Allows non-profit national assessment providers to license data to accredited colleges, scholarship organizations and non-profit educational programs for the purpose of providing access to employment, scholarship, financial aid, and postsecondary educational opportunities.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2388
SPONSOR: Hyndman
 
TITLE OF BILL:
An act to amend the education law, in relation to allowing non-profit
national assessment providers to license data for certain purposes
 
PURPOSE:
This bill clarifies that high school students retain their right to opt
into programs provided by non-profit organizations that connect them
with higher education and scholarship organizations.
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 7 of section 2-d of the education law by
adding a new paragraph e. to permit the licensing of data at the request
of high school students by non-profit national assessment providers and
sharing that data with accredited colleges and universities, scholarship
organizations and non-profit educational programs provided such organ-
izations are required to maintain the security of such data and are
subject to strict limitations on its use and disclosure.
Section 2 sets the effective date
 
EXISTING LAW:
Under current education law provisions in section 2 D of the education
Law, as implemented by the Board of Regents in Part 121 get the cite,
there is uncertainty as whether students can opt into the college search
services provided by non-profit national assessment providers such as
The College Board or ACT.
 
JUSTIFICATION:
In 2014 a statute protecting the privacy of New York State student data
(contained in the 2014-15 state budget bill, Chapter 56 of 2014) was
adopted. While this legislation has had value in protecting student data
it may also have the profound and unintended consequence of thousands
fewer students enrolling at colleges and universities in New York. It is
therefore critical that the law be amended to clarify that students
retain the ability to affirmatively opt into college and scholarship
search services provided by non-profit organizations. Since 1972
Student Search Services has played a critical role in helping students
discover colleges they may not have considered and connects them to the
largest scholarship organizations in the country. Student Search is a
free-to-students, voluntary program that students can opt in to.
Colleges and universities across the state use programs such as Student
Search Service as an essential tool to help them recruit a full and
well-rounded diverse student body. These critical college and scholar-
ship information services are at risk of being ended as a result of the
chapter 56 of 2014 and regulations recently adopted by the Board of
Regents. Only accredited colleges, universities, non-profit scholarship
and non-profit access organizations can license the data of students who
have opted in, and must agree to strict rules protecting student priva-
cy, including: student data can only be used for non-commercial educa-
tion purposes, student information cannot be shared with third parties,
and they must agree to destroy the data once the agreement expires.
Research shows that students who opt-in to Search are 25% more likely to
enroll in a four-year college and 31% more likely to complete a BA in
four years compared to identically prepared students who do not opt-in
to Search. If New York State students are prevented from having the
opportunity to opt in and participate in Student Search - a likely
outcome given how school/district respond to the ambiguity in the
revised Regents regulations it is projected that nearly 25,000 fewer
students per graduating cohort will attend four-year colleges. 13,800
(or 56%) of these students will come from underrepresented backgrounds -
first generation, underrepresented minorities or from rural areas.
Additionally, the elimination of Student Search in New York is projected
to decrease the state's four-year college enrollment rate by 12.3
percentage points (from 53.1% to 40.8%). Fewer enrollees in four-year
colleges means fewer bachelor's degree holders in New York. Projected
BA completion rates (within five years of high school graduation) in New
York would decline by 5.2 percentage points, amounting to 10,466 fewer
New Yorkers per high school graduation cohort without BA degrees. Based
on the $400,000 "college premium" per individual over the course of a
lifetime, this decline translates into $4.2 billion in lost lifetime
earnings per cohort without Search. Given the profound impact the COVID
pandemic has had on student's ability to visit colleges, attend college
fairs and colleges and universities inability gather students or visit
high schools, now more than ever it is critical that we protect this
important opportunity for students and colleges to connect. Therefore,
we deem it necessary and appropriate to amend section 2D of the educa-
tion law to protect search and similar services provided by non-profit
college entrance assessment organizations and scholarship organizations
to ensure that we continue to expand higher education opportunities for
New York State students.
 
LEGISLATIVE HISTORY:
2021-22: A.7421
 
FISCAL IMPLICATIONS:
None to the State
 
EFFECTIVE DATE:
Immediately
STATE OF NEW YORK
________________________________________________________________________
2388
2023-2024 Regular Sessions
IN ASSEMBLY
January 26, 2023
___________
Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Education
AN ACT to amend the education law, in relation to allowing non-profit
national assessment providers to license data for certain purposes
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 7 of section 2-d of the education law is
2 amended by adding a new paragraph e to read as follows:
3 e. Nothing in this section shall limit non-profit national assessment
4 providers, based on the express opt-in consent of the student given in
5 response to clear and conspicuous notice, from licensing data solely to
6 accredited colleges, scholarship organizations and non-profit educa-
7 tional programs for the purpose of providing access to employment, scho-
8 larship, financial aid, and postsecondary educational opportunities
9 provided such organizations are required to maintain the security of
10 such data and are subject to strict limitations on its use and disclo-
11 sure.
12 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07015-01-3