As Introduced 1 123rd General Assembly 4 Regular Session S. B. No. 53 5 1999-2000 6 SENATOR CARNES 8 10 A B I L L To amend sections 3345.01, 3354.09, 3355.06, and 12 3357.09 and to enact section 3333.32 of the 13 Revised Code and to amend Section 99.01 of Am. 14 Sub. H.B. 215 of the 122nd General Assembly to 15 grant in-state tuition rates and subsidies at certain public institutions of higher education 16 to residents of contiguous states who are 17 employed in Ohio and whose employers contract to 18 pay their tuition and fees. BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 20 Section 1. That sections 3345.01, 3354.09, 3355.06, and 22 3357.09 be amended and section 3333.32 of the Revised Code be 23 enacted to read as follows: Sec. 3333.32. FOR PURPOSES OF STATE SUBSIDY AND TUITION 25 AND FEE SURCHARGES, A STUDENT ATTENDING A STATE UNIVERSITY LISTED 27 IN SECTION 3345.011 OF THE REVISED CODE, A COMMUNITY COLLEGE, A 29 TECHNICAL COLLEGE, A UNIVERSITY BRANCH, OR A STATE COMMUNITY 30 COLLEGE HAS RESIDENT STATUS IF ALL OF THE FOLLOWING CONDITIONS 31 APPLY: (A) THE STUDENT RESIDES IN A CONTIGUOUS STATE. 34 (B) THE STUDENT IS EMPLOYED IN OHIO BY A BUSINESS, 37 ORGANIZATION, OR GOVERNMENT AGENCY LOCATED IN OHIO. 39 (C) THE EMPLOYER ENTERS INTO A CONTRACT WITH THE 42 INSTITUTION OF HIGHER EDUCATION UNDER WHICH THE EMPLOYER PAYS ALL 43 OF THE STUDENT'S TUITION AND FEES DIRECTLY TO THE INSTITUTION AND 44 AGREES NOT TO CHARGE OR SEEK REIMBURSEMENT FROM THE STUDENT IN 45 2 ANY MANNER FOR ANY PART OF THE TUITION AND FEES. 46 THE CONTRACT MAY INCLUDE ANY ADDITIONAL PROVISIONS TO WHICH 49 THE INSTITUTION AND THE EMPLOYER AGREE, SO LONG AS THOSE PROVISIONS DO NOT CONFLICT WITH DIVISION (C) OF THIS SECTION. 51 A CONTRACT UNDER THIS SECTION MAY PERMIT THE EMPLOYER TO 53 PAY TUITION AND FEES FOR EMPLOYEES WHO RESIDE IN OHIO AND 54 CONTIGUOUS STATES IN ONE FIXED, GROUP RATE. THAT RATE MAY BE 55 LESS THAN THE SUM THAT WOULD OTHERWISE BE CALCULATED BY CHARGING 56 EACH EMPLOYEE COVERED BY THE CONTRACT THE RESIDENT TUITION AND 57 FEES. Sec. 3345.01. Except as provided insectionSECTIONS 66 3333.17 AND 3333.32 of the Revised Code, the board of trustees of 68 a state university or college, as defined in section 3345.12 of 69 the Revised Code, may charge reasonable tuition for the attendance of pupils who are nonresidents of Ohio. 70 Sec. 3354.09. The board of trustees of a community college 79 district may: 80 (A) Own and operate a community college, pursuant to an 82 official plan prepared and approved in accordance with section 83 3354.07 of the Revised Code, or enter into a contract with a 84 generally accredited public university or college for operation 85 of such community college by such university or college pursuant 86 to an official plan prepared and approved in accordance with 87 section 3354.07 of the Revised Code; 88 (B) Hold, encumber, control, acquire by donation, 90 purchase, or condemnation, construct, own, lease, use, and sell 91 real and personal property as is necessary for the conduct of the 92 program of the community college on whatever terms and for 93 whatever consideration may be appropriate for the purpose of the 94 college; 95 (C) Accept gifts, grants, bequests, and devises absolutely 97 or in trust for support of the college during the existence of 98 the college; 99 (D) Appoint the administrative officers, faculty, and 101 3 staff, necessary and proper for such community college, and fix 102 their compensation except in instances in which the board of 103 trustees has delegated such powers to a college or university 104 operating such community college pursuant to a contract entered 105 into by the board of trustees of the district; 106 (E) Provide for a community college necessary lands, 108 buildings or other structures, equipment, means, and appliances; 109 (F) Develop and adopt, pursuant to the official plan, the 111 curricular programs identified in section 3354.01 of the Revised 112 Code as arts and sciences programs and technical programs, or 113 either. Such programs may include adult-education programs. 114 (G) Except as provided insectionSECTIONS 3333.17 AND 116 3333.32 of the Revised Code, establish schedules of fees and 118 tuition for students who are residents of the district, residents 119 of Ohio but not of the district, and students who are 120 nonresidents of Ohio. The establishment of rules governing the 121 determination of residence shall be subject to approval of the 122 Ohio board of regents. Students who are nonresidents of Ohio 123 shall be required to pay higher rates of fees and tuition than 124 the rates required of students who are residents of Ohio but not 125 of the district, and students who are residents of the district 126 shall pay a smaller tuition and fee rate than the rate for either 127 category of nonresident students. 128 (H) Authorize, approve, ratify, or confirm any agreement 130 relating to any such community college with the United States 131 government, acting through any agency of such government 132 designated or created to aid in the financing of such projects, 133 or with any person or agency offering grants in aid in financing 134 such educational facilities or the operation of such facilities 135 except as prohibited in division (K) of this section. 136 Such agreement may include a provision for repayment of 138 advances, grants, or loans made to any community college district 139 from funds which may become available to it. 140 When the United States government or its agent makes a 142 4 grant of money to any community college district to aid in paying 143 the cost of any projects of such district, or enters into an 144 agreement with the community college district for the making of 145 any such grant of money, the amount thereof is deemed 146 appropriated for such purpose by the community college district 147 and is deemed in process of collection within the meaning of 148 section 5705.41 of the Revised Code. 149 (I) Grant appropriate certificates of achievement to 151 students successfully completing the community college programs; 152 (J) Prescribe rules for the effective operation of a 154 community college and exercise such other powers as are necessary 155 for the efficient management of such college; 156 (K) Receive and expend gifts or grants from the state for 158 the payment of operating costs, for the acquisition, 159 construction, or improvement of buildings or other structures, or 160 for the acquisition or use of land. In no event shall state 161 gifts or grants be expended for the support of adult-education 162 programs. Gifts or grants from the state for operating costs 163 shall not in any biennium exceed the amount recommended by the 164 Ohio board of regents to the governor as provided in Chapter 165 3333. of the Revised Code. Such gifts or grants shall be 166 distributed to such districts in equal quarter-annual payments, 167 unless otherwise provided or authorized in any act appropriating 168 moneys for such purposes, on or before the last day of February, 169 May, August, and November in each year. 170 (L) Retain consultants in the fields of education, 172 planning, architecture, law, engineering, or other fields of 173 professional skill; 174 (M) Purchase: 176 (1) A policy or policies of insurance insuring the 178 district against loss of or damage to property, whether real, 179 personal, or mixed, which is owned by the district or leased by 180 it as lessee or which is in the process of construction by or for 181 the district; 182 5 (2) A policy or policies of fidelity insurance in such 184 amounts and covering such trustees, officers, and employees of 185 the district as it considers necessary or desirable; 186 (3) A policy or policies of liability insurance from an 188 insurer or insurers licensed to do business in this state 189 insuring its members, officers, and employees against all civil 190 liability arising from an act or omission by the member, officer, 191 or employee when the member, officer, or employee is not acting 192 manifestly outside the scope ofhisemployment or official 193 responsibilities with the institution, with malicious purpose or 194 bad faith, or in a wanton or reckless manner, or may otherwise 195 provide for the indemnification of such persons against such 196 liability. All or any portion of the cost, premium, or charge 197 for such a policy or policies or indemnification payment may be 198 paid from any funds under the institution's control. The policy 199 or policies of liability insurance or the indemnification policy 200 of the institution may cover any risks including, but not limited 201 to, damages resulting from injury to property or person, 202 professional liability, and other special risks, including legal 203 fees and expenses incurred in the defense or settlement of claims 204 for such damages. 205 (4) A policy or policies of insurance insuring the 207 district against any liabilities to which it may be subject on 208 account of damage or injury to persons or property, including 209 liability for wrongful death. 210 (N) Designate one or more employees of the institution as 212 state university law enforcement officers, to serve and have 213 duties as prescribed in section 3345.04 of the Revised Code. 214 Sec. 3355.06. The managing authority of the university 223 branch district shall adopt its own rules governing proceedings, 224 designate the permanent place of business of the district, and 225 keep a record of all its proceedings. Such record shall be open 226 for public inspection during regular business hours at the 227 permanent place of business of the district. 228 6 The managing authority may: 230 (A) Enter into a contract for a period of not less than 232 four nor more than ten years with a state or municipal university 233 for the operation of a university branch by such university on 234 the campus provided in accordance with sections 3355.01 to 235 3355.14 of the Revised Code. Except as provided insection236 SECTIONS 3333.17 AND 3333.32 of the Revised Code, the contract 238 shall establish schedules of fees and tuition for: students who 240 are residents of the district; residents of Ohio but not of the 241 district; and students who are nonresidents of Ohio. Students 242 who are nonresidents of Ohio shall be required to pay higher 243 rates of fees and tuition than the rates required of students who 244 are residents of Ohio but not of the district, and students who 245 are residents of the district shall pay A smaller tuition and fee 246 rate than the rate for either category of nonresident students. 247 (B) Hold, encumber, control, acquire by donation, 249 purchase, or condemnation, construct, own, lease, use, and sell 250 real and personal property as is necessary for the creation and 251 maintenance of the university branch campus, on whatever terms 252 and for whatever consideration may be appropriate for the 253 purposes of the facility; 254 (C) Accept gifts, grants, bequests, and devises absolutely 256 or in trust for support of the university branch campus during 257 the existence of said branch; 258 (D) Receive an appropriation from any municipality or 260 county that is a part of the university branch district for the 261 purpose of providing funds for support of the university branch 262 campus; 263 (E) Receive and expend gifts or grants from the state for 265 the payment of operating costs, for the acquisition, 266 construction, or improvement of buildings or other structures, or 267 for the acquisition or use of land. 268 (F) Prescribe rules for the effective operation of a 270 university branch district college and exercise such other powers 271 7 as are necessary for the efficient management of such university 272 and are not in conflict with any contract entered into under 273 division (A) of this section. 274 Sec. 3357.09. The board of trustees of a technical college 283 district may: 284 (A) Own and operate a technical college, pursuant to an 286 official plan prepared and approved in accordance with section 287 3357.07 of the Revised Code; 288 (B) Hold, encumber, control, acquire by donation, 290 purchase, or condemnation, construct, own, lease, use, and sell, 291 real and personal property as necessary for the conduct of the 292 program of the technical college on whatever terms and for 293 whatever consideration may be appropriate for the purposes of the 294 institution; 295 (C) Accept gifts, grants, bequests, and devises absolutely 297 or in trust for support of the technical college; 298 (D) Appoint the president, faculty, and such other 300 employees as necessary and proper for such technical college, and 301 fix their compensation; 302 (E) Provide for a technical college necessary lands, 304 buildings or other structures, equipment, means, and appliances; 305 (F) Develop and adopt, pursuant to the official plan, any 307 one or more of the curricular programs identified in section 308 3357.01 of the Revised Code as technical-college programs, or 309 adult-education technical programs; 310 (G) Except as provided insectionSECTIONS 3333.17 AND 312 3333.32 of the Revised Code, establish schedules of fees and 314 tuition for: students who are residents of the district; 315 students who are residents of Ohio but not of the district; 316 students who are nonresidents of Ohio. The establishment of 317 rules governing the determination of residence shall be subject 318 to approval of the Ohio board of regents. Students who are 319 nonresidents of Ohio shall be required to pay higher rates of 320 fees and tuition than the rates required of students who are 321 8 residents of Ohio but not of the district, and students who are 322 residents of the district shall pay smaller tuition and fee rates 323 than the rates for either of the above categories of nonresident 324 students, except that students who are residents of Ohio but not 325 of the district shall be required to pay higher fees and tuition 326 than students who are residents of the district only when a 327 district tax levy has been adopted and is in effect under the 328 authority of section 3357.11, 5705.19, or 5705.191 of the Revised 329 Code. (H) Authorize, approve, ratify, or confirm, with approval 331 of the Ohio board of regents, any agreement with the United 332 States government, acting through any agency designated to aid in 333 the financing of technical college projects, or with any person, 334 organization, or agency offering grants-in-aid for technical 335 college facilities or operation; 336 (I) Receive assistance for the cost of equipment and for 338 the operation of such technical colleges from moneys appropriated 339 for technical education or for matching of Title VIII of the 340 "National Defense Education Act," 72 Stat. 1597 (1958), 20 341 U.S.C.A. 15a-15e. Moneys shall be distributed by the Ohio board 342 of regents in accordance with rules which the board shall 343 establish governing its allocations to technical colleges 344 chartered under section 3357.07 of the Revised Code. 345 (J) Grant appropriate associate degrees to students 347 successfully completing the technical college programs and 348 certificates of achievement to those students who complete other 349 programs; 350 (K) Prescribe rules for the effective operation of a 352 technical college, and exercise such other powers as are 353 necessary for the efficient management of such college; 354 (L) Enter into contracts and conduct technical college 356 programs or technical courses outside the technical college 357 district; 358 (M) Enter into contracts with the board of education of 360 9 any local, exempted village, or city school district or the 362 governing board of any educational service center to permit the school district or service center to use the facilities of the 363 technical college district; 364 (N) Designate one or more employees of the institution as 366 state university law enforcement officers, to serve and have 367 duties as prescribed in section 3345.04 of the Revised Code; 368 (O) Subject to the approval of the Ohio board of regents, 370 offer technical college programs or technical courses for credit 371 at locations outside the technical college district. For 372 purposes of computing state aid, students enrolled in such 373 courses shall be deemed to be students enrolled in programs and 374 courses at off-campus locations in the district. 375 (P) Purchase a policy or policies of liability insurance 377 from an insurer or insurers licensed to do business in this state 378 insuring its members, officers, and employees against all civil 379 liability arising from an act or omission by the member, officer, 380 or employee, when the member, officer, or employee is not acting 381 manifestly outside the scope ofhisTHE MEMBER'S, OFFICER'S, OR 382 EMPLOYEE'S employment or official responsibilities with the 384 institution, with malicious purpose or bad faith, or in a wanton 385 or reckless manner, or may otherwise provide for the 386 indemnification of such persons against such liability. All or 387 any portion of the cost, premium, or charge for such a policy or 388 policies or indemnification payment may be paid from any funds 389 under the institution's control. The policy or policies of 390 liability insurance or the indemnification policy of the 391 institution may cover any risks including, but not limited to, 392 damages resulting from injury to property or person, professional 393 liability, and other special risks, including legal fees and 394 expenses incurred in the defense or settlement of claims for such 395 damages. Section 2. That existing sections 3345.01, 3354.09, 397 3355.06, and 3357.09 of the Revised Code are hereby repealed. 398 10 Section 3. That Section 99.01 of Am. Sub. H.B. 215 of the 400 122nd General Assembly be amended to read as follows: 401 "Sec. 99.01. Instructional Subsidy Formula 403 As soon as practicable during each fiscal year of the 405 1997-1999 biennium in accordance with instructions of the Ohio 406 Board of Regents, each state-assisted institution of higher 407 education shall report its actual enrollment to the Ohio Board of 408 Regents. 409 The Ohio Board of Regents shall establish procedures 411 required by the system of formulas set out below and for the 412 assignment of individual institutions to categories described in 413 the formulas. The system of formulas establishes the manner in 414 which aggregate expenditure requirements shall be determined for 415 each of the three components of institutional operations. In 416 addition to other adjustments and calculations described below, 417 the subsidy entitlement of an institution shall be determined by 418 subtracting from the institution's aggregate expenditure 419 requirements income to be derived from the local contributions 420 assumed in calculating the subsidy entitlements. The local 421 contributions for purposes of determining subsidy support shall 422 not limit the authority of the individual boards of trustees to 423 establish fee levels. 424 The General Studies and Technical models shall be adjusted 426 by the Board of Regents so that the share of state subsidy earned 427 by those models is not altered by changes in the overall local 428 share. A lower-division fee differential shall be used to 429 maintain the relationship that would have occurred between these 430 models and the Baccalaureate models had an assumed share of 37 431 per cent been funded. 432 In defining the number of full-time equivalent students for 434 state subsidy purposes, the Ohio Board of Regents shall exclude 435 all undergraduate students who are not residents of Ohio, except 436 those charged in-state fees in accordance with reciprocity 437 agreements made pursuant to section 3333.17 OR EMPLOYER CONTRACTS 438 11 ENTERED INTO PURSUANT TO SECTION 3333.32 of the Revised Code. 439 (A) Aggregate Expenditure Per Full-Time Equivalent Student 441 (1) Instruction and Support Services 443 Model FY 1998 FY 1999 448 General Studies I $ 3,468 $ 3,598 450 General Studies II $ 3,689 $ 3,827 452 General Studies III $ 4,844 $ 5,026 454 Technical I $ 4,248 $ 4,407 456 Technical III $ 7,436 $ 7,715 458 Baccalaureate I $ 5,787 $ 6,004 460 Baccalaureate II $ 6,751 $ 7,004 462 Baccalaureate III $ 9,887 $ 10,258 464 Masters and Professional I $ 10,889 $ 11,297 466 Masters and Professional II $ 15,901 $ 16,497 468 Masters and Professional III $ 21,904 $ 22,725 470 Doctoral I $ 18,629 $ 19,328 472 Doctoral II $ 23,436 $ 24,315 474 Medical I $ 25,821 $ 26,789 476 Medical II $ 35,968 $ 37,317 478 (2) Student Services 481 For this purpose full-time equivalent counts shall be 483 weighted to reflect differences among institutions in the numbers 484 of students enrolled on a part-time basis. 485 FY 1998 FY 1999 487 All Expenditure Models $ 501 $ 520 488 (B) Plant Operation and Maintenance (POM) 490 (1) Determination of the Square-Foot Based POM Subsidy 492 Space undergoing renovation shall be funded at the rate 494 allowed for storage space; 495 In the calculation of square footage for each campus, 497 square footage shall be weighted to reflect differences in space 498 utilization; The space inventories for each campus shall be those 500 determined in the fiscal year 1997 instructional subsidy, 501 12 adjusted for changes attributable to the construction or 502 renovation of facilities for which state appropriations were made 503 or local commitments were made prior to January 1, 1995; Only fifty per cent of the space permanently taken out of 505 operation in fiscal year 1998 or fiscal year 1999 that is not 506 otherwise replaced by a campus shall be deleted from the fiscal 508 year 1997 inventory. The square-foot based plant operation and maintenance 510 subsidy for each campus shall be determined as follows: 511 (a) For each standard room type category shown below, the 513 subsidy-eligible net assignable square feet (NASF) for each 514 campus shall be multiplied by the following rates, and the 515 amounts summed for each campus to determine the total gross 516 square-foot based POM expenditure requirement: FY 1998 FY 1999 519 Classrooms $4.85 $5.03 520 Laboratories $6.04 $6.27 521 Offices $4.85 $5.03 522 Audio Visual Data Processing $6.04 $6.27 523 Storage $2.15 $2.23 524 Circulation $6.12 $6.35 525 Other $4.85 $5.03 526 (b) The total gross square-foot POM expenditure 528 requirement shall be allocated to models in proportion to 529 full-time equivalent (FTE) enrollments as reported in enrollment 530 data. (c) The amounts allocated to models in (B)(1)(b) above 532 shall be multiplied by the ratio of subsidy-eligible FTE students 533 to total FTE students reported in each model, and the amounts 535 summed for all models. To this total amount shall be added an 536 amount to support roads and grounds expenditures to produce the 537 total square-foot based POM subsidy. (2) Determination of the Activity-Based POM Subsidy 539 (a) The number of subsidy-eligible FTE students in each 541 13 model shall be multiplied by the following rates for each campus 542 for each fiscal year. FY 1998 FY 1999 545 General Studies I $ 469 $ 487 547 General Studies II $ 522 $ 542 549 General Studies III $1,208 $1,253 551 Technical I $ 536 $ 556 553 Technical II $1,044 $1,083 555 Baccalaureate I $ 604 $ 627 557 Baccalaureate II $ 990 $1,027 559 Baccalaureate III $1,502 $1,558 561 Masters & Professional I $ 934 $ 969 563 Masters & Professional II $1,540 $1,598 565 Masters & Professional III $2,527 $2,622 567 Doctoral I $1,425 $1,478 569 Doctoral II $2,308 $2,395 571 Medical I $2,214 $2,297 573 Medical II $3,415 $3,543 575 (b) The sum of the products for each campus determined in 578 (B)(2)(a) for each fiscal year shall be weighted by a factor to 579 reflect sponsored research activity and job-training related 580 public services expenditures to determine the total 581 activity-based POM subsidy. (C) Calculation of Core Subsidy Entitlements and 583 Adjustments 584 (1) Calculation of Core Subsidy Entitlements 586 The calculation of the core subsidy entitlement shall 588 consist of the following components: 589 (a) For each campus and for each fiscal year, the core 591 subsidy entitlement shall be determined by multiplying the 592 amounts listed above in divisions (A)(1) and (2) and (B)(2) less 594 assumed local contributions, by (i) average subsidy-eligible 595 full-time equivalents for the two-year period ending in the prior 596 year; and (ii) average subsidy-eligible full-time equivalents for 597 14 the five-year period ending in the prior year. 598 (b) In calculating the core subsidy entitlements for 600 Medical II models only, the board shall use the following count 601 of full-time equivalent students in place of the two-year average 602 and five-year average of subsidy-eligible students. 604 (i) For those medical schools whose current year 606 enrollment is below the base enrollment, the Medical II full-time 607 equivalent enrollment shall equal: 65 per cent of the base 608 enrollment plus 35 per cent of the current year enrollment, where 609 the base enrollment is: 610 Ohio State University 1010 612 University of Cincinnati 833 613 Medical College of Ohio at 614 Toledo 650 Wright State University 433 615 Ohio University 433 616 Northeastern Ohio Universities 617 College of Medicine 433 (ii) For those medical schools whose current year 620 enrollment is equal to or greater than the base enrollment, the 621 Medical II full-time equivalent enrollment shall equal the 622 current enrollment. 623 (c) For all FTE-based subsidy calculations involving 625 all-terms FTE data, FTE-based allowances shall be converted from 626 annualized to annual rates to ensure equity and consistency of 628 subsidy determination. (d) The Board of Regents shall compute the sum of the two 631 calculations listed in division (C)(1)(a) above and use the greater sum as the core subsidy entitlement. 632 The POM subsidy for each campus shall equal the greater of 634 the square-foot-based subsidy or the activity-based POM subsidy 635 component of the core subsidy entitlement, except that the total 636 activity-based POM subsidy shall not exceed 133.1% of the 637 square-foot based POM subsidy in fiscal year 1998 and shall not 639 15 exceed 146.4% of the square-foot-based subsidy in fiscal year 640 1999. (2) Fiscal Year 1993 Adjustment 642 In order to provide an orderly phase-in of a simplified 644 instructional subsidy formula, the Board of Regents shall 645 calculate a fiscal year 1993 guarantee for each campus. The 646 board shall calculate the amount of protected or buffered subsidy 647 distributed to each campus in fiscal year 1993, less amounts for 648 plant operation and maintenance and Academic Challenge. 649 In fiscal year 1998, for each campus for which the board 651 calculates protected subsidy was distributed in fiscal year 1993, 652 an adjustment shall be added to the core subsidy entitlement 653 which shall consist of the following: the estimated amount of 654 the protected fiscal year 1993 subsidy less the greater of 7.5 655 per cent of the actual fiscal year 1993 subsidy (less plant 656 operation and maintenance and Academic Challenge) or 657 five-sevenths of the protected fiscal year 1993 subsidy. If the 658 deducted amount exceeds the amount of the protected fiscal year 659 1993 subsidy, the adjustment shall be zero. 660 In fiscal year 1999, the deducted proportions shall 662 increase arithmetically, to 9.0 per cent or six-sevenths and so 663 on until the year 2000, or until the fiscal year 1993 guarantee 665 is eliminated. (3) Annual Hold Harmless Provision 667 In addition to and after the other adjustments noted above, 669 in fiscal year 1998 each campus shall have its subsidy adjusted 670 to the extent necessary to provide an amount that is not less 671 than one hundred three per cent of the instructional subsidy 672 received by the campus in fiscal year 1997. In fiscal year 1999 673 each campus shall have its subsidy adjusted to the extent 674 necessary to provide an amount that is not less than one hundred 675 one per cent of the instructional subsidy received by the campus 676 in fiscal year 1998. (4) Capital Component Deduction 678 16 After all other adjustments have been made, instructional 680 subsidy earnings shall be reduced for each campus by the amount, 681 if any, by which debt service charged in Am. H.B. 748 of the 682 121st General Assembly for that campus exceeds that campus' 683 capital component earnings. (D) Reductions in Earnings 685 If total systemwide instructional subsidy earnings in any 687 fiscal year exceed total appropriations available for such 688 purposes, the Board of Regents shall proportionately reduce the 689 instructional subsidy earnings for all campuses by a uniform 690 percentage so that the systemwide sum equals available 691 appropriations. (E) Exceptional Circumstances 693 Adjustments may be made to instructional subsidy payments 695 and other subsidies distributed by the Ohio Board of Regents to 696 state-assisted colleges and universities for exceptional 697 circumstances. No adjustments for exceptional circumstances may 698 be made without the recommendation of the Chancellor and the 699 approval of the Controlling Board. 700 Distribution of Instructional Subsidy 702 The instructional subsidy payments to the institutions 704 shall be in substantially equal monthly amounts during the fiscal 705 year, unless otherwise determined by the Director of Budget and 706 Management pursuant to the provisions of section 126.09 of the 707 Revised Code. Payments during the first six months of the fiscal 708 year shall be based upon the instructional subsidy appropriation 709 estimates made for the various institutions of higher education 710 according to the Ohio Board of Regents enrollment estimates. 711 Payments during the last six months of the fiscal year shall be 712 distributed after approval of the Controlling Board upon the 713 request of the Ohio Board of Regents. 714 Law School Subsidy 716 The instructional subsidy to state supported universities 718 for students enrolled in law schools in fiscal year 1998 and 719 17 fiscal year 1999 shall be calculated by using the number of 720 subsidy eligible full-time equivalent law school students funded 721 by state subsidy in fiscal year 1995 or the actual number of 722 subsidy eligible full-time equivalent law school students at the institution in the fiscal year, whichever is less. 723 Limitations on State Subsidies for Doctoral Students 725 The Ohio Board of Regents is authorized to limit the number 727 of subsidy-eligible full-time equivalent (FTE) doctoral students 728 at all state-assisted universities in fiscal year 1998 and fiscal 729 year 1999. The limitation shall be established by university and 730 by doctoral subsidy level. In establishing the caps, the Board 731 of Regents shall consider: (1) Recent and historical trends in subsidy-eligible 733 doctoral enrollments; (2) Recommendations related to the Regents' review of 735 doctoral programs; (3) Contributions that doctoral education and research 737 make to the economy and well-being of regions and the state." 738 Section 4. That existing Section 99.01 of Am. Sub. H.B. 740 215 of the 122nd General Assembly is hereby repealed. 741