Establish the Armed Forces Reserve Component Scholarship Program

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:

1

2

3

4

5

A

Number
of credit hours of enrollment in an academic term

equals

The
following number of eligibility units if a semester

or

The
following number of eligibility units if a quarter

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 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.

1

2

3

4

5

A

BOR
DEPARTMENT OF HIGHER EDUCATION

B

General
Revenue Fund

C

GRF

235431

Armed
Forces Reserve Component Scholarship Program

$0

$10,000,000

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

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.