SB 786

relating to authorizing school districts to provide funding using
money received under the Foundation School Program to
community-based organizations for purposes of reimbursing private
employers for paid internships provided to certain students in
career and technology education programs in the district.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter F, Chapter 29, Education Code, is
amended by adding Section 29.189 to read as follows:
Sec. 29.189.  CONTRACT TO REIMBURSE FOR PAID INTERNSHIP.
(a)  In this section, "community-based organization" has the
meaning assigned by Section 303.001, Labor Code.
(b)  To encourage private employers to participate with
school districts in providing career and technology education to
assist students in developing the knowledge, skills, and
competencies necessary for a broad range of career opportunities,
the board of trustees of a school district may contract with a
community-based organization to:
(1)  match students in grade 11 or 12 who are
participating in a career and technology education program in the
district with paid internships or similar programs provided by
(2)  reimburse private employers for all or part of the
cost of providing paid internships or similar programs to students
described by Subdivision (1) using funds provided to the
community-based organization by the district.
(c)  A contract described by Subsection (b) must:
(1)  require each paid internship or similar program
provided to the school district's students to primarily promote a
public purpose of the district relating to career and technology
(2)  include provisions under which the school district
is granted sufficient control to ensure that the public purpose
under Subdivision (1) is accomplished and the district receives a
(3)  ensure that each student employed under a paid
internship or similar program is paid at least the minimum wage
(d)  In providing funds to a community-based organization
for the purposes of reimbursing a private employer under a contract
under Subsection (b), the school district may use funds allocated
to the district for career and technology education under Section
(e)  A community-based organization with which a school
district contracts under Subsection (b) may serve as the employer
of record for a student employed under a paid internship or similar
program provided under a contract described by Subsection (b).
(f)  Completion of a paid internship or similar program
provided under a contract described by Subsection (b) may satisfy a
requirement to complete a practicum as part of a school district's
career and technology education program.
SECTION 2.  Section 48.106(c), Education Code, is amended to
(c)  At least 55 percent of the funds allocated under this
(1)  in providing career and technology education
programs in grades 7 through 12; or
(2)  in providing funding to a community-based
organization under a contract entered into under Section 29.189 for
purposes of reimbursing private employers for providing paid
internships or similar programs to students in career and
SECTION 3.  This Act takes effect September 1, 2025.