Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Immediate effect).
Compliance Deadline:August 1, 2025. Businesses intending to participate in the upcoming school year must finalize partnerships and insurance reviews prior to the start of the semester.
Agency Rulemaking: The Texas Education Agency (TEA) and Texas Higher Education Coordinating Board (THECB) must adopt administration rules immediately to facilitate the 2025-2026 launch. Expect a "regulatory gray zone" regarding specific credential definitions through late 2025.
Immediate Action Plan
1.Audit Insurance Policies: Contact your broker immediately to confirm coverage for minors in high-risk environments (construction/industrial sites).
2.Draft the MOU: Have legal counsel draft a template MOU for school districts that prioritizes your site safety protocols and liability protection.
3.Identify Supervisors: Select senior staff capable of supervising minors and verify their credentials against THECB standards.
4.Review Safety Protocols: Update safety manuals to specifically address "student learners" and federal child labor restrictions on hazardous equipment.
Operational Changes Required
Contracts
Memorandum of Understanding (MOU): You must execute a specific MOU with the partnering School District/Institution of Higher Education. Do not rely on standard vendor contracts.
Indemnification Clauses: Your legal counsel must insert language requiring the School District to indemnify your business for student negligence.
Termination Rights: Contracts must explicitly allow for the immediate removal of a student from the worksite for safety violations without academic due process delays.
Hiring/Training
Supervision: You must designate and train staff to supervise minors. These supervisors may need to meet specific credentialing standards defined by the THECB if acting as instructors.
Safety Training: Students must complete site-specific safety training (e.g., OSHA 10/30 equivalent) *before* handling equipment. This training must be documented internally.
Reporting & Record-Keeping
Hours Logs: You are required to track student hours precisely, as these metrics determine school funding (ADA) and student credit completion.
Competency Evaluations: Supervisors must complete academic evaluation forms verifying the student has mastered specific technical skills.
Fees & Costs
Insurance Premiums: Expect potential increases in General Liability and Workers' Compensation premiums. You must verify coverage for unpaid minors or "student learners" on premises.
Operational Costs: Costs are internal (staff time for supervision, PPE for students); there are no new statutory fees levied by the state.
Strategic Ambiguities & Considerations
The following statutory terms are vague and will be defined by agency rulemaking. Monitor the Texas Register for:
1."Credential of Value": The THECB will determine which industry certifications count. If your industry's standard certification is not on the approved list, students cannot earn credit at your facility.
2."Substantially Covers": The Commissioner of Education will decide if a technical course substitutes for a core curriculum class (e.g., Math/Science). There is a risk that the "substituted" curriculum may not meet the academic rigor required for your specific workforce needs.
3."Successful Job Placement Rate": The statute requires programs to meet this metric but fails to define the percentage threshold or the timeframe for measurement.
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Nationally, the available workforce of skilled workers is not meeting the market's demands, and the Associated Builders and Contractors trade association estimated in early 2024 that over half a million new workers would be needed in addition to the usual pace of hiring for 2024 and over 400,000 new workers would be needed in 2025 to meet labor demands. The association's chief economist noted that this is due in part to outsized retirement levels and too few younger workers entering a skilled trade. The author informed the committee that Texas high school students who do not have the opportunity to achieve the certification necessary to start working in a trade upon high school graduation may need to attend another institution post-graduation to finish their training to enter the skilled workforce. C.S.H.B. 20 seeks to address this issue by creating the Applied Sciences Pathway Program, which authorizes partnerships between public schools and institutions of higher education to allow students to concurrently earn credits towards high school graduation and a certification program with a successful job placement in certain industries.
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 rulemaking authority is expressly granted to the commissioner of education in SECTION 1 of this bill.
ANALYSIS
C.S.H.B. 20 amends the Education Code to require the commissioner of education to establish and administer the Applied Sciences Pathway Program to provide opportunities for students to concurrently earn high school diplomas and certificates from institutions of higher education. The bill requires the commissioner to approve for participation in the program partnerships between public school districts or open-enrollment charter schools and institutions of higher education to provide courses in a non-duplicative sequence of progressive achievement that lead to a high school diploma and completion of a certificate program with a successful job placement rate in high-wage, high-growth jobs in one of the following industries:
·plumbing and pipe fitting;
·electrical;
·welding;
·sheet metal;
·carpentry;
·masonry;
·diesel and heavy equipment;
·aviation maintenance;
·heating, ventilation, and air conditioning;
·construction management and inspection;
·mechanical and aerospace engineering;
·industrial maintenance and processes;
·robotics and automation;
·information technology and cybersecurity;
·oil and gas exploration and production;
·refining and chemical processes;
·transportation distribution and logistics;
·manufacturing and industrial technology;
·electronics technology; or
·automotive technology.
The bill authorizes the commissioner, beginning with the 2027-2028 school year, to revise those approved industries once every five years to reflect current labor market trends.
C.S.H.B. 20 requires a partnership participating in the Applied Sciences Pathways Program to do the following:
·enable the district or charter school to provide at least one course of study described by the bill's provisions through a partnership with an institution of higher education;
·provide for such a course of study that enables a participating student in grade level 11 or 12 to concurrently:
oenroll in a certificate program described by the bill's provisions at the partnering institution of higher education under which the student may receive instruction from an instructor employed by the institution and any appropriate work-based learning opportunities from the institution and earn a level one or level two certificate, as defined by the commissioner, or another certificate approved by commissioner rule; and
osatisfy high school graduation requirements and receive a high school diploma;
·require the partnering district or charter school to permit all district or school students in grade level 11 or 12 to enroll in such a course of study;
·be governed by an articulation agreement between the partnering district or charter school and institution of higher education; and
·meet any other requirements established by commissioner rule.
C.S.H.B. 20 authorizes the commissioner to approve the substitution of a credit in a subject area required for high school graduation with a credit in a career and technology education course provided by an institution of higher education under the Applied Sciences Pathway Program that substantially covers the essential knowledge and skills of the course for which it is substituted. The bill establishes that this authorization may not be construed to limit the number of substituted credits a student may earn while participating in the program. The bill prohibits a course authorized as a substitute credit from counting for more than one credit toward the student's high school graduation requirements or as a credit for more than one subject area.
C.S.H.B. 20 establishes that the time a student spends participating in the Applied Sciences Pathway Program is counted as part of the minimum number of instructional hours required for a student to be considered a full-time student in average daily attendance. The bill establishes that its provisions may not be construed to do the following:
·prevent a student's participation in career and technology education or dual credit courses before the student begins participating in the program; or
·authorize the commissioner to require commissioner approval for partnerships between districts or charter schools and institutions of higher education for purposes other than the program, including partnerships to provide dual credit courses.
C.S.H.B. 20 requires the commissioner to adopt rules as necessary to administer the program. The bill applies beginning with the 2025-2026 school year.
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. 20 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.
Both the introduced and substitute set out the approved industries in which a student may complete a certificate program with a successful job placement rate under the Applied Sciences Pathway Program. However, the substitute includes the following among the approved industries, none of which were included in the introduced:
·mechanical and aerospace engineering;
·industrial maintenance and processes;
·robotics and automation;
·information technology and cybersecurity;
·oil and gas exploration and production;
·refining and chemical processes;
·transportation distribution and logistics;
·manufacturing and industrial technology;
·electronics technology; and
·automotive technology.
The substitute includes an authorization for the commissioner to revise the industries approved for purposes of the Applied Sciences Pathway program once every five years to reflect current labor market trends, which did not appear in the introduced.
The substitute omits the requirement for a course of study provided under the program to be provided at no cost to the student, which was present in the introduced.
The introduced authorized the commissioner to approve the substitution of one credit in a subject area required for high school graduation with one credit in a qualifying career and technology education course provided under the program, whereas the substitute authorizes the commissioner to approve the substitution of a credit in such a subject area with a credit in such a course. The substitute includes a provision absent from the introduced establishing that the bill's provisions providing for such a substitution may not be construed to limit the number of substituted credits a student may earn while participating in the program.
Both the introduced and the substitute establish that the bill's provisions may not be construed to prevent a student's participation in career and technology education courses before the student begins participating in the program. However, the substitute includes provisions absent from the introduced additionally establishing that the bill's provisions may not be construed to prevent a student's participation in dual credit courses before the student begins participating in the program or to authorize the commissioner to require commissioner approval for partnerships between districts or charter schools and institutions of higher education for purposes other than the program, including partnerships to provide dual credit courses.
Honorable Brad Buckley, Chair, House Committee on Public Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB20 by Gates (Relating to establishing the Applied Sciences Pathway program.), As Introduced
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
School districts and institutions of higher education that do not already have Applied Science programs would have startup and training costs to establish the required educational programs and partnerships.
Source Agencies: b > td >
701 Texas Education Agency, 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
LBB Staff: b > td >
JMc, FV, ASA, SL
Related Legislation
Explore more bills from this author and on related topics
HB20 establishes the Applied Sciences Pathway program, creating a direct pipeline for high school students to perform work-based learning in 20 specific technical trades (Construction, Energy, Tech, Transportation) beginning in the 2025-2026 school year. While this addresses workforce shortages, it imposes immediate liability, supervision, and insurance obligations on businesses accepting student learners on their job sites. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect).
Q
Who authored HB20?
HB20 was authored by Texas Representative Gary Gates during the Regular Session.
Q
When was HB20 signed into law?
HB20 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB20?
HB20 is enforced by Texas Education Agency (TEA) and Texas Higher Education Coordinating Board (THECB).
Q
How urgent is compliance with HB20?
The compliance urgency for HB20 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB20?
The cost impact of HB20 is estimated as "medium". This may vary based on industry and implementation requirements.
Q
What topics does HB20 address?
HB20 addresses topics including education, education--higher, education--higher--general, education--nonpublic schools and education--nonpublic schools--vocational/avocational.
Legislative data provided by LegiScanLast updated: November 25, 2025
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