To amend section 3345.99 and to enact sections 3333.045 and 3345.71 to 3345.78 of the Revised Code to require the Ohio Board of Regents to place a state university or college on a fiscal watch under certain circumstances, to authorize the Governor under certain circumstances to replace the board of trustees of a state university or college under a fiscal watch with a conservator and alternative governance authority, and to require the members of boards of trustees of state universities and colleges to receive training regarding their authority and responsibilities.

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

Sec. 3333.045. AS USED IN THIS SECTION, "STATE UNIVERSITY OR COLLEGE" MEANS ANY STATE UNIVERSITY LISTED IN SECTION 3345.011 OF THE REVISED CODE, THE NORTHEASTERN OHIO UNIVERSITIES COLLEGE OF MEDICINE, THE MEDICAL COLLEGE OF OHIO AT TOLEDO, ANY COMMUNITY COLLEGE UNDER CHAPTER 3354. OF THE REVISED CODE, ANY UNIVERSITY BRANCH DISTRICT UNDER CHAPTER 3355. OF THE REVISED CODE, ANY TECHNICAL COLLEGE UNDER CHAPTER 3357. OF THE REVISED CODE, AND ANY STATE COMMUNITY COLLEGE UNDER CHAPTER 3358. OF THE REVISED CODE.

THE OHIO BOARD OF REGENTS SHALL DEVELOP, IN CONSULTATION WITH THE BOARDS OF TRUSTEES OF STATE UNIVERSITIES AND COLLEGES, A TRAINING PROGRAM FOR THE MEMBERS OF THESE BOARDS OF TRUSTEES REGARDING THE AUTHORITY AND RESPONSIBILITIES OF A BOARD OF TRUSTEES AND ITS MEMBERS. THE BOARD OF REGENTS SHALL OFFER THIS TRAINING PROGRAM AT LEAST TWICE ANNUALLY TO EACH MEMBER OF THESE BOARDS OF TRUSTEES ON EITHER A STATEWIDE OR REGIONAL BASIS.

EACH MEMBER OF THE BOARD OF TRUSTEES OF A STATE UNIVERSITY OR COLLEGE APPOINTED ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION SHALL COMPLETE THE TRAINING PROGRAM PROVIDED UNDER THIS SECTION NO LATER THAN ONE YEAR AFTER THE DATE OF THE MEMBER'S INITIAL APPOINTMENT. EACH MEMBER OF THE BOARD OF TRUSTEES OF A STATE UNIVERSITY OR COLLEGE HOLDING OFFICE IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS SECTION SHALL COMPLETE THE TRAINING PROGRAM PROVIDED UNDER THIS SECTION NO LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION.

UPON FAILURE OF A MEMBER OF THE BOARD OF TRUSTEES OF A STATE UNIVERSITY OR COLLEGE TO COMPLETE A TRAINING PROGRAM AS PRESCRIBED UNDER THIS SECTION AND NOTWITHSTANDING ANY OTHER LAW PRESCRIBING THE TERM OF OFFICE OF THAT BOARD MEMBER, THE BOARD OF REGENTS SHALL ADOPT A RESOLUTION DECLARING THAT MEMBER'S SEAT VACANT, EFFECTIVE UPON ADOPTION OF THE RESOLUTION. THE VACANCY SHALL BE FILLED FOR THE REMAINDER OF THE TERM IN THE MANNER PRESCRIBED IN LAW FOR FILLING VACANCIES ON THAT BOARD OF TRUSTEES.

THIS SECTION DOES NOT APPLY TO THE THREE MEMBERS OF THE BOARD OF TRUSTEES OF THE NORTHEASTERN OHIO UNIVERSITIES COLLEGE OF MEDICINE WHO ARE PRESIDENTS OF STATE UNIVERSITIES.

Sec. 3345.71. AS USED IN SECTIONS 3345.72 TO 3345.77 OF THE REVISED CODE:

(A) "STATE UNIVERSITY OR COLLEGE" MEANS ANY STATE UNIVERSITY LISTED IN SECTION 3345.011 OF THE REVISED CODE, THE NORTHEASTERN OHIO UNIVERSITIES COLLEGE OF MEDICINE, THE MEDICAL COLLEGE OF OHIO AT TOLEDO, ANY COMMUNITY COLLEGE UNDER CHAPTER 3354. OF THE REVISED CODE, ANY TECHNICAL COLLEGE UNDER CHAPTER 3357. OF THE REVISED CODE, AND ANY STATE COMMUNITY COLLEGE UNDER CHAPTER 3358. OF THE REVISED CODE.

(B) "FISCAL WATCH" MEANS THE EXISTENCE OF A FISCAL WATCH DECLARED UNDER SECTION 3345.72 OF THE REVISED CODE.

Sec. 3345.72. (A) THE OHIO BOARD OF REGENTS SHALL ADOPT RULES ESTABLISHING ALL OF THE FOLLOWING:

(1) CRITERIA FOR DETERMINING WHEN TO DECLARE A STATE UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH;

(2) ACTIONS TO BE TAKEN BY THE BOARD OF TRUSTEES OF A STATE UNIVERSITY OR COLLEGE WHILE UNDER A FISCAL WATCH;

(3) CRITERIA FOR DETERMINING WHEN TO DECLARE THE TERMINATION OF THE FISCAL WATCH OF A STATE UNIVERSITY OR COLLEGE;

(4) THE FISCAL INFORMATION TO BE REPORTED TO THE BOARD OF REGENTS BY EACH STATE UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH FOR PURPOSES OF MAKING DETERMINATIONS UNDER DIVISION (D) OF THIS SECTION AND DIVISION (A) OF SECTION 3345.74 OF THE REVISED CODE, AND THE FREQUENCY AND DEADLINES FOR REPORTING THIS INFORMATION.

THE BOARD OF REGENTS SHALL ADOPT RULES UNDER THIS DIVISION IN ACCORDANCE WITH CHAPTER 119. of the Revised Code AND IN CONSULTATION WITH THE AUDITOR OF STATE, THE DIRECTOR OF BUDGET AND MANAGEMENT, AND PERSONS REPRESENTATIVE OF AT LEAST TEN STATE UNIVERSITIES AND COLLEGES SELECTED BY THE BOARD OF REGENTS.

(B) THE BOARD OF REGENTS SHALL ADOPT A RESOLUTION DECLARING A STATE UNIVERSITY OR COLLEGE TO BE IN A STATE OF FISCAL WATCH IF THE BOARD OF REGENTS DETERMINES THAT THE CRITERIA ADOPTED UNDER DIVISION (A)(1) OF THIS SECTION ARE SATISFIED WITH RESPECT TO THAT STATE UNIVERSITY OR COLLEGE. FOR PURPOSES OF MAKING THIS DETERMINATION, THE BOARD OF REGENTS SHALL ESTABLISH A FINANCIAL TRACKING SYSTEM AND SHALL USE THE SYSTEM TO REGULARLY ASSESS EACH STATE UNIVERSITY OR COLLEGE WITH RESPECT TO THE CRITERIA ADOPTED UNDER DIVISION (A)(1) OF THIS SECTION.

(C) WHILE A STATE UNIVERSITY OR COLLEGE IS UNDER A FISCAL WATCH, THE BOARD OF TRUSTEES OF THE UNIVERSITY OR COLLEGE SHALL TAKE THE ACTIONS AND REPORT THE FISCAL INFORMATION PRESCRIBED UNDER DIVISIONS (A)(2) AND (4) OF THIS SECTION.

(D) THE BOARD OF REGENTS SHALL ADOPT A RESOLUTION DECLARING THE TERMINATION OF THE FISCAL WATCH OF A STATE UNIVERSITY OR COLLEGE IF THE BOARD OF REGENTS DETERMINES THAT THE CRITERIA ADOPTED UNDER DIVISION (A)(3) OF THIS SECTION ARE SATISFIED WITH RESPECT TO THAT STATE UNIVERSITY OR COLLEGE.

(E) IN MAKING ASSESSMENTS AND DETERMINATIONS UNDER DIVISION (B) OR (D) OF THIS SECTION, THE BOARD OF REGENTS MAY USE FINANCIAL REPORTS REQUIRED UNDER SECTION 3345.031 OR 3345.05 OF THE REVISED CODE OR ANY OTHER DOCUMENTS, RECORDS, OR INFORMATION AVAILABLE TO IT OR THE AUDITOR OF STATE RELATED TO THE CRITERIA ADOPTED UNDER DIVISION (A)(1) OR (3) OF THIS SECTION. IN MAKING DETERMINATIONS UNDER DIVISION (D) OF THIS SECTION, THE BOARD OF REGENTS MAY ALSO USE THE FISCAL INFORMATION REPORTED UNDER DIVISION (C) OF THIS SECTION.

(F) THE BOARD OF REGENTS SHALL CERTIFY EACH ACTION TAKEN UNDER DIVISION (B) OR (D) OF THIS SECTION TO THE GOVERNOR, THE DIRECTOR OF BUDGET AND MANAGEMENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND THE PRESIDENT OF THE SENATE.

(G) A DETERMINATION BY THE BOARD OF REGENTS UNDER THIS SECTION THAT A FISCAL WATCH EXISTS OR DOES NOT EXIST, OR THAT A FISCAL WATCH IS TERMINATED OR IS NOT TERMINATED, IS FINAL AND CONCLUSIVE AND NOT APPEALABLE.

Sec. 3345.73. THE OHIO BOARD OF REGENTS SHALL ADOPT RULES ESTABLISHING THE FOLLOWING:

(A) THE FINANCIAL INDICATORS AND THE STANDARDS FOR USING THOSE INDICATORS THAT THE BOARD OF REGENTS IS TO EMPLOY TO DETERMINE WHETHER A UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH IS EXPERIENCING SUFFICIENT FISCAL DIFFICULTIES TO WARRANT APPOINTING A CONSERVATOR UNDER SECTION 3345.74 OF THE REVISED CODE;

(B) THE FINANCIAL INDICATORS AND THE STANDARDS FOR USING THOSE INDICATORS THAT A GOVERNANCE AUTHORITY ESTABLISHED FOR A STATE UNIVERSITY OR COLLEGE UNDER SECTION 3345.75 OF THE REVISED CODE IS TO EMPLOY TO DETERMINE WHETHER THE UNIVERSITY OR COLLEGE IS EXPERIENCING SUFFICIENT FISCAL STABILITY TO WARRANT TERMINATING THAT GOVERNANCE AUTHORITY IN ACCORDANCE WITH SECTION 3345.76 OF THE REVISED CODE.

THE BOARD OF REGENTS SHALL ADOPT RULES UNDER THIS SECTION IN ACCORDANCE WITH CHAPTER 119. of the Revised Code AND IN CONSULTATION WITH THE AUDITOR OF STATE, THE DIRECTOR OF BUDGET AND MANAGEMENT, AND PERSONS REPRESENTATIVE OF AT LEAST TEN STATE UNIVERSITIES AND COLLEGES SELECTED BY THE BOARD OF REGENTS.

THE INDICATORS AND STANDARDS ADOPTED UNDER THIS SECTION SHALL BE DESIGNED SO AS TO TAKE INTO ACCOUNT AT LEAST THE REVENUES, EXPENDITURES, ASSETS, LIABILITIES, AND FUND BALANCES OF A STATE UNIVERSITY OR COLLEGE, AND SHALL BE DESIGNED SO AS TO INDICATE THE FINANCIAL PERFORMANCE AND POSITION OF A STATE UNIVERSITY OR COLLEGE.

Sec. 3345.74. (A) THE OHIO BOARD OF REGENTS AT LEAST ANNUALLY SHALL APPLY THE INDICATORS AND STANDARDS ADOPTED UNDER DIVISION (A) OF SECTION 3345.73 OF THE REVISED CODE TO DETERMINE WHETHER A STATE UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH IS EXPERIENCING SUFFICIENT FISCAL DIFFICULTIES TO WARRANT THE APPOINTMENT OF A CONSERVATOR UNDER THIS SECTION. UPON MAKING A DETERMINATION THAT APPOINTMENT OF A CONSERVATOR IS WARRANTED, THE BOARD OF REGENTS SHALL CERTIFY THIS DETERMINATION TO THE GOVERNOR.

NOTWITHSTANDING SECTION 3333.021 OF THE REVISED CODE, THAT SECTION DOES NOT APPLY TO CERTIFICATION BY THE BOARD OF REGENTS UNDER THIS SECTION.

A DETERMINATION BY THE BOARD OF REGENTS UNDER THIS DIVISION THAT SUFFICIENT FISCAL DIFFICULTIES EXIST OR DO NOT EXIST TO WARRANT APPOINTING A CONSERVATOR IS FINAL AND CONCLUSIVE AND NOT APPEALABLE.

(B) THE GOVERNOR MAY APPOINT A CONSERVATOR FOR ANY STATE UNIVERSITY OR COLLEGE UNDER A FISCAL WATCH, UPON CERTIFICATION BY THE OHIO BOARD OF REGENTS UNDER DIVISION (A) OF THIS SECTION THAT THE APPOINTMENT IS WARRANTED.

(C) UPON APPOINTMENT OF A CONSERVATOR UNDER THIS SECTION FOR A STATE UNIVERSITY OR COLLEGE, ALL OF THE FOLLOWING SHALL OCCUR EFFECTIVE IMMEDIATELY:

(1) NOTWITHSTANDING ANY SECTION OF THE REVISED CODE, THE TERMS OF OFFICE OF THE MEMBERS OF THE BOARD OF TRUSTEES OF THE UNIVERSITY OR COLLEGE TERMINATE AND THE BOARD CEASES TO EXIST UNTIL A NEW BOARD IS APPOINTED UNDER SECTION 3345.76 OF THE REVISED CODE;

(2) THE MANAGEMENT AND CONTROL OF THE STATE UNIVERSITY OR COLLEGE IS ASSUMED BY THE CONSERVATOR;

(3) NOTWITHSTANDING ANY SECTION OF THE REVISED CODE, ALL DUTIES, RESPONSIBILITIES, AND POWERS ASSIGNED BY LAW TO THE BOARD OF TRUSTEES ARE ASSIGNED TO THE CONSERVATOR, AND THE CONSERVATOR BECOMES THE SUCCESSOR TO, ASSUMES THE OBLIGATIONS OF, AND OTHERWISE CONSTITUTES THE CONTINUATION OF THE BOARD OF TRUSTEES FOR PURPOSES OF ALL PENDING LEGAL ACTIONS, CONTRACTS OR OTHER AGREEMENTS, AND OBLIGATIONS OF THE UNIVERSITY OR COLLEGE;

(4) WHEREVER THE BOARD OF TRUSTEES IS REFERRED TO IN ANY CONTRACT OR LEGAL DOCUMENT, THE REFERENCE IS DEEMED TO REFER TO THE CONSERVATOR. NO VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY IS LOST OR IMPAIRED BY REASON OF THE ASSUMPTION OF THE BOARD'S AUTHORITY BY THE CONSERVATOR UNDER THIS SECTION AND ANY SUCH VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY SHALL BE ADMINISTERED BY THE CONSERVATOR. NO ACTION OR PROCEEDING PENDING ON THE EFFECTIVE DATE OF THE ASSUMPTION BY THE CONSERVATOR OF THE BOARD'S AUTHORITY IS AFFECTED BY THAT ASSUMPTION AND ANY SUCH ACTION OR PROCEEDING SHALL BE PROSECUTED OR DEFENDED IN THE NAME OF THE CONSERVATOR.

(5) THE CONSERVATOR ASSUMES CUSTODY OF ALL EQUIPMENT, RECORDS, FILES, EFFECTS, AND OTHER PROPERTY OF THE STATE UNIVERSITY OR COLLEGE;

(6) ALL EMPLOYEES OF THE STATE UNIVERSITY OR COLLEGE BECOME EMPLOYEES OF THE CONSERVATOR.

(D) THE CONSERVATOR FOR A STATE UNIVERSITY OR COLLEGE SHALL CONDUCT A PRELIMINARY PERFORMANCE EVALUATION OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER OF THE UNIVERSITY OR COLLEGE AND REPORT FINDINGS AND ANY RECOMMENDATIONS TO THE GOVERNANCE AUTHORITY ESTABLISHED FOR THE UNIVERSITY OR COLLEGE UNDER SECTION 3345.75 OF THE REVISED CODE. BASED ON THE FINDINGS, THE CONSERVATOR MAY SUSPEND ANY AUTHORITY AND REMOVE ANY DUTIES OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER.

(E) NOTWITHSTANDING SECTIONS 9.85 TO 9.87 OF THE REVISED CODE, A CONSERVATOR APPOINTED UNDER THIS SECTION IS NOT LIABLE IN DAMAGES IN A TORT OR OTHER CIVIL ACTION FOR INJURY, DEATH, OR LOSS TO PERSON OR PROPERTY ALLEGEDLY ARISING FROM THE CONSERVATOR'S ACTIONS OR OMISSIONS DURING THE COURSE OF THE CONSERVATOR'S DUTIES UNDER THIS SECTION, UNLESS THE CONSERVATOR'S ACTIONS OR OMISSIONS CONSTITUTE WILLFUL OR WANTON MISCONDUCT OR INTENTIONAL TORTIOUS CONDUCT.

(F) THE GOVERNOR SHALL SET THE COMPENSATION FOR A CONSERVATOR APPOINTED FOR A STATE UNIVERSITY OR COLLEGE. THE EXPENSES AND COMPENSATION OF THE CONSERVATOR AND OTHERS EMPLOYED BY THE CONSERVATOR SHALL BE PAID OUT OF THE OPERATING FUNDS AND REVENUES OF THAT UNIVERSITY OR COLLEGE.

Sec. 3345.75. (A) NOT LATER THAN THIRTY DAYS AFTER THE DATE OF THE APPOINTMENT OF A CONSERVATOR FOR A STATE UNIVERSITY OR COLLEGE UNDER SECTION 3345.74 OF THE REVISED CODE, THE GOVERNOR SHALL APPOINT, WITH THE ADVICE AND CONSENT OF THE SENATE, A GOVERNANCE AUTHORITY FOR THE UNIVERSITY OR COLLEGE CONSISTING OF FIVE MEMBERS. THE MEMBERS SHALL SERVE AT THE PLEASURE OF THE GOVERNOR AND ANY VACANCIES SHALL BE FILLED IN THE SAME MANNER AS AN ORIGINAL APPOINTMENT.

THE GOVERNOR SHALL DESIGNATE ONE OF THE MEMBERS OF A GOVERNANCE AUTHORITY AS THE CHAIRPERSON AND SHALL CALL THE FIRST MEETING OF THE AUTHORITY. A MAJORITY OF THE MEMBERS OF A GOVERNANCE AUTHORITY CONSTITUTES A QUORUM AND THE AFFIRMATIVE VOTE OF A MAJORITY OF A QUORUM SHALL BE NECESSARY FOR ANY ACTION TAKEN BY AN AUTHORITY. MEETINGS OF A GOVERNANCE AUTHORITY SHALL BE CALLED IN THE MANNER AND AT THE TIMES PRESCRIBED BY THE AUTHORITY, BUT THE AUTHORITY SHALL MEET AT LEAST THREE TIMES ANNUALLY AND AT OTHER TIMES NECESSARY FOR THE BEST INTEREST OF THE UNIVERSITY OR COLLEGE. A GOVERNANCE AUTHORITY MAY ADOPT PROCEDURES FOR THE CONDUCT OF ITS BUSINESS.

THE MEMBERS OF A GOVERNANCE AUTHORITY SHALL NOT RECEIVE COMPENSATION FOR THEIR SERVICES, BUT SHALL BE PAID THEIR REASONABLE AND NECESSARY EXPENSES WHILE ENGAGED IN THE DISCHARGE OF THEIR OFFICIAL DUTIES.

(B)(1) A GOVERNANCE AUTHORITY ESTABLISHED UNDER THIS SECTION SHALL APPOINT AN EXECUTIVE DIRECTOR WHO SHALL SERVE AT THE PLEASURE OF THE AUTHORITY AND WITH THE COMPENSATION AND OTHER TERMS AND CONDITIONS ESTABLISHED BY IT. WITH THE APPROVAL OF THE CHAIRPERSON OF THE AUTHORITY, THE EXECUTIVE DIRECTOR MAY APPOINT ADDITIONAL PERSONNEL AS THE DIRECTOR DEEMS APPROPRIATE. THE EXECUTIVE DIRECTOR SHALL OVERSEE THE DAY-TO-DAY OPERATION OF THE UNIVERSITY OR COLLEGE UNDER THE DIRECTION AND SUPERVISION OF THE AUTHORITY.

(2) THE GOVERNANCE AUTHORITY SHALL CONDUCT A FINAL PERFORMANCE EVALUATION OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER OF THE UNIVERSITY OR COLLEGE. FOLLOWING THE EVALUATION, THE GOVERNANCE AUTHORITY MAY REMOVE ANY DUTIES AND SUSPEND ANY AUTHORITY OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER, MAY REINSTATE ANY DUTIES OR AUTHORITY PREVIOUSLY REMOVED BY A CONSERVATOR UNDER DIVISION (D) OF SECTION 3345.74 of the Revised Code, OR MAY TERMINATE THE PRESIDENT OR CHIEF EXECUTIVE OFFICER IN ACCORDANCE WITH THE TERMS OF THE PERSON'S EMPLOYMENT CONTRACT.

(C) UPON APPOINTMENT OF ALL MEMBERS OF A GOVERNANCE AUTHORITY UNDER THIS SECTION AND UPON THE EFFECTIVE DATE FOR THE COMMENCEMENT OF THE DUTIES OF THE EXECUTIVE DIRECTOR APPOINTED BY THAT AUTHORITY UNDER THIS SECTION, ALL AUTHORITY, RESPONSIBILITIES, DUTIES, AND REFERENCES ASSUMED BY OR CONFERRED UPON THE CONSERVATOR UNDER DIVISIONS (C)(2) TO (6) OF SECTION 3345.74 OF THE REVISED CODE SHALL TERMINATE AND ALL OF THE FOLLOWING SHALL OCCUR, EFFECTIVE IMMEDIATELY:

(1) THE MANAGEMENT AND CONTROL OF THE STATE UNIVERSITY OR COLLEGE IS ASSUMED BY THE GOVERNANCE AUTHORITY;

(2) NOTWITHSTANDING ANY SECTION OF THE REVISED CODE, ALL DUTIES, RESPONSIBILITIES, AND POWERS ASSIGNED BY LAW TO THE BOARD OF TRUSTEES OR TO THE CONSERVATOR ARE ASSIGNED TO THE GOVERNANCE AUTHORITY AND THE GOVERNANCE AUTHORITY BECOMES THE SUCCESSOR TO, ASSUMES THE OBLIGATIONS OF, AND OTHERWISE CONSTITUTES THE CONTINUATION OF THE BOARD OF TRUSTEES AND THE CONSERVATOR FOR PURPOSES OF ALL PENDING LEGAL ACTIONS, CONTRACTS OR OTHER AGREEMENTS, AND OBLIGATIONS OF THE UNIVERSITY OR COLLEGE;

(3) WHEREVER THE BOARD OF TRUSTEES OR CONSERVATOR IS REFERRED TO IN ANY CONTRACT OR LEGAL DOCUMENT, THE REFERENCE IS DEEMED TO REFER TO THE GOVERNANCE AUTHORITY. NO VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY IS LOST OR IMPAIRED BY REASON OF THE ASSUMPTION OF THE AUTHORITY OF THE BOARD OF TRUSTEES AND THE CONSERVATOR BY THE GOVERNANCE AUTHORITY UNDER THIS SECTION AND ANY SUCH VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY SHALL BE ADMINISTERED BY THE GOVERNANCE AUTHORITY. NO ACTION OR PROCEEDING PENDING ON THE EFFECTIVE DATE OF THE ASSUMPTION BY THE GOVERNANCE AUTHORITY OF THE AUTHORITY OF THE BOARD OF TRUSTEES AND THE CONSERVATOR IS AFFECTED BY THAT ASSUMPTION AND ANY SUCH ACTION OR PROCEEDING SHALL BE PROSECUTED OR DEFENDED IN THE NAME OF THE GOVERNANCE AUTHORITY.

(4) THE GOVERNANCE AUTHORITY ASSUMES CUSTODY OF ALL EQUIPMENT, RECORDS, FILES, EFFECTS, AND OTHER PROPERTY OF THE STATE UNIVERSITY OR COLLEGE;

(5) ALL EMPLOYEES OF THE STATE UNIVERSITY OR COLLEGE BECOME EMPLOYEES OF THE GOVERNANCE AUTHORITY.

(D) NOTWITHSTANDING SECTIONS 9.85 TO 9.87 OF THE REVISED CODE, A GOVERNANCE AUTHORITY OR EXECUTIVE DIRECTOR APPOINTED UNDER THIS SECTION IS NOT LIABLE IN DAMAGES IN A TORT OR OTHER CIVIL ACTION FOR INJURY, DEATH, OR LOSS TO PERSON OR PROPERTY ALLEGEDLY ARISING FROM THE GOVERNANCE AUTHORITY'S OR EXECUTIVE DIRECTOR'S ACTIONS OR OMISSIONS DURING THE COURSE OF THEIR RESPECTIVE DUTIES UNDER THIS SECTION, UNLESS THE GOVERNANCE AUTHORITY'S OR EXECUTIVE DIRECTOR'S ACTIONS OR OMISSIONS CONSTITUTE WILLFUL OR WANTON MISCONDUCT OR INTENTIONAL TORTIOUS CONDUCT.

(E) THE EXPENSES AND COMPENSATION OF A GOVERNANCE AUTHORITY AND EXECUTIVE DIRECTOR APPOINTED FOR A STATE UNIVERSITY OR COLLEGE UNDER THIS SECTION AND OTHERS EMPLOYED BY THE EXECUTIVE DIRECTOR UNDER THIS SECTION SHALL BE PAID OUT OF THE OPERATING FUNDS AND REVENUES OF THAT UNIVERSITY OR COLLEGE.

(F) A GOVERNANCE AUTHORITY APPOINTED UNDER THIS SECTION SHALL PREPARE, IN ACCORDANCE WITH RULES ADOPTED BY THE OHIO BOARD OF REGENTS, AND SUBMIT TO THE BOARD OF REGENTS, THE GOVERNOR, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, AND THE PRESIDENT OF THE SENATE A QUARTERLY REPORT SETTING FORTH ALL OF THE FOLLOWING:

(1) THE GENERAL CONDITION OF THE UNIVERSITY OR COLLEGE;

(2) THE AMOUNTS OF RECEIPTS AND DISBURSEMENTS AND THE ITEMS FOR WHICH THE DISBURSEMENTS WERE MADE;

(3) THE NUMBERS OF PROFESSORS, OFFICERS, TEACHERS, AND OTHER EMPLOYEES AND THE POSITION AND COMPENSATION OF EACH AND THE NUMBERS OF STUDENTS BY COURSES OF INSTRUCTION;

(4) AN ESTIMATE OF EXPENSES FOR THE ENSUING QUARTER;

(5) A STATEMENT OF THE GENERAL PROGRESS OF THE UNIVERSITY OR COLLEGE WITH INDICATION OF ANY IMPROVEMENTS AND SPECIFICATION OF ANY EXPERIMENTS WITH INSTITUTIONAL REFORM AND THE COSTS AND RESULTS OF THOSE EXPERIMENTS;

(6) ANY OTHER MATTERS THE GOVERNANCE AUTHORITY DEEMS USEFUL TO REPORT.

Sec. 3345.76. (A) A GOVERNANCE AUTHORITY APPOINTED FOR A STATE UNIVERSITY OR COLLEGE UNDER SECTION 3345.75 OF THE REVISED CODE AT LEAST ANNUALLY SHALL APPLY THE INDICATORS AND STANDARDS ADOPTED UNDER DIVISION (B) OF SECTION 3345.73 OF THE REVISED CODE TO DETERMINE WHETHER THE UNIVERSITY OR COLLEGE IS EXPERIENCING SUFFICIENT FISCAL STABILITY TO WARRANT TERMINATING THAT GOVERNANCE AUTHORITY IN ACCORDANCE WITH THIS SECTION. UPON MAKING A DETERMINATION THAT TERMINATION OF THE GOVERNANCE AUTHORITY IS WARRANTED, THE GOVERNANCE AUTHORITY SHALL CERTIFY THIS DETERMINATION TO THE GOVERNOR.

A DETERMINATION BY A GOVERNANCE AUTHORITY UNDER THIS DIVISION THAT SUFFICIENT FISCAL STABILITY EXISTS OR DOES NOT EXIST TO WARRANT TERMINATING THAT GOVERNANCE AUTHORITY IS FINAL AND CONCLUSIVE AND NOT APPEALABLE.

(B) THE GOVERNOR MAY ISSUE AN ORDER, EFFECTIVE AS PROVIDED UNDER DIVISION (D) OF THIS SECTION, TERMINATING THE GOVERNANCE AUTHORITY APPOINTED UNDER 3345.75 OF THE REVISED CODE, UPON THE OCCURRENCE OF EITHER OF THE FOLLOWING:

(1) CERTIFICATION BY THE GOVERNANCE AUTHORITY FOR THAT STATE UNIVERSITY OR COLLEGE THE TERMINATION OF THAT GOVERNANCE AUTHORITY IS WARRANTED;

(2) A FINDING THAT IN THE GOVERNOR'S OPINION TERMINATION OF THE GOVERNANCE AUTHORITY IS IN THE BEST INTERESTS OF THE STATE, THAT STATE UNIVERSITY OR COLLEGE, AND THE STUDENTS OF THAT STATE UNIVERSITY OR COLLEGE.

(C) UPON ISSUANCE OF AN ORDER UNDER DIVISION (B) OF THIS SECTION, A NEW BOARD OF TRUSTEES OF THE UNIVERSITY OR COLLEGE SHALL BE APPOINTED AS FOLLOWS:

(1) FOR A UNIVERSITY LISTED IN SECTION 3345.011 OF THE REVISED CODE OR THE MEDICAL COLLEGE OF OHIO AT TOLEDO, THE GOVERNOR SHALL APPOINT NINE MEMBERS WITH THE ADVICE AND CONSENT OF THE SENATE, THREE FOR TERMS OF THREE YEARS, THREE FOR TERMS OF SIX YEARS, AND THREE FOR TERMS OF NINE YEARS. ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS OTHERWISE PROVIDED IN LAW.

(2) FOR THE NORTHEASTERN OHIO UNIVERSITIES COLLEGE OF MEDICINE, MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER SECTION 3350.10 OF THE REVISED CODE FOR THE INITIAL MEMBERS OF THE BOARD. ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS PROVIDED UNDER THAT SECTION.

(3) FOR A COMMUNITY COLLEGE UNDER CHAPTER 3354. OF THE REVISED CODE, MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER SECTION 3354.05 OF THE REVISED CODE FOR THE INITIAL MEMBERS OF THE BOARD. ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS PROVIDED UNDER THAT SECTION.

(4) FOR A TECHNICAL COLLEGE UNDER CHAPTER 3357. OF THE REVISED CODE, NEW MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER DIVISION (A) OR (B) OF SECTION 3357.05 OF THE REVISED CODE FOR THE INITIAL MEMBERS OF THE BOARD. ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS PROVIDED UNDER THAT SECTION.

(5) FOR A STATE COMMUNITY COLLEGE UNDER CHAPTER 3358. OF THE REVISED CODE, MEMBERS SHALL BE APPOINTED AS PROVIDED UNDER SECTION 3358.03 OF THE REVISED CODE FOR THE INITIAL MEMBERS OF THE BOARD. ALL SUBSEQUENT APPOINTMENTS SHALL BE MADE AS PROVIDED UNDER THAT SECTION.

(D) THIRTY DAYS AFTER THE DATE ON WHICH THE OHIO BOARD OF REGENTS DETERMINES THAT ALL MEMBERS OF A BOARD OF TRUSTEES HAVE BEEN APPOINTED PURSUANT TO DIVISION (C) OF THIS SECTION, ALL AUTHORITY, RESPONSIBILITIES, DUTIES, AND REFERENCES ASSUMED BY OR CONFERRED UPON THE GOVERNANCE AUTHORITY OF THAT UNIVERSITY OR COLLEGE UNDER DIVISION (C) OF SECTION 3345.75 OF THE REVISED CODE SHALL TERMINATE AND ALL OF THE FOLLOWING SHALL OCCUR:

(1) THE MANAGEMENT AND CONTROL OF THE STATE UNIVERSITY OR COLLEGE IS ASSUMED BY THE BOARD OF TRUSTEES APPOINTED PURSUANT TO THIS SECTION;

(2) ALL DUTIES, RESPONSIBILITIES, AND POWERS ASSIGNED BY LAW TO THE BOARD OF TRUSTEES ARE ASSUMED BY THE BOARD OF TRUSTEES APPOINTED PURSUANT TO THIS SECTION AND THE BOARD BECOMES THE SUCCESSOR TO, ASSUMES THE OBLIGATIONS OF, AND OTHERWISE CONSTITUTES THE CONTINUATION OF THE PREVIOUS BOARD OF TRUSTEES, THE CONSERVATOR, AND THE GOVERNANCE AUTHORITY, FOR PURPOSES OF ALL PENDING LEGAL ACTIONS, CONTRACTS OR OTHER AGREEMENTS, AND OBLIGATIONS OF THE UNIVERSITY OR COLLEGE;

(3) WHEREVER THE PREVIOUS BOARD OF TRUSTEES, THE CONSERVATOR, OR THE GOVERNANCE AUTHORITY IS REFERRED TO IN ANY CONTRACT OR LEGAL DOCUMENT, THE REFERENCE IS DEEMED TO REFER TO THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION. NO VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY IS LOST OR IMPAIRED BY REASON OF THE ASSUMPTION BY THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION OF THE AUTHORITY OF THE PREVIOUS BOARD OF TRUSTEES, THE CONSERVATOR, AND THE GOVERNANCE AUTHORITY AND ANY SUCH VALIDATION, CURE, RIGHT, PRIVILEGE, REMEDY, OBLIGATION, OR LIABILITY SHALL BE ADMINISTERED BY THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION. NO ACTION OR PROCEEDING PENDING ON THE EFFECTIVE DATE OF THE ASSUMPTION BY THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION OF THE AUTHORITY OF THE PREVIOUS BOARD OF TRUSTEES, THE CONSERVATOR, AND THE GOVERNANCE AUTHORITY IS AFFECTED BY THAT ASSUMPTION AND ANY SUCH ACTION OR PROCEEDING SHALL BE PROSECUTED OR DEFENDED IN THE NAME OF THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION.

(4) THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION ASSUMES CUSTODY OF ALL EQUIPMENT, RECORDS, FILES, EFFECTS, AND OTHER PROPERTY OF THE STATE UNIVERSITY OR COLLEGE;

(5) ALL EMPLOYEES OF THE STATE UNIVERSITY OR COLLEGE BECOME EMPLOYEES OF THE BOARD OF TRUSTEES APPOINTED UNDER THIS SECTION;

(6) EMPLOYMENT OF THE EXECUTIVE DIRECTOR APPOINTED FOR THE UNIVERSITY OR COLLEGE UNDER SECTION 3345.75 OF THE REVISED CODE IS TERMINATED;

(7) ANY DUTIES OR AUTHORITY OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER OF THE UNIVERSITY OR COLLEGE REMOVED OR SUSPENDED UNDER DIVISION (D) OF SECTION 3345.74 OR DIVISION (B)(2) OF SECTION 3345.75 of the Revised Code ARE REINSTATED TO THE PERSON HOLDING THAT POSITION, UNLESS OTHERWISE PROVIDED FOR BY THE NEW BOARD OF TRUSTEES.

Sec. 3345.77. NOTWITHSTANDING ANY SECTION OF THE REVISED CODE, A CONTRACT OF EMPLOYMENT ENTERED INTO ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION BETWEEN A BOARD OF TRUSTEES OF A STATE UNIVERSITY OR COLLEGE AND THE PRESIDENT OR CHIEF EXECUTIVE OFFICER OF THAT UNIVERSITY OR COLLEGE SHALL PROVIDE FOR THE PERFORMANCE EVALUATION, THE REMOVAL OF THE DUTIES, THE SUSPENSION OF THE AUTHORITY, AND THE TERMINATION OF THE EMPLOYMENT CONTRACT OF THE PRESIDENT OR CHIEF EXECUTIVE OFFICER AS PROVIDED UNDER DIVISION (D) OF SECTION 3345.74 AND DIVISION (B)(2) OF SECTION 3345.75 OF THE REVISED CODE.

Sec. 3345.78. NO CURRENT OR FORMER EMPLOYEE OR CURRENT OR FORMER OFFICER OF A STATE UNIVERSITY OR COLLEGE SHALL KNOWINGLY CONCEAL ANY INFORMATION FROM, WITHHOLD ANY INFORMATION REQUESTED BY, FALSIFY ANY INFORMATION TO, OR IMPEDE THE WORK OF ANY OF THE FOLLOWING:

(A) A CONSERVATOR, ALTERNATE GOVERNANCE AUTHORITY, OR EXECUTIVE DIRECTOR APPOINTED FOR THE INSTITUTION UNDER SECTION 3345.74 OR 3345.75 of the Revised Code;

(B) ANY PERSONNEL APPOINTED BY THE CONSERVATOR OR EXECUTIVE DIRECTOR UNDER DIVISION (F) OF SECTION 3345.74 OR DIVISION (B)(1) OF SECTION 3345.75 of the Revised Code.

Sec. 3345.99. (A) Whoever violates section 3345.13 of the Revised Code shall be fined not less than fifty nor more than one hundred fifty dollars.

(B) Whoever violates division (A) or (B) of section 3345.34 of the Revised Code is guilty of a misdemeanor of the first degree.

(C) WHOEVER VIOLATES SECTION 3345.78 of the Revised Code IS GUILTY OF A FELONY OF THE FOURTH DEGREE.