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Signed Into Law
Signed May 26, 2025Effective 2025-05-26
HB2081

Regular Session

Relating to the establishment of the Building Better Futures Program to support educational and occupational skills training opportunities and support services for students with intellectual and developmental disabilities at public and private institutions of higher education.

Government Affairs & Regulatory Compliance Analysis

HB2081: Government Affairs Overview

HB2081 immediately establishes the Building Better Futures Program (BBFP), a competitive state grant mechanism administered by the Texas Higher Education Coordinating Board (THECB) to fund postsecondary occupational training for students with intellectual and developmental disabilities (IDD). While the law targets Higher Education Institutions (HEIs), it creates immediate downstream compliance requirements for workforce partners regarding liability and supervision, and mandates that HEIs secure federal program approval within three years of receiving state funds.

Rep. John Bucy·House Bill·Regular Session

Moderate
Low Cost
Effective:2025-05-26
Business Impact

Who HB2081 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-05-26). Consider how these changes may affect your operations.

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Education

Affected business types:

  • School districts
  • Charter schools
  • Private schools
  • Education service providers
View all education legislation

Key Operational Considerations

  • 1Grant Agreements: Participating institutions must execute contracts with THECB containing claw-back provisions if federal CTP approval is not obtained within the 3-year statutory window.
  • 2Risk Assessment: Staff must be trained to document determinations regarding whether an applicant poses a "danger to self or others," a specific statutory eligibility requirement.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB2081
Relating to the establishment of the Building Better Futures Program to support educational and occupational skills training opportunities and support...
Moderate Urgency
Heavily Contested
House Vote106 - 27
YEA
NAY
80% in favor133 voting
Senate Vote30 - 1
YEA
97% in favor31 voting
28
Total Opposition Votes
Cost Impact
Low
Effective
2025-05-26
Enforcing Agencies
THECB
Primary Author: Rep. John Bucy
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: May 26, 2025
  • Compliance Deadline: Institutions must secure U.S. Department of Education "Comprehensive Transition and Postsecondary" (CTP) approval no later than the 3rd anniversary of their initial selection for the state program.
  • Agency Rulemaking: The THECB is required to adopt rules "as soon as practicable." We are currently in a regulatory gray zone; the law is effective, but the application process and specific grant criteria do not yet exist. Expect draft rules by Q3 2025.

Immediate Action Plan

  • 1. Initiate Federal Application: Do not wait for state rules. Begin the U.S. Department of Education CTP application immediately; this is a prerequisite for long-term compliance.
  • 2. Audit Liability Coverage: Review General and Professional Liability policies to ensure coverage extends to non-degree, certificate-based occupational training for students with IDD.
  • 3. Draft Safety Protocols: Legal counsel must draft the "Danger to Self/Others" assessment rubric immediately to standardize the admissions vetting process.
  • 4. Segregate Admissions Data: Create a specific workflow for handling medical diagnostic data for applicants who may not eventually enroll.

Operational Changes Required

Contracts

  • Grant Agreements: Participating institutions must execute contracts with THECB containing claw-back provisions if federal CTP approval is not obtained within the 3-year statutory window.
  • Workforce MOUs: Institutions establishing occupational internships must amend Memorandums of Understanding (MOUs) with employer partners. These contracts must explicitly define liability and supervision responsibilities for students with IDD in workplace settings.

Hiring/Training

  • Admissions Protocols: Admissions officers must be trained on a new, separate "selective admissions process" mandated by the law. This process must evaluate "ability to benefit" rather than standard GPA/SAT metrics.
  • Risk Assessment: Staff must be trained to document determinations regarding whether an applicant poses a "danger to self or others," a specific statutory eligibility requirement.

Reporting & Record-Keeping

  • Medical Data Segregation: Institutions must establish a secure repository for diagnostic documentation (physician/psychologist verification of IDD) separate from standard academic records to ensure HIPAA/FERPA compliance prior to enrollment.
  • Non-Transferability Firewall: Registrars must code BBFP courses to ensure they do not apply toward associate or baccalaureate degrees, as strictly prohibited by Sec. 61.575.

Fees & Costs

  • Program Development: Institutions must front-load the costs of curriculum design and federal CTP application preparation.
  • Funding Uncertainty: The Fiscal Note states implications "cannot be determined." Institutions should budget for the scenario where state grants supplement, rather than fully cover, program costs.

Strategic Ambiguities & Considerations

1. The "Danger" Standard: The statute requires institutions to determine that a student is "not a danger to self or others" but provides no standard for this assessment. Rulemaking must clarify if THECB will provide a standardized risk matrix. Without one, institutions face significant tort liability for their internal assessment methodologies.

2. Grant Allowability: It is unclear if grant funds can be used for capital improvements (accessibility retrofits) or are restricted solely to operational/instructional costs.

3. Residency Formulas: While non-residents may be admitted if space allows, rulemaking must define if/how non-resident enrollment impacts the calculation of grant awards.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Jan 24, 2025
Passed House
May 2, 2025
Passed Senate
May 13, 2025
Signed
May 26, 2025
Effective
May 26, 2025
TopicsDisabilities, Persons WithEducationEducation--higherEducation--higher--institutions & ProgramsEducation--higher--private SchoolsHigher Education Coordinating Board, TexasEducation--higher--admission & AttendanceState FinancesState Finances--management & ControlEducation--higher--student Financial AidLaborLabor--workforce Development
03

House Authors

Rep. John BucyDemocrat · Primary Author
Joint Authors
Coauthors (4)

Senate Sponsors

Sen. Jose MenendezDemocrat · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. John Bucy

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Related by Topic

View more Disabilities, Persons With legislation
Quick Reference

Frequently Asked Questions

Common questions about HB2081

Q

What does Texas HB2081 do?

HB2081 immediately establishes the Building Better Futures Program (BBFP), a competitive state grant mechanism administered by the Texas Higher Education Coordinating Board (THECB) to fund postsecondary occupational training for students with intellectual and developmental disabilities (IDD). While the law targets Higher Education Institutions (HEIs), it creates immediate downstream compliance requirements for workforce partners regarding liability and supervision, and mandates that HEIs secure federal program approval within three years of receiving state funds.

Q

Who authored HB2081?

HB2081 was authored by Texas Representative John Bucy during the Regular Session.

Q

When was HB2081 signed into law?

HB2081 was signed into law by Governor Greg Abbott on May 26, 2025.

Q

Which agencies enforce HB2081?

HB2081 is enforced by Texas Higher Education Coordinating Board (THECB).

Q

How significant are the changes in HB2081?

The regulatory priority for HB2081 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB2081?

The cost impact of HB2081 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB2081 address?

HB2081 addresses topics including disabilities, persons with, education, education--higher, education--higher--institutions & programs and education--higher--private schools.

Q

What are the key dates for HB2081?

Key dates for HB2081: Effective date is 2025-05-26. Rulemaking: Adopt rules to administer the Building Better Futures Program, establish the competitive application process, and define grant criteria. (As soon as practicable after 2025-05-26). Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by HB2081?

HB2081 primarily affects employers and workforce development organizations. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026