HB 748

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  1
  of the Revised Code to establish the Armed  2
  Forces Reserve Component Scholarship Program and  3
  related funds and to make an appropriation.  4
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That sections 3333.46, 3333.461, and 3333.462  5
of the Revised Code be enacted to read as follows:  6
     Sec. 3333.46. (A) As used in this section:  7
     (1) "Academic term," "private institution of higher  8
education," "state institution of higher education," and  9
"tuition" have the same meanings as in section 5919.34 of the  10
Revised Code.  11
     (2) "Eligible applicant" means any individual to whom all  12
of the following apply:  13
     (a) The individual does not possess a baccalaureate  14
degree.  15
     (b) The individual is a member of a reserve component of  16
the United States army, navy, marine corps, air force, coast  17
guard, or space force in this state or is an individual to which  18
H. B. No. 748  Page 2
As Introduced
division (F) of this section applies.  19
       (c) The individual is actively enrolled as a full-time or  20
part-time student for at least three credit hours of course work  21
in a semester or quarter in a two-year or four-year degree-  22
granting program at a state institution of higher education or a  23
private institution of higher education, in a diploma-granting  24
program at a state or private institution of higher education  25
that is a school of nursing, or in a credential-certifying  26
program, licensing program, trade certification program, or  27
apprenticeship program for an in-demand occupation as identified  28
by the chancellor of higher education, in consultation with the  29
governor's office of workforce transformation.  30
       (d) The individual has not accumulated ninety-six  31
eligibility units under division (E) of this section.  32
       (e) The individual has not received financial assistance  33
from the scholarship program described in section 5919.34 of the  34
Revised Code.  35
       (f) The individual is a resident of this state.  36
       (B) The armed forces reserve component scholarship program  37
is created.  38
       (C)(1) The chancellor shall approve scholarships for all  39
eligible applicants. The chancellor shall process all  40
applications for scholarships for each academic term in the  41
order in which they are received. The scholarships shall be made  42
without regard to financial need. At no time shall one person be  43
placed in priority over another because of sex, race, or  44
religion.  45
       (2) The chancellor shall develop and provide a written  46
explanation that informs all eligible scholarship recipients  47
H. B. No. 748  Page 3
As Introduced
that the recipient may become ineligible and liable for  48
repayment for an amount of scholarship payments received in  49
accordance with division (G) of this section. The written  50
explanation shall be reviewed by the scholarship recipient  51
before acceptance of the scholarship and before acceptance of an  52
enlistment, warrant, commission, or appointment for a term not  53
less than the recipient's remaining term in a reserve component  54
of the armed forces.  55
       (D)(1) Except as provided in divisions (I) and (J) of this  56
section, for each academic term that an eligible applicant is  57
approved for a scholarship under this section and remains a  58
current member in good standing of a reserve component of the  59
armed forces or is eligible for a scholarship under division (F)  60
(1) of this section, the institution of higher education in  61
which the applicant is enrolled shall, if the applicant's  62
enlistment obligation extends beyond the end of that academic  63
term or if division (F)(1) of this section applies, be paid on  64
the applicant's behalf one of the following applicable amounts:  65
       (a) If the institution is a state institution of higher  66
education, an amount equal to one hundred per cent of the  67
institution's tuition charges;  68
       (b) If the institution is a nonprofit private institution  69
or a private institution exempt from regulation under Chapter  70
3332. of the Revised Code as prescribed in section 3333.046 of  71
the Revised Code, an amount equal to one hundred per cent of the  72
average tuition charges of all state universities;  73
       (c) If the institution is an institution that holds a  74
certificate of registration from the state board of career  75
colleges and schools, the lesser of the following:  76
H. B. No. 748  Page 4
As Introduced
       (i) An amount equal to one hundred per cent of the  77
institution's tuition;  78
       (ii) An amount equal to one hundred per cent of the  79
average tuition charges of all state universities, as that term  80
is defined in section 3345.011 of the Revised Code.  81
       (2) The chancellor may adopt rules to require the use of  82
other federal educational financial assistance programs,  83
including such programs offered by the United States department  84
of defense, for which an applicant is eligible based on the  85
applicant's military service. If such rules are adopted, the  86
rules shall require that financial assistance received by a  87
scholarship recipient under those programs be applied to all  88
eligible expenses before the use of scholarship funds awarded  89
under this section. Scholarship funds awarded under this section  90
shall then be applied to the recipient's remaining eligible  91
expenses.  92
       (3) An eligible applicant's scholarship shall not be  93
reduced by the amount of that applicant's benefits under "the  94
Montgomery G.I. Bill Act of 1984," 38 U.S.C. 3001, et seq.  95
       (E) A scholarship recipient under this section shall be  96
entitled to receive scholarships under this section for the  97
number of quarters or semesters it takes the recipient to  98
accumulate ninety-six eligibility units as determined under  99
divisions (E)(1) to (3) of this section.  100
       (1) To determine the maximum number of semesters or  101
quarters for which a recipient is entitled to a scholarship  102
under this section, the chancellor shall convert a recipient's  103
credit hours of enrollment for each academic term into  104
eligibility units in accordance with the following table:  105
H. B. No. 748  Page 5
As Introduced
  106
  1  2  3       4  5
A     Number of credit     equals   The following   or      The following
      hours of  number of  number of
      enrollment in an  eligibility  eligibility units
      academic term  units if a  if a quarter
  semester
B     12 or more hours  12 units  8 units
C     9 but less than 12  9 units  6 units
D     6 but less than 9  6 units  4 units
E     3 but less than 6  3 units  2 units
       (2) A scholarship recipient under this section may  107
continue to apply for scholarships under this section until the  108
recipient has accumulated ninety-six eligibility units.  109
       (3) If a scholarship recipient withdraws from courses  110
before the end of an academic term so that the recipient's  111
enrollment for that academic term is less than three credit  112
hours, no scholarship shall be paid on behalf of that person for  113
that academic term. Except as provided in division (F)(3) of  114
this section, if a scholarship has already been paid on behalf  115
of the person for that academic term, the chancellor shall add  116
to that person's accumulated eligibility units the number of  117
eligibility units for which the scholarship was paid.  118
       (F) This division applies to any eligible applicant called  119
into active duty on or after September 11, 2001. As used in this  120
division, "active duty" means active duty pursuant to an  121
H. B. No. 748  Page 6
As Introduced
executive order of the president of the United States, an act of  122
the congress of the United States, or section 5919.29 or 5923.21  123
of the Revised Code. This division applies to an individual who,  124
at the time the individual is called into active duty, is a  125
member of a reserve component of the United States army, navy,  126
marine corps, air force, coast guard, or space force in this  127
state.  128
       (1) For a period of up to five years from when an  129
individual's enlistment obligation in a reserve component of the  130
armed forces ends, an individual to whom this division applies  131
is eligible for scholarships under this section for those  132
academic terms that were missed or could have been missed as a  133
result of the individual's call into active duty. Scholarships  134
shall not be paid for the academic term in which an eligible  135
applicant's enlistment obligation ends unless an applicant is  136
eligible under this division for a scholarship for such academic  137
term due to previous active duty.  138
       (2) When an individual to whom this division applies  139
withdraws or otherwise fails to complete courses for which  140
scholarships have been awarded under this section because the  141
individual was called into active duty, the institution of  142
higher education shall grant the individual a leave of absence  143
from the individual's education program and shall not impose any  144
academic penalty for such withdrawal or failure to complete  145
courses. Division (F)(2) of this section applies regardless of  146
whether the scholarship amount was paid to the institution of  147
higher education.  148
       (3) If an individual to whom this division applies  149
withdraws or otherwise fails to complete courses because the  150
individual was called into active duty, and if scholarships for  151
H. B. No. 748  Page 7
As Introduced
those courses have already been paid, either:  152
       (a) The chancellor shall not add to that person's  153
accumulated eligibility units calculated under division (E) of  154
this section the number of eligibility units for the academic  155
courses or term for which the scholarship was paid and the  156
institution of higher education shall repay the scholarship  157
amount to the state.  158
       (b) The chancellor shall add to that individual's  159
accumulated eligibility units calculated under division (E) of  160
this section the number of eligibility units for the academic  161
courses or term for which the scholarship was paid if the  162
institution of higher education agrees to permit the individual  163
to complete the remainder of the academic courses in which the  164
individual was enrolled at the time the individual was called  165
into active duty.  166
       (4) No individual who is discharged from any branch of the  167
armed forces under other than honorable conditions shall be  168
eligible for scholarships under this division.  169
       (G) A scholarship recipient under this section who fails  170
to complete the term of enlistment, re-enlistment, or extension  171
of current enlistment the recipient was serving at the time a  172
scholarship was paid on behalf of the recipient under this  173
section is liable to the state for repayment of a percentage of  174
all armed forces reserve component scholarships paid on behalf  175
of the recipient under this section, plus interest at the rate  176
of ten per cent per annum calculated from the dates the  177
scholarships were paid. This percentage shall equal the  178
percentage of the current term of enlistment, re-enlistment, or  179
extension of enlistment a recipient has not completed as of the  180
date the recipient is discharged from a reserve component of the  181
H. B. No. 748  Page 8
As Introduced
armed forces.  182
       The attorney general may commence a civil action on behalf  183
of the chancellor to recover the amount of the scholarships and  184
the interest provided for in this division and the expenses  185
incurred in prosecuting the action, including court costs and  186
reasonable attorney's fees. A scholarship recipient is not  187
liable under this division if the recipient's failure to  188
complete the term of enlistment being served at the time a  189
scholarship was paid on behalf of the recipient under this  190
section is due to the recipient's death or discharge from a  191
reserve component of the armed forces due to disability.  192
       (H) On or before the first day of each academic term, the  193
chancellor shall request that the United States department of  194
defense provide an eligibility roster to the chancellor and to  195
each institution of higher education at which one or more  196
scholarship recipients have applied for enrollment. The  197
institution shall use the roster to certify the actual full-time  198
or part-time enrollment of each scholarship recipient listed as  199
enrolled at the institution and return the roster to the  200
chancellor. Except as provided in division (J) of this section,  201
the chancellor shall provide for payment of the appropriate  202
number and amount of scholarships to each institution of higher  203
education pursuant to division (D) of this section. If an  204
institution of higher education fails to certify the actual  205
enrollment of a scholarship recipient listed as enrolled at the  206
institution within thirty days of the end of an academic term,  207
the institution shall not be eligible to receive payment from  208
the armed forces reserve component scholarship program or from  209
the individual enrollee. The chancellor shall report on a  210
semiannual basis to the director of budget and management, the  211
speaker of the house of representatives, and the president of  212
H. B. No. 748  Page 9
As Introduced
the senate the number of armed forces reserve component  213
scholarship recipients, the size of the scholarship-eligible  214
population, and a projection of the cost of the program for the  215
remainder of the biennium.  216
       (I) The chancellor may adopt rules pursuant to Chapter  217
119. of the Revised Code governing the administration and fiscal  218
management of the armed forces reserve component scholarship  219
program and the procedure by which the chancellor may modify the  220
amount of scholarships a member receives based on the amount of  221
other state financial aid a member receives.  222
       (J) The chancellor and the director of budget and  223
management, or their designees, shall jointly estimate the costs  224
of the armed forces reserve component scholarship program for  225
each upcoming fiscal biennium, and shall report that estimate  226
before the beginning of the fiscal biennium to the chairpersons  227
of the finance committees in the general assembly. During each  228
fiscal year of the biennium, the chancellor and the director, or  229
their designees, shall meet regularly to monitor the actual  230
costs of the program and update cost projections for the  231
remainder of the biennium as necessary. If the amounts  232
appropriated for the program and any funds in the armed forces  233
reserve component scholarship reserve fund and the armed forces  234
reserve component scholarship donation fund are not adequate to  235
provide scholarships in the amounts specified in division (D)(1)  236
of this section for all eligible applicants, the chancellor  237
shall do all of the following:  238
       (1) Notify each private institution of higher education,  239
where a scholarship recipient is enrolled, that, by accepting  240
the armed forces reserve component scholarship program as  241
payment for all or part of the institution's tuition, the  242
H. B. No. 748  Page 10
As Introduced
institution agrees that if the chancellor reduces the amount of  243
each scholarship, the institution shall provide each scholarship  244
recipient a grant or tuition waiver in an amount equal to the  245
amount the recipient's scholarship was reduced by the  246
chancellor.  247
       (2) Reduce the amount of each scholarship under division  248
(D)(1)(a) of this section proportionally based on the amount of  249
remaining available funds. Each state institution of higher  250
education shall provide each scholarship recipient under  251
division (D)(1)(a) of this section a grant or tuition waiver in  252
an amount equal to the amount the recipient's scholarship was  253
reduced by the chancellor.  254
       (K) Notwithstanding division (A) of section 127.14 of the  255
Revised Code, the controlling board shall not transfer all or  256
part of any appropriation for the armed forces reserve component  257
scholarship program.  258
       (L) The chancellor may apply for, receive, and accept  259
grants, and may receive and accept gifts, bequests, and  260
contributions, from public and private sources, including  261
agencies and instrumentalities of the United States and this  262
state, and shall deposit the grants, gifts, bequests, or  263
contributions into the armed forces reserve component  264
scholarship donation fund.  265
       Sec. 3333.461. (A) The armed forces reserve component  266
scholarship reserve fund is created in the state treasury. As  267
soon as possible following the end of each fiscal year, and when  268
funds are made available, the chancellor of higher education  269
shall certify to the director of budget and management the  270
unencumbered balance of the general revenue fund any  271
appropriations made in the immediately preceding fiscal year for  272
H. B. No. 748  Page 11
As Introduced
purposes of the armed forces reserve component scholarship  273
program created under section 3333.46 of the Revised Code. Upon  274
receipt of the certification, the director of budget and  275
management may, with the approval of the controlling board,  276
transfer an amount not exceeding the certified amount from the  277
general revenue fund to the armed forces reserve component  278
scholarship reserve fund. Moneys in the armed forces reserve  279
component scholarship reserve fund shall be used to pay  280
scholarship obligations in excess of the general revenue fund  281
appropriations made for that purpose.  282
        (B) The director of budget and management may, with the  283
approval of the controlling board, transfer any unencumbered  284
balance from the armed forces reserve component scholarship  285
reserve fund to the general revenue fund.  286
        (C) If it is determined that general revenue fund  287
appropriations are insufficient to meet the obligations of the  288
armed forces reserve component scholarship program in a fiscal  289
year, the director of budget and management may, with the  290
approval of the controlling board, transfer funds from the armed  291
forces reserve component scholarship reserve fund to the general  292
revenue fund in order to meet those obligations. If the funds  293
transferred from the armed forces reserve component scholarship  294
reserve fund are not needed, the director of budget and  295
management may, with the approval of the controlling board,  296
transfer the unexpended balance from the general revenue fund  297
back to the armed forces reserve component scholarship reserve  298
fund.  299
        (D) The director of budget and management shall notify all  300
of the following when funds are transferred into the Ohio  301
military reserve scholarship reserve fund:  302
H. B. No. 748  Page 12
As Introduced
  (1) All institutions of higher education with enrolled  303
scholarship recipients;  304
  (2) The president of the senate;  305
  (3) The speaker of the house of representatives.  306
  Sec. 3333.462. The armed forces reserve component  307
scholarship donation fund is created in the state treasury. The  308
fund shall consist of gifts, bequests, grants, and contributions  309
made to the fund under division (L) of section 3333.46 of the  310
Revised Code. Investment earnings of the fund shall be deposited  311
into the fund. The fund shall be used to operate the armed  312
forces reserve component scholarship program created under  313
section 3333.46 of the Revised Code.  314
  Section 2. All items in this act are hereby appropriated  315
as designated out of any moneys in the state treasury to the  316
credit of the designated fund. For all operating appropriations  317
made in this act, those in the first column are for fiscal year  318
2026 and those in the second column are for fiscal year 2027.  319
The operating appropriations made in this act are in addition to  320
any other operating appropriations made for these fiscal years.  321
  Section 3.  322
  323
     1  2  3  4  5
A  BOR DEPARTMENT OF HIGHER EDUCATION
B   General Revenue Fund
C   GRF     235431 Armed Forces Reserve  $0     $10,000,000
  Component Scholarship
  Program
H. B. No. 748  Page 13
As Introduced
D   General Revenue Fund Total  $0     $10,000,000
E   TOTAL ALL BUDGET FUND GROUPS  $0     $10,000,000
       ARMED FORCES RESERVE COMPONENT SCHOLARSHIP PROGRAM  324
       The foregoing appropriation item 235431, Armed Forces  325
Reserve Component Scholarship Program, shall be used by the  326
Chancellor of Higher Education to support the Armed Forces  327
Reserve Component Scholarship Program pursuant to section  328
3333.46 of the Revised Code.  329
       Section 4. Within the limits set forth in this act, the  330
Director of Budget and Management shall establish accounts  331
indicating the source and amount of funds for each appropriation  332
made in this act, and shall determine the manner in which  333
appropriation accounts shall be maintained. Expenditures from  334
operating appropriations contained in this act shall be  335
accounted for as though made in, and are subject to all  336
applicable provisions of, H.B. 96 of the 136th General Assembly.  337