Can Ohio’s public universities divest from Israel? State law says no

Photo by WEWS.

Pro-Palestine demonstrators in Ohio have been urging colleges to divest from Israel, but state law actually prevents any public university from boycotting the country.

More than 40 protestors have been arrested at The Ohio State University’s campus while opposing the Israel-Hamas war, according to the university.

“When police are called in to deal violently with students — it is never acceptable to do that to peaceful protesters,” Rachael Collyer with the Ohio Student Association said.

Advocates like Collyer are demanding that OSU cut ties with Israel — in a move often referred to as BDS, which means Boycott, Divestment, Sanctions.

Along with the state troopers, Statehouse leaders are now getting involved.

“Hopefully everyone would be safe and also be able to express their First Amendment rights, but we also have to do that within the rules,” House Speaker Jason Stephens (R-Kitts Hill) said.

The speaker said that the students need to listen to not only the OSU president but also to the Ohio Revised Code.

“Pursuant to Ohio state law, state entities cannot divest interests in Israel. Ohio Revised Code Section 9.76 prohibits the university from divesting any interests in Israel and prohibits adopting or adhering to a policy that requires divestment from Israel or with persons or entities associated with it,” OSU spokesperson Ben Johnson told me.

He’s right, Case Western Reserve University law professor Jonathan Entin explained.

“State law forbids state educational institutions from boycotting Israel,” Entin said.

Back in 2016, Ohio banned state agencies from boycotting Israel or from entering into contracts with companies that have anti-Israel policies.

Then in 2022, the law was edited to include universities — but this only applies to public ones.

Case Western Reserve University is on its third day of encampment.

“We are a private institution, the rules don’t apply the same for them as they do here,” said ​CWRU student Jas Kamhawi Oglesby. “We will stay here in solidarity.”

Case Western students say that they are glad they could still make change but are asking for legislators to repeal the law.

“No,” Senate President Matt Huffman’s spokesperson, John Fortney, said, declining to provide any more comment.

There are the same feelings in the other chamber.

“Speaker Stephens strongly values our partnership with Israel. We are committed to keeping investments open between the State of Ohio, businesses that do business with Israel, and Israeli companies themselves. This strong relationship should not change,“ Stephens’ spokesperson Pat Melton said.

Melton also reminded of Stephens’ statement from October 7, how the war started when Hamas attacked Israeli citizens at a music festival.

“I strongly condemn the heinous terrorist attacks carried out today by Iranian-backed Hamas against the people of Israel. My heart goes out to the victims of these cowardly actions and their families across the world. The United States stands with Israel as they rightfully defend their homeland. May we all offer prayers during these times,” the speaker said.

The Statehouse has been publicly supporting Israel consistently since the attack, with both chambers passing resolutions condemning Hamas in October.

State Treasurer Robert Sprague continues to buy Israel Bonds, with both a $30 million purchase in February and a $15 million in March.

“Israel Bonds have been – and continue to be – a strong investment for the State of Ohio as a result of their competitive rates and perfect record of interest and principal payments. Since 1993, every Ohio Treasurer has turned to these securities as a way to bring strength and balance to the state’s investment portfolio. These positive benefits have remained unchanged, and Israel Bonds remain strong investments for our state,” spokesperson Laura Martine said.

I asked specifically for Sprague’s thoughts on the calls for divestment.

“Our thought is there are no merits for divestment, as these bonds remain a strong investment for the State of Ohio,” she responded.

When he purchased the bond in February, Sprague addressed his desire to help the Middle-Eastern allies.

“Israel’s need for support remains as they continue their fight against terrorism,” Sprague said. “Not only do Israel Bonds help provide much-needed liquidity to Israel, but their solid repayment history and competitive rates also provide a sound investment for Ohio and a great fit on our bond ladder.”

There is one way that public schools could try to cut ties with the country, but Entin said it is virtually impossible and would face legal challenges.

“They have to certify that they’re not engaged in a prohibited boycott of Israel,” he said.

State law has a provision stating that a boycott would not be considered a “decision based on business or economic reasons.”

Gov. Mike DeWine’s team pointed out that university boards of trustees are required to act in the best financial interest of their university, so they would need to prove that ending contracts would benefit the university fiscally.

“Taxpayer-supported institutions should run as leanly as possible so that taxpayers get the best value for their dollars,” spokesperson Dan Tierney said. “These calls for divestment are specifically divorced from those duties in the efforts to make political statements.”

Attorney General Dave Yost’s team is also adding that the law basically requires schools to keep their financial support for Israel.

“OSU holds investments through contracts with various indexes,” spokesperson Bethany McCorkle said. “OSU is prohibited from using such indexes if they divest from Israeli assets.”

But Collyer said that even if OSU can’t financially remove itself, the administration could be doing more.

“They could be allowing students to express their First Amendment rights on campus,” she said, adding that the troopers and campus police have been “violent.”

Tierney explained that DeWine called the troopers in because OSU asked for it.

“From everything we’ve seen, all the agencies involved have acted appropriately — enforcing the laws, being professional and working to allow people to exercise their First Amendment,” he said. “And accomplishing the goals of just keeping everybody safe and ensuring access to the university.”

Collyer added that she would be open to supporting litigation against the state law, saying it goes against free speech.

Entin argued that argument probably wouldn’t hold up in court.

This article was originally published on News5Cleveland.com and is published in the Ohio Capital Journal under a content-sharing agreement. Unlike other OCJ articles, it is not available for free republication by other news outlets as it is owned by WEWS in Cleveland.

Follow WEWS statehouse reporter Morgan Trau on X and Facebook.

The post Can Ohio’s public universities divest from Israel? State law says no appeared first on Ohio Capital Journal.