As Introduced

136th General Assembly

Regular Session H. B. No. 748

2025-2026

Representatives Willis, Dovilla

Cosponsors: Representatives Salvo, Deeter, Ritter, Johnson, Williams

To enact sections 3333.46, 3333.461, and 3333.462 of the Revised Code to establish the Armed Forces Reserve Component Scholarship Program and related funds and to make an appropriation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3333.46, 3333.461, and 3333.462 of the Revised Code be enacted to read as follows:

Sec. 3333.46. (A) As used in this section:

(1) "Academic term," "private institution of higher education," "state institution of higher education," and "tuition" have the same meanings as in section 5919.34 of the Revised Code.

(2) "Eligible applicant" means any individual to whom all of the following apply:

(a) The individual does not possess a baccalaureate degree.

(b) The individual is a member of a reserve component of the United States army, navy, marine corps, air force, coast guard, or space force in this state or is an individual to which division (F) of this section applies.

(c) The individual is actively enrolled as a full-time or part-time student for at least three credit hours of course work in a semester or quarter in a two-year or four-year degree-granting program at a state institution of higher education or a private institution of higher education, in a diploma-granting program at a state or private institution of higher education that is a school of nursing, or in a credential-certifying program, licensing program, trade certification program, or apprenticeship program for an in-demand occupation as identified by the chancellor of higher education, in consultation with the governor's office of workforce transformation.

(d) The individual has not accumulated ninety-six eligibility units under division (E) of this section.

(e) The individual has not received financial assistance from the scholarship program described in section 5919.34 of the Revised Code.

(f) The individual is a resident of this state.

(B) The armed forces reserve component scholarship program is created.

(C)(1) The chancellor shall approve scholarships for all eligible applicants. The chancellor shall process all applications for scholarships for each academic term in the order in which they are received. The scholarships shall be made without regard to financial need. At no time shall one person be placed in priority over another because of sex, race, or religion.

(2) The chancellor shall develop and provide a written explanation that informs all eligible scholarship recipients that the recipient may become ineligible and liable for repayment for an amount of scholarship payments received in accordance with division (G) of this section. The written explanation shall be reviewed by the scholarship recipient before acceptance of the scholarship and before acceptance of an enlistment, warrant, commission, or appointment for a term not less than the recipient's remaining term in a reserve component of the armed forces.

(D)(1) Except as provided in divisions (I) and (J) of this section, for each academic term that an eligible applicant is approved for a scholarship under this section and remains a current member in good standing of a reserve component of the armed forces or is eligible for a scholarship under division (F)(1) of this section, the institution of higher education in which the applicant is enrolled shall, if the applicant's enlistment obligation extends beyond the end of that academic term or if division (F)(1) of this section applies, be paid on the applicant's behalf one of the following applicable amounts:

(a) If the institution is a state institution of higher education, an amount equal to one hundred per cent of the institution's tuition charges;

(b) If the institution is a nonprofit private institution or a private institution exempt from regulation under Chapter 3332. of the Revised Code as prescribed in section 3333.046 of the Revised Code, an amount equal to one hundred per cent of the average tuition charges of all state universities;

(c) If the institution is an institution that holds a certificate of registration from the state board of career colleges and schools, the lesser of the following:

(i) An amount equal to one hundred per cent of the institution's tuition;

(ii) An amount equal to one hundred per cent of the average tuition charges of all state universities, as that term is defined in section 3345.011 of the Revised Code.

(2) The chancellor may adopt rules to require the use of other federal educational financial assistance programs, including such programs offered by the United States department of defense, for which an applicant is eligible based on the applicant's military service. If such rules are adopted, the rules shall require that financial assistance received by a scholarship recipient under those programs be applied to all eligible expenses before the use of scholarship funds awarded under this section. Scholarship funds awarded under this section shall then be applied to the recipient's remaining eligible expenses.

(3) An eligible applicant's scholarship shall not be reduced by the amount of that applicant's benefits under "the Montgomery G.I. Bill Act of 1984," 38 U.S.C. 3001, et seq.

(E) A scholarship recipient under this section shall be entitled to receive scholarships under this section for the number of quarters or semesters it takes the recipient to accumulate ninety-six eligibility units as determined under divisions (E)(1) to (3) of this section.

(1) To determine the maximum number of semesters or quarters for which a recipient is entitled to a scholarship under this section, the chancellor shall convert a recipient's credit hours of enrollment for each academic term into eligibility units in accordance with the following table:

(2) A scholarship recipient under this section may continue to apply for scholarships under this section until the recipient has accumulated ninety-six eligibility units.

(3) If a scholarship recipient withdraws from courses before the end of an academic term so that the recipient's enrollment for that academic term is less than three credit hours, no scholarship shall be paid on behalf of that person for that academic term. Except as provided in division (F)(3) of this section, if a scholarship has already been paid on behalf of the person for that academic term, the chancellor shall add to that person's accumulated eligibility units the number of eligibility units for which the scholarship was paid.

(F) This division applies to any eligible applicant called into active duty on or after September 11, 2001. As used in this division, "active duty" means active duty pursuant to an executive order of the president of the United States, an act of the congress of the United States, or section 5919.29 or 5923.21 of the Revised Code. This division applies to an individual who, at the time the individual is called into active duty, is a member of a reserve component of the United States army, navy, marine corps, air force, coast guard, or space force in this state.

(1) For a period of up to five years from when an individual's enlistment obligation in a reserve component of the armed forces ends, an individual to whom this division applies is eligible for scholarships under this section for those academic terms that were missed or could have been missed as a result of the individual's call into active duty. Scholarships shall not be paid for the academic term in which an eligible applicant's enlistment obligation ends unless an applicant is eligible under this division for a scholarship for such academic term due to previous active duty.

(2) When an individual to whom this division applies withdraws or otherwise fails to complete courses for which scholarships have been awarded under this section because the individual was called into active duty, the institution of higher education shall grant the individual a leave of absence from the individual's education program and shall not impose any academic penalty for such withdrawal or failure to complete courses. Division (F)(2) of this section applies regardless of whether the scholarship amount was paid to the institution of higher education.

(3) If an individual to whom this division applies withdraws or otherwise fails to complete courses because the individual was called into active duty, and if scholarships for those courses have already been paid, either:

(a) The chancellor shall not add to that person's accumulated eligibility units calculated under division (E) of this section the number of eligibility units for the academic courses or term for which the scholarship was paid and the institution of higher education shall repay the scholarship amount to the state.

(b) The chancellor shall add to that individual's accumulated eligibility units calculated under division (E) of this section the number of eligibility units for the academic courses or term for which the scholarship was paid if the institution of higher education agrees to permit the individual to complete the remainder of the academic courses in which the individual was enrolled at the time the individual was called into active duty.

(4) No individual who is discharged from any branch of the armed forces under other than honorable conditions shall be eligible for scholarships under this division.

(G) A scholarship recipient under this section who fails to complete the term of enlistment, re-enlistment, or extension of current enlistment the recipient was serving at the time a scholarship was paid on behalf of the recipient under this section is liable to the state for repayment of a percentage of all armed forces reserve component scholarships paid on behalf of the recipient under this section, plus interest at the rate of ten per cent per annum calculated from the dates the scholarships were paid. This percentage shall equal the percentage of the current term of enlistment, re-enlistment, or extension of enlistment a recipient has not completed as of the date the recipient is discharged from a reserve component of the armed forces.

The attorney general may commence a civil action on behalf of the chancellor to recover the amount of the scholarships and the interest provided for in this division and the expenses incurred in prosecuting the action, including court costs and reasonable attorney's fees. A scholarship recipient is not liable under this division if the recipient's failure to complete the term of enlistment being served at the time a scholarship was paid on behalf of the recipient under this section is due to the recipient's death or discharge from a reserve component of the armed forces due to disability.

(H) On or before the first day of each academic term, the chancellor shall request that the United States department of defense provide an eligibility roster to the chancellor and to each institution of higher education at which one or more scholarship recipients have applied for enrollment. The institution shall use the roster to certify the actual full-time or part-time enrollment of each scholarship recipient listed as enrolled at the institution and return the roster to the chancellor. Except as provided in division (J) of this section, the chancellor shall provide for payment of the appropriate number and amount of scholarships to each institution of higher education pursuant to division (D) of this section. If an institution of higher education fails to certify the actual enrollment of a scholarship recipient listed as enrolled at the institution within thirty days of the end of an academic term, the institution shall not be eligible to receive payment from the armed forces reserve component scholarship program or from the individual enrollee. The chancellor shall report on a semiannual basis to the director of budget and management, the speaker of the house of representatives, and the president of the senate the number of armed forces reserve component scholarship recipients, the size of the scholarship-eligible population, and a projection of the cost of the program for the remainder of the biennium.

(I) The chancellor may adopt rules pursuant to Chapter 119. of the Revised Code governing the administration and fiscal management of the armed forces reserve component scholarship program and the procedure by which the chancellor may modify the amount of scholarships a member receives based on the amount of other state financial aid a member receives.

(J) The chancellor and the director of budget and management, or their designees, shall jointly estimate the costs of the armed forces reserve component scholarship program for each upcoming fiscal biennium, and shall report that estimate before the beginning of the fiscal biennium to the chairpersons of the finance committees in the general assembly. During each fiscal year of the biennium, the chancellor and the director, or their designees, shall meet regularly to monitor the actual costs of the program and update cost projections for the remainder of the biennium as necessary. If the amounts appropriated for the program and any funds in the armed forces reserve component scholarship reserve fund and the armed forces reserve component scholarship donation fund are not adequate to provide scholarships in the amounts specified in division (D)(1) of this section for all eligible applicants, the chancellor shall do all of the following:

(1) Notify each private institution of higher education, where a scholarship recipient is enrolled, that, by accepting the armed forces reserve component scholarship program as payment for all or part of the institution's tuition, the institution agrees that if the chancellor reduces the amount of each scholarship, the institution shall provide each scholarship recipient a grant or tuition waiver in an amount equal to the amount the recipient's scholarship was reduced by the chancellor.

(2) Reduce the amount of each scholarship under division (D)(1)(a) of this section proportionally based on the amount of remaining available funds. Each state institution of higher education shall provide each scholarship recipient under division (D)(1)(a) of this section a grant or tuition waiver in an amount equal to the amount the recipient's scholarship was reduced by the chancellor.

(K) Notwithstanding division (A) of section 127.14 of the Revised Code, the controlling board shall not transfer all or part of any appropriation for the armed forces reserve component scholarship program.

(L) The chancellor may apply for, receive, and accept grants, and may receive and accept gifts, bequests, and contributions, from public and private sources, including agencies and instrumentalities of the United States and this state, and shall deposit the grants, gifts, bequests, or contributions into the armed forces reserve component scholarship donation fund.

Sec. 3333.461. (A) The armed forces reserve component scholarship reserve fund is created in the state treasury. As soon as possible following the end of each fiscal year, and when funds are made available, the chancellor of higher education shall certify to the director of budget and management the unencumbered balance of the general revenue fund any appropriations made in the immediately preceding fiscal year for purposes of the armed forces reserve component scholarship program created under section 3333.46 of the Revised Code. Upon receipt of the certification, the director of budget and management may, with the approval of the controlling board, transfer an amount not exceeding the certified amount from the general revenue fund to the armed forces reserve component scholarship reserve fund. Moneys in the armed forces reserve component scholarship reserve fund shall be used to pay scholarship obligations in excess of the general revenue fund appropriations made for that purpose.

(B) The director of budget and management may, with the approval of the controlling board, transfer any unencumbered balance from the armed forces reserve component scholarship reserve fund to the general revenue fund.

(C) If it is determined that general revenue fund appropriations are insufficient to meet the obligations of the armed forces reserve component scholarship program in a fiscal year, the director of budget and management may, with the approval of the controlling board, transfer funds from the armed forces reserve component scholarship reserve fund to the general revenue fund in order to meet those obligations. If the funds transferred from the armed forces reserve component scholarship reserve fund are not needed, the director of budget and management may, with the approval of the controlling board, transfer the unexpended balance from the general revenue fund back to the armed forces reserve component scholarship reserve fund.

(D) The director of budget and management shall notify all of the following when funds are transferred into the Ohio military reserve scholarship reserve fund:

(1) All institutions of higher education with enrolled scholarship recipients;

(2) The president of the senate;

(3) The speaker of the house of representatives.

Sec. 3333.462. The armed forces reserve component scholarship donation fund is created in the state treasury. The fund shall consist of gifts, bequests, grants, and contributions made to the fund under division (L) of section 3333.46 of the Revised Code. Investment earnings of the fund shall be deposited into the fund. The fund shall be used to operate the armed forces reserve component scholarship program created under section 3333.46 of the Revised Code.

Section 2. All items in this act are hereby appropriated as designated out of any moneys in the state treasury to the credit of the designated fund. For all operating appropriations made in this act, those in the first column are for fiscal year 2026 and those in the second column are for fiscal year 2027. The operating appropriations made in this act are in addition to any other operating appropriations made for these fiscal years.

Section 3.

ARMED FORCES RESERVE COMPONENT SCHOLARSHIP PROGRAM

The foregoing appropriation item 235431, Armed Forces Reserve Component Scholarship Program, shall be used by the Chancellor of Higher Education to support the Armed Forces Reserve Component Scholarship Program pursuant to section 3333.46 of the Revised Code.

Section 4. Within the limits set forth in this act, the Director of Budget and Management shall establish accounts indicating the source and amount of funds for each appropriation made in this act, and shall determine the manner in which appropriation accounts shall be maintained. Expenditures from operating appropriations contained in this act shall be accounted for as though made in, and are subject to all applicable provisions of, H.B. 96 of the 136th General Assembly.