Modifies guidelines for student participation in athletic contests organized by sex

HB 2565 requires schools and colleges to restrict athletic competition to students competing in the category matching their biological sex as recorded on their official birth certificate (or another government record if the birth certificate is unavailable). It directly affects K-12 and postsecondary students, schools, and athletic programs by prohibiting participation in sports designated for the opposite biological sex, except when no comparable competition exists for the student's sex. The bill includes penalties for non-compliance (loss of state aid) and allows affected students or parents to seek legal remedies. It expires on August 28, 2027, and defines "sex" based on reproductive biology and genome at birth.