BILL ANALYSIS H.B. 538 By: Bernal Higher Education Committee Report (Unamended) BACKGROUND AND PURPOSE Data published on the Texas A&M University System website in 2023 indicated that approximately 5.4 million Texans aged 25 and older had some amount of college education but lacked a bachelor's degree. The bill author has informed the committee that, according to several education groups, many postsecondary educational institutions are withholding official transcripts from students that have outstanding debt with the institution, resulting in students being unable to continue their postsecondary education or apply for jobs due to transcript requirements. H.B. 538 seeks to help students be better positioned to finish their education, find employment, and overcome their debt by requiring the release of a transcript or certificate of completion of training on request by a student, including a student who has outstanding debt with the institution under certain conditions. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 538 amends the Education Code to require a postsecondary educational institution, on request by a student, to release to the student their transcript or certificate of completion of training, as applicable, unless the student has not fulfilled their financial obligation to the institution. For a student who has not fulfilled their financial obligation, the bill requires the institution to release the student's transcript or certificate directly to an employer or another postsecondary educational institution only if the student has not been enrolled in the institution for at least five years, has made a good faith effort to fulfill their financial obligation, and includes with their request a copy of the posting for the job for which they intend to apply or a statement that they intend to enroll in another institution. For these purposes, "postsecondary educational institution" includes a public, private, or independent institution of higher education and a career school or college. H.B. 538 authorizes such a postsecondary educational institution to charge a reasonable fee in connection with the release of the transcript or certificate. The amount of the fee must be the same for each student, except that the institution may establish a policy that provides for charging a lower fee for certain students based on criteria other than whether the student has fulfilled their financial obligation. H.B. 538 removes the specification that a person who is liable to a public institution of higher education for unpaid nonresident tuition due to an erroneous residency classification is not entitled to receive an official transcript that includes credit for courses taken while the person was misclassified. H.B. 538 repeals Section 132.062, Education Code, which authorizes a career school or college to withhold a student's transcript or certificate until the student's financial obligation to the school or college has been fulfilled. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 538
By: Bernal
Higher Education
Committee Report (Unamended)
H.B. 538
By: Bernal
Higher Education
Committee Report (Unamended)
BACKGROUND AND PURPOSE Data published on the Texas A&M University System website in 2023 indicated that approximately 5.4 million Texans aged 25 and older had some amount of college education but lacked a bachelor's degree. The bill author has informed the committee that, according to several education groups, many postsecondary educational institutions are withholding official transcripts from students that have outstanding debt with the institution, resulting in students being unable to continue their postsecondary education or apply for jobs due to transcript requirements. H.B. 538 seeks to help students be better positioned to finish their education, find employment, and overcome their debt by requiring the release of a transcript or certificate of completion of training on request by a student, including a student who has outstanding debt with the institution under certain conditions.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 538 amends the Education Code to require a postsecondary educational institution, on request by a student, to release to the student their transcript or certificate of completion of training, as applicable, unless the student has not fulfilled their financial obligation to the institution. For a student who has not fulfilled their financial obligation, the bill requires the institution to release the student's transcript or certificate directly to an employer or another postsecondary educational institution only if the student has not been enrolled in the institution for at least five years, has made a good faith effort to fulfill their financial obligation, and includes with their request a copy of the posting for the job for which they intend to apply or a statement that they intend to enroll in another institution. For these purposes, "postsecondary educational institution" includes a public, private, or independent institution of higher education and a career school or college. H.B. 538 authorizes such a postsecondary educational institution to charge a reasonable fee in connection with the release of the transcript or certificate. The amount of the fee must be the same for each student, except that the institution may establish a policy that provides for charging a lower fee for certain students based on criteria other than whether the student has fulfilled their financial obligation. H.B. 538 removes the specification that a person who is liable to a public institution of higher education for unpaid nonresident tuition due to an erroneous residency classification is not entitled to receive an official transcript that includes credit for courses taken while the person was misclassified. H.B. 538 repeals Section 132.062, Education Code, which authorizes a career school or college to withhold a student's transcript or certificate until the student's financial obligation to the school or college has been fulfilled.
EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
BACKGROUND AND PURPOSE
Data published on the Texas A&M University System website in 2023 indicated that approximately 5.4 million Texans aged 25 and older had some amount of college education but lacked a bachelor's degree. The bill author has informed the committee that, according to several education groups, many postsecondary educational institutions are withholding official transcripts from students that have outstanding debt with the institution, resulting in students being unable to continue their postsecondary education or apply for jobs due to transcript requirements. H.B. 538 seeks to help students be better positioned to finish their education, find employment, and overcome their debt by requiring the release of a transcript or certificate of completion of training on request by a student, including a student who has outstanding debt with the institution under certain conditions.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 538 amends the Education Code to require a postsecondary educational institution, on request by a student, to release to the student their transcript or certificate of completion of training, as applicable, unless the student has not fulfilled their financial obligation to the institution. For a student who has not fulfilled their financial obligation, the bill requires the institution to release the student's transcript or certificate directly to an employer or another postsecondary educational institution only if the student has not been enrolled in the institution for at least five years, has made a good faith effort to fulfill their financial obligation, and includes with their request a copy of the posting for the job for which they intend to apply or a statement that they intend to enroll in another institution. For these purposes, "postsecondary educational institution" includes a public, private, or independent institution of higher education and a career school or college.
H.B. 538 authorizes such a postsecondary educational institution to charge a reasonable fee in connection with the release of the transcript or certificate. The amount of the fee must be the same for each student, except that the institution may establish a policy that provides for charging a lower fee for certain students based on criteria other than whether the student has fulfilled their financial obligation.
H.B. 538 removes the specification that a person who is liable to a public institution of higher education for unpaid nonresident tuition due to an erroneous residency classification is not entitled to receive an official transcript that includes credit for courses taken while the person was misclassified.
H.B. 538 repeals Section 132.062, Education Code, which authorizes a career school or college to withhold a student's transcript or certificate until the student's financial obligation to the school or college has been fulfilled.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.