89R25068 CXP-F

By: Guillen H.B. No. 1233

A BILL TO BE ENTITLED

AN ACT

relating to measures to encourage the earning of industry-recognized credentials at public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 61, Education Code, is amended by adding Section 61.09093 to read as follows:

Sec. 61.09093. INDUSTRY-RECOGNIZED CREDENTIAL FEASIBILITY STUDY AND PILOT PROJECT. (a) In this section:

(1) "Agency" means the Texas Education Agency.

(2) "Commission" means the Texas Workforce Commission.

(3) "High-demand, high-growth industry" means an industry identified by the commission as experiencing high demand and high growth in this state based on current and projected job openings, wage thresholds, and employer demand in the state's labor market.

(4) "Industry-recognized credential" means a credential earned by a student in a high-demand, high-growth industry that leads to quality career opportunities, as determined by the commission in coordination with the board and the agency.

(5) "Initiative" means the Tri-Agency Workforce Initiative established under Chapter 2308A, Government Code.

(6) "Quality career opportunity" means employment that:

(A) provides a self-sufficient wage that meets or exceeds a threshold established by the initiative for purposes of this section; and

(B) aligns with statewide and regional workforce development goals, as determined by the initiative.

(7) "Self-sufficient wage" means the self-sufficient wage as determined by the initiative under Section 2308A.012, Government Code, for purposes of Chapter 2308A of that code.

(b) The board, in coordination with the agency and the commission through the initiative, shall conduct a comprehensive feasibility study on the role of industry-recognized credentials in supporting postsecondary success and positive labor market outcomes in this state.

(c) The study conducted under Subsection (b) must:

(1) identify and assess:

(A) the availability, use, and integration of industry-recognized credentials at institutions of higher education;

(B) barriers to incorporating industry-recognized credentials into degree and certificate pathways at institutions of higher education, including transferability among institutions of higher education;

(C) opportunities to enable students at institutions of higher education to earn multiple industry-recognized credentials as part of a baccalaureate program;

(D) the potential for developing regional and statewide frameworks to support cumulative, transferable credential pathways at institutions of higher education; and

(E) the role of industry-recognized credentials in reducing time and cost to credential completion, increasing earning potential, and improving alignment with workforce needs; and

(2) include a model framework to:

(A) enable the creation of accredited degree and certificate programs at both two- and four-year institutions of higher education that incorporate industry-recognized credentials;

(B) support high school students in earning credit toward programs described by Paragraph (A);

(C) allow students to earn at least two industry-recognized credentials as part of a baccalaureate degree program at an institution of higher education; and

(D) facilitate students earning a baccalaureate degree and at least two industry-recognized credentials not later than four years after completing high school.

(d) To support the study conducted under Subsection (b) and using resources available within the institutional collaboration center established under Section 61.0571, the board shall establish and administer a pilot project with at least one two-year institution of higher education and at least one four-year institution of higher education to reduce regulatory burdens and assist institutions of higher education in forming partnerships to encourage:

(1) completion of industry-recognized credentials in satisfaction of certain required coursework under degree or certificate programs offered by institutions of higher education;

(2) memoranda of understanding between institutions of higher education that offer industry-recognized credentials;

(3) the transferability of course credit, particularly with regard to course credit leading to an industry-recognized credential;

(4) the development of degree and certificate programs that enable students to earn a degree or certificate by completing parts of the program at different institutions of higher education; or

(5) the applicability of grant, scholarship, and other student financial aid money toward costs related to earning industry-recognized credentials.

(e) The board, in coordination with the agency and the commission through the initiative, may consult with stakeholders to implement this section, including:

(1) school districts;

(2) postsecondary educational institutions;

(3) accrediting agencies;

(4) employers;

(5) local workforce development boards; and

(6) faculty and curriculum experts.

(f) The board, in coordination with the agency and the commission through the initiative, shall submit to the governor, the lieutenant governor, the speaker of the house of representatives, and the standing committee of each house of the legislature with primary jurisdiction over higher education:

(1) a preliminary report on the study conducted under Subsection (b) and the pilot project established under Subsection (d), including the board's findings and any recommendations for legislative or other action, not later than March 1, 2026; and

(2) a final report on the study conducted under Subsection (b) and the pilot project established under Subsection (d), including the board's findings and any recommendations for legislative or other action, not later than September 1, 2026.

(g) This section expires September 1, 2027.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.