A school of osteopathic medicine is established and shall be located as determined by the state board of education at an existing campus of a state university with an existing school or college of medicine. The school must be headed by an osteopathic physician serving as the dean of the school of osteopathic medicine. The dean shall be responsible for the development and maintenance of the school in osteopathic medicine. The school shall be maintained by the state and its facilities shall be made equally available and on the same basis to all qualified residents of this state. Clinical services in osteopathy shall be given chiefly in affiliated osteopathic hospitals. The conduct of the affairs of the school shall be vested in the board of control of the institution of higher education to which the school is assigned.

     The board of control may confer appropriate degrees and grant diplomas for which accreditation has been received from appropriate national accreditation authorities; receive, hold and manage any gift, grant, bequest or devise of funds or property, real or personal, absolutely or in trust, to promote any of the purposes of the school of osteopathic medicine; enter into agreements, not inconsistent with this act, as may be desirable in the conduct of the affairs of the university; and in behalf of the state lease or dispose of any property which comes into its possession, if in so doing it does not violate any condition or trust to which such property may be subject. All powers customarily exercised by the governing board of a college or university are vested in the board of control of the institution of higher education to which the school of osteopathic medicine is assigned and the enumeration of powers herein shall not be deemed to exclude any powers not expressly excluded by law.

     This act shall become effective when the school of osteopathic medicine is assigned by the state board of education as prescribed in section 1, and when such affiliation is accepted by the board of control of the established state institution of higher education. The state board of education shall determine the assignment of the school to an established institution of higher education within 90 days of the enactment of this act.