(A) As used in this section and in section 3309.159 of the Revised Code:

1. (1) "Agent" means a dealer, as defined in section 1707.01 of the Revised Code, who is licensed under sections 1707.01 to 1707.50 of the Revised Code or under comparable laws of another state or of the United States.
2. (2) "Minority business enterprise" has the same meaning as in section 122.71 of the Revised Code.
3. (3) "Ohio-qualified agent" means an agent designated as such by the school employees retirement board.
4. (4) "Ohio-qualified investment manager" means an investment manager designated as such by the school employees retirement board.
5. (5) "Principal place of business" means an office in which the agent regularly provides securities or investment advisory services and solicits, meets with, or otherwise communicates with clients.

(B) The school employees retirement board shall, for the purposes of this section, designate an agent as an Ohio-qualified agent if the agent meets all of the following requirements:

1. (1) The agent is subject to taxation under Chapter 5725., 5726., 5733., 5747., or 5751. of the Revised Code.
2. (2) The agent is authorized to conduct business in this state.
3. (3) The agent maintains a principal place of business in this state and employs at least five residents of this state.

(C) The school employees retirement board shall adopt and implement a written policy to establish criteria and procedures used to select agents to execute securities transactions on behalf of the retirement system. The policy shall address each of the following:

1. (1) Commissions charged by the agent, both in the aggregate and on a per share basis;
2. (2) The execution speed and trade settlement capabilities of the agent;
3. (3) The responsiveness, reliability, and integrity of the agent;
4. (4) The nature and value of research provided by the agent;
5. (5) Any special capabilities of the agent.

(D)

1. (1) The board shall, at least annually, establish a policy with the goal to increase utilization by the board of Ohio-qualified agents for the execution of domestic equity and fixed income trades on behalf of the retirement system, when an Ohio-qualified agent offers quality, services, and safety comparable to other agents otherwise available to the board and meets the criteria established under division (C) of this section.
2. (2) The board shall review, at least annually, the performance of the agents that execute securities transactions on behalf of the board.
3. (3) The board shall determine whether an agent is an Ohio-qualified agent, meets the criteria established by the board pursuant to division (C) of this section, and offers quality, services, and safety comparable to other agents otherwise available to the board. The board's determination shall be final.