Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade
Caption
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.
A community group places 11th and 12th graders, then repays the boss with career-tech money.
The bill lets a Texas school district contract with a community-based organization to match 11th and 12th graders in career and technology programs with paid internships at private businesses. The organization can then repay those businesses for some or all of the internship cost using career-tech money the district gets from the state school funding formula, and it may act as the student's employer of record. Students must earn at least minimum wage, the district must keep enough control to make sure the program serves a school purpose, and the internship can count as a required practicum.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R SB 697 (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R SB 697 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.NEVER GOT A HEARING. Filed Jan 15, 2025 and referred to the Senate Education K-16 committee. No public hearing. The bill died.
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.
WHAT IT DOES
A community group places 11th and 12th graders, then repays the boss with career-tech money.
The bill lets a Texas school district contract with a community-based organization to match 11th and 12th graders in career and technology programs with paid internships at private businesses. The organization can then repay those businesses for some or all of the internship cost using career-tech money the district gets from the state school funding formula, and it may act as the student's employer of record. Students must earn at least minimum wage, the district must keep enough control to make sure the program serves a school purpose, and the internship can count as a required practicum.
State school-formula money for career and technology education can be passed through outside community-based organizations, which then pay private employers and may serve as the students' employer of record.
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.
Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.
Senate committee · Education K-16 · Final status: Died in committee
Subjects
Education--Primary & Secondary--Curriculum
Education--Primary & Secondary--Finance
FOUNDATION SCHOOL PROGRAM
Text
The text as introduced · 520 words
89R1928 AMF-D
By: Alvarado
S.B. No. 786
A BILL TO BE ENTITLED
AN ACT
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
private employers; and
(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
education;
(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
benefit from the contract; and
(3) ensure that each student employed under a paid
internship or similar program is paid at least the minimum wage
required by law.
(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
48.106.
(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
read as follows:
(c) At least 55 percent of the funds allocated under this
section must be used :
(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
technology education programs .
SECTION 3. This Act takes effect September 1, 2025.