diff --git a/api/src/main/java/ca/bc/gov/educ/api/trax/service/SchoolEventBaseService.java b/api/src/main/java/ca/bc/gov/educ/api/trax/service/SchoolEventBaseService.java
index 1b4e6fa8..1d85ac95 100644
--- a/api/src/main/java/ca/bc/gov/educ/api/trax/service/SchoolEventBaseService.java
+++ b/api/src/main/java/ca/bc/gov/educ/api/trax/service/SchoolEventBaseService.java
@@ -1,6 +1,7 @@
 package ca.bc.gov.educ.api.trax.service;
 
 import ca.bc.gov.educ.api.trax.model.dto.institute.School;
+import ca.bc.gov.educ.api.trax.model.dto.institute.SchoolDetail;
 import ca.bc.gov.educ.api.trax.service.institute.SchoolService;
 import lombok.extern.slf4j.Slf4j;
 import org.springframework.beans.factory.annotation.Qualifier;
@@ -23,6 +24,11 @@ protected SchoolEventBaseService(@Qualifier("instituteSchoolService") SchoolServ
      */
     protected boolean shouldCreateHistory(School school) {
         // currently only schools that can issue transcripts qualify
+        SchoolDetail schoolDetail = this.schoolService.getSchoolDetailByIdFromInstituteApi(school.getSchoolId());
+        // if the school's ability to issue transcripts has changed, return true
+        if (schoolDetail.isCanIssueTranscripts() != school.isCanIssueTranscripts()){
+            return true;
+        }
         return school.isCanIssueTranscripts();
     }
 }
diff --git a/api/src/test/java/ca/bc/gov/educ/api/trax/service/SchoolEventBaseServiceTest.java b/api/src/test/java/ca/bc/gov/educ/api/trax/service/SchoolEventBaseServiceTest.java
new file mode 100644
index 00000000..431cb26b
--- /dev/null
+++ b/api/src/test/java/ca/bc/gov/educ/api/trax/service/SchoolEventBaseServiceTest.java
@@ -0,0 +1,68 @@
+package ca.bc.gov.educ.api.trax.service;
+
+import ca.bc.gov.educ.api.trax.model.dto.institute.School;
+import ca.bc.gov.educ.api.trax.model.dto.institute.SchoolDetail;
+import ca.bc.gov.educ.api.trax.service.institute.SchoolService;
+import org.junit.jupiter.api.AfterEach;
+import org.junit.jupiter.api.BeforeEach;
+import org.junit.jupiter.api.Test;
+import org.mockito.InjectMocks;
+import org.mockito.Mock;
+
+import static org.junit.jupiter.api.Assertions.assertFalse;
+import static org.junit.jupiter.api.Assertions.assertTrue;
+import static org.mockito.Mockito.when;
+import static org.mockito.MockitoAnnotations.openMocks;
+
+class SchoolEventBaseServiceTest {
+
+    @Mock
+    private SchoolService schoolService;
+    private AutoCloseable closeable;
+
+    @InjectMocks
+    private SchoolEventBaseService<School> schoolEventBaseService = new SchoolCreatedService(schoolService) {};
+
+    @BeforeEach
+    public void setUp() {
+        closeable = openMocks(this);
+    }
+
+    @AfterEach
+    public void finish() throws Exception {
+        closeable.close();
+    }
+
+    @Test
+    void shouldCreateHistory_whenSchoolCanIssueTranscriptsChanged() {
+        School school = new School();
+        school.setSchoolId("123");
+        school.setCanIssueTranscripts(false);
+        SchoolDetail schoolDetail = new SchoolDetail();
+        schoolDetail.setCanIssueTranscripts(true);
+        when(schoolService.getSchoolDetailByIdFromInstituteApi("123")).thenReturn(schoolDetail);
+        assertTrue(schoolEventBaseService.shouldCreateHistory(school));
+    }
+
+    @Test
+    void shouldCreateHistory_whenSchoolCanIssueTranscriptsIsTrue() {
+        School school = new School();
+        school.setSchoolId("123");
+        school.setCanIssueTranscripts(true);
+        SchoolDetail schoolDetail = new SchoolDetail();
+        schoolDetail.setCanIssueTranscripts(true);
+        when(schoolService.getSchoolDetailByIdFromInstituteApi("123")).thenReturn(schoolDetail);
+        assertTrue(schoolEventBaseService.shouldCreateHistory(school));
+    }
+
+    @Test
+    void shouldNotCreateHistory_whenSchoolCanIssueTranscriptsIsFalse() {
+        School school = new School();
+        school.setSchoolId("123");
+        school.setCanIssueTranscripts(false);
+        SchoolDetail schoolDetail = new SchoolDetail();
+        schoolDetail.setCanIssueTranscripts(false);
+        when(schoolService.getSchoolDetailByIdFromInstituteApi("123")).thenReturn(schoolDetail);
+        assertFalse(schoolEventBaseService.shouldCreateHistory(school));
+    }
+}
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