LIFE with AI Act

The terms elementary school, local educational agency, parent, secondary school, and State educational agency have the meanings give those terms in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).

The term artificial intelligence has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).

The term directory information has the meaning given the term in section 444 of the General Education Provisions Act (20 U.S.C. 1232g; commonly referred to as the ‘Family Educational Rights and Privacy Act of 1974’).

The term educational agency or institution has the meaning given that term in section 444 of the General Education Provisions Act (20 U.S.C. 1232g; commonly referred to as the ‘Family Educational Rights and Privacy Act of 1974’).

The term educational technology means physical or virtual products or services that support or facilitate learning and improve educational performance, but does not include curriculum.

The term eligible student means a student who has attained 18 years of age, or is attending an institution of postsecondary education.

The term instant verification technology means a system or software application, or a network of systems and software, that—

(A) provide real-time notifications to parents of students or to eligible students, as applicable, regarding activities that require the consent of such parents or eligible students, including in the use of educational technology during enrollment;

(B) enable parents or eligible students, as applicable, to provide or withhold such consent in real-time in an easy-to-use interface accessible on multiple devices, including smartphones, tablets, and computers; and

(C) incorporate features for recording parental or eligible student consent or opt-outs while handling student and parental data in a secure and privacy-protective manner.

The term personalized learning means an educational approach that tailors instruction, content, pacing, and learning environments to the individual needs, abilities, and interests of each student, usually using specific technology, including artificial intelligence and adaptive learning systems, to provide such customized educational experiences.

The term Secretary means the Secretary of Education, or such cabinet-level official as may be designated by law to carry out the functions vested in the Secretary of Education as of the date of enactment of this Act.

In this section, the term eligible recipient means any of the following entities to which the requirements of section 444 of the General Education Provisions Act (20 U.S.C. 1232g; commonly referred to as the ‘Family Educational Rights and Privacy Act of 1974’) applies:

(1) An elementary school.

(2) A secondary school.

(3) A local educational agency.

Not later than 180 days after the date of enactment of this Act, the Secretary shall finalize the process and requirements for the award of a certification, to be known as the Golden Seal of Excellence in Student Data Privacy (referred to in this section as the Seal) to recognize eligible recipients that implement exemplary parental notification systems that—

(i) use instant verification technology for consent gathering and validation; and

(ii) are purchased through funds already available to eligible recipients.

The Secretary shall establish the process and requirements for the award of the Seal in accordance with this section and in consultation with States and local educational agencies, including by consulting about the appropriate use of opt-outs and minimizing instructional burdens on schools.

The Seal shall serve as a mark of distinction, indicating that the awardee has met the highest standards of student data privacy through proactive parental and eligible student engagement and consent management.

An eligible recipient shall be qualified to receive the Seal if the eligible recipient has—

(A) not been found guilty of a violation of the requirements of section 444 of the General Education Provisions Act (20 U.S.C. 1232g; commonly referred to as the Family Educational Rights and Privacy Act of 1974) in the previous 5 years;

(B) implemented and maintained an instant verification technology system for not less than 1 academic year that—

(i) provides parental notifications and eligible student notifications, as applicable, on a case-by-case basis and where appropriate, regarding the intent of the eligible recipient to use specific educational technology in the classroom;

(ii) includes information about the purpose of using the specified educational technology, the data collection practices of that educational technology, and the alternative options for students upon parental or eligible student opt-out;

(iii) is able to collect parental and eligible student consent, as applicable, throughout the academic year; and

(iv) offers an accessible, user-friendly mechanism for parents or eligible students, as applicable, to opt-out of the release of some or all of a student's directory information; and

(C) in the event that a given consent request receives a majority of denials from parents and eligible students in a given circumstance, a process established by the eligible recipient for convening a meeting with parents and eligible students to discuss their concerns and reservations about the educational technology in question.

A State educational agency may elect to participate in the program under this section and award the Seal to qualified eligible recipients in accordance with paragraph (2).

State educational agencies that participate in the program under this section (referred to in this section as participating State educational agencies) shall establish and use the process described in paragraph (2), by which eligible recipients may apply, including by submitting documentation demonstrating compliance with the qualification criteria under subsection (b)(2).

Eligible recipients seeking the Seal shall submit an application to the participating State educational agency of their respective State, including—

(i) a description of the instant verification technology system implemented;

(ii) evidence of parental and eligible student engagement and consent collection practices, such as sample notifications, consent forms, and appropriate opt-out mechanisms; and

(iii) any additional information as may be required by the participating State educational agency to assess compliance with the qualification criteria under subsection (b)(2).

Each participating State educational agency shall review each application on a rolling basis and award the Seal to eligible recipients that meet or exceed such qualification criteria.

The Seal shall expire after 5 years, unless a recipient submits and meets or surpasses the qualifications described under subsection (b)(2) again in the 5th year of holding the Seal, at which point the Seal remains valid for another 5 years.

Each participating State educational agency shall maintain a public record of all eligible recipients in the State that have been awarded the Seal.

Each participating State educational agency shall submit an annual report by the end of the State educational agency's fiscal year to the Secretary providing the number of eligible recipients that have received the Seal during the preceding fiscal year.

Each State educational agency that desires to participate in the program under this section shall establish the application process and begin receiving applications for awarding the Seal not later than 12 months after the Secretary finalizes the process and requirements for the Seal.

Section 444(a)(5) of the General Education Provisions Act (20 U.S.C. 1232g(a)(5); commonly referred to as the ‘Family Educational Rights and Privacy Act of 1974’) is amended by striking subparagraph (B) and inserting the following:

(B) No funds shall be made available under any applicable program to any educational agency or institution that makes public directory information or allows access to directory information, unless such agency or institution meets each of the following requirements:

(i) Provides legible, accessible public notice, including notice online on the agency or institution’s website, of—

(I) the categories of information that it has designated as directory information with respect to each student attending the institution or agency;

(II) the rights of parents to opt-out of allowing the release of some or all of the student's directory information; and

(III) the form necessary for such opt-out, which shall be easily legible and not take longer than 5 minutes for the average adult to complete.

(ii) Allow a reasonable period after such notice has been given for a parent to complete the form described in clause (i)(III).

(iii) Ensure that the opt-out form described in clause (i)(III) shall be accessible year-round and available on multiple digital devices, including mobile phones.

The amendment made by subsection (a) shall take effect 1 year after the date of enactment of this Act.

Section 444 of the General Education Provisions Act (20 U.S.C. 1232g; commonly referred to as the Family Educational Rights and Privacy Act of 1974) is amended by adding at the end the following:

No funds shall be made available under any applicable program to any educational agency or institution unless such agency or institution prohibits—

(1) the use of student photographs for training facial recognition systems, including those using artificial intelligence, without prior parental consent; and

(2) doing business with a company that offers yearbook production services and uses facial recognition technology in the provision of such services, unless that company discloses such use and obtains parental consent for the use of facial recognition technology.

No funds shall be made available under any applicable program to any educational agency or institution unless such agency or institution prohibits doing business with a company that offers yearbook production services that sells data collected during the creation or processing of a yearbook.

The amendment made by subsection (a) shall take effect 1 year after the date of enactment of this Act.

Paragraph (4) of section 444(a) of the General Education Provisions Act (20 U.S.C. 1232g(a)(4)(A); commonly referred to as the Family Educational Rights and Privacy Act of 1974) is amended to read as follows:

(A) For purposes of this section, the term education records means, except as may be provided otherwise in subparagraph (B), any data or materials which—

(i) contain information related to a student, including data related to academic performance, attendance, health, and discipline; and

(ii) are maintained by an educational agency or institution or by an entity acting for or in coordination with such agency or institution.

The amendment made by subsection (a) shall take effect 1 year after the date of enactment of this Act.

Section 444 of the General Education Provisions Act (20 U.S.C. 1232g; commonly referred to as the ‘Family Educational Rights and Privacy Act of 1974’) as amended by sections 4, 5, and 6, is further amended by adding at the end the following:

In this subsection, the term covered contract means the privacy policy of any contract or agreement—

(A) between an educational agency or institution and a third party; and

(B) that pertains to educational technology (as defined in section 2 of the Learning Innovation and Family Empowerment with AI Act) that involves education records, or personally identifiable information contained therein, including directory information.

No funds shall be made available under any applicable program to any educational agency or institution unless such agency or institution—

(A) makes publicly available, for a period of not less than 2 weeks prior to execution, each covered contract that the agency or institution is considering executing;

(B) as part of each covered contract, requires the third party to certify that the third party will ensure student data privacy and comply with all applicable privacy laws regarding student data, including the consent requirements that apply to education records; and

(C) as part of each covered contract, requires the third party to agree that the third party—

(i) may be reported to the Secretary if an educational agency or institution, or a student, alleges that the third party is not in compliance with the requirements described in subparagraph (B);

(ii) may be investigated by the Secretary to ascertain the veracity of such claim by an educational agency or institution or student; and

(iii) if the Secretary determines, after such an investigation, that such third party is not in compliance with the requirements described in subparagraph (B), will be included on a publicly available list created by the Secretary of third parties that are not in compliance with such requirements for a period of 5 years after the determination by the Secretary, as described in section 7(c) of the Learning Innovation and Family Empowerment with AI Act.

Nothing in this subsection shall be construed to require that trade secrets or proprietary information of third parties be made public.

The Secretary shall create a model student data privacy agreement for use by an educational agency or institution as part of a covered contract (as defined in section 444(m) of the General Education Provisions Act (20 U.S.C. 1232g(m)); commonly referred to as the ‘Family Educational Rights and Privacy Act of 1974’), as added by subsection (a). The model shall promote clarity and consistency in student data privacy protections as part of covered contracts.

The Secretary and the Privacy Technical Assistance Center described in section 8 shall partner with educational agencies and institutions, education technology companies, parents, and relevant third parties to develop such a model agreement and may consider the Student Data Privacy Consortium’s National Data Privacy Agreement in developing such model.

Not later than 2 years after the date of enactment of this Act, the Secretary shall develop and maintain a publicly accessible, machine-readable online resource listing third parties that—

(A) have executed a covered contract (as defined in subsection (m) of section 444 of the General Education Provisions Act (20 U.S.C. 1232g(m)); commonly referred to as the ‘Family Educational Rights and Privacy Act of 1974’), as added by subsection (a); and

(B) the Secretary has determined, in accordance with paragraph (2)(C) of such subsection, are in violation of the requirements described in paragraph (2)(B) of such subsection, regarding student data privacy in covered contracts.

The Secretary shall establish a process whereby third parties that are included in the list described in paragraph (1) may appeal such listing.

The Secretary shall issue a determination about an appeal not later than 6 months after an appeal has been submitted to the Secretary.

After a determination of an appeal under subparagraph (B), a third party shall not have another opportunity to appeal a determination under this subsection, unless there was a change in a Presidential administration between the date on which the third party submitted the initial request to appeal under this paragraph and the date on which such appeal determination under subparagraph (B) was made.

Subject to paragraph (2), a third party shall remain on the list described in paragraph (1) for a period of 5 years after the date on which the third party was placed on that list, unless the violation is remediated in accordance with subparagraph (B).

A third party shall be removed from the list described in paragraph (1) when the Secretary determines that the third party is no longer in violation of the requirements of subsection (m) of section 444 of the General Education Provisions Act (20 U.S.C. 1232g(m), commonly referred to as the Family Educational Rights and Privacy Act of 1974), as added by section 7. The third party shall be removed from the list not later than 1 week after the date of such a determination.

The amendment made by subsection (a) shall take effect 1 year after the date of enactment of this Act.

Not later than 6 months after the date of enactment of this Act, the Secretary shall establish and maintain a privacy technical assistance center (referred to in this section as the Center), to build the capacity of educational agencies and institutions, State educational agencies, and other entities, including education technology providers, to protect the privacy of students, families, educators, and other school professionals.

The Center shall help such agencies, institutions, and other entities understand and satisfy their responsibilities under Federal privacy laws, including section 444 of the General Education Provisions Act (20 U.S.C. 1232g, commonly referred to as the Family Educational Rights and Privacy Act of 1974) and section 445 of such Act (20 U.S.C. 1232h; commonly referred to as the Protection of Pupil Rights Amendment), and other Federal privacy laws applicable to education records and other confidential data, which are collectively referred to in this section as covered requirements.

In carrying out the purpose described in subsection (a), the Center may approve 1 or more voluntary safe harbor programs that meet the criteria described in paragraph (2) (referred to in this section as an approved program) that are operated by an independent organization. Such approved programs may provide safe harbor benefits described in paragraph (4) for providers of educational technology that elect to participate in an approved program for the purpose of ensuring compliance with this Act and the covered requirements.

To be an approved program, an organization shall—

(A) provide standards and controls that are at least as protective of student privacy, parental rights, and data security as the covered requirements;

(B) include mechanisms for initial certification, ongoing monitoring, and periodic independent assessments of participants;

(C) require timely consumer- and school-facing remedies, including clear notice, accessible consent and opt-out pathways, and data minimization, retention, and security practices;

(D) establish a process to receive, investigate, and resolve complaints from parents, eligible students, schools, and State educational agencies; and

(E) provide for meaningful disciplinary measures, including suspension or termination from the approved program, for material noncompliance.

An operator of a prospective approved program shall submit to the Center an application describing how the program satisfies the requirements described in paragraph (2).

The Center shall approve or deny such an application not later than 180 days after receipt of the application.

The Center shall publish approval criteria and approval decisions relating to approved programs and prospective approved programs on a public website.

The Center may condition approval of a prospective approved program on modifications necessary to establish that participating providers of educational technology ensure parity with, or greater protection than, the covered requirements.

Subject to paragraph (6), a provider of educational technology that is a participant in good standing in an approved program and in material compliance with that program’s requirements shall be presumed to satisfy the covered requirements with respect to the practices subject to that approved program, unless the Center determines, after notice and an opportunity to respond, that the approved program or participating provider of educational technology is materially deficient.

The Center may revoke or suspend an approved program’s approval upon a finding, after notice and opportunity to respond, that the program no longer satisfies the requirements of paragraph (2). Revocation or suspension shall be prospective and shall include reasonable wind-down provisions for participants. The Center shall provide written notice to the approved program not less than 30 days before revoking or suspending an approved program.

Participation by a provider of educational technology in an approved program shall not preclude the Secretary from enforcing this Act or the covered requirements. Participation and material compliance with an approved program shall be an affirmative defense to alleged violations of the covered requirements with respect to the practices subject to that approved program.

Nothing in this subsection shall be construed to create a private right of action.

The Secretary, in coordination with the Institute of Education Sciences, shall develop resources and training guides for elementary school and secondary school teachers on integrating artificial intelligence technologies into instruction, including methods of use that protect student data privacy.

Clause (i) of section 2103(b)(3)(E) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6613 (b)(3)(E)) is amended to read as follows:

(i) effectively integrate existing and emerging technology into curricula and instruction (including education about how to use artificial intelligence to enhance personalized learning, in addition to the harms of copyright piracy and improper student use of artificial intelligence);

Not later than 180 days after the date of enactment of this Act, in carrying out the activities of the Small Business Innovation Research Program (as defined in section 9(e) of the Small Business Act (15 U.S.C. 6389(e))), referred to in this section as the SBIR program, the Secretary shall prioritize educational artificial intelligence research and development to foster innovation in personalized learning technologies, in accordance with subsection (b).

Not later than 180 days after the date of enactment of this Act, in awarding grants, contracts, or cooperative agreements under the SBIR program, the Secretary shall give priority to proposals that—

(1) seek to incorporate artificial intelligence into education without reducing or inhibiting students’ critical thinking skills; and

(2) meet 2 or more of the following criteria:

(A) Projects that demonstrate the potential to significantly enhance personalized learning experiences by adapting to individual student needs, improving student achievement, and addressing learning gaps.

(B) Projects that aim to make artificial intelligence technologies accessible to all students, including students with special education needs.

(C) Projects that incorporate cutting-edge computational techniques to create innovative tutoring solutions.

(D) Projects that demonstrate a clear strategy for integrating artificial intelligence into classroom settings for efficiency and personalized learning, including training resources for teachers and administrators and compatibility with existing educational tools and curricula.