As Passed by the Senate                       1            

123rd General Assembly                                             4            

   Regular Session                               Am. S. B. No. 53  5            

      1999-2000                                                    6            


        SENATORS CARNES-GARDNER-KEARNS-MUMPER-DRAKE-SPADA          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.  IN THE CASE OF        55           

COURSES IN WHICH ONLY STUDENTS WHO ARE COVERED BY THE CONTRACT     56           

ARE ENROLLED, THAT RATE MAY BE LESS THAN THE SUM THAT WOULD        57           

OTHERWISE BE CALCULATED BY CHARGING EACH EMPLOYEE COVERED BY THE   58           

CONTRACT THE RESIDENT TUITION AND FEES.  IN THE CASE OF COURSES    59           

IN WHICH STUDENTS WHO ARE NOT COVERED BY THE CONTRACT AS WELL AS   60           

STUDENTS WHO ARE COVERED BY THE CONTRACT ARE ENROLLED, THAT RATE   61           

SHALL NOT BE LESS THAN THE SUM THAT WOULD OTHERWISE BE CALCULATED  62           

BY CHARGING EACH EMPLOYEE COVERED BY THE CONTRACT THE RESIDENT                  

TUITION AND FEES.                                                  63           

      Sec. 3345.01.  Except as provided in section SECTIONS        72           

3333.17 AND 3333.32 of the Revised Code, the board of trustees of  74           

a state university or college, as defined in section 3345.12 of    75           

the Revised Code, may charge reasonable tuition for the                         

attendance of pupils who are nonresidents of Ohio.                 76           

      Sec. 3354.09.  The board of trustees of a community college  85           

district may:                                                      86           

      (A)  Own and operate a community college, pursuant to an     88           

official plan prepared and approved in accordance with section     89           

3354.07 of the Revised Code, or enter into a contract with a       90           

generally accredited public university or college for operation    91           

of such community college by such university or college pursuant   92           

to an official plan prepared and approved in accordance with       93           

section 3354.07 of the Revised Code;                               94           

      (B)  Hold, encumber, control, acquire by donation,           96           

purchase, or condemnation, construct, own, lease, use, and sell    97           

real and personal property as is necessary for the conduct of the  98           

program of the community college on whatever terms and for         99           

                                                          3      


                                                                 
whatever consideration may be appropriate for the purpose of the   100          

college;                                                           101          

      (C)  Accept gifts, grants, bequests, and devises absolutely  103          

or in trust for support of the college during the existence of     104          

the college;                                                       105          

      (D)  Appoint the administrative officers, faculty, and       107          

staff, necessary and proper for such community college, and fix    108          

their compensation except in instances in which the board of       109          

trustees has delegated such powers to a college or university      110          

operating such community college pursuant to a contract entered    111          

into by the board of trustees of the district;                     112          

      (E)  Provide for a community college necessary lands,        114          

buildings or other structures, equipment, means, and appliances;   115          

      (F)  Develop and adopt, pursuant to the official plan, the   117          

curricular programs identified in section 3354.01 of the Revised   118          

Code as arts and sciences programs and technical programs, or      119          

either.  Such programs may include adult-education programs.       120          

      (G)  Except as provided in section SECTIONS 3333.17 AND      122          

3333.32 of the Revised Code, establish schedules of fees and       124          

tuition for students who are residents of the district, residents  125          

of Ohio but not of the district, and students who are              126          

nonresidents of Ohio.  The establishment of rules governing the    127          

determination of residence shall be subject to approval of the     128          

Ohio board of regents. Students who are nonresidents of Ohio       129          

shall be required to pay higher rates of fees and tuition than     130          

the rates required of students who are residents of Ohio but not   131          

of the district, and students who are residents of the district    132          

shall pay a smaller tuition and fee rate than the rate for either  133          

category of nonresident students.                                  134          

      (H)  Authorize, approve, ratify, or confirm any agreement    136          

relating to any such community college with the United States      137          

government, acting through any agency of such government           138          

designated or created to aid in the financing of such projects,    139          

or with any person or agency offering grants in aid in financing   140          

                                                          4      


                                                                 
such educational facilities or the operation of such facilities    141          

except as prohibited in division (K) of this section.              142          

      Such agreement may include a provision for repayment of      144          

advances, grants, or loans made to any community college district  145          

from funds which may become available to it.                       146          

      When the United States government or its agent makes a       148          

grant of money to any community college district to aid in paying  149          

the cost of any projects of such district, or enters into an       150          

agreement with the community college district for the making of    151          

any such grant of money, the amount thereof is deemed              152          

appropriated for such purpose by the community college district    153          

and is deemed in process of collection within the meaning of       154          

section 5705.41 of the Revised Code.                               155          

      (I)  Grant appropriate certificates of achievement to        157          

students successfully completing the community college programs;   158          

      (J)  Prescribe rules for the effective operation of a        160          

community college and exercise such other powers as are necessary  161          

for the efficient management of such college;                      162          

      (K)  Receive and expend gifts or grants from the state for   164          

the payment of operating costs, for the acquisition,               165          

construction, or improvement of buildings or other structures, or  166          

for the acquisition or use of land.  In no event shall state       167          

gifts or grants be expended for the support of adult-education     168          

programs.  Gifts or grants from the state for operating costs      169          

shall not in any biennium exceed the amount recommended by the     170          

Ohio board of regents to the governor as provided in Chapter       171          

3333. of the Revised Code.  Such gifts or grants shall be          172          

distributed to such districts in equal quarter-annual payments,    173          

unless otherwise provided or authorized in any act appropriating   174          

moneys for such purposes, on or before the last day of February,   175          

May, August, and November in each year.                            176          

      (L)  Retain consultants in the fields of education,          178          

planning, architecture, law, engineering, or other fields of       179          

professional skill;                                                180          

                                                          5      


                                                                 
      (M)  Purchase:                                               182          

      (1)  A policy or policies of insurance insuring the          184          

district against loss of or damage to property, whether real,      185          

personal, or mixed, which is owned by the district or leased by    186          

it as lessee or which is in the process of construction by or for  187          

the district;                                                      188          

      (2)  A policy or policies of fidelity insurance in such      190          

amounts and covering such trustees, officers, and employees of     191          

the district as it considers necessary or desirable;               192          

      (3)  A policy or policies of liability insurance from an     194          

insurer or insurers licensed to do business in this state          195          

insuring its members, officers, and employees against all civil    196          

liability arising from an act or omission by the member, officer,  197          

or employee when the member, officer, or employee is not acting    198          

manifestly outside the scope of his employment or official         199          

responsibilities with the institution, with malicious purpose or   200          

bad faith, or in a wanton or reckless manner, or may otherwise     201          

provide for the indemnification of such persons against such       202          

liability.  All or any portion of the cost, premium, or charge     203          

for such a policy or policies or indemnification payment may be    204          

paid from any funds under the institution's control.  The policy   205          

or policies of liability insurance or the indemnification policy   206          

of the institution may cover any risks including, but not limited  207          

to, damages resulting from injury to property or person,           208          

professional liability, and other special risks, including legal   209          

fees and expenses incurred in the defense or settlement of claims  210          

for such damages.                                                  211          

      (4)  A policy or policies of insurance insuring the          213          

district against any liabilities to which it may be subject on     214          

account of damage or injury to persons or property, including      215          

liability for wrongful death.                                      216          

      (N)  Designate one or more employees of the institution as   218          

state university law enforcement officers, to serve and have       219          

duties as prescribed in section 3345.04 of the Revised Code.       220          

                                                          6      


                                                                 
      Sec. 3355.06.  The managing authority of the university      229          

branch district shall adopt its own rules governing proceedings,   230          

designate the permanent place of business of the district, and     231          

keep a record of all its proceedings.  Such record shall be open   232          

for public inspection during regular business hours at the         233          

permanent place of business of the district.                       234          

      The managing authority may:                                  236          

      (A)  Enter into a contract for a period of not less than     238          

four nor more than ten years with a state or municipal university  239          

for the operation of a university branch by such university on     240          

the campus provided in accordance with sections 3355.01 to         241          

3355.14 of the Revised Code.  Except as provided in section        242          

SECTIONS 3333.17 AND 3333.32 of the Revised Code, the contract     244          

shall establish schedules of fees and tuition for:  students who   246          

are residents of the district; residents of Ohio but not of the    247          

district; and students who are nonresidents of Ohio.  Students     248          

who are nonresidents of Ohio shall be required to pay higher       249          

rates of fees and tuition than the rates required of students who  250          

are residents of Ohio but not of the district, and students who    251          

are residents of the district shall pay A smaller tuition and fee  252          

rate than the rate for either category of nonresident students.    253          

      (B)  Hold, encumber, control, acquire by donation,           255          

purchase, or condemnation, construct, own, lease, use, and sell    256          

real and personal property as is necessary for the creation and    257          

maintenance of the university branch campus, on whatever terms     258          

and for whatever consideration may be appropriate for the          259          

purposes of the facility;                                          260          

      (C)  Accept gifts, grants, bequests, and devises absolutely  262          

or in trust for support of the university branch campus during     263          

the existence of said branch;                                      264          

      (D)  Receive an appropriation from any municipality or       266          

county that is a part of the university branch district for the    267          

purpose of providing funds for support of the university branch    268          

campus;                                                            269          

                                                          7      


                                                                 
      (E)  Receive and expend gifts or grants from the state for   271          

the payment of operating costs, for the acquisition,               272          

construction, or improvement of buildings or other structures, or  273          

for the acquisition or use of land.                                274          

      (F)  Prescribe rules for the effective operation of a        276          

university branch district college and exercise such other powers  277          

as are necessary for the efficient management of such university   278          

and are not in conflict with any contract entered into under       279          

division (A) of this section.                                      280          

      Sec. 3357.09.  The board of trustees of a technical college  289          

district may:                                                      290          

      (A)  Own and operate a technical college, pursuant to an     292          

official plan prepared and approved in accordance with section     293          

3357.07 of the Revised Code;                                       294          

      (B)  Hold, encumber, control, acquire by donation,           296          

purchase, or condemnation, construct, own, lease, use, and sell,   297          

real and personal property as necessary for the conduct of the     298          

program of the technical college on whatever terms and for         299          

whatever consideration may be appropriate for the purposes of the  300          

institution;                                                       301          

      (C)  Accept gifts, grants, bequests, and devises absolutely  303          

or in trust for support of the technical college;                  304          

      (D)  Appoint the president, faculty, and such other          306          

employees as necessary and proper for such technical college, and  307          

fix their compensation;                                            308          

      (E)  Provide for a technical college necessary lands,        310          

buildings or other structures, equipment, means, and appliances;   311          

      (F)  Develop and adopt, pursuant to the official plan, any   313          

one or more of the curricular programs identified in section       314          

3357.01 of the Revised Code as technical-college programs, or      315          

adult-education technical programs;                                316          

      (G)  Except as provided in section SECTIONS 3333.17 AND      318          

3333.32 of the Revised Code, establish schedules of fees and       320          

tuition for:  students who are residents of the district;          321          

                                                          8      


                                                                 
students who are residents of Ohio but not of the district;        322          

students who are nonresidents of Ohio.  The establishment of       323          

rules governing the determination of residence shall be subject    324          

to approval of the Ohio board of regents.  Students who are        325          

nonresidents of Ohio shall be required to pay higher rates of      326          

fees and tuition than the rates required of students who are       327          

residents of Ohio but not of the district, and students who are    328          

residents of the district shall pay smaller tuition and fee rates  329          

than the rates for either of the above categories of nonresident   330          

students, except that students who are residents of Ohio but not   331          

of the district shall be required to pay higher fees and tuition   332          

than students who are residents of the district only when a        333          

district tax levy has been adopted and is in effect under the      334          

authority of section 3357.11, 5705.19, or 5705.191 of the Revised  335          

Code.                                                                           

      (H)  Authorize, approve, ratify, or confirm, with approval   337          

of the Ohio board of regents, any agreement with the United        338          

States government, acting through any agency designated to aid in  339          

the financing of technical college projects, or with any person,   340          

organization, or agency offering grants-in-aid for technical       341          

college facilities or operation;                                   342          

      (I)  Receive assistance for the cost of equipment and for    344          

the operation of such technical colleges from moneys appropriated  345          

for technical education or for matching of Title VIII of the       346          

"National Defense Education Act," 72 Stat. 1597 (1958), 20         347          

U.S.C.A. 15a-15e.  Moneys shall be distributed by the Ohio board   348          

of regents in accordance with rules which the board shall          349          

establish governing its allocations to technical colleges          350          

chartered under section 3357.07 of the Revised Code.               351          

      (J)  Grant appropriate associate degrees to students         353          

successfully completing the technical college programs and         354          

certificates of achievement to those students who complete other   355          

programs;                                                          356          

      (K)  Prescribe rules for the effective operation of a        358          

                                                          9      


                                                                 
technical college, and exercise such other powers as are           359          

necessary for the efficient management of such college;            360          

      (L)  Enter into contracts and conduct technical college      362          

programs or technical courses outside the technical college        363          

district;                                                          364          

      (M)  Enter into contracts with the board of education of     366          

any local, exempted village, or city school district or the        368          

governing board of any educational service center to permit the                 

school district or service center to use the facilities of the     369          

technical college district;                                        370          

      (N)  Designate one or more employees of the institution as   372          

state university law enforcement officers, to serve and have       373          

duties as prescribed in section 3345.04 of the Revised Code;       374          

      (O)  Subject to the approval of the Ohio board of regents,   376          

offer technical college programs or technical courses for credit   377          

at locations outside the technical college district.  For          378          

purposes of computing state aid, students enrolled in such         379          

courses shall be deemed to be students enrolled in programs and    380          

courses at off-campus locations in the district.                   381          

      (P)  Purchase a policy or policies of liability insurance    383          

from an insurer or insurers licensed to do business in this state  384          

insuring its members, officers, and employees against all civil    385          

liability arising from an act or omission by the member, officer,  386          

or employee, when the member, officer, or employee is not acting   387          

manifestly outside the scope of his THE MEMBER'S, OFFICER'S, OR    388          

EMPLOYEE'S employment or official responsibilities with the        390          

institution, with malicious purpose or bad faith, or in a wanton   391          

or reckless manner, or may otherwise provide for the               392          

indemnification of such persons against such liability.  All or    393          

any portion of the cost, premium, or charge for such a policy or   394          

policies or indemnification payment may be paid from any funds     395          

under the institution's control.  The policy or policies of        396          

liability insurance or the indemnification policy of the           397          

institution may cover any risks including, but not limited to,     398          

                                                          10     


                                                                 
damages resulting from injury to property or person, professional  399          

liability, and other special risks, including legal fees and       400          

expenses incurred in the defense or settlement of claims for such  401          

damages.                                                                        

      Section 2.  That existing sections 3345.01, 3354.09,         403          

3355.06, and 3357.09 of the Revised Code are hereby repealed.      404          

      Section 3.  That Section 99.01 of Am. Sub. H.B. 215 of the   406          

122nd General Assembly be amended to read as follows:              407          

      "Sec. 99.01.  Instructional Subsidy Formula                  409          

      As soon as practicable during each fiscal year of the        411          

1997-1999 biennium in accordance with instructions of the Ohio     412          

Board of Regents, each state-assisted institution of higher        413          

education shall report its actual enrollment to the Ohio Board of  414          

Regents.                                                           415          

      The Ohio Board of Regents shall establish procedures         417          

required by the system of formulas set out below and for the       418          

assignment of individual institutions to categories described in   419          

the formulas.   The system of formulas establishes the manner in   420          

which aggregate expenditure requirements shall be determined for   421          

each of the three components of institutional operations.  In      422          

addition to other adjustments and calculations described below,    423          

the subsidy entitlement of an institution shall be determined by   424          

subtracting from the institution's aggregate expenditure           425          

requirements income to be derived from the local contributions     426          

assumed in calculating the subsidy entitlements.  The local        427          

contributions for purposes of determining subsidy support shall    428          

not limit the authority of the individual boards of trustees to    429          

establish fee levels.                                              430          

      The General Studies and Technical models shall be adjusted   432          

by the Board of Regents so that the share of state subsidy earned  433          

by those models is not altered by changes in the overall local     434          

share.   A lower-division fee differential shall be used to        435          

maintain the relationship that would have occurred between these   436          

models and the Baccalaureate models had an assumed share of 37     437          

                                                          11     


                                                                 
per cent been funded.                                              438          

      In defining the number of full-time equivalent students for  440          

state subsidy purposes, the Ohio Board of Regents shall exclude    441          

all undergraduate students who are not residents of Ohio, except   442          

those charged in-state fees in accordance with reciprocity         443          

agreements made pursuant to section 3333.17 OR EMPLOYER CONTRACTS  444          

ENTERED INTO PURSUANT TO SECTION 3333.32 of the Revised Code.      445          

      (A)  Aggregate Expenditure Per Full-Time Equivalent Student  447          

      (1)  Instruction and Support Services                        449          

Model                                     FY 1998       FY 1999    454          

General Studies I                        $  3,468      $  3,598    456          

General Studies II                       $  3,689      $  3,827    458          

General Studies III                      $  4,844      $  5,026    460          

Technical I                              $  4,248      $  4,407    462          

Technical III                            $  7,436      $  7,715    464          

Baccalaureate I                          $  5,787      $  6,004    466          

Baccalaureate II                         $  6,751      $  7,004    468          

Baccalaureate III                        $  9,887      $ 10,258    470          

Masters and Professional I               $ 10,889      $ 11,297    472          

Masters and Professional II              $ 15,901      $ 16,497    474          

Masters and Professional III             $ 21,904      $ 22,725    476          

Doctoral I                               $ 18,629      $ 19,328    478          

Doctoral II                              $ 23,436      $ 24,315    480          

Medical I                                $ 25,821      $ 26,789    482          

Medical II                               $ 35,968      $ 37,317    484          

      (2)  Student Services                                        487          

      For this purpose full-time equivalent counts shall be        489          

weighted to reflect differences among institutions in the numbers  490          

of students enrolled on a part-time basis.                         491          

                                          FY 1998   FY 1999        493          

All Expenditure Models                      $ 501     $ 520        494          

      (B)  Plant Operation and Maintenance (POM)                   496          

      (1)  Determination of the Square-Foot Based POM Subsidy      498          

      Space undergoing renovation shall be funded at the rate      500          

                                                          12     


                                                                 
allowed for storage space;                                         501          

      In the calculation of square footage for each campus,        503          

square footage shall be weighted to reflect differences in space   504          

utilization;                                                                    

      The space inventories for each campus shall be those         506          

determined in the fiscal year 1997 instructional subsidy,          507          

adjusted for changes attributable to the construction or           508          

renovation of facilities for which state appropriations were made  509          

or local commitments were made prior to January 1, 1995;                        

      Only fifty per cent of the space permanently taken out of    511          

operation in fiscal year 1998 or fiscal year 1999 that is not      512          

otherwise replaced by a campus shall be deleted from the fiscal    514          

year 1997 inventory.                                                            

      The square-foot based plant operation and maintenance        516          

subsidy for each campus shall be determined as follows:            517          

      (a)  For each standard room type category shown below, the   519          

subsidy-eligible net assignable square feet (NASF) for each        520          

campus shall be multiplied by the following rates, and the         521          

amounts summed for each campus to determine the total gross        522          

square-foot based POM expenditure requirement:                                  

                                          FY 1998   FY 1999        525          

Classrooms                                  $4.85     $5.03        526          

Laboratories                                $6.04     $6.27        527          

Offices                                     $4.85     $5.03        528          

Audio Visual Data Processing                $6.04     $6.27        529          

Storage                                     $2.15     $2.23        530          

Circulation                                 $6.12     $6.35        531          

Other                                       $4.85     $5.03        532          

      (b)  The total gross square-foot POM expenditure             534          

requirement shall be allocated to models in proportion to          535          

full-time equivalent (FTE) enrollments as reported in enrollment   536          

data.                                                                           

      (c)  The amounts allocated to models in (B)(1)(b) above      538          

shall be multiplied by the ratio of subsidy-eligible FTE students  539          

                                                          13     


                                                                 
to total FTE students reported in each model, and the amounts      541          

summed for all models.  To this total amount shall be added an     542          

amount to support roads and grounds expenditures to produce the    543          

total square-foot based POM subsidy.                                            

      (2)  Determination of the Activity-Based POM Subsidy         545          

      (a)  The number of subsidy-eligible FTE students in each     547          

model shall be multiplied by the following rates for each campus   548          

for each fiscal year.                                                           

                                          FY 1998   FY 1999        551          

General Studies I                          $  469    $  487        553          

General Studies II                         $  522    $  542        555          

General Studies III                        $1,208    $1,253        557          

Technical I                                $  536    $  556        559          

Technical II                               $1,044    $1,083        561          

Baccalaureate I                            $  604    $  627        563          

Baccalaureate II                           $  990    $1,027        565          

Baccalaureate III                          $1,502    $1,558        567          

Masters & Professional I                   $  934    $  969        569          

Masters & Professional II                  $1,540    $1,598        571          

Masters & Professional III                 $2,527    $2,622        573          

Doctoral I                                 $1,425    $1,478        575          

Doctoral II                                $2,308    $2,395        577          

Medical I                                  $2,214    $2,297        579          

Medical II                                 $3,415    $3,543        581          

      (b)  The sum of the products for each campus determined in   584          

(B)(2)(a) for each fiscal year shall be weighted by a factor to    585          

reflect sponsored research activity and job-training related       586          

public services expenditures to determine the total                587          

activity-based POM subsidy.                                                     

      (C)  Calculation of Core Subsidy Entitlements and            589          

Adjustments                                                        590          

      (1)  Calculation of Core Subsidy Entitlements                592          

      The calculation of the core subsidy entitlement shall        594          

consist of the following components:                               595          

                                                          14     


                                                                 
      (a)  For each campus and for each fiscal year, the core      597          

subsidy entitlement shall be determined by multiplying the         598          

amounts listed above in divisions (A)(1) and (2) and (B)(2) less   600          

assumed local contributions, by (i) average subsidy-eligible       601          

full-time equivalents for the two-year period ending in the prior  602          

year; and (ii) average subsidy-eligible full-time equivalents for  603          

the five-year period ending in the prior year.                     604          

      (b)  In calculating the core subsidy entitlements for        606          

Medical II models only, the board shall use the following count    607          

of full-time equivalent students in place of the two-year average  608          

and five-year average of subsidy-eligible students.                610          

      (i)  For those medical schools whose current year            612          

enrollment is below the base enrollment, the Medical II full-time  613          

equivalent enrollment shall equal:  65 per cent of the base        614          

enrollment plus 35 per cent of the current year enrollment, where  615          

the base enrollment is:                                            616          

      Ohio State University                       1010             618          

      University of Cincinnati                     833             619          

      Medical College of Ohio at                                   620          

         Toledo                                    650                          

      Wright State University                      433             621          

      Ohio University                              433             622          

      Northeastern Ohio Universities                               623          

         College of Medicine                       433                          

      (ii)  For those medical schools whose current year           626          

enrollment is equal to or greater than the base enrollment, the    627          

Medical II full-time equivalent enrollment shall equal the         628          

current enrollment.                                                629          

      (c)  For all FTE-based subsidy calculations involving        631          

all-terms FTE data, FTE-based allowances shall be converted from   632          

annualized to annual rates to ensure equity and consistency of     634          

subsidy determination.                                                          

      (d)  The Board of Regents shall compute the sum of the two   637          

calculations listed in division (C)(1)(a) above and use the                     

                                                          15     


                                                                 
greater sum as the core subsidy entitlement.                       638          

      The POM subsidy for each campus shall equal the greater of   640          

the square-foot-based subsidy or the activity-based POM subsidy    641          

component of the core subsidy entitlement, except that the total   642          

activity-based POM subsidy shall not exceed 133.1% of the          643          

square-foot based POM subsidy in fiscal year 1998 and shall not    645          

exceed 146.4% of the square-foot-based subsidy in fiscal year      646          

1999.                                                                           

      (2)  Fiscal Year 1993 Adjustment                             648          

      In order to provide an orderly phase-in of a simplified      650          

instructional subsidy formula, the Board of Regents shall          651          

calculate a fiscal year 1993 guarantee for each campus.  The       652          

board shall calculate the amount of protected or buffered subsidy  653          

distributed to each campus in fiscal year 1993, less amounts for   654          

plant operation and maintenance and Academic Challenge.            655          

      In fiscal year 1998, for each campus for which the board     657          

calculates protected subsidy was distributed in fiscal year 1993,  658          

an adjustment shall be added to the core subsidy entitlement       659          

which shall consist of the following:  the estimated amount of     660          

the protected fiscal year 1993 subsidy less the greater of 7.5     661          

per cent of the actual fiscal year 1993 subsidy (less plant        662          

operation and maintenance and Academic Challenge) or               663          

five-sevenths of the protected fiscal year 1993 subsidy.  If the   664          

deducted amount exceeds the amount of the protected fiscal year    665          

1993 subsidy, the adjustment shall be zero.                        666          

      In fiscal year 1999, the deducted proportions shall          668          

increase arithmetically, to 9.0 per cent or six-sevenths and so    669          

on until the year 2000, or until the fiscal year 1993 guarantee    671          

is eliminated.                                                                  

      (3)  Annual Hold Harmless Provision                          673          

      In addition to and after the other adjustments noted above,  675          

in fiscal year 1998 each campus shall have its subsidy adjusted    676          

to the extent necessary to provide an amount that is not less      677          

than one hundred three per cent of the instructional subsidy       678          

                                                          16     


                                                                 
received by the campus in fiscal year 1997.  In fiscal year 1999   679          

each campus shall have its subsidy adjusted to the extent          680          

necessary to provide an amount that is not less than one hundred   681          

one per cent of the instructional subsidy received by the campus   682          

in fiscal year 1998.                                                            

      (4)  Capital Component Deduction                             684          

      After all other adjustments have been made, instructional    686          

subsidy earnings shall be reduced for each campus by the amount,   687          

if any, by which debt service charged in Am. H.B. 748 of the       688          

121st General Assembly for that campus exceeds that campus'        689          

capital component earnings.                                                     

      (D)  Reductions in Earnings                                  691          

      If total systemwide instructional subsidy earnings in any    693          

fiscal year exceed total appropriations available for such         694          

purposes, the Board of Regents shall proportionately reduce the    695          

instructional subsidy earnings for all campuses by a uniform       696          

percentage so that the systemwide sum equals available             697          

appropriations.                                                                 

      (E)  Exceptional Circumstances                               699          

      Adjustments may be made to instructional subsidy payments    701          

and other subsidies distributed by the Ohio Board of Regents to    702          

state-assisted colleges and universities for exceptional           703          

circumstances.  No adjustments for exceptional circumstances may   704          

be made without the recommendation of the Chancellor and the       705          

approval of the Controlling Board.                                 706          

      Distribution of Instructional Subsidy                        708          

      The instructional subsidy payments to the institutions       710          

shall be in substantially equal monthly amounts during the fiscal  711          

year, unless otherwise determined by the Director of Budget and    712          

Management pursuant to the provisions of section 126.09 of the     713          

Revised Code.  Payments during the first six months of the fiscal  714          

year shall be based upon the instructional subsidy appropriation   715          

estimates made for the various institutions of higher education    716          

according to the Ohio Board of Regents enrollment estimates.       717          

                                                          17     


                                                                 
Payments during the last six months of the fiscal year shall be    718          

distributed after approval of the Controlling Board upon the       719          

request of the Ohio Board of Regents.                              720          

      Law School Subsidy                                           722          

      The instructional subsidy to state supported universities    724          

for students enrolled in law schools in fiscal year 1998 and       725          

fiscal year 1999 shall be calculated by using the number of        726          

subsidy eligible full-time equivalent law school students funded   727          

by state subsidy in fiscal year 1995 or the actual number of       728          

subsidy eligible full-time equivalent law school students at the                

institution in the fiscal year, whichever is less.                 729          

      Limitations on State Subsidies for Doctoral Students         731          

      The Ohio Board of Regents is authorized to limit the number  733          

of subsidy-eligible full-time equivalent (FTE) doctoral students   734          

at all state-assisted universities in fiscal year 1998 and fiscal  735          

year 1999.  The limitation shall be established by university and  736          

by doctoral subsidy level.  In establishing the caps, the Board    737          

of Regents shall consider:                                                      

      (1)  Recent and historical trends in subsidy-eligible        739          

doctoral enrollments;                                                           

      (2)  Recommendations related to the Regents' review of       741          

doctoral programs;                                                              

      (3)  Contributions that doctoral education and research      743          

make to the economy and well-being of regions and the state."      744          

      Section 4.  That existing Section 99.01 of Am. Sub. H.B.     746          

215 of the 122nd General Assembly is hereby repealed.              747