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 insectionSECTIONS 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 insectionSECTIONS 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 ofhisemployment 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 insection242 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 insectionSECTIONS 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 ofhisTHE 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