(A) For purposes of this section, "eligible institution of higher education" means any of the following:

1. (1) A regionally accredited private, nonprofit institution of higher education that is created by the governors of several states. At least one of the governors of these states shall also be a member of the institution's board of trustees.
2. (2) A state institution of higher education, as that term is defined in section 3345.011 of the Revised Code;
3. (3) A private, nonprofit institution of higher education that has received a certificate of authorization under Chapter 1713. of the Revised Code.

(C) In recognizing or endorsing an eligible institution of higher education described in division (A)(1) of this section, the chancellor may specify all of the following:

1. (1) The eligibility of students enrolled in the institution for state student financial aid programs;
2. (2) Any articulation and transfer policies of the chancellor that apply to the institution;
3. (3) The reporting requirements for the institution.

(D) In recognizing or endorsing any eligible institution of higher education, the chancellor may:

1. (1) Recognize competency-based education as an important component of this state's higher education system;
2. (2) Eliminate any unnecessary barriers to the delivery of competency-based education;
3. (3) Facilitate opportunities to share best practices on the delivery of competency-based education with any eligible institution of higher education;
4. (4) Establish any other requirements that the chancellor determines are in the best interest of this state.