PRIVACY RIGHTS.

SEC. 249. PRIVACY RIGHTS. Section 444 of the Act (as redesignated by section 212(b)(1)) (20 U.S.C. 1232g) is amended— (1) in subsection (a)— (A) in paragraph (1)— (i) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively; (ii) by inserting after subparagraph (A) the following new subparagraph: “(B) No funds under any applicable program shall be made available to any State educational agency (whether or not that agency is an educational agency or institution under this section) that has a policy of denying, or effec-108 STAT. 3925tively prevents, the parents of students the right to inspect and review the education records maintained by the State educational agency on their children who are or have been in attendance at any school of an educational agency or institution that is subject to the provisions of this section.”; (iii) in clause (iii) of subparagraph (C) (as redesignated by clause (i)), by striking “(C)” and inserting “(D)”; and (iv) in subparagraph (D) (as redesignated by clause (i)), by striking “(B)” and inserting “(C)”, and (B) in paragraph (2), by striking “or other rights” and inserting “rights”; (2) in subsection (b)— (A) in paragraph (1)— (i) in subparagraph (A), by inserting “, including the educational interests of the child for whom consent would otherwise be required” before the semicolon; (ii) by amending subparagraph (E) to read as follows: “(E) State and local officials or authorities to whom such information is specifically allowed to be reported or disclosed pursuant to State statute adopted— “(i) before November 19, 1974, if the allowed reporting or disclosure concerns the juvenile justice system and such system’s ability to effectively serve the student whose records are released, or “(ii) after November 19, 1974, if— “(I) the allowed reporting or disclosure concerns the juvenile justice system and such system’s ability to effectively serve, prior to adjudication, the student whose records are released; and “(II) the officials and authorities to whom such information is disclosed certify in writing to the educational agency or institution that the information will not be disclosed to any other party except as provided under State law without the prior written consent of the parent of the student.”; (iii) in subparagraph (H), by striking “and” after the semicolon; (iv) in subparagraph (I), by striking the period and inserting “; and”; and (v) by adding at the end the following new subparagraph: (J) (i) the entity or persons designated in a Federal Sand jury subpoena, in which case the court shall order, r good cause shown, the educational agency or institution (and any officer, director, employee, agent, or attorney for such agency or institution) on which the subpoena is served, to not disclose to any person the existence or contents of the subpoena or any information furnished to the grand jury in response to the subpoena; and “(ii) the entity or persons designated in any other subpoena issued for a law enforcement purpose, in which case the court or other issuing agency may order, for good cause shown, the educational agency or institution (and any officer, director, employee, agent, or attorney for such agency or institution) on which the subpoena is served,108 STAT. 3926 to not disclose to any person the existence or contents of the subpoena or any information furnished in response to the subpoena.”; (B) in paragraph (2)— (i) in the matter preceding subparagraph (A), by striking the period and inserting “, unless—”; and (ii) in subparagraph (B), by inserting “except as provided in paragraph (1)(J),” before “such information”; and (C) in subparagraph (B) of paragraph (4), by adding at the end the following new sentence: “If a third party outside the educational agency or institution permits access to information in violation of paragraph (2)(A), or fails to destroy information in violation of paragraph (1)(F), the educational agency or institution shall be prohibited from permitting access to information from education records to that third party for a period of not less than five years.”; (3) in subsection (c), by striking “The Secretary shall adopt appropriate regulations to” and inserting “Not later than 240 days after the date of enactment of the Improving America’s Schools Act of 1994, the Secretary shall adopt appropriate regulations or procedures, or identify existing regulations or procedures, which”; (4) in subsection (e), by inserting “effectively” before “informs”; and (5) by adding at the end the following new subsection: “(h) Nothing in this section shall prohibit an educational agency or institution from— “(1) including appropriate information in the education record of any student concerning disciplinary action taken against such student for conduct that posed a significant risk to the safety or well-being of that student, other students, or other members of the school community; or “(2) disclosing such information to teachers and school officials, including teachers and school officials in other schools, who have legitimate educational interests in the behavior of the student.”.