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HB 698

Enact the S.B. 1 Compliance Supplemental Appropriation Act

136th Legislature (2025-2026) Introduced by Tom Young

The bill requires state higher education institutions to certify SB 1 compliance, inventory DEI reassignment actions, adopt retrenchment policies, and links noncompliance to withho

Referred to committee
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Bill Summary · HB 698

Purpose and intent

HB 698 proposes the S.B. 1 Compliance Supplemental Appropriation Act. It aims to enforce and operationalize various SB 1 provisions for Ohio's state institutions of higher education (SIOHEs) by creating mandatory compliance certifications, requiring inventories of DEI-related reassignment actions, expanding retrenchment policies to all institutions, enhancing transparency through the Ohio Checkbook, and tying noncompliance to withholding portions of the State Share of Instruction (SSI) funds. It also reorganizes some higher education governance rules around instructional workloads and program eliminations.

Key provisions and changes

  • Certification and compliance (SB 1 provisions)

    • SIOHEs must annually certify compliance with specified SB 1 requirements (including DEI-related rules, syllabi postings, statements of commitment, post-tenure reviews, governance and ethics provisions, and anti-foreign donations prohibitions).
    • Certifications due on the effective date for FY 2027 and by July 1 each year thereafter.
    • The Chancellor may audit certifications and impose civil penalties for recklessly false or fraudulent certifications.
    • The Governor must ensure biennial budget recommendations include a set-aside portion of SSI funds for SB 1 compliance.

  • Inventory of reassigned employees

    • SIOHEs must create an inventory of employees who, as of January 1, 2025, performed DEI functions and were reassigned by September 25, 2025.
    • For each employee: name, title, prior DEI duties, reassignment details, salary changes, new duties, and attestation by HR and general counsel.
    • A justification report must accompany each entry, showing that new duties are substantially different from DEI functions, with side-by-side comparisons, compensation breakdown, and compliance plan; attestation by general counsel and institutional leadership is required.
    • Inventories and reports become public records.
    • Initial inventories due within 90 days after the act’s effective date; annual updates begin FY 2028 (July 1).

  • Retrenchment policies (expanded to all SIOHEs)

    • All SIOHE boards of trustees must adopt retrenchment policies within 90 days of the act’s effective date.
    • Policies must cover: authority to initiate retrenchment, delegation to president/provost, role of deans, administration by the provost, lawful grounds (enrollment shifts, program changes, financial emergencies, etc.), factors to consider before retrenchment, non-enforceable rights beyond policy, how multiple positions are handled, non-displacement rules, notice requirements, procedural protections, and possible buyouts or voluntary separation arrangements.
    • A limited “seniority/tenure” exemption is provided for specific cases (e.g., among those with 30–35 years of service, until they reach 35 years; verification within 15 days).
    • Policies must be updated at least every five years and reviewed by the Chancellor for compliance. Noncompliant boards must revise within 60 days.
    • The policy’s substantive judgments remain with the board; Chancellor reviews focus only on compliance.

  • Tuition, promotion, and program protections

    • Institutions must eliminate undergraduate programs that produce fewer than five degrees per year on average over any three-year period, unless a waiver is granted by the Chancellor with conditions for continuation and potential SSI funding eligibility.

  • State university compliance and funding linkage

    • For FY 2027, the Chancellor evaluates SB 1 compliance for state universities when disbursing a $75 million SSI set-aside (per HB 96). Noncompliant universities face withholding of their share of the set-aside.
    • From FY 2028 onward, noncompliant institutions face withholding of their share of future SSI set-asides, with no release of withheld funds even if later compliant.

  • Ohio Checkbook reporting

    • Adds SIOHE employees to the state and local government expenditure database (Ohio Checkbook). Institutions must provide necessary information; minimal to modest one-time IT and reporting costs anticipated.

  • Instructional workload policy

    • The joint requirement to establish statewide instructional workload standards is repealed.
    • Each institution must maintain an instructional workload policy prioritizing undergraduate instruction; must define teaching workloads, non-teaching duties, and allowable administrative actions for noncompliance.

  • Administrative underscoring and signatures

    • The president and board chair must sign all certifications, inventories, and reports.

Who is affected

  • State institutions of higher education (universities, regional campuses, community and technical colleges): subject to new compliance certifications, DEI reassignment inventories and reports, retrenchment policy requirements, program eliminations, and reporting to Ohio Checkbook.
  • Ohio Department of Higher Education (ODHE): staffing and procedural costs to audit and verify compliance; review retrenchment policies; determine eligibility for SSI set-asides.
  • The Governor and the Budget Director: required to include and manage set-aside SSI funds in biennial budget recommendations; ensure withholding provisions trigger when noncompliance occurs.
  • Students and faculty: potential impacts from retrenchment policies, workload policy changes, and program eliminations.

Procedural and timeline highlights

  • Effective date and deadlines
    • Initial 90-day deadline to adopt retrenchment policies after enactment.
    • Inventories due 90 days post-effective date; annual updates beginning FY 2028 (July 1).
    • Certifications due on effective date for FY 2027; annual July 1 deadline thereafter.
  • Withholding mechanics
    • For FY 2027, withholding tied to a $75 million SSI set-aside for SB 1 compliance (state universities initially).
    • From FY 2028 onward, withholding applies to all noncompliant institutions from future SSI set-asides.
    • Withheld funds may not be released, even after compliance is achieved.
  • Public records
    • Inventories and related reports are public records.
  • Oversight and enforcement
    • ODHE conducts audits and reviews; Chancellor determines compliance using preponderance of the evidence standard for certain determinations.

Act name: The S.B. 1 Compliance Supplemental Appropriation Act.

Compiled from official sources — confirm details with the bill’s official record.

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