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 in section SECTIONS        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 in section SECTIONS 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 of his employment 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 in section        236          

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 in section SECTIONS 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 of his THE 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