) "Internal management rule" means any rule, regulation,
bylaw, or standard governing the day-to-day staff procedures and
operations within an agency. (4) "Substantive revision" has the same meaning as in
division (J) of section 119.01 of the Revised Code. (B)(1) Any rule, other than a rule of an emergency nature,
adopted by any agency pursuant to this section shall be effective
on the tenth day after the day on which the rule in final form
and in compliance with division (B)(3) of this section is filed
as follows: (a) Two certified copies of the rule shall be filed with
both the secretary of state and the director of the legislative
service commission; (b) Two certified copies of the rule shall be filed with
the joint committee on agency rule review. Division (B)(1)(b) of
this section does not apply to any rule to which division (D) of
this section does not apply. An agency that adopts or amends a rule that is subject to division
(D) of this section shall assign a review
date to the rule that is not later than five years after its effective date.
If no review date is assigned to a rule, or if a review date assigned to a
rule exceeds the five-year maximum, the review date for the rule is
five years after its effective date. A rule with a review date is
subject to review under section 119.032 of the
Revised Code. This paragraph does not apply to a rule of a
state college or university, community college district, technical college
district, or state community college. If all copies are not filed on the same day, the rule shall
be effective on the tenth day after the day on which the latest
filing is made. If an agency in adopting a rule designates an
effective date that is later than the effective date provided for
by division (B)(1) of this section, the rule if filed as required
by such division shall become effective on the later date
designated by the agency. Any rule that is required to be filed under division (B)(1)
of this section is also subject to division (D) of this section
if not exempted by division (D)(1), (2), (3), (4), (5), (6),
(7), or (8) of this section. (2) A rule of an emergency nature necessary for the
immediate preservation of the public peace, health, or safety
shall state the reasons for the necessity. Copies of the
emergency rule, in final form and in compliance with division
(B)(3) of this section, shall be filed as follows: two certified
copies of the emergency rule shall be filed with both the
secretary of state and the director of the legislative service
commission, and one certified copy of the emergency rule shall be
filed with the joint committee on agency rule review. The
emergency rule is effective immediately upon the latest filing,
except that if the agency in adopting the emergency rule
designates an effective date, or date and time of day, that is
later than the effective date and time provided for by division
(B)(2) of this section, the emergency rule if filed as required
by such division shall become effective at the later date, or
later date and time of day, designated by the agency. An emergency rule becomes invalid at the end of the
ninetieth day it is in effect. Prior to that date, the agency
may file the emergency rule as a nonemergency rule in compliance
with division (B)(1) of this section. The agency may not refile
the emergency rule in compliance with division (B)(2) of this
section so that, upon the emergency rule becoming invalid under
such division, the emergency rule will continue in effect without
interruption for another ninety-day period. (3) An agency shall file a rule under division (B)(1) or
(2) of this section in compliance with the following standards
and procedures: (a) The rule shall be numbered in accordance with the
numbering system devised by the director for the Ohio
administrative code. (b) The rule shall be prepared and submitted in compliance
with the rules of the legislative service commission. (c) The rule shall clearly state the date on which it is
to be effective and the date on which it will expire, if known. (d) Each rule that amends or rescinds another rule shall
clearly refer to the rule that is amended or rescinded. Each
amendment shall fully restate the rule as amended. If the director of the legislative service commission or
the director's designee gives an agency written notice
pursuant to section
103.05 of the Revised Code that a rule filed by the agency is not
in compliance with the rules of the legislative service
commission, the agency shall within thirty days after receipt of
the notice conform the rule to the rules of the commission as
directed in the notice. (C) All rules filed pursuant to divisions (B)(1)(a) and
(2) of this section shall be recorded by the secretary of state
and the director under the title of the agency adopting the rule
and shall be numbered according to the numbering system devised
by the director. The secretary of state and the director shall
preserve the rules in an accessible manner. Each such rule shall
be a public record open to public inspection and may be lent to
any law publishing company that wishes to reproduce it. (D) At least sixty days before a board, commission,
department, division, or bureau of the government of the state
files a rule under division (B)(1) of this section, it shall file
two copies of the full text of the proposed rule with the
joint
committee on agency rule review, and the proposed rule
is
subject to legislative review and invalidation under division (I)
of section 119.03 of the Revised Code. If a state board,
commission, department, division, or bureau makes a substantive
revision in a proposed rule after it is filed with the joint
committee, the state board, commission, department,
division, or
bureau shall promptly file two copies of the full text of
the
proposed rule in its revised form with the joint committee. The
latest version of a proposed rule as filed with the joint
committee supersedes each earlier version of the text
of the same
proposed rule. Except as provided in division (F) of this
section, a state board, commission, department, division, or
bureau shall attach one copy of the rule summary and fiscal
analysis prepared under section 121.24 or 127.18 of the Revised
Code, or both, to each copy of a proposed rule, and to each copy
of a proposed rule in revised form, that is filed under this
division. As used in this division, "commission" includes the public utilities
commission when adopting rules under a federal or state statute. This division does not apply to any of the following: (1) A proposed rule of an emergency nature; (2) A rule proposed under section 1121.05, 1121.06, 1155.18, 1733.412,
4123.29, 4123.34, 4123.341, 4123.342, 4123.40, 4123.411, 4123.44,
or
4123.442 of the Revised Code; (3) A rule proposed by an agency other than a board,
commission, department, division, or bureau of the government of
the state; (4) A proposed internal management rule of a board,
commission, department, division, or bureau of the government of
the state; (5) A rule proposed by the Ohio student aid commission
that complies with a federal law or rule, so long as the proposed
rule contains both of the following: (a) A statement that it is proposed for the purpose of
complying with a federal law or rule;
(b) A citation to the federal law or rule that requires
compliance.
(6) Any proposed rule that must be adopted verbatim by an
agency pursuant to federal law or rule, to become effective
within sixty days of adoption, in order to continue the operation
of a federally reimbursed program in this state, so long as the
proposed rule contains both of the following:
(a) A statement that it is proposed for the purpose of
complying with a federal law or rule; (b) A citation to the federal law or rule that requires
verbatim compliance. (7)(6) An initial rule proposed by the director of health to
impose safety standards, quality-of-care standards, and quality-of-care data
reporting requirements with respect to a health service specified in section
3702.11 of the Revised Code, or an initial rule proposed by the director to
impose
quality standards on a facility listed in division (A)(4) of section
3702.30 of the Revised Code, if section 3702.12 of the Revised Code requires
that the rule be adopted under this section;
(8)(7) A rule of the state lottery commission pertaining to
instant game rules.
(E) Whenever a state board, commission, department,
division, or bureau files a proposed rule or a proposed rule in
revised form under division (D) of this section, it shall also
file one copy of the full text of the same proposed rule or
proposed rule in revised form with the secretary of state and two
copies thereof with the director of the legislative service
commission. Except as provided in division (F) of this section,
a state board, commission, department, division, or bureau shall
attach a copy of the rule summary and fiscal analysis prepared
under section 121.24 or 127.18 of the Revised Code, or both, to
each copy of a proposed rule or proposed rule in revised form
that is filed with the secretary of state or the director of the
legislative service commission. (F) Except as otherwise provided in this division, the
auditor of state or the auditor of state's designee is not required
to attach a rule
summary and fiscal analysis to any copy of a proposed rule, or
proposed rule in revised form, that the auditor of state proposes
under section
117.12, 117.19, 117.38, or 117.43 of the Revised Code and files
under division (D) or (E) of this section. If, however, the
auditor of state or the designee prepares a rule summary and
fiscal analysis of the original version of such a proposed rule
for purposes of complying with section 121.24 of the Revised
Code, the auditor of state or designee shall attach a copy of the
rule summary and fiscal
analysis to each copy of the original version of the proposed
rule filed under division (D) or (E) of this section. Sec. 131.15. (A) Any depositor enumerated in section
131.11 of the Revised Code shall make ample provisions for the
safekeeping of hypothecated securities. The interest thereon,
when paid, shall be turned over to the bank or trust company if
it is not in default. The depositor may make provisions for the
exchange and release of securities and the substitution of other
securities or of an undertaking therefor except in those cases
where the public depository has deposited eligible securities
with a trustee for safekeeping. (B) When the public depository has deposited eligible
securities described in division (B)(1) of section 135.18 of the
Revised Code with a trustee for safekeeping, the public
depository may at any time substitute or exchange eligible
securities described in division (B)(1) of section 135.18 of the
Revised Code having a current market value equal to or greater
than the current market value of the securities then on deposit
and for which they are to be substituted or exchanged, without
specific authorization from the depositor of any substitution or
exchange. (C) When the public depository has deposited eligible
securities described in division (B)(2) to (10)(9) of section
135.18 of the Revised Code with a trustee for safekeeping, the public
depository may at any time substitute or exchange eligible
securities having a current market value equal to or greater than
the current market value of the securities then on deposit and
for which they are to be substituted or exchanged without
specific authorization of any depositor of any such substitution
or exchange only if: (1) The depositor has authorized the public depository to
make such substitutions or exchanges on a continuing basis during
a specified period without prior approval of each substitution or
exchange. Such authorization may be effected by the depositor
sending to the trustee a written notice stating that substitution
may be effected on a continuing basis during a specified period
that shall not extend beyond the end of the period of designation
during which the notice is given. "Period of designation" as
used in this section means the period under section 135.12 of the
Revised Code for the award of inactive funds of the subdivision
of which the depositor is an officer or employee. The trustee
may rely upon such notice and upon the period of authorization
stated therein and upon the period of designation stated therein. (2) No continuing authorization for substitution has been
given by the depositor, the public depository notifies the
depositor and the trustee of an intended substitution or
exchange, and the depositor fails to object to the trustee as to
the eligibility or market value of the securities being
substituted within ten calendar days after the date appearing on
the notice of proposed substitution. The notice to the depositor
and to the trustee shall be given in writing and delivered
personally or by certified mail with a return receipt requested. The trustee
may assume in any case that the notice has been
delivered to the depositor. In order for objections of the
depositor to be effective, receipt of the objections must be
acknowledged in writing by the trustee. (3) The depositor gives written authorization for a
substitution or exchange of specific securities. (D) The public depository shall notify the depositor of
any substitution or exchange under division (C)(1) or (2) of this
section. If the depository designates a trustee qualified under
section 135.18 of the Revised Code to act as such for the
safekeeping of securities, the depositor shall accept the written
receipt of the designated trustee, describing the securities that
have been deposited with the trustee by the public depository, as
and for a hypothecation of such securities and issue to the
depository his the depositor's written acknowledgment to that
effect, keeping a copy thereof in his the depositor's office.
Thereupon, all such securities pledged and deposited with the trustee are
deemed hypothecated and deposited with the depositor, for all the purposes of
sections 131.13 to 131.16 of the Revised Code. The trustee shall
hold the securities for the account of the depositor and the
depository as their respective rights to and interests in such
securities under said sections appear and are asserted by written
notice to or demand upon the trustee. Notwithstanding the fact that a public depository is
required to pledge eligible securities in certain amounts to
secure deposits of public moneys, a trustee shall have no duty or
obligation to determine the eligibility, market value, or face
value of any securities deposited with the trustee by a public
depository. This applies in all situations including, without
limitation, a substitution or exchange of securities. Sec. 135.18. (A) The treasurer, before making the initial
deposit in a public depository pursuant to an award made under
sections 135.01 to 135.21 of the Revised Code, shall require the
institution designated as a public depository to pledge to and
deposit with the treasurer, as security for the repayment of all public
moneys to be deposited in the public depository during the period
of designation pursuant to the award, eligible securities of
aggregate market value equal to the excess of the amount of
public moneys to be at the time so deposited, over and above such
portion or amount of such moneys as is at such time insured by
the federal deposit insurance corporation or by any other agency
or instrumentality of the federal government, or the treasurer
may require the institution to deposit with the treasurer surety company
bonds which, when executed, shall be for an amount equal to such
excess amount. In the case of any deposit other than the initial
deposit made during the period of designation, the amount of the
aggregate market value of securities required to be pledged and
deposited, or of the surety company bonds required to be
deposited, shall be equal to the difference between the amount of
public moneys on deposit in such public depository plus the
amount to be so deposited, minus the portion or amount of the
aggregate as is at the time insured as provided in this section. The
treasurer may require additional eligible securities to be
deposited to provide for any depreciation which may occur in the
market value of any of the securities so deposited. (B) The following securities shall be eligible for the
purposes of this section: (1) Bonds, notes, or other obligations of the United
States; or bonds, notes, or other obligations guaranteed as to
principal and interest by the United States or those for which
the faith of the United States is pledged for the payment of
principal and interest thereon, by language appearing in the
instrument specifically providing such guarantee or pledge and
not merely by interpretation or otherwise; (2) Bonds, notes, debentures, letters of credit, or other obligations or
securities issued by any federal government agency or instrumentality, or the
export-import bank of Washington; bonds, notes, or other
obligations guaranteed as to principal and interest by the United
States or those for which the faith of the United States is
pledged for the payment of principal and interest thereon, by
interpretation or otherwise and not by language appearing in the
instrument specifically providing such guarantee or pledge; (3) Obligations of or fully insured or fully guaranteed by the United States
or any federal government agency or instrumentality; (4) Obligations partially insured or partially guaranteed by any federal
agency or instrumentality; (5) Obligations of or fully guaranteed by the federal national mortgage
association, federal home loan mortgage corporation, federal farm credit bank,
or student loan marketing association; (6) Bonds and other obligations of this state; (7) Bonds and other obligations of any county, township,
school district, municipal corporation, or other legally
constituted taxing subdivision of this state, which is not at the
time of such deposit, in default in the payment of principal or
interest on any of its bonds or other obligations, for which the
full faith and credit of the issuing subdivision is
pledged; (8) Bonds of other states of the United States which have
not during the ten years immediately preceding the time of such
deposit defaulted in payments of either interest or principal on
any of their bonds; (9) Obligations guaranteed as to principal and interest by
the Ohio student aid commission; (10) Shares of no-load money market mutual funds
consisting exclusively of obligations described in division (B)(1) or (2) of
this section and repurchase agreements secured by such
obligations.
(C) If the public depository fails to pay over any part of
the public deposit made therein as provided by law, the treasurer
shall sell at public sale any of the bonds or other securities
deposited with the treasurer pursuant to this section or section
131.09 of the Revised Code, or shall draw on any letter of credit to the
extent of such failure to pay. Thirty days' notice of such sale shall be
given in a newspaper of general circulation at Columbus, in the
case of the treasurer of state, and at the county seat of the
county in which the office of the treasurer is located, in the
case of any other treasurer. When a sale of bonds or other
securities has been so made and upon payment to the treasurer of
the purchase money, the treasurer shall transfer such bonds or
securities whereupon the absolute ownership of such bonds or
securities shall pass to the purchasers. Any surplus remaining
after deducting the amount due the state or subdivision and
expenses of sale shall be paid to the public depository. (D) An institution designated as a public depository may,
by written notice to the treasurer, designate a qualified trustee
and deposit the eligible securities required by this section with
the trustee for safekeeping for the account of the treasurer and
the institution as a public depository, as their respective
rights to and interests in such securities under this section may
appear and be asserted by written notice to or demand upon the
trustee. In such case, the treasurer shall accept the written
receipt of the trustee describing the securities which have been
deposited with the trustee by the public depository, a copy of
which shall also be delivered to the public depository.
Thereupon all such securities so deposited with the trustee are
deemed to be pledged with the treasurer and to be deposited with
the treasurer, for all the purposes of this section. (E) The governing board may make provisions for the
exchange and release of securities and the substitution of other
eligible securities therefor except where the public depository
has deposited eligible securities with a trustee for safekeeping
as provided in this section. (F) When the public depository has deposited eligible
securities described in division (B)(1) of this section with a
trustee for safekeeping, the public depository may at any time
substitute or exchange eligible securities described in division
(B)(1) of this section having a current market value equal to or
greater than the current market value of the securities then on
deposit and for which they are to be substituted or exchanged,
without specific authorization from any governing board, boards,
or treasurer of any such substitution or exchange. (G) When the public depository has deposited eligible
securities described in divisions (B)(2) to (10)(9) of this
section with a trustee for safekeeping, the public depository may at any
time substitute or exchange eligible securities having a current
market value equal to or greater than the current market value of
the securities then on deposit and for which they are to be
substituted or exchanged without specific authorization of any
governing board, boards, or treasurer of any such substitution or
exchange only if: (1) The treasurer has authorized the public depository to
make such substitution or exchange on a continuing basis during a
specified period without prior approval of each substitution or
exchange. Such authorization may be effected by the treasurer
sending to the trustee a written notice stating that substitution
may be effected on a continuing basis during a specified period
which shall not extend beyond the end of the period of
designation during which the notice is given. The trustee may
rely upon such notice and upon the period of authorization stated
therein and upon the period of designation stated therein. (2) No continuing authorization for substitution has been
given by the treasurer, the public depository notifies the
treasurer and the trustee of an intended substitution or
exchange, and the treasurer fails to object to the trustee as to
the eligibility or market value of the securities being
substituted within ten calendar days after the date appearing on
the notice of proposed substitution. The notice to the treasurer
and to the trustee shall be given in writing and delivered
personally or by certified or registered mail with a return
receipt requested. The trustee may assume in any case that the
notice has been delivered to the treasurer. In order for
objections of the treasurer to be effective, receipt of the
objections must be acknowledged in writing by the trustee. (3) The treasurer gives written authorization for a
substitution or exchange of specific securities. (H) The public depository shall notify any governing
board, boards, or treasurer of any such substitution or exchange
under division (G)(1) or (2) of this section. Upon request from
the treasurer, the trustee shall furnish a statement of the
securities pledged against such public deposits. (I) Any federal reserve bank or branch thereof located in
this state, without compliance with Chapter 1111. of the Revised Code and
without becoming
subject to any other law
of this state relative to the exercise by corporations of trust
powers generally, is qualified to act as trustee for the
safekeeping of securities, under this section. Any institution
mentioned in section 135.03 of the Revised Code that holds a
certificate of qualification issued by the superintendent of
financial institutions or any institution complying with sections 1111.04,
1115.05 1111.05, and 1111.06 of the Revised Code, is qualified
to act as trustee for the safekeeping of securities, other than
those belonging to itself, under this section. Upon application
to the superintendent in writing by any such institution, the
superintendent
shall investigate the applicant and ascertain whether or not it
has been authorized to execute and accept trusts in this state
and has safe and adequate vaults and efficient supervision
thereof for the storage and safekeeping within this state of such
securities. If the superintendent finds that the applicant has
been so authorized and does have such vaults and supervision
thereof, the superintendent shall approve the application and issue
a certificate to that effect, the original or any certified copy of which
shall be conclusive evidence that the institution therein named is
qualified to act as trustee for the purposes of this section with
respect to securities other than those belonging to itself. Notwithstanding the fact that a public depository is
required to pledge eligible securities in certain amounts to
secure deposits of public moneys, a trustee shall have no duty or
obligation to determine the eligibility, market value, or face
value of any securities deposited with the trustee by a public
depository. This applies in all situations including, without
limitation, a substitution or exchange of securities. Any charges or compensation of a designated trustee for
acting as such under this section shall be paid by the public
depository and in no event shall be chargeable to the state or
the subdivision or to the treasurer or to any officer of the
state or subdivision. Such charges or compensation shall not be
a lien or charge upon the securities deposited for safekeeping
prior or superior to the rights to and interests in such
securities of the state or the subdivision or of the treasurer.
The treasurer and the treasurer's bondsmen bonders or surety
shall be relieved from any liability to the state or the subdivision or to the
public depository for the loss or destruction of any securities
deposited with a qualified trustee pursuant to this section. Sec. 135.181. (A) As used in this section: (1) "Public depository" means that term as defined in
section 135.01 of the Revised Code, but also means an institution
which receives or holds any public deposits as defined in section
135.31 of the Revised Code. (2) "Public deposits," "public moneys," and "treasurer"
mean those terms as defined in section 135.01 of the Revised
Code, but also have the same meanings as are set forth in section
135.31 of the Revised Code. (3) "Subdivision" means that term as defined in section
135.01 of the Revised Code, but also includes a county. (B) In lieu of the pledging requirements prescribed in
sections 135.18 and 135.37 of the Revised Code, an institution
designated as a public depository at its option may pledge a
single pool of eligible securities to secure the repayment of all
public moneys deposited in the institution and not otherwise
secured pursuant to law, provided that at all times the total
value of the securities so pledged, based on the valuations
prescribed in division (C) of this section, is at least equal to
one hundred ten per cent of the total amount of all public
deposits to be secured by the pooled securities, including the
portion of such deposits covered by any federal deposit
insurance. Each such institution shall carry in its accounting
records at all times a general ledger or other appropriate
account of the total amount of all public deposits to be secured
by the pool, as determined at the opening of business each day,
and the total value of securities pledged to secure such
deposits. (C) The following securities, at the specified valuations,
shall be eligible as collateral for the purposes of division (B)
of this section, provided no such securities pledged as
collateral are at any time in default as to either principal or
interest: (1) Obligations of or fully insured or fully guaranteed by
the United States or any federal government agency or instrumentality: at
face value; (2) Obligations partially insured or partially guaranteed
by any federal government agency or instrumentality: at face value; (3) Obligations of or fully guaranteed by the federal
national mortgage association, federal home loan mortgage
corporation, federal farm, credit bank, or student loan marketing
association: at face value; (4) Obligations of any state, county, municipal
corporation, or other legally constituted authority of any state,
or any instrumentality of any state, county, municipal
corporation, or other authority, which are secured as to the
payment of principal and interest by the holding in escrow of
obligations of the United States for which the full faith and
credit of the United States is pledged: at face value; (5) Obligations of this state, or any county or other
legally constituted authority of this state, or any
instrumentality of this state, or such county or other authority:
at face value; (6) Obligations of any other state: at ninety per cent of
face value; (7) Obligations of any county, municipal corporation, or
other legally constituted authority of any other state, or any
instrumentality of such county, municipal corporation, or other
authority: at eighty per cent of face value; (8) Notes representing loans made to persons attending or
planning to attend eligible institutions of education and to
their parents, and insured or guaranteed by the United States or
any agency, department, or other instrumentality thereof, or
guaranteed by the Ohio student aid commission pursuant to
sections 3351.05 to 3351.14 of the Revised Code: at face value; (9) Any other obligations the treasurer of state approves:
at the percentage of face value the treasurer of state prescribes; (10) Shares of no-load money market mutual funds
consisting exclusively of obligations described in division
(C)(1), (2), or (3) of this section and repurchase agreements
secured by such obligations: at face value. (D) The state and each subdivision shall have an undivided
security interest in the pool of securities pledged by a public
depository pursuant to division (B) of this section in the
proportion that the total amount of the state's or subdivision's
public moneys secured by the pool bears to the total amount of
public deposits so secured. (E) An institution designated as a public depository shall
designate a qualified trustee and deposit with the trustee for
safekeeping the eligible securities pledged pursuant to division
(B) of this section. The institution shall give written notice
of the qualified trustee to any treasurer or treasurers
depositing public moneys for which such securities are pledged. The treasurer
shall accept the written receipt of the trustee
describing the pool of securities so deposited by the depository,
a copy of which also shall be delivered to the depository. (F) Any federal reserve bank or branch thereof located in
this state, without compliance with Chapter 1111. of the Revised Code and
without becoming
subject to any other law
of this state relative to the exercise by corporations of trust
powers generally, is qualified to act as trustee for the
safekeeping of securities, under this section. Any institution
mentioned in section 135.03 or 135.32 of the Revised Code which holds a
certificate of qualification issued by the superintendent of financial
institutions or any
institution complying with sections 1111.04, 1111.05, and 1111.06 of the
Revised Code is qualified to act as trustee
for the safekeeping of securities under this section, other than
those belonging to itself or to an affiliate as defined in
division (A) of section 1101.01 of the Revised Code. Upon
application to the superintendent in writing by any such
institution, the
superintendent shall investigate the applicant and ascertain
whether or not it has been authorized to execute and accept
trusts in this state and has safe and adequate vaults and
efficient supervision thereof for the storage and safekeeping of
such securities. If the superintendent finds that the applicant
has been so authorized and does have such vaults and supervision
thereof, the superintendent shall approve the application and issue
a certificate
to that effect, the original or any certified copy of which shall
be conclusive evidence that the institution named therein is
qualified to act as trustee for the purposes of this section with
respect to securities other than those belonging to itself or to
an affiliate. (G) The public depository at any time may substitute,
exchange, or release eligible securities deposited with a
qualified trustee pursuant to this section, provided that such
substitution, exchange, or release does not reduce the total
value of the securities, based on the valuations prescribed in
division (C) of this section, to an amount that is less than one
hundred ten per cent of the total amount of public deposits as
determined pursuant to division (B) of this section. (H) Notwithstanding the fact that a public depository is
required to pledge eligible securities in certain amounts to
secure deposits of public moneys, a trustee shall have no duty or
obligation to determine the eligibility, market value, or face
value of any securities deposited with the trustee by a public
depository. This applies in all situations including, but not
limited to, a substitution or exchange of securities, but
excluding those situations effectuated by division (I) of this
section in which the trustee is required to determine face and
market value. (I) If the public depository fails to pay over any part of
the public deposits made therein as provided by law and secured
pursuant to division (B) of this section, the treasurer shall
give written notice of this failure to the qualified trustee
holding the pool of securities pledged against public moneys
deposited in the depository, and at the same time shall send a
copy of this notice to the depository. Upon receipt of such
notice, the trustee shall transfer to the treasurer for public
sale such of the pooled securities as may be necessary to produce
an amount equal to the deposits made by the treasurer and not
paid over, less the portion of such deposits covered by any
federal deposit insurance, plus any accrued interest due on such
deposits; however, such amount shall not exceed the state's or
subdivision's proportional security interest in the market value
of the pool as of the date of the depository's failure to pay
over the deposits, as such interest and value are determined by
the trustee. The treasurer shall sell at public sale any of the
bonds or other securities so transferred. Thirty days' notice of
such sale shall be given in a newspaper of general circulation at
Columbus, in the case of the treasurer of state, and at the
county seat of the county in which the office of the treasurer is
located, in the case of any other treasurer. When a sale of
bonds or other securities has been so made and upon payment to
the treasurer of the purchase money, the treasurer shall transfer
such bonds or securities whereupon the absolute ownership of such
bonds or securities shall pass to the purchasers. Any surplus
after deducting the amount due the state or subdivision and
expenses of sale shall be paid to the public depository. (J) Any charges or compensation of a designated trustee
for acting as such under this section shall be paid by the public
depository and in no event shall be chargeable to the state or
subdivision or to the treasurer or to any officer of the state or
subdivision. Such charges or compensation shall not be a lien or
charge upon the securities deposited for safekeeping prior or
superior to the rights to and interests in such securities of the
state or subdivision or of the treasurer. The treasurer and the treasurer's
bondspersons bonders or surety shall be relieved from any liability to
the state or subdivision or to the public depository for the loss or
destruction of any securities deposited with a qualified trustee
pursuant to this section. (K) In lieu of placing its unqualified endorsement on each
security, a public depository pledging securities pursuant to
division (B) of this section that are not negotiable without its
endorsement or assignment may furnish to the qualified trustee
holding the securities an appropriate resolution and irrevocable
power of attorney authorizing the trustee to assign the
securities. The resolution and power of attorney shall conform
to such terms and conditions as the trustee prescribes. (L) Upon request of a treasurer no more often than four
times per year, a public depository shall report the amount of
public moneys deposited by the treasurer and secured pursuant to
division (B) of this section, and the total value, based on the
valuations prescribed in division (C) of this section, of the
pool of securities pledged to secure public moneys held by the
depository, including those deposited by the treasurer. Upon
request of a treasurer no more often than four times per year, a
qualified trustee shall report such total value of the pool of
securities deposited with it by the depository and shall provide
an itemized list of the securities in the pool. These reports
shall be made as of the date the treasurer specifies. Sec. 3333.25. There is hereby created the Ohio academic
scholarship payment fund, which shall be in the custody of the
treasurer of state but shall not be a part of the state treasury.
The fund shall consist of all moneys appropriated for the fund by
the general assembly and other moneys otherwise made available to
the fund. The payment fund shall be used for the payment of Ohio
academic scholarships or for additional scholarships to recognize
outstanding academic achievement and ability. The Ohio board of regents
shall administer this section and establish rules for the distribution and
awarding of any additional scholarships. The board may direct the treasurer of state to invest
any moneys in the payment fund not currently needed for
scholarship payments, in any kinds of investments in which moneys
of the Ohio student aid commission public employees retirement
system may be invested. The instruments of title of all investments shall be
delivered to the treasurer of state or to a qualified trustee
designated by the treasurer of state as provided in section
135.18 of the Revised Code. The treasurer of state shall collect both
principal and investment earnings on all investments as they become due and
pay them into the fund. All deposits to the fund shall be made in financial
institutions of this state secured as provided in section 135.18
of the Revised Code. Sec. 3345.32. (A) As used in this section: (1) "State university or college" means the institutions
described in section 3345.27 of the Revised Code, the
northeastern Ohio universities college of medicine, and the
medical college of Ohio at Toledo. (2) "Resident" has the meaning specified by rule of the
Ohio board of regents. (3) "Statement of selective service status" means a
statement certifying one of the following: (a) That the individual filing the statement has
registered with the selective service system in accordance with
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C.
App. 453, as amended; (b) That the individual filing the statement is not
required to register with the selective service for one of the
following reasons: (i) The individual is under eighteen or over twenty-six
years of age; (ii) The individual is on active duty with the armed forces
of the United States other than for training in a reserve or national
guard unit; (iii) The individual is a nonimmigrant alien lawfully in the
United States in accordance with section 101 (a)(15) of the
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended; (iv) The individual is not a citizen of the United States
and is a
permanent resident of the Trust Territory of the Pacific Islands
or the Northern Mariana Islands. (4) "Institution of higher education" means any eligible
institution approved by the student aid commission United
States department of education pursuant to Chapter 3351. of
the Revised Code the "Higher Education Act
of 1965," 79 Stat. 1219, as amended, or any institution
whose
students are eligible for financial assistance under any of the
programs described by division (E) of this section. (B) The Ohio board of regents shall, by rule, specify the
form of statements of selective service status to be filed in
compliance with divisions (C) to (F) of this section. Each
statement of selective service status shall contain a section
wherein a male student born after December 31, 1959, certifies
that the student has registered with the selective service
system in
accordance with the "Military Selective Service Act," 62 Stat.
604, 50 U.S.C. App. 453, as amended. For
those students not required to register with the selective
service, as specified in divisions (A)(2)(b)(i) to (iv) of this
section, a section shall be provided on the statement of
selective service status for the certification of nonregistration
and for an explanation of the reason for the exemption. The
board of regents may require that such statements be accompanied
by documentation specified by rule of the board. (C) A state university or college that enrolls in any
course, class, or program a male student born after December 31,
1959, who has not filed a statement of selective service status
with the university or college shall, regardless of the student's
residency, charge the student any tuition surcharge charged
students who are not residents of this state. (D) No male born after December 31, 1959, shall be
eligible to receive any loan, grant, scholarship, or other
financial assistance for educational expenses under section
3315.33, 3333.12, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03,
5910.032, or 5919.34 of the Revised Code unless that person
has filed a statement of selective service status with that
person's institution of higher education. (E) If an institution of higher education receives a
statement from an individual certifying that the individual
has registered with the selective service system in accordance with the
"Military Selective Service Act," 62 Stat. 604, 50 U.S.C. App.
453, as amended or that the individual is exempt from
registration for a
reason other than that the individual is under eighteen years
of age, the institution shall not require the individual to file any further
statements. If it receives a statement certifying that the
individual is not required to register because the individual
is under eighteen years of age, the institution shall require the
individual to file a new statement of selective service status
each time the individual seeks to enroll for a new academic
term or makes
application for a new loan or loan guarantee or for any form of
financial assistance for educational expenses, until it receives
a statement certifying that the individual has registered with
the selective service system or is exempt from registration for a
reason other than that the individual is under eighteen years
of age. Sec. 3351.07. (A) The Ohio student aid commission may: (1) Guarantee the loan of money, subject to section
3351.08 of the Revised Code and upon any other terms and
conditions as the commission may prescribe, to persons and
parents of persons attending or planning to attend eligible
institutions to assist them in meeting educational expenses;
(2) Reject or take, hold, and administer, on behalf of the
commission and for any of its purposes, real property, personal
property, and moneys, or any interest therein, and the income
therefrom, either absolutely or in trust, for any purpose of the
commission. The commission may invest its funds in any
investments listed in division (K) of this section. The
commission may acquire property or moneys for its
purposes by the acceptance of gifts, grants, bequests, devises,
or loans; provided, that no obligation of the commission shall be
a debt of the state, and the commission shall have no power to
make its debts payable out of moneys except those of the
commission.
(3) Enter into such contracts as may be desirable with
eligible educational institutions, upon terms as may be
agreed upon between the commission and the institution, to
provide for the administration by the institution of any
loan or
loan plan guaranteed by the commission, including applications
therefor and repayment thereof;
(4) Enter into contracts with any approved lender, upon
terms as may be agreed upon between the commission and the
approved lender, to provide for the administration by the
approved lender of any loan or loan plan guaranteed by the
commission, including applications therefor and terms and
repayment thereof, and to establish the conditions for payment by
the commission to the approved lender of the guarantee on any
loan. The commission may also enter into contracts with any approved lender
to provide assistance to lenders in the administration of loans. No moneys of
approved lenders or borrowers that are temporarily administered by the
commission pursuant to the contracts shall be considered public moneys. A
loan shall be defaulted when, after the expiration of a prescribed period of
nonpayment and reasonable collection efforts, the approved lender makes
application to the commission for payment on the loan stating that
the loan is in default in accordance with the terms of the federal law,
contract, or regulations of the commission, executed under this division. In
accordance with the "Higher Education Amendments of 1968," 82 Stat. 1020, 20
U.S.C.A. 1087, as amended, if a borrower dies, becomes permanently and totally
disabled, or is adjudged bankrupt, the commission shall discharge the
borrower's liability on the borrower's debt by repaying the unpaid principal
and interest due thereon.
(5) Sue and be sued in the name of the commission;
(6) Collect loans guaranteed by the commission on which
the commission has met its guarantee obligations. The commission
may, if it prefers, employ a private collection agency or
agencies for the purpose of collecting loans on which it has met
its guarantee obligations.
(7) Adopt rules, not inconsistent with sections 3351.05
to 3351.14 of the Revised Code, governing the guarantee of loans
made by the commission, and governing any other matters relating to
the activities of the commission;
(8) Participate in or administer education-related state or federal
financial aid programs on behalf of the state in accordance with state and
federal law.
(9) Perform any other acts necessary or
appropriate to carry out effectively the objects and purposes of
the commission.
(B) The Ohio student aid commission, for the purposes of
sections 3351.05 to 3351.14 of the Revised Code, shall:
(1) Prescribe the academic status required for a resident, qualified
nonresident, or the parent of a resident or qualified nonresident to obtain
guarantee of a loan;
(2) Approve eligible institutions in which a student must
be enrolled or accepted for enrollment in order for the student or
the student's parent to be eligible for guaranteed loans.
(C) For the purposes of this chapter, "approved lender"
means any bank as defined in section 1101.01 of the Revised Code,
any domestic savings and loan association as defined in section
1151.01 of the Revised Code, any credit union as defined in
section 1733.01 of the Revised Code, any federal credit union
established pursuant to federal law, any insurance company
organized or authorized to do business in this state, any
eligible educational institution approved pursuant to division
(B)(2) of this section that applies for and receives formal
approval as an eligible lender by the commission pursuant to the
rules of the commission as they pertain to that institution, any
pension fund eligible under the "Higher Education Amendments of
1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary
market operation designated under division (D)(B) of this
section, or any secondary market operation established pursuant to the
"Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A. 1071,
as amended, or under the laws of any state.
(D)(B) The governor may designate one nonprofit corporation
secondary market operation to be the single nonprofit private
agency designated by the state under the "Higher Education Act of
1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D), as amended. The
commission shall enter into appropriate contracts with the
designated secondary market operation that shall be on not less
favorable terms than those contracts entered into by the
commission with any other approved lender. No approval by the
commission shall be necessary for the transfer of loans by any
approved lender to the designated secondary market operation.
(E)(C) The nonprofit corporation designated by the governor
under division (D)(B) of this section as the private agency
secondary market operation shall be considered to be an agency of
the state, in accordance with section 435(d)(1)(F) of the "Higher
Education Act of 1965," as amended, 101 Stat. 347, 20 U.S.C.A.
1085(d)(1)(F), as amended, exclusively for the purpose of
functioning as a
secondary student loan market. The corporation shall be
considered a state agency only for the purposes of this division
and no other division or section of the Revised Code regarding
state agencies shall apply to the corporation. No liability or
obligation incurred by the corporation shall be considered to be
a liability or debt of the state, nor shall the state be
construed to act as guarantor of any debt of the corporation.
(F)(D) The nonprofit corporation designated under division
(D)(B) of this section shall designate a separate nonprofit
corporation to operate exclusively for charitable and educational
purposes, complementing and supplementing the designating
corporation's secondary market operation for student loans
authorized under the "Higher Education Act of 1965," as amended,
101 Stat. 347, 20 U.S.C.A. 1085, as amended, and promoting the
general health and welfare of the state, the public interest, and a public
purpose through improving student assistance programs by
expanding access to higher education financing programs for
students and families in need of student financial aid. In
furtherance of such purposes, the separate nonprofit corporation
may do all of the following:
(1) Assist educational institutions in establishing
financial aid programs to help students obtain an economical
education; (2) Encourage financial institutions to increase
educational opportunities by making funds available to both
students and educational institutions; (3) Make available financial aid that supplements the
financial assistance provided by eligible and approved lenders
under state and federal programs; (4) Develop and administer programs that do all of the
following: (a) Provide financial aid and incidental student financial
aid information to students and their parents or other persons
responsible for paying educational costs of those students at
educational institutions; (b) Provide financial aid and information relating to it
to and through educational institutions, enabling those
institutions to assist students financially in obtaining an
education and fully expanding their intellectual capacity and
skills; (c) Better enable financial institutions to participate in
student loan programs and other forms of financial aid, assisting
students and educational institutions to increase education
excellence and accessibility. (G)(E) The nonprofit corporation designated under authority
of division (F)(D) of this section shall do both of the
following:
(1) Establish the criteria, standards, terms, and
conditions for participation by students, parents, educational
institutions, and financial institutions in that corporation's
programs; (2) Provide the governor a report of its programs and a
copy of its audited financial statements not later than one
hundred eighty days after the end of each fiscal year of the
corporation. No liability, obligation, or debt incurred by the
corporation designated under authority of division (F)(D) of
this section or by any person under that corporation's programs shall
be, or be considered to be, a liability, obligation, or debt of,
or a pledge of the faith and credit of, the state, any political
subdivision of the state, or any state-supported or
state-assisted institution of higher education, nor shall the
state or any political subdivision of the state or any
state-supported or state-assisted institution of higher education
be or be construed to act as an obligor under or guarantor of any
liability, obligation, or debt of that corporation or of any
person under that corporation's programs or incur or be construed
to have incurred any other liability, obligation, or debt as a
result of any acts of the corporation. (H)(F) The nonprofit corporation designated under authority
of division (F)(D) of this section shall not be deemed to
qualify by
reason of the designation as a guarantor or an eligible
lender
under sections 435(d) and (j) of the "Higher Education Act of
1965," as amended, 101 Stat. 347, 20 U.S.C.A. 1085(d) and (j),
as amended.
(J) As used in division (K) of this section:
(1) "American depositary receipt" means a receipt for the
shares of a foreign corporation held by an American bank or trust
company, representing the deposit of an equivalent amount of
underlying foreign shares.
(2) "Commingled stock investment fund" means a pooling of
securities to create a fund of a certain type or classification
of stock wherein participants share in the total return of the
fund represented by dividends, interest, and appreciation.
(3) "Derivative instrument" means a financial obligation
that derives its precise value from the value of one or more
other instruments or assets at the same point in time.
(4) "Pass-through security" means a security, representing
pooled debt obligations repackaged as shares, that passes income
and principal from debtors through an intermediary to investors.
(K) The commission shall have full power to invest the
funds:
(1)(a) In bonds of the United States or this state, or in
bonds, notes, debentures, or other obligations the principal and
interest of which are guaranteed in full by the United States
government or this state, or those for which the credit of the
United States is pledged for the payment of the principal and
interest thereof;
(b) In derivative instruments based on the bonds, notes,
debentures, or obligations described
in division (K)(1)(a) of this section.
(2)(a) In bonds, notes, debentures, or any other
obligations or securities issued by any federal government agency
presently or in the future established by act of congress;
(b) In derivative instruments based on the bonds, notes,
debentures, obligations, or securities described in
division (K)(2)(a) of this section.
(3)(a) In bonds, notes, certificates of indebtedness, or
other obligations of the state; any county, township, municipal
corporation, school district, conservancy district, or sanitary
district of the state; or any other legally constituted taxing or
bond issuing authority, subdivision, or municipal corporation
within the state;
(b) In derivative instruments based on the bonds, notes,
certificates of indebtedness, or obligations described in
division (K)(3)(a) of this section.
(4) In revenue bonds issued by a taxing subdivision of the
state;
(5) In farm loan bonds issued under the "Federal Farm
Loan Act of 1916," 39 Stat. 360, 12 U.S.C.A. 641, as amended;
(6) In notes secured by mortgages and insured by the federal housing
commissioner, or the commissioner's successor or assigns, or in
debentures issued by the commissioner, which are guaranteed as to
principal and interest by the federal housing administration, an
agency of the United States government;
(7)(a) In bonds or other interest-bearing obligations of
any other state of the United States that, within ten years
prior to the making of the investment, has not defaulted for
more than ninety days in the payment of principal or interest on
any of its bonds or other interest-bearing obligations;
(b) In derivative instruments based on the bonds or
obligations described in division (K)(7)(a) of this
section.
(8) In obligations issued by a federal home loan bank
created under the "Federal Home Loan Bank Act of 1932," 47 Stat.
725, 12 U.S.C.A. 1421, as amended;
(9) In shares, certificates, or other evidences of
deposits issued by a federal savings and loan association
organized and incorporated under the "Home Owners' Loan Act of 1933," 48 Stat.
128, 12 U.S.C.A. 1461, as amended, but only to
the extent that the shares or certificates or other evidences of
deposits are insured under subchapter IV of the "National
Housing Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1701, as amended;
(10) In bonds issued by the home owners' loan corporation
created under the "Home Owners' Loan Act
of 1933," 48 Stat. 128, 12 U.S.C.A. 1461, as amended;
(11) In obligations issued by national mortgage
associations created under the "National Housing
Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1701, as amended;
(12) In shares, certificates, or other evidences of
deposits issued by a state-chartered savings and loan association
organized under the laws of the state, which association has
obtained insurance of accounts as provided in subchapter IV of
the "National Housing Act," 48 Stat. 1246
(1934), 12 U.S.C.A. 1701, as amended, but only to the extent that the
evidences
of deposits are insured under the act, as amended;
(13) In savings accounts in a national bank located in the
state or a state bank located in and organized under the laws of
the state by depositing the funds therein, provided that no
deposit shall be made unless the deposits of the depository bank
are insured by the federal deposit insurance corporation, created
under the "Federal Deposit Insurance
Corporation Act of 1933," 48
Stat. 162, 12 U.S.C.A. 264, as amended; and provided further,
that the deposit of the funds in any such savings accounts in any
one bank shall not exceed the sum insured under the act, as
amended;
(14) In bonds and notes backed by pools of first liens on
fee simple estates in land in this state that are improved by
one- to four-family residential structures;
(15) In bonds, notes, or other evidences of indebtedness
that are secured by first liens upon improved commercial real
property, upon condition that:
(a) No mortgage loan on any one property, at the time of
investment by the commission, exceeds ninety per cent of the value of
the real property securing the loan unless that portion of the
loan exceeding ninety per cent is insured or the mortgage is a
participating or convertible mortgage;
(b) The aggregate investment in mortgage loans on
commercial property that are not insured by the federal housing
commissioner shall not exceed ten per cent of the total value of
all funds invested by the commission.
(16) In pass-through securities backed by pools of first
liens on fee simple estates in land in this state that are
improved by one- to four-family residential structures;
(17) In pass-through securities backed by pools of first
liens upon improved commercial real property, provided that no
mortgage loan on any one property, at the time of investment by
the commission, exceeds ninety per cent of the value of the real
property securing the loan unless that portion of the loan
exceeding ninety per cent is insured;
(18) In the following corporate, trust, or partnership
obligations:
(a) Notes, bonds, debentures, conditional sales contracts,
equipment trust certificates, pass-through securities, other
fixed obligations, or evidences of indebtedness or interests that
are the obligations of a corporation, trust, or partnership;
provided that the obligor is incorporated or created under the
laws of the United States or any state thereof, or of the
District of Columbia; and that the obligations are rated at
the time of purchase the equivalent of an "A-" or higher quality
rating according to the Standard and Poor's rating service
by at least two standard rating services; or that for a period of five
fiscal years for which the necessary statistical data are
available next preceding the date of investment, the corporation,
trust, or partnership, as disclosed by its annual fiscal
statements, had an average annual pre-tax income plus its average
annual fixed charges at least equal to two times its average
annual fixed charges for the same period; provided, that in
neither of the last two years of that period shall the sum of its
annual net income and its annual fixed charges have been less
than two times its fixed charges for the same period. As used in
this division, "fixed charges" means interest on funded or
unfunded debt, contingent interest charges, amortization of debt
discount, and expense and one-third of rentals for leased
property, and includes, in the case of consolidated earnings
statements of parent and subsidiary entities, which shall be used
if available, all fixed charges of the subsidiaries.
(b) Derivative instruments based on the corporate, trust,
or partnership obligations described in division
(K)(18)(a) of this section;
(c) Various forms of commercial paper issued by any
corporation that is incorporated under the laws of the United
States or any state thereof; banker's acceptances that are
eligible for discount at any federal reserve bank; negotiable
time certificates of deposit issued by commercial banks and
domestic savings and loan associations as defined in section
1151.01 of the Revised Code, if the obligations mature within
nine months from the date of purchase; and repurchase agreements
secured by obligations of the United States treasury or federal
agencies or by any other money market instruments specified in
this section;
(d) Corporate debentures convertible or exchangeable into
common stock, provided that at the time of acquisition the
requirements of division (K)(20) of this section are met.
(19) In real estate located within the United States;
provided, that the aggregate of all investments made under this
division shall not exceed twenty-five per cent of the total value
of all funds invested by the commission,
except that no investment in real estate made under authority
granted elsewhere in this section shall be counted toward this
limitation.
The commission may invest under this division in any direct,
indirect, or beneficial interest in real property, including, but
not limited to, improved or unimproved real property, suitable or
adaptable without excessive cost for more than one use, and
whether or not income-producing; mortgages; deeds of trust; notes
secured by real property; leaseholds; leases; ground leases; air
rights; limited partnerships; real property interests owned,
developed, or managed by joint ventures or limited partnerships;
variable notes secured by real property; participations, created
by any person regularly engaged in the business of making, or
acting as a broker of, mortgage loans, in notes secured by real
property; interests in collective investment funds; corporations,
trusts, or associations that qualify as real estate investment
trusts under section 856 of the "Internal Revenue
Code of 1986,"
100 Stat. 2085, 26 U.S.C.A. 856, as amended; interests in or real
property for the development of natural resources, excluding oil
or gas; and condominium interests, provided that liability is
limited to the amount of the investment. Unimproved real
property or interests in the property acquired shall be subject
to a commercial development plan or a natural resources
development plan.
Real property purchased under this division may be improved
by the commission. Expenditures for improvements may include, but are
not limited to, expenditures for demolition of existing
structures, grading and landscaping, construction of new
structures, modification of existing structures, fixtures,
equipment, and related personal property. The commission may manage
the real property or may contract for management responsibilities
with firms having expertise in the management of similar real
property.
Real property purchased or improved under this division:
(a) Shall be geographically dispersed;
(b) May be leased to corporations, partnerships, or sole
proprietorships with or without purchase option provisions, and
lease payments may, but need not, include all or part of the
purchase and improvement costs;
(c) May be mortgaged to facilitate activities authorized
in this division.
(20)(a) In common and preferred stocks and American
depositary receipts, provided the stocks are issued or guaranteed
by a corporation created or existing under the laws of the United
States or any state thereof and the following criteria are met;
or the stocks or American depositary receipts are, at the time of
the commission's acquisition, included in the Standard and
Poor's
Composite 500-Stock Index or 400
Mid-Cap Index, or listed on the
New York or American stock exchange; or the
American depositary
receipts meet the following criteria:
(i) For a period of five fiscal years for which the
necessary statistical data are available next preceding the date
of investment, the corporation, as disclosed by its published
fiscal annual statements, has had an average annual net income
plus its average annual fixed charges at least equal to one and
one-half times the sum of its average annual dividend or
distribution requirement for preferred stock and its average
annual fixed charges for the same period; provided, during
neither of the last two years of the period shall the sum of its
annual net income and its annual fixed charges be less than one
and one-half times the sum of its dividend or distribution
requirements for preferred stock and its fixed charges for the
same period. As used in this paragraph, "fixed charges" means
interest on funded or unfunded debt, contingent interest charges,
amortization of debt discount, and expense and rentals for leased
property and, in the case of consolidated earnings statements of
parent and subsidiary corporations, includes all fixed charges
and preferred dividend or distribution requirements, if any, of
the subsidiaries.
(ii) The corporation has no arrears of dividends or
distributions on its preferred stock;
(iii) The common stock or American depositary receipt is
registered on a national securities exchange as provided in the
"Securities Exchange Act of 1934," 48
Stat. 881, 15
U.S.C.A. 77b,
or, if traded only in the over-the-counter market, at least five
member firms of the national association of securities dealers
make markets in the stock or American depositary receipt.
Registration is not required of the common stock of a bank that
is a member of the federal deposit insurance corporation or a
bank holding company and has capital funds, represented by
capital, surplus, and undivided profits, of at least twenty
million dollars; the common stock of a life insurance or an
insurance holding company that has capital funds, represented by
capital, special surplus funds, and unassigned surplus, of at
least fifty million dollars; or the common stock of a fire or
casualty insurance company, or a combination thereof, that has
capital funds represented by capital, net surplus, and voluntary
reserves, of at least fifty million dollars;
(iv) The preferred stock of the corporation, if any is
outstanding, qualifies for investment under division
(K)(18)(a) of this section;
(v) The corporation, having no preferred stock
outstanding, has had either earnings before interest and taxes
for the five fiscal years next preceding the date of investment
of at least twice the interest on all mortgages, bonds,
debentures, and funded debts, if any, after deduction of the
proper charges for replacements, depreciation, and obsolescence
or the corporation's senior subordinated debt obligations are
rated "A-" or higher quality rating according to the Standard and
Poor's rating service or the equivalent rating in another
standard rating service;
(vi) The corporation has paid a cash dividend or
distribution on its common stock in at least three years of the
five-year period next preceding the date of investment, and the
aggregate net earnings available for dividends or distributions
on the common stock of the corporation for the whole of the
period has been at least equal to the amount of the dividends or
distributions paid, except that ten per cent of the total value
of all funds invested by the commission may be invested in nondividend paying
common stocks;
(vii) In applying the earnings test under this division to
any issuing, assuming, or guaranteeing corporation, where the
corporation has acquired its property or any substantial part
thereof within a five-year period immediately preceding the date
of investment by consolidations, merger, or by the purchase of
all or a substantial portion of the property of any other
corporation or corporations, or has acquired the assets of any
unincorporated business enterprise by purchase or otherwise, net
income, fixed charges, and preferred dividends or distributions
of the several predecessor or constituent corporations or
enterprises shall be consolidated and adjusted so as to ascertain
whether or not the applicable requirements of this section have
been complied with.
(b) In derivative instruments based on the stocks or
American depositary receipts that qualify for investment under
division (K)(20)(a) of this section;
(c) In beneficial interests in commingled stock investment
funds;
(d) The total value of common and preferred stocks,
American depositary receipts, derivative instruments, and
commingled stock investment fund investments made under this
division shall not exceed fifty per cent of the total value of
all funds invested by the commission, provided:
(i) Not more than one and one-half per cent of the total
value of the funds is invested in the common stock of a single
corporation;
(ii) The total number of common shares in a single
corporation does not exceed ten per cent of the issued and
outstanding common stock of such corporation.
(e) As used in division (K)(20)(d) of this section,
"value" consists of cash, the par value of unpaid balance of all
unmatured or unpaid investments requiring the payment of a fixed
amount at payment date, and the cost of all other investments.
(21)(a) In debt or equity interests in either of the
following:
(i) Any corporation, partnership, proprietorship, or other
entity not otherwise meeting the investment requirements of this
section, provided more than one-half of its assets are within
this state, more than one-half of its employees are employed
within this state, or its principal office is located within this
state, and provided liability is limited to the amount of the
investment;
(ii) Venture capital firms having an office within this
state, provided that, as a condition of the commission making an
investment in a venture capital firm, the firm shall agree to use
its best efforts to make investments, in an aggregate amount at
least equal to the investment to be made by the commission in that
venture capital firm, in small businesses having their principal
offices within this state and having either more than one-half of
their assets within this state or more than one-half of their
employees employed within this state.
(b) Investments made under division (K)(21) of this
section shall not exceed in the aggregate five per cent of the
total value of all funds invested by the commission.
(c) As used in division (K)(21) of this section:
(i) "Venture capital firm" means any corporation,
partnership, proprietorship, or other entity, the principal
business of which is or will be the making of investments in
small businesses.
(ii) "Small business" means any corporation, partnership,
proprietorship, or other entity that either does not have more
than four hundred employees when the investment is made or would
qualify as a small business for the purpose of receiving
financial assistance from small business investment companies
licensed under the "Small Business Investment Act of 1958," 72
Stat. 689, 15 U.S.C.A. 661, as amended, and rules of the small
business administration.
(iii) "Equity interests" means limited partnership
interests and other equity interests in which liability is
limited to the amount of the investment, but does not mean
general partnership interests or other interests involving
general liability.
(22) In the following Canadian obligations, which shall
not exceed fifteen per cent of the total value of all funds
invested by the commission: bonds,
debentures, notes, or other obligations issued, guaranteed, or
assumed as to both principal and interest by the government of
Canada, by any province of Canada, or by any city of Canada that
has a population of not less than one hundred fifty thousand, if
all of the following apply:
(a) The faith and credit of the issuer, guarantor, or
assumer of the bonds, debentures, notes, or other obligations is
pledged for the payment of principal and interest thereof, and
the principal and interest thereof is payable in United
States
funds, either unconditionally or at the option of the holder;
(b) Any such city, if the issuer, guarantor, or assumer is
a city, has power to levy taxes on the taxable real property
therein or to collect other revenues for the payment of both
principal and interest of the bonds, debentures, notes, or other
obligations without limitation of rate or amount;
(c) The issuer, guarantor, or assumer of the bonds,
debentures, notes, or other obligations has not within ten years
prior to the making of the investment defaulted in payment of
principal or interest of any debt evidenced by its bonds,
debentures, notes, or other obligations for more than ninety
days;
(d) The bonds, debentures, notes, or other obligations are
rated at the time of purchase the equivalent of an "A-" or higher
quality rating according to the Standard and Poor's rating
service by at least two standard rating services or, if not
rated, are certified in writing by two or more such services to
be of investment quality equivalent to or higher than the quality
of bonds rated an "A-".
(23) In obligations issued, assumed, or guaranteed by the
international bank for reconstruction and development, the Asian
development bank, the inter-American development bank, the
African development bank, the international finance corporation,
or other similar development bank in which the president, as
authorized by congress and on behalf of the United States,
has
accepted membership;
(24) In general obligations backed by the full faith and
credit of the state of Israel. All interest and principal shall
be denominated and payable in United States funds.
(25) In debt or equity interests in or issued by foreign
entities or any instrument based on, derived from, or related to
those interests and foreign currency denominated contracts or
obligations. The investments made under this division shall not
exceed in the aggregate ten per cent of the total value of all
funds invested by the commission.
Sec. 3365.08. (A) A college that expects to receive or
receives reimbursement under section 3365.07 of the Revised Code
shall furnish to a participant all textbooks and materials
directly related to a course taken by the participant under
division (B) of section 3365.04 of the Revised Code. No college
shall charge such participant for tuition, textbooks, materials,
or other fees directly related to any such course. (B) No student enrolled under this chapter in a course for
which credit toward high school graduation is awarded is eligible
for any shall receive direct financial aid under Chapter 3351.
of the Revised Code through any state or federal program. (C) If a school district provides transportation for
resident school students in grades eleven and twelve under
section 3327.01 of the Revised Code, a parent of a pupil enrolled
in a course under division (B) of section 3365.04 of the Revised
Code may apply to the board of education for full or partial
reimbursement for the necessary costs of transporting the student
between the secondary school the student attends and the
college in which the student is enrolled. Reimbursement may
be paid solely from funds received by the district under division
(D) of section 3317.022
of the Revised Code. The state board of education shall
establish guidelines, based on financial need, under which a
district may provide such reimbursement. Sec. 3366.01. As used in this chapter, the following
words and terms have the following meanings unless the
context indicates a different meaning or intent: (A) "Bond proceedings" means the
order, trust, agreement, indenture and other agreements, or
amendments and supplements to the foregoing, or any one or more
or combination thereof, authorizing or providing for the terms
and conditions applicable to, or providing for the issuance,
security, or liquidity of, obligations and the provisions
contained in such obligations. (B) "Bond service charges" means
principal, including mandatory sinking fund requirements for
retirement of obligations, and interest, and redemption premium,
if any, required to be paid on obligations. (C) "Bond service fund" means the
applicable fund and accounts therein created in the bond
proceedings for and pledged to the payment of bond service
charges, including all moneys and investments, and earnings from
investments, credited and to be credited thereto. (D) "Costs of attendance" means all
costs of a student incurred in connection with
a program of study at an eligible institution,
as determined by the institution, including tuition;
instructional fees; room and board; books, computers, and
supplies; and other related fees, charges, and expenses. (E) "Designated nonprofit
corporation" means the nonprofit corporation designated
under division (F)(D) of section 3351.07 of the
Revised Code to operate exclusively for
charitable and educational purposes by expanding access to higher
education financing programs for students and families in need of
student financial aid. (F) "Education loan" means a loan
made by an eligible lender pursuant to the policy guidelines to
or for the benefit
of a student for the purpose of financing part or all of the
student's costs of attendance. (G) "Eligible borrower" means any of
the following: (1) Individuals who are residents of the state, and who
are attending and are in good standing in, or who have been
accepted for attendance at, any eligible institution located in
this state or elsewhere, on a part-time or full-time basis, to
pursue an associate, baccalaureate, or advanced degree or a
nursing diploma; (2) Individuals who reside outside the state and who
have been accepted for attendance at, or who are attending and
are in good standing in, any eligible institution located in this
state, on a part-time or full-time basis, to pursue an associate,
baccalaureate, or advanced degree or a nursing diploma; (3) Individuals who are parents or legal guardians of,
or other persons, as set forth in the policy guidelines,
borrowing under an education loan for the benefit of
individuals meeting requirements set forth in division
(G)(1) or (2) of this section, in order to assist them
in paying costs of attendance. (H)(1) "Eligible institution" means
an institution described in any of divisions
(H)(1)(a), (b), or (c) of this section that satisfies
all
of the requirements set forth in divisions
(H)(2), (3), and (4) of this section. (a) The institution is a state-assisted
post-secondary educational institution within this state. (b) The institution is a nonprofit institution
within this state having a certificate of authorization from the
Ohio board of regents pursuant to Chapter 1713.
of the Revised Code. (c) The institution is a post-secondary
educational institution similar to one described in division
(H)(1)(a) or (b) of this section that
is located outside this state and that is similarly approved by
the appropriate agency of that state. (2) The institution is accredited by the appropriate
regional and, when appropriate, professional accrediting
associations within whose jurisdiction it falls. (3) The institution satisfies the eligibility
requirements for participation in the federal family education
loan program authorized under Title IV,
Part B, of the "Higher
Education Act of 1965," 20
U.S.C.A. 1071 et seq., as
amended, as long as that program remains in existence. (4) The institution satisfies the other conditions set
forth in the policy guidelines. (I) "Eligible lender" means a bank, national banking
association, savings bank, savings and loan association, or
credit union having an office in this state that satisfies the
criteria for eligible lenders established pursuant to the policy
guidelines. (J) "Governmental agency" means the
state and any state department, division, commission,
institution, or authority; the United States or
any agency thereof; or any agency, commission, or authority
established pursuant to an interstate compact or agreement; or
any combination of the foregoing. (K) "Issuing authority" means the
treasurer of state, or the officer who by law performs the
functions of the treasurer of state. (L) "Obligations" means the bonds,
notes, or securities of this state issued by the issuing
authority pursuant to this chapter. (M) "Person" means any individual,
corporation, business trust, estate, trust, partnership, or
association, any federal, state, interstate, regional, or local
governmental agency, any subdivision of the state, or any
combination of these. (N) "Pledged receipts" means, to the
extent the following are pledged by the bond proceedings for
the payment of bond service charges: all receipts representing
moneys accruing from or in connection with the repayment of
education loans, including interest and payments from any
guarantee or insurance in respect to such education loans;
accrued interest received from the sale of obligations; the
balances in the special funds; income from the investment of the
special funds; all right, title, or interest of the state in any
education loans and any guarantees or insurance in respect
thereof; all right, title, and interest of the designated
nonprofit corporation in the education loans and any guarantees
or insurance in respect thereof, and any money representing the
proceeds of obligations or any income from or interest on those
proceeds; or any other gifts, grants, donations, and pledges and
any income and receipts therefrom, available and pledged for the
payment of bond service charges. (O) "Policy guidelines" means the
rules adopted pursuant to division (A) of section
3366.03 of the Revised Code. (P) "Proceeds loan" means the
transfer, pursuant to a loan agreement or agency agreement, of
the proceeds of the obligations, or the deposit of the proceeds
of the obligations with a trustee in trust under a trust
agreement, indenture, or other trust document under the bond
proceedings pending their disbursement for the purposes
authorized by this chapter. (Q) "Resident" means any student who
would qualify as a resident of this state for state subsidy and
tuition surcharge purposes under rules adopted by the
Ohio board of regents under section 3333.31 of the
Revised Code. (R) "Special funds" or
"funds" means the bond service fund and any other
funds, including reserve funds, created under the bond
proceedings, including all moneys and investments, and earnings
from investment, credited and to be credited thereto. (S) "Student" means an individual
described in division (G)(1) or (2) of this section who
meets requirements established under the policy guidelines. "Student"
includes dependent and independent
undergraduate, graduate, and professional students. (T) "Subdivision" has the same
meaning as in division (MM) of section 133.01 of the
Revised Code. Sec. 4501.02. (A) There is hereby created in the
department of public safety a bureau of motor vehicles, which
shall be administered by a registrar of motor vehicles. The
registrar shall be appointed by the director of public safety and
shall serve at his the director's pleasure. The registrar shall administer the laws of the state
relative to the registration of and certificates of title for
motor vehicles, and the licensing of motor vehicle dealers, motor
vehicle leasing dealers, distributors, and salespersons, and of
motor vehicle salvage dealers, salvage motor vehicle auctions,
and salvage motor vehicle pools. The registrar also shall, in
accordance with section 4503.61 of the Revised Code, take those
steps necessary to enter this state into membership in the
international registration plan and carry out his the
registrar's other duties
under that section. The registrar, with the approval of the
director of public safety, may do all of the following: (1) Adopt such forms and rules as are necessary to carry
out all laws he the registrar is required to administer; (2) Appoint such number of assistants, deputies, clerks,
stenographers, and other employees as are necessary to carry out
such laws; (3) Acquire or lease such facilities as are necessary to
carry out the duties of his the registrar's office. The registrar shall give a bond for the faithful
performance of his the registrar's duties in such amount and
with such security
as the director approves. When in the opinion of the director it
is advisable, any deputy or other employee may be required to
give bond in such amount and with such security as the director
approves. In the discretion of the director, the bonds
authorized to be taken on deputies or other employees may be
individual, schedule, or blanket bonds. The registrar shall furnish the director of the Ohio
student aid commission with the information required under
division (C) of section 3351.071 of the Revised Code.
The director of public safety may investigate the
activities of the bureau and have access to its records at any
time, and the registrar shall make a report to the director at
any time upon request. All laws relating to the licensing of motor vehicle
dealers, motor vehicle leasing dealers, distributors, and
salespersons, and of motor vehicle salvage dealers, salvage motor
vehicle auctions, and salvage motor vehicle pools, designating
and granting power to the registrar shall be liberally construed
to the end that the practice or commission of fraud in the
business of selling motor vehicles and of disposing of salvage
motor vehicles may be prohibited and prevented. (B) There is hereby created in the department of public
safety a division of emergency medical services, which shall be
administered by an executive director of emergency medical
services appointed under section 4765.03 of the Revised Code. SECTION 2 . That existing sections 111.15, 131.15, 135.18, 135.181, 3333.25,
3345.32, 3351.07,
3365.08, 3366.01, and 4501.02 and sections 3351.05,
3351.06, 3351.071, 3351.08, 3351.09, 3351.10, 3351.11, 3351.12, 3351.13, and
3351.131 of the Revised Code are hereby repealed.
SECTION 3 . Section 135.18 of the Revised Code is presented in this act
as a composite of the section as amended by both
Am. Sub. S.B. 81 and Am. Sub. H.B. 538 of the 121st General Assembly, with the
new language of
neither of the acts shown in capital letters.
Section 135.181 of the Revised Code is presented in this act
as a composite of the section as amended by Am. Sub. S.B. 81, Am. Sub. S.B.
293, and Am. Sub. H.B. 538 of the 121st General Assembly, with the new
language of
none of the acts shown in capital letters.
Sections 3333.25 and 3351.07 of the Revised Code are presented in this act
as composites of the sections as amended by both
Am. Sub. H.B. 627 and Am. Sub. S.B. 82 of the 121st General Assembly, with the
new language of
neither of the acts shown in capital letters.
This is in recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such is the resulting version in
effect prior to the effective date of this act.
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