SB 365

Overall Vote Recommendation
Yes
Principle Criteria
positive
Free Enterprise
neutral
Property Rights
positive
Personal Responsibility
positive
Limited Government
positive
Individual Liberty
Digest

SB 365 amends Section 51.931 of the Texas Education Code, expanding the scope of the state’s “Academic Fresh Start” policy for undergraduate admissions at public institutions of higher education. Under current law, applicants may request that a public college or university disregard academic credits earned ten or more years before the semester for which they are applying. SB 365 enhances this by allowing institutions, at their discretion, to disregard all course credits and grades earned during the period between five and ten years prior to the application semester—essentially creating an expanded eligibility window. However, it still prohibits disregarding credits or grades from the five years immediately preceding enrollment.

The bill further requires public institutions of higher education to formally adopt and publish policies outlining how they implement Academic Fresh Start, including specifics about the time frame during which prior academic records will be considered. These policies must be submitted to the Texas Higher Education Coordinating Board, thereby standardizing transparency and administrative consistency across institutions.

Additionally, SB 365 amends Section 61.0595(c) of the Education Code concerning the calculation of semester credit hours for funding purposes. It clarifies that credit hours disregarded under Academic Fresh Start will not count toward a student’s funding cap, aligning fiscal policy with the new admissions flexibility. This provision takes effect starting with funding recommendations for the biennium beginning September 1, 2025, while the admissions changes take effect with the Fall 2025 semester.

Author (5)
Sarah Eckhardt
Molly Cook
Peter Flores
Jose Menendez
Tan Parker
Co-Author (6)
Cesar Blanco
Brent Hagenbuch
Adam Hinojosa
Mayes Middleton
Charles Perry
Royce West
Sponsor (5)
Donna Howard
Suleman Lalani
Charlene Ward Johnson
Joanne Shofner
Terry Wilson
Co-Sponsor (3)
Maria Flores
Vincent Perez
Mihaela Plesa
Fiscal Notes

According to the Legislative Budget Board (LBB), SB 365 is not expected to have a significant fiscal impact on the state. Any associated administrative costs are anticipated to be absorbable within existing resources of public institutions of higher education. The Higher Education Coordinating Board and multiple university systems confirmed that the policy changes would not substantially alter institutional funding or operational budgets.

Moreover, there is no expected fiscal impact on local governments. The bill’s provisions primarily concern internal admissions and reporting procedures rather than introducing new funding obligations or mandates for local educational institutions.

Vote Recommendation Notes

SB 365 is a modest but meaningful reform aimed at expanding access to higher education for adult learners and nontraditional students by enhancing Texas’s Academic Fresh Start policy. The policy change is not mandatory for institutions; rather, it empowers public colleges and universities to consider disregarding coursework and grades earned between five and ten years prior to the applicant’s enrollment date—expanding the currently allowed ten-year cutoff. The opt-in design of this legislation preserves institutional autonomy while facilitating second-chance pathways for students who may have overcome earlier academic setbacks, matured, or demonstrated post-secondary achievement in the intervening years.

From a policy perspective, SB 365 provides a pragmatic solution to a documented problem without expanding the size or cost of government. It aligns with the goal of increasing educational attainment in Texas, especially among older students who are often balancing work, family, and school. The bill promotes equitable access without waiving institutional standards, as each college or university retains the authority to decide whether and how to implement the expanded look-back period. It also includes transparency measures requiring institutions to publish and submit their policies to the Texas Higher Education Coordinating Board, promoting accountability without imposing rigid mandates.

Given the low fiscal impact and the clear educational benefits to adult learners, SB 365 represents sound public policy. It adheres to the principles of limited government and institutional discretion while promoting individual opportunity and second chances. Therefore, Texas Policy Research recommends that lawmakers vote YES on SB 365.

  • Individual Liberty: The bill directly advances the principle of individual liberty by giving applicants to public institutions of higher education more control over how their past academic records are treated in the admissions process. By allowing institutions to disregard coursework from five to ten years before the date of enrollment—while still protecting the relevance of more recent academic performance—SB 365 acknowledges that individuals are capable of growth and change over time. It empowers nontraditional students, including working adults and those who have overcome personal or academic struggles, to pursue higher education without being permanently burdened by past failures. This legislative change reflects a belief in second chances and the right of individuals to shape their futures through renewed access to opportunity.
  • Personal Responsibility: While the bill offers grace for past academic shortcomings, it also reinforces the principle of personal responsibility. The policy is not an automatic expungement of academic history; instead, it requires the applicant to proactively seek a fresh start and institutions to adopt policies governing its application. Applicants must still demonstrate current readiness and meet institutional standards for admission. In this way, the bill supports the idea that individuals must take ownership of their educational journey, even as it allows them to recover from past missteps. It strikes a careful balance between forgiveness and accountability by preserving the integrity of recent academic performance.
  • Free Enterprise: Although the bill primarily concerns educational access, it indirectly supports the principle of free enterprise by fostering a more adaptable and competitive workforce. Nontraditional students—who may have years of work experience or technical training—are often barred from baccalaureate advancement due to outdated academic records. By removing an arbitrary barrier to higher education, the bill facilitates upward mobility, retraining, and entry into high-skill sectors that increasingly demand post-secondary credentials. A more educated population supports business development, innovation, and labor market flexibility, all of which are critical to a thriving free-enterprise economy in Texas.
  • Private Property Rights: The bill does not implicate or restrict private property rights, and thus it maintains a neutral impact in this area.
  • Limited Government: The bill exemplifies the principle of limited government by enhancing access to education without imposing new mandates or expanding state bureaucracy. It offers discretion to institutions rather than directing uniform implementation, thereby preserving institutional governance and academic freedom. The requirement that institutions publish and submit their policies to the Texas Higher Education Coordinating Board ensures transparency and consistency without creating a new regulatory regime. This measured approach improves public policy outcomes—namely, increased access for underserved student populations—while maintaining government restraint and avoiding overreach.
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