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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB568

Regular Session

Relating to special education in public schools, including funding for special education under the Foundation School Program.

Government Affairs & Regulatory Compliance Analysis

SB568: Government Affairs Overview

SB568 fundamentally restructures Texas special education finance by transitioning from "Instructional Arrangements" to a "Tiers of Intensity" funding model, effective for the 2026-2027 school year. While the funding formula overhaul is delayed, strict operational mandates—including a 45-day deadline for video surveillance installation, new vendor approval requirements for private placements, and immediate penalties for non-compliance—take effect September 1, 2025.

Sen. Paul Bettencourt·Senate Bill·Regular Session

Critical
High Cost
Effective:2025-09-01
Business Impact

Who SB568 Affects

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

Regulatory Priority: critical

Significant regulatory changes (effective 2025-09-01). Review with your legal and compliance teams to understand implications.

🎓

Education

Affected business types:

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

Estimated Cost Impact

highSignificant operational investment may be required.

Enforcing Agencies

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SB568
Critical
Relating to special education in public schools, including funding for special education under the Foundation School Program.
Critical Compliance Urgency
Requires immediate attention
Cost Impact
High
Effective
2025-09-01
Enforcing Agencies
HHSCTEA
Primary Author: Sen. Paul Bettencourt
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025 (Administrative, Grant, and Monitoring provisions).
  • Compliance Deadline:
  • September 1, 2025: Video surveillance clocks start; new Evaluation and CCMR allotments active; SSES grant facilitation required.
  • September 1, 2026: Mandatory switch to "Tiers of Intensity" funding formulas.
  • Agency Rulemaking: The Texas Education Agency (TEA) must define 8 "Tiers of Intensity" and at least 4 "Service Groups" prior to the 2026-2027 school year. Warning: This creates a "regulatory gray zone" in 2025 where districts must budget for 2026 without finalized definitions of the revenue tiers.

Immediate Action Plan

  • 1. Immediate Audit: Finance and Special Ed Directors must identify all students eligible for the $4,000 CCMR bonus and the $1,000 Evaluation allotment to ensure these are claimed in the 2025-2026 budget cycle.
  • 2. Vendor Notification: Send formal notice to all private placement facilities requiring them to confirm their intent to apply for the Commissioner’s "Approved List."
  • 3. Update Policies: Revise local board policies regarding video surveillance to strictly adhere to the 45-day installation mandate and data retention requirements.
  • 4. Data Shadowing: Beginning Jan 2026, run parallel data models using proposed "Tiers of Intensity" rules against your current student population to forecast the 2026-2027 fiscal cliff.

Operational Changes Required

Contracts

  • Private Placement Agreements: Review all Master Service Agreements (MSAs) with private residential or day facilities. The law now requires these facilities to be on a Commissioner-approved list to receive funds. If your vendor is not listed, the contract is voidable or non-reimbursable.
  • Transportation Vendors: Renegotiate third-party transportation contracts. The state reimbursement rate has changed to a "rate per mile + $0.13" formula. Ensure your vendor rates do not exceed this new cap.
  • Therapy Providers: Contracts with external OT, PT, and Speech providers must be amended to require data reporting that aligns with the upcoming "Service Group" definitions, rather than just hours billed.

Hiring/Training

  • ARD Committee Training: Staff must be trained to verify Parent-Directed Services (SSES) accounts during ARD meetings. If an account is unverified, staff are legally required to provide application information during the meeting.
  • Facilities & IT: Establish a "Statutory Priority" workflow for special education video camera requests. You have exactly 45 school business days from receipt of a request to operationalize the camera.
  • Finance/PEIMS Staff: Train staff to flag every "Full Individual and Initial Evaluation." The law provides a new $1,000 allotment per evaluation; failure to code this correctly results in immediate revenue loss.

Reporting & Record-Keeping

  • Video Surveillance Log: You must maintain a centralized log of all video camera requests, including date received, date approved/denied, and date operationalized, for PEIMS reporting.
  • Dyslexia Data: New PEIMS fields are required for the number of identified dyslexic students and the availability of counselors.
  • Private Provider Oversight: Districts must collect diagnostic and evaluative data from private contractors periodically; "placement and forget" is no longer compliant.

Fees & Costs

  • New Revenue Streams (Effective 9/1/2025):
  • $1,000 per Full Individual and Initial Evaluation.
  • $4,000 (increased from $2,000) per CCMR-ready special education graduate.
  • $1,500 per eligible student for Parent-Directed Services (SSES) grants.
  • Financial Liability: TEA is authorized to withhold funds from districts remaining in non-compliance with special education laws for more than one year.

Strategic Ambiguities & Considerations

The legislature has delegated the definitions that determine your future revenue to the TEA Commissioner. Watch the Texas Register for:

  • 1. "Tiers of Intensity" Definitions: The law mandates 8 tiers but does not define the criteria (e.g., student-to-teacher ratio vs. contact hours). The difference between Tier 3 and Tier 4 could represent millions in district revenue.
  • 2. "Service Groups" Weights: At least 4 groups will be established. These will likely dictate reimbursement rates for related services.
  • 3. Approved List Criteria: The specific standards private facilities must meet to remain eligible for public funds are currently undefined.

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JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Dec 12, 2024
Passed Senate
Apr 7, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsDisabilities, Persons WithEducationEducation--primary & SecondaryEducation--primary & Secondary--charter SchoolsEducation--primary & Secondary--financeEducation--primary & Secondary--specialEducation--school DistrictsLegislatureState FinancesState Finances--management & ControlAutism & Pervasive Developmental DisordersDyslexiaFoundation School ProgramBlind & Visually Impaired, Texas School For theDeaf, Texas School For theEducation Agency, TexasEducation, Commissioner ofHealth & Human Services CommissionRegional Education Service CentersVideo Cameras
03

Senate Authors

Sen. Paul BettencourtRepublican · Primary Author
Joint Authors
Coauthors (9)

House Sponsors

Rep. Brad BuckleyRepublican · Primary Sponsor
Cosponsors (1)

Bill Text(with markup)

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB568

Q

What does Texas SB568 do?

SB568 fundamentally restructures Texas special education finance by transitioning from "Instructional Arrangements" to a "Tiers of Intensity" funding model, effective for the 2026-2027 school year. While the funding formula overhaul is delayed, strict operational mandates—including a 45-day deadline for video surveillance installation, new vendor approval requirements for private placements, and immediate penalties for non-compliance—take effect September 1, 2025.

Q

Who authored SB568?

SB568 was authored by Texas Senator Paul Bettencourt during the Regular Session.

Q

When was SB568 signed into law?

SB568 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB568?

SB568 is enforced by Health and Human Services Commission (HHSC) and Texas Education Agency (TEA).

Q

How significant are the changes in SB568?

The regulatory priority for SB568 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB568?

The cost impact of SB568 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does SB568 address?

SB568 addresses topics including disabilities, persons with, education, education--primary & secondary, education--primary & secondary--charter schools and education--primary & secondary--finance.

Q

What are the key dates for SB568?

Key dates for SB568: Effective date is 2025-09-01. Rulemaking: Submit proposed weights for 'Tiers of Intensity' and funding amounts for 'Service Groups' to the Legislative Budget Board (recurring every even-numbered year). (2026-12-01); Define 8 tiers of intensity of service and at least 4 service groups for new funding formulas. (Prior to 2026-2027 School Year). Consult with legal counsel regardi

Q

What are the penalties under SB568?

SB568 establishes the following penalties: administrative penalty of Withholding of funds for School districts remaining in noncompliance with special education laws for more than one year.; administrative penalty of Variable sanctions for Failure to comply with IDEA, federal regulations, or state statutes regarding special education.. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by SB568?

SB568 primarily affects healthcare providers and medical facilities. 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