OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 462 Bill Analysis
135th General Assembly
Click here for H.B. 462’s Fiscal Note
Version: As Introduced
Primary Sponsors: Reps. Troy and Brennan
Effective date:
Rachel Larsen, Research Analyst
SUMMARY
 Establishes the Student Choice Grant Program for students enrolled in private nonprofit
institutions of higher education.
DETAILED ANALYSIS
Student Choice Grant Program
Administration
The bill establishes the Student Choice Grant Program to provide grants to students
enrolled in nonprofit private institutions of higher education. The bill requires the Chancellor of
Higher Education to administer the program and adopt rules for its administration. The
Chancellor also must prescribe the form and manner of application for grants and the manner
by which eligible institutions certify that each applicant is enrolled as a student in a full-time
bachelor’s degree program and has an academic record that meets standards established by
the Chancellor.1
Any regulatory restriction contained in a rule adopted by the Chancellor to administer
the Student Choice Grant Program is not subject to S.B. 9 of the 134th General Assembly, which
requires rules to be rescinded for each new rule adopted.2
Student eligibility
The bill permits the Chancellor to make a grant to any Ohio resident who:
1. Has been an Ohio resident for at least two years prior to applying for the grant;
1 R.C. 3333.27(A), (B), and (E).
2 R.C. 3333.27(L). See also R.C. 121.95 to 121.953, none in the bill.
April 18, 2024
Office of Research and Drafting LSC Legislative Budget Office
2. Is enrolled as a full-time student in a bachelor’s degree program at an eligible
institution; and
3. Maintains an academic record that meets the standard established by the Chancellor.
The bill prohibits the Chancellor from making a grant to anyone who was enrolled in an
eligible institution on or before July 1, 2024, or to anyone who is serving time in prison.
Students pursuing a degree in theology, religion or other field for a religious profession are also
prohibited from receiving a grant, unless the course of study leads to an accredited Bachelor of
Arts or Bachelor of Science degree.3
Grant payment and amount
The bill establishes that the grant awarded to an eligible student must be paid to the
eligible institution in which the student is enrolled. The institution must then reduce the
student’s tuition and fees by the amount of the grant. No student is eligible to receive a grant
for more than ten semesters, or the equivalent of five academic years.4
Under the bill, the grant amount is not to exceed the lesser of the institution’s total
tuition and fees, or an amount equal to ¼ of the total of any state instructional subsidy amount
distributed by the Chancellor. Specifically, the Chancellor must use the state instructional
subsidy amount distributed in the second fiscal year of the previous biennium for all full-time
students enrolled in a bachelor’s degree program at a state university divided by the total
number of actual full-time students enrolled in full-time bachelor’s degree programs at a state
university reported to the Chancellor for that year.5
The bill states that the receipt of a grant under this program should not affect a
student’s eligibility for assistance granted under other state financial aid programs. However,
the grant is not to exceed the difference between the institution’s total tuition and fees and the
amount of assistance received under the other state financial aid programs.6
Reporting
The bill requires each eligible institution that enrolls students receiving grants to report
to the Chancellor the name of each student who has received a grant but who is no longer
eligible for all or part of the grant. The institution is required to refund all money belonging to
the state within 30 days of the following semester the student was no longer eligible to receive
a grant. After the 30-day period, an interest charge of 1% per month will be charged on all
3 R.C. 3333.27(C) and (J).
4 R.C. 3333.27(F) and (G).
5 R.C. 3333.27(D).
6 R.C. 3333.27(H).
P a g e |2 H.B. 462
As Introduced
Office of Research and Drafting LSC Legislative Budget Office
money due. The Chancellor must notify the Office of Budget and Management and the
Legislative Service Commission of all refunds received.7
Funding
Under the bill, the General Assembly must support the grant program by the sums it can
provide. However, the bill also permits the Chancellor to receive funds from other sources to
support the program.8
Appropriation
The bill also includes an appropriation of $95 million to fund the program for fiscal year
2025.
Background
The Student Choice Grant Program was originally enacted in 1983 in H.B. 291 of the
115th General Assembly, and was repealed in H.B. 1 of the 128th General Assembly.
HISTORY
Action Date
Introduced 03-27-24
ANHB0462IN-135/ar
7 R.C. 3333.27(K).
8 R.C. 3333.27(I).
P a g e |3 H.B. 462
As Introduced