SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Privacy Protection Act''.

SEC. 2. INCREASING PARENTAL INVOLVEMENT AND PROTECTING STUDENT PRIVACY.

    Title XIV of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 8801 et seq.) is amended by adding at the end the following:

   ``Part I--Increasing Parental Involvement and Protecting Student 
                                Privacy

``SEC. 14901. INTENT.

    ``It is the purpose of this part to provide parents with notice of 
and opportunity to make informed decisions regarding commercial 
activities occurring in their children's classrooms.

``SEC. 14902. COMMERCIALIZATION POLICIES AND PRIVACY FOR STUDENTS.

    ``(a) Policy Development.--A State educational agency or local 
educational agency that receives funds under this Act shall develop a 
policy regarding in-school commercialization activities in consultation 
with parents and provide notice to parents regarding such policy and 
any changes to such policy, including locally developed exceptions 
under subsection (e).
    ``(b) Funding Prohibition.--Except as provided in subsection (c), 
no State educational agency or local educational agency that receives 
funds under this Act may--
            ``(1) disclose data or information the agency gathered from 
        a student to a person or entity that seeks disclosure of the 
        data or information for the purpose of benefiting the person or 
        entity's commercial interests; or
            ``(2) permit by contract a person or entity to gather from 
        a student, or assist a person or entity in gathering from a 
        student, data or information, if the purpose of gathering the 
        data or information is to benefit the commercial interests of 
        the person or entity.
    ``(c) Parental Consent.--
            ``(1) Disclosure.--A State educational agency or local 
        educational agency that is a recipient of funds under this Act 
        may disclose data or information under subsection (b)(1) if the 
        agency, prior to the disclosure--
                    ``(A) explains to the student's parent, in writing, 
                what data or information will be disclosed, to which 
                person or entity the data or information will be 
                disclosed, the amount of class time, if any, that will 
                be consumed by the disclosure, and how the person or 
                entity will use the data or information; and
                    ``(B) obtains the parent's written permission for 
                the disclosure.
            ``(2) Gathering.--A State educational agency or local 
        educational agency that is a recipient of funds under this Act 
        may permit by contract, or assist, the gathering of data or 
        information under subsection (b)(2) if the agency, prior to the 
        gathering--
                    ``(A) explains to the student's parent, in writing, 
                what data or information will be gathered including 
                whether any of the information is personally 
                identifiable, which person or entity will gather the 
                data or information, the amount of class time if any, 
                that will be consumed by the gathering, and how the 
                person or entity will use the data or information; and
                    ``(B) obtains the parent's written permission for 
                the gathering.
    ``(d) Definitions.--In this part:
            ``(1) Student.--The term `student' means a student under 
        the age of 18.
            ``(2) Commercial interest.--The term `commercial interest' 
        does not include the interest of a person or entity in 
        gathering data or information from a student for the purpose of 
        developing, evaluating, or providing educational products or 
        services for or to students or educational institutions, such 
        as--
                    ``(A) college and other post-secondary education 
                recruiting;
                    ``(B) book clubs and other programs providing 
                access to low cost books or other related literary 
                products;
                    ``(C) curriculum and instructional materials used 
                by elementary and secondary schools to teach if--
                            ``(i) the information is not used to sell, 
                        advertise, or develop another product; and
                            ``(ii) the curriculum and instructional 
                        materials are used in accordance with 
                        applicable Federal, State, and local policies; 
                        and
                    ``(D) the development and administration of tests 
                and assessments used by elementary and secondary 
                schools to provide cognitive, evaluative, diagnostic, 
                clinical, aptitude, or achievement information about 
                students (or to generate other statistically useful 
                data for the purpose of securing such tests and 
                assessments) and the subsequent analysis and public 
                release of aggregate data if--
                            ``(i) the information is not used to sell, 
                        advertise, or develop another product; and
                            ``(ii) the tests are conducted in 
                        accordance with applicable Federal, State, and 
                        local policies.
    ``(e) Locally Developed Exceptions.--A local educational agency, in 
consultation with parents, may develop appropriate exceptions to the 
consent requirements contained in this part.
    ``(f) Funding.--A State educational agency or local educational 
agency may use funds provided under part A of title VI to enhance 
parental involvement in areas affecting children's in-school 
privacy.''.
Output: Student Privacy Protection Act - Amends the Elementary and Secondary Education Act of 1965 (ESEA) to require State and local educational agencies (SEAs and LEAs) that receive ESEA funds to: (1) develop policies regarding in-school commercialization activities in consultation with parents; and (2) provide notice to parents regarding such policies and any changes to such policies, including locally developed exceptions.Prohibits such SEAs and LEAs, unless they have given an explanation and obtained parents' written permission, from: (1) disclosing data or information gathered from a student to persons or entities that seek such disclosure to benefit their commercial interests; or (2) assisting or permitting by contract such persons or entities in gathering such information for such purpose. Allows locally-developed exceptions to such consent requirements.Allows SEAs and LEAs to use certain ESEA funds to enhance parental involvement in areas affecting children's in-school privacy.