Relating to measures to support the enrollment of students with a nontraditional secondary education at public institutions of higher education, including eligibility for certain student financial assistance programs.
CriticalImmediate action required
Low Cost
Effective:2025-06-20
Enforcing Agencies
Texas Higher Education Coordinating Board • Public Institutions of Higher Education (Admissions Offices) • University of Texas at Austin (Specific statutory mandates)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025
Compliance Deadline:Fall 2025 for Dual Credit access (Sec. 51.9675); Fall 2026 for Undergraduate Admissions ranking and Financial Aid eligibility.
Agency Rulemaking: The Texas Higher Education Coordinating Board (THECB) must update TEXAS Grant rules prior to the Fall 2026 award cycle. UT Austin must determine and publish specific testing benchmarks by September 15, 2025.
Immediate Action Plan
Immediately: Direct IT/Data teams to calculate median SAT/ACT scores for every class rank percentile based on the most recent admissions cycle.
By June 2025: Revise Dual Credit intake policies to explicitly state that accreditation status is no longer a condition for enrollment.
By September 2025: Post the calculated median test scores on the institution's admissions website to satisfy transparency mandates.
By January 2026: Finalize and test the automated ranking logic in your SIS for the Fall 2026 application cycle.
Operational Changes Required
Contracts
Dual Credit MOUs: Review existing Memorandums of Understanding with school districts. You must remove any exclusivity clauses or language that imposes stricter accreditation or transcript requirements on homeschool students than those applied to public school students.
SIS Vendor Agreements: Initiate change orders with Student Information System vendors (e.g., Oracle, Ellucian) immediately. Standard "out-of-the-box" admissions modules likely do not support the specific "median score per percentile" calculation required by this statute.
Hiring/Training
Admissions Staff: Train evaluators on the new statutory formula: a nontraditional student’s rank is the highest percentile where their SAT/ACT score equals or exceeds the institution's median for that rank.
Financial Aid Officers: Update training manuals to recognize "assigned" class ranks as valid for TEXAS Grant and Top 10% Scholarship eligibility.
IT/Data Analysts: Staff must be allocated to calculate median test scores for *every* class rank percentile from the preceding year's data.
Reporting & Record-Keeping
Public Website Disclosure: You are legally required to post the median college entrance exam scores calculated for each class rank from the preceding admissions cycle on your institution's website.
Audit Trails: Admissions files for nontraditional applicants must retain the specific calculation used to derive their assigned rank to defend against potential discrimination claims or audits.
Fees & Costs
IT Configuration Costs: While there are no new state fees, institutions will incur internal costs to reconfigure admissions software algorithms.
Financial Aid Allocation: Anticipate a shift in TEXAS Grant distribution; funds previously exclusive to ranked public school graduates will now be accessible to qualifying homeschoolers.
Strategic Ambiguities & Considerations
"Evidence of Successful Completion": The statute requires applicants to present evidence of completing a nontraditional education but does not define valid documentation (e.g., parent-issued transcripts vs. third-party validation). Watch THECB rulemaking closely for fraud-prevention standards.
UT Austin Benchmarking: The requirement for UT Austin to set benchmarks ensuring "proportional representation" is statistically complex. The methodology for this is not defined in the statute, creating a regulatory gray zone until the university publishes its first set of criteria in September 2025.
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Last session, the legislature enacted H.B. 3993, which amended the "top 10 percent rule" to require a general academic teaching institution to calculate the class rank of an applicant with a nontraditional secondary education that does not include a high school graduating class ranking using the average high school graduating class rank of applicants who have equivalent standardized testing scores. However, the bill author has informed the committee that the acceptance policies for the highly selective general academic teaching institutions in Texas are unfairly skewed against home-schooled studentsoften requiring the student to score in the top one percent on the SAT to qualify for automatic admission. C.S.H.B. 3041 seeks to ensure that students from nontraditional educational backgrounds are fairly compared to their public school peers and have equal access to certain state-funded scholarships.
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
C.S.H.B. 3041 amends the Education Code to require The University of Texas at Austin (UT Austin), with respect to its exemption from the automatic admission requirement in excess of the number required to fill 75 percent of UT Austin's enrollment capacity designated for first‑time resident undergraduate students in an academic year, to do the following if UT Austin elects to offer admission in excess of that percentage:
·offer admission to qualifying applicants who completed a nontraditional secondary education and whose score on a standardized test on a college entrance examination meets or exceeds a benchmark test score set by UT Austin instead of offering admission to such applicants by high school graduating class percentile rank;
·set the benchmark test score to be used for such purposes for an academic year based on the standardized test scores on a college entrance examination of applicants to UT Austin who completed a nontraditional secondary education and who were offered automatic admission in the academic year preceding the academic year by two years and in a manner designed to ensure that the percent of applicants who completed a nontraditional secondary education and who are offered automatic admission for an academic year will be the same as the percent of applicants who completed a traditional secondary education and who are offered such admission for that year; and
·in the manner prescribed by the Texas Education Agency and not later than September 15, provide to each public school district, for dissemination of the information to high school junior-level students and their parents, notice of what benchmark test score will be used by UT Austin to offer admission in excess of that percentage during the next school year to students who qualify for automatic admission and who complete a nontraditional secondary education.
The bill specifies that the 75 percent enrollment capacity threshold for purposes of the exemption includes applicants qualified for automatic admission who completed a nontraditional secondary education and are offered admission based on benchmark test score. For these purposes, the bill defines "nontraditional secondary education" by reference as a course of study at the secondary school level in a nonaccredited private school setting, including a home school.
C.S.H.B. 3041 changes the method by which a public institution of higher education that sorts applicants by high school graduating class rank in its undergraduate admission review process includes in that sorting process applicants who have successfully completed a nontraditional secondary education that does not include a high school graduating class ranking from placing any such applicant at the average high school graduating class rank of the institution's undergraduate applicants who have equivalent standardized testing scores as the applicant to assigning a class rank to any such applicant by doing the following:
·calculating for each class rank of other applicants to the institution the median score on each college entrance examination the institution considers in admissions; and
·assigning to the applicant the highest class rank for which the applicant's score on such a college entrance examination is at least equal to the median score for that class rank as calculated.
The bill requires the institution of higher education to post on the institution's website the median score on each college entrance examination the institution considers in admissions calculated for each class rank for the preceding admissions cycle.
C.S.H.B. 3041 establishes that its provisions relating to UT Austin and to the admission of a student with a nontraditional secondary education by an institution of higher education apply beginning with admissions to such institutions for the 2026 fall semester. Admissions to such an institution for a term or semester before the 2026 fall semester are governed by the law in effect immediately before the bill's effective date, and the former law is continued in effect for that purpose.
C.S.H.B. 3041 requires an institution of higher education, in admitting or enrolling high school students in a dual credit course, to apply the same criteria and conditions to each student wishing to enroll in the course without regard to whether the student attends a public school or a private or parochial school, including a home school. For these purposes, a student who attends a school that is not formally organized as a high school and is at least 16 years of age is considered to be attending a high school. These provisions apply beginning with admissions or enrollment in a dual credit course at an institution of higher education for the 2026 fall semester. Admissions or enrollment in a dual credit course at an institution of higher education for a term or semester before the 2026 fall semester is governed by the law in effect immediately before the bill's effective date, and the former law is continued in effect for that purpose.
C.S.H.B. 3041 expands the requirement for the Texas Higher Education Coordinating Board (THECB) to disseminate to each public or accredited private high school in Texas information regarding available financial assistance for resident undergraduate and graduate students funded from designated tuition by requiring the THECB to also post that information on the THECB website.
C.S.H.B. 3041 makes a person who has graduated or is graduating from high school initially eligible for a grant under the Toward Excellence, Access, & Success (TEXAS) grant program if the person presents evidence of successful completion of a nontraditional secondary education and otherwise meets the program's applicable eligibility requirements. However, the bill conditions that eligibility for a person who is otherwise initially eligible for the grant as a person who graduated from high school before May 1, 2013, and who presents evidence of successful completion of a nontraditional secondary education on the person's official transcript or diploma indicating, not later than the end of the person's junior year, whether the person has completed or is on schedule to complete the recommended or advanced high school curriculum required for grant eligibility. The bill requires the THECB to post a copy of the rules adopted under provisions relating to the TEXAS grant program on the THECB website.
C.S.H.B. 3041 makes an otherwise eligible student who presents evidence of successful completion of a nontraditional secondary education eligible for a scholarship awarded by the THECB for students graduating in the top 10 percent of a high school class. The bill requires the class rank of a student who presents evidence of successful completion of a nontraditional secondary education to be calculated in the manner by which an institution of higher education sorts such applicants in its undergraduate admission review process, as provided by the bill.
C.S.H.B. 3041 establishes that its provisions relating to student financial assistance apply beginning with student financial assistance awarded by an institution of higher education for the 2026 fall semester. Student financial assistance awarded by an institution of higher education for a term or semester before the 2026 fall semester is governed by the law in effect immediately before the bill's effective date, and the former law is continued in effect for that purpose.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 3041 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
The substitute includes provisions absent from the introduced regarding the automatic admission into UT Austin of students who have completed a nontraditional secondary education.
The substitute also includes a requirement absent from the introduced for an institution of higher education, in admitting or enrolling high school students in a dual credit course, to apply the same criteria and conditions to each student wishing to enroll in the course without regard to whether the student attends a public school or a private or parochial school, including a home school. Accordingly, the substitute includes a provision absent from the introduced establishing that this provision applies beginning with admissions or enrollment in a dual credit course at an institution of higher education for the 2026 fall semester.
Honorable Terry M. Wilson, Chair, House Committee on Higher Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3041 by Paul (Relating to measures to support the enrollment of students with a nontraditional secondary education at public institutions of higher education, including eligibility for certain student financial assistance programs.), As Introduced
The fiscal implications of the bill cannot be determined due to a lack of data on the number of students who would be eligible for TEXAS Grants Program awards under the provisions of the bill.
The bill would amend certain provisions related to the undergraduate admission review process at an institution of higher education for applicants who completed a nontraditional secondary education and amend eligibility requirements for the TEXAS Grants Program to include a graduate who presents evidence of successful completion of a nontraditional secondary education.
The Higher Education Coordinating Board has indicated that it lacks available data to assess the number of students that would be made eligible for TEXAS Grants as a result of such changes to student eligibility, therefore, any related fiscal impact cannot be determined. It is assumed that any costs associated with the admission review process could be absorbed within existing resources at institutions of higher education.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration, 966 Howard College, 978 San Jacinto College
LBB Staff: b > td >
JMc, FV, LBO, GO
Related Legislation
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HB3041 mandates that Texas public universities assign specific class ranks to homeschool and non-accredited private school students based on standardized test scores, thereby granting them access to automatic admission and state financial aid. This law removes administrative discretion, requiring immediate policy updates for Dual Credit enrollment by Fall 2025 and a complete restructuring of admissions ranking algorithms by Fall 2026. Implementation Timeline Effective Date: June 20, 2025 Compliance Deadline: Fall 2025 for Dual Credit access (Sec.
Q
Who authored HB3041?
HB3041 was authored by Texas Representative Dennis Paul during the Regular Session.
Q
When was HB3041 signed into law?
HB3041 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB3041?
HB3041 is enforced by Texas Higher Education Coordinating Board, Public Institutions of Higher Education (Admissions Offices) and University of Texas at Austin (Specific statutory mandates).
Q
How urgent is compliance with HB3041?
The compliance urgency for HB3041 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB3041?
The cost impact of HB3041 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB3041 address?
HB3041 addresses topics including education, education--higher, education--higher--admission & attendance, education--higher--student financial aid and higher education coordinating board, texas.
Legislative data provided by LegiScanLast updated: November 25, 2025
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