Section 1. That sections 2307.54, 2927.16, 3701.86, and 3701.861 of the Revised Code be enacted to read as follows:

Sec. 2307.54.  (A) For the purposes of liability in tort or contract, procuring, furnishing, donating, processing, distributing, or using embryonic or cadaveric fetal tissue for research purposes is declared to be the rendition of a service by any participating person or entity whether or not there is payment and is declared not to be a sale of any such items. Except as provided in division (B) of this section, no warranties nor strict tort liability shall be applicable to provision of the service.

(B) A person or entity involved in the rendition of a service described in division (A) of this section warrants to the recipient of the service that in providing the service the person or entity has exercised due care and followed professional standards of care in accordance with the Revised Code.

Sec. 2927.16.  (A) No person shall knowingly, for consideration, purchase or sell embryonic or cadaveric fetal tissue for research purposes. Nothing in this section prevents a person from receiving embryonic or cadaveric fetal tissue by donation if the tissue is to be used for research purposes.

(B) For the purposes of this section, the giving or receiving of reasonable payment or reimbursement for the removal, processing, disposal, preservation, quality control, storage, transplantation, or implantation of tissue does not constitute a purchase or sale.

(C) Whoever violates division (A) of this section is guilty of a misdemeanor of the first degree on the first offense and a felony of the fifth degree on each subsequent offense.

Sec. 3701.86.  Notwithstanding section 2919.14 of the Revised Code, it shall be the public policy of the state that research involving the derivation and use of human embryonic stem cells, human embryonic germ cells, and human adult stem cells from any source, including somatic cell nuclear transplantation, shall be permitted and that the ethical and medical implications of this research shall be given full consideration.

The department of health shall establish an institutional review board to review research involving the derivation and use of human embryonic stem cells, human embryonic germ cells, and human adult stem cells, including somatic nuclear transplantation.

The director of health shall adopt rules in accordance with Chapter 119. of the Revised Code as necessary to implement and administer this section.

Sec. 3701.861. An individual receiving fertility treatment shall have the option of choosing among the available means of disposing of any unused human embryos remaining following the fertility treatment. These means may include storing the embryos, donating them to another individual, discarding them, or donating them for research.

An individual who elects to donate unused embryos remaining after fertility treatments shall provide written consent to the donation to the person or entity responsible for facilitating the donation.

Section 2. The General Assembly finds and declares all of the following:

(A) An estimated 128 million Americans suffer from the crippling economic and psychological burden of chronic, degenerative, and acute diseases, including diabetes, Parkinson's disease, cancer, and Alzheimer's disease.

(B) The costs of treatment and lost productivity of chronic, degenerative, and acute diseases in the United States constitutes hundreds of billions of dollars every year. Estimates of the economic costs of these diseases do not account for the extreme human loss and suffering associated with these conditions.

(C) Stem cell research offers immense promise for developing new medical therapies for these debilitating diseases and a critical means to explore fundamental questions of biology. Stem cell research could lead to unprecedented treatments and potential cures for diabetes, Alzheimer's disease, cancer, and other diseases.

(D) The United States has historically been a haven for open scientific inquiry and technological innovation, and this environment, coupled with the commitment of public and private resources, has made the United States the preeminent world leader in biomedicine and biotechnology.

(E) Open scientific inquiry and publicly funded research will be essential to realizing the promise of stem cell research and to maintaining the United States' worldwide leadership in biomedicine and biotechnology. Publicly funded stem cell research, conducted under established standards of open scientific exchange, peer review, and public oversight, offers the most efficient and responsible means of fulfilling the promise of stem cells to provide regenerative medical therapies.

(F) Stem cell research, including the use of embryonic stem cells for medical research, raises significant ethical and policy concerns, and, while not unique, the ethical and policy concerns associated with stem cell research must be carefully considered.

(G) Public policy on stem cell research must balance ethical and medical considerations. The policy must be based on an understanding of the science associated with stem cell research and grounded on a thorough consideration of the ethical concerns regarding this research. Public policy on stem cell research must be carefully crafted to ensure that researchers have the tools necessary to fulfill the promise of stem cell research.