To amend sections 184.02 and 3345.32 and to enact sections 184.30, 184.31, 184.32, 184.33, 184.34, and 184.35 of the Revised Code to establish the Third Frontier Pilot Forgivable Loan Program for graduate students.

Section 1. That sections 184.02 and 3345.32 be amended and sections 184.30, 184.31, 184.32, 184.33, 184.34, and 184.35 of the Revised Code be enacted to read as follows:

Sec. 184.02.  (A) In addition to the powers and duties under sections 184.10 to 184.20 of the Revised Code, the third frontier commission may perform any act to ensure the performance of any function necessary or appropriate to carry out the purposes of, and exercise the powers granted under, sections 184.01 and 184.02 of the Revised Code this chapter. In addition, the commission may do any of the following:

(1) Adopt, amend, and rescind rules under section 111.15 of the Revised Code for the administration of any aspect of its operations;

(2) Adopt bylaws governing its operations, including bylaws that establish procedures and set policies as may be necessary to assist with the furtherance of its purposes;

(3) Appoint and set the compensation of employees needed to carry out its duties;

(4) Contract with, retain the services of, or designate, and fix the compensation of, such financial consultants, accountants, other consultants and advisors, and other independent contractors as may be necessary or desirable to carry out its duties;

(5) Solicit input and comments from the third frontier advisory board, and specialized industry, professional, and other relevant interest groups concerning its purposes;

(6) Facilitate alignment of the state's science and technology programs and activities;

(7) Make grants and loans to individuals, public agencies, private companies or organizations, or joint ventures for any of the broad range of activities related to its purposes.

(B) In addition to the powers and duties under sections 184.10 to 184.20 of the Revised Code, the commission shall do all of the following:

(1) Establish a competitive process for the award of grants and loans that is designed to fund the most meritorious proposals and, when appropriate, provide for peer review of proposals;

(2) Within ninety days after the end of each fiscal year, submit to the governor and the general assembly a report of the activities of the commission during the preceding fiscal year;

(3) With specific application to the biomedical research and technology transfer trust fund, periodically make strategic assessments of the types of state investments in biomedical research and biotechnology in the state that would likely create jobs and business opportunities in the state and produce the most beneficial long-term improvements to the public health of Ohioans, including, but not limited to, biomedical research and biotechnology initiatives that address tobacco-related illnesses as may be outlined in any master agreement. The commission shall award grants and loans from the fund pursuant to a process established under division (B)(1) of this section.

Sec. 184.30. As used in sections 184.30 to 184.35 of the Revised Code:

(A) "Approved field of study" includes a field of study in engineering, chemistry, physics, computer sciences, biomedical technologies, or other field that directly relates to the goals of the third frontier, as determined by the third frontier commission.

(B) "Ohio institution of higher education" means both of the following:

(1) A state university, as defined in section 3345.011 of the Revised Code;

(2) An institution authorized by the Ohio board of regents under Chapter 1713. of the Revised Code to grant master's or doctorate degrees in an approved field of study and that is accredited by the appropriate regional, and when appropriate, professional accrediting associations within whose jurisdiction it falls.

(C) "Student" means an individual, of any citizenship status, enrolled at an Ohio institution of higher education in a master's or doctorate degree program in an approved field of study.

Sec. 184.31. The third frontier pilot forgivable loan program is hereby established. The purpose of the program is to encourage graduate students to accept employment in Ohio in a career related to the goals of the third frontier after receipt of a master's or doctorate degree in approved fields of study. Under the program, a maximum of five hundred loans may be awarded in an academic year to students pursuing master's or doctorate degrees in approved fields of study. Each loan shall be in an amount of eight thousand dollars per year, provided the general assembly appropriates sufficient funds for the program. Loan amounts may be forgiven as provided in section 184.33 of the Revised Code.

The program shall be administered by the third frontier commission, in consultation with the third frontier advisory board.

Within sixty days after the end of five years of operation of the program, the third frontier commission shall submit a written report to the governor and the general assembly that provides information as to the effectiveness of the program in encouraging students to accept employment in Ohio that directly relates to the goals of the third frontier.

Sec. 184.32. (A) In each academic year in which the general assembly appropriates sufficient funds, the third frontier commission shall award a loan of eight thousand dollars to not more than five hundred students, on a competitive basis.

To qualify for a loan under this section, a student shall do all of the following:

(1) Submit an application to the commission that demonstrates all of the following:

(a) Current or acceptance for enrollment in an Ohio institution of higher education on a full-time basis for the purpose of pursuing a master's or doctorate degree in an approved field of study;

(b) If currently enrolled, a status of good standing with the Ohio institution of higher education;

(c) If currently enrolled, maintenance of a minimum grade point average comparable to a 3.0 on a 4.0 scale.

(2) Submit evidence satisfactory to the commission describing how the student's completion of a master's or doctorate degree in an approved field of study can benefit Ohio's economy and the goals of the third frontier. Evidence submitted may include a written essay, letters of recommendation from faculty and business leaders, and academic publications to which the student contributed.

(3) Comply with any other application requirements prescribed by the commission in rules adopted under section 184.35 of the Revised Code.

(B) Loan proceeds shall be disbursed to the students in equal amounts over an academic year, in a manner determined by rules of the commission.

(C) A student who receives a loan in one academic year has priority to receive additional loan amounts in subsequent academic years, provided the student continues to satisfy the requirements of division (A) of this section. However, no student may receive a loan for more than five academic years.

(D) All applications for loans through this program shall be submitted to the third frontier commission by the fifteenth day of March preceding the academic year for which a loan is sought. Applications shall be submitted in the form and manner prescribed in rules adopted by the commission under section 184.35 of the Revised Code, and shall be accompanied by any additional materials required by the rules.

Sec. 184.33. (A) Repayment of any loan amounts awarded under section 184.32 of the Revised Code shall be deferred during the following periods:

(1) While a student continues to satisfy the requirements specified in divisions (A)(1)(a) to (c) of section 184.32 of the Revised Code;

(2) For six months following the student's completion of a master's or doctorate degree from an Ohio institution of higher education in an approved field of study;

(3) During a period of demonstrated financial hardship, as determined by rules adopted by the third frontier commission.

(B) The third frontier commission shall not require a loan recipient to make repayments on a loan awarded under section 184.32 of the Revised Code and shall forgive amounts of such a loan under division (C) of this section if the recipient provides to the commission's satisfaction evidence of all of the following:

(1) The recipient has been awarded a master's or doctorate degree from an Ohio institution of higher education in an approved field of study.

(2) Within six months of the award of a master's or doctorate degree from an Ohio institution of higher education in an approved field of study, the recipient has either:

(a) Accepted employment in Ohio with an Ohio entity engaging the recipient in a position directly related to the goals of the third frontier, as determined by the third frontier commission. Acceptable employment may include employment on the faculty of an Ohio institution of higher education, with a private Ohio company receiving funds from the third frontier commission, or with the state of Ohio, provided the position directly relates to the goals of the third frontier, as determined by the commission. To qualify as acceptable employment, a position need not directly relate to the recipient's approved field of study, so long as the position relates to the goals of the third frontier, as determined by the commission.

(b) Started a business in Ohio that directly relates to the goals of the third frontier, as determined by the commission.

(3) The recipient continues to remain employed in a position in Ohio that directly relates to the goals of the third frontier, as determined by the commission, while an outstanding loan balance exists.

(4) The recipient is a resident of Ohio for purposes of Title LVII of the Revised Code.

(C) If a recipient reports to the commission's satisfaction that the recipient fulfills all of the requirements of division (B) of this section, the commission shall forgive one thousand dollars of loan amounts awarded under section 184.32 of the Revised Code ninety-one days after the date of first employment and one thousand dollars every ninety-one days thereafter, for as long as the recipient fulfills all requirements of that division, until the student no longer has any outstanding loan amounts.

(D) A recipient who does not qualify or ceases to qualify for a deferment of loan repayment or loan forgiveness under this section shall repay any outstanding loan amounts awarded under section 184.32 of the Revised Code to the third frontier commission in monthly payments, at an annual interest rate of six per cent compounded daily from the date loan amounts are disbursed. The maximum repayment schedule shall be for a period of five years.

(E) If a recipient who qualifies for loan forgiveness under divisions (B) and (C) of this section becomes unemployed, the recipient has ninety days from the date of unemployment to accept employment that meets the requirements of division (B)(2)(a) or (b) of this section to maintain eligibility for loan deferment and forgiveness. If the recipient fails to accept such employment within the ninety days, the student shall repay any outstanding loan amounts as provided in division (D) of this section.

Sec. 184.34. The third frontier commission may accept gifts of money from any source for the implementation and administration of the third frontier pilot forgivable loan program under sections 184.30 to 184.35 of the Revised Code.

The commission shall pay all gifts and all loan repayments into the state treasury, to the credit of the third frontier forgivable loan fund, which is hereby created. The commission shall use money in the fund to implement and administer sections 184.30 to 184.33 of the Revised Code.

Sec. 184.35. The third frontier commission shall adopt rules to implement the third frontier pilot forgivable loan program under sections 184.30 to 184.33 of the Revised Code. The rules shall include provisions regarding the application procedure, disbursement schedules of loan proceeds, loan repayment provisions if a loan recipient is not eligible for loan forgiveness under section 184.34 of the Revised Code, deferment of loan repayment provisions for a recipient with demonstrated financial hardship, reporting requirements in order to qualify for loan deferment or forgiveness, and any other rules the commission considers necessary for implementation and administration of the program.

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 and the northeastern Ohio universities college of medicine.

(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 United States department of education pursuant to 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)(E) 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 184.32, 3315.33, 3333.12, 3333.122, 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.

Section 2. That existing sections 184.02 and 3345.32 of the Revised Code are hereby repealed.