Bill Summary – FastDemocracy

HB 320
                       Department of Legislative Services
                              Maryland General Assembly
                                    2021 Session
                            FISCAL AND POLICY NOTE
                                  Third Reader
House Bill 320                   (Delegate Smith)
Ways and Means                              Education, Health, and Environmental Affairs
   Maryland Longitudinal Data System - Transfer of Student Data - Modifications
This bill, in general, transfers the responsibility for providing specified professional and
occupational license and industry and vocational certificate data to the Maryland
Longitudinal Data System (MLDS) Center from the Maryland Higher Education
Commission (MHEC) as an intermediary directly to the specified State licensing
authorities and specified third-party industry certifiers. The bill takes effect July 1, 2021.
                                     Fiscal Summary
State Effect: The data can likely be transferred in the manner specified by the bill using
existing resources, as explained below. Revenues are not affected.
Local Effect: None.
Small Business Effect: Minimal.
                                         Analysis
Bill Summary: The bill repeals provisions of the Career Preparation Expansion Act
(Chapters 694 and 695 of 2018), which requires MHEC to collect and provide to the
MLDS Center specified identifying information on specified business licensees and
students receiving industry and vocational certificates.
Instead, the bill requires specified State licensing authorities that issue occupational or
professional licenses under the Business Occupations and Professions Article, the Business
Regulation Article, or the Health Occupations Article to make every effort to (1) comply
with specified data requirements and the implementation schedule for MLDS as set forth
by the governing board and (2) transfer student data to MLDS in accordance with the
center’s data security and safeguarding plan.
In addition, an industry certifier that receives State funds must (1) comply with the data
requirements and implementation schedule for MLDS as set forth by the governing board
and (2) transfer student data to MLDS in accordance with the center’s data security and
safeguarding plan. An “industry certifier” is defined as a nationally recognized, third-party
entity using predetermined standards for knowledge and skills that prepare an individual
to work in a career field.
Further, the bill adds a representative of the executive directors of the health occupations
boards, appointed by the Governor with the advice and consent of the Senate, to the
governing board of the MLDS Center.
Current Law:
Maryland Longitudinal Data System Center
Chapter 190 of 2010 established MLDS to collect and maintain individual-level student
data and workforce data from all levels of education and the State’s workforce. The
legislation also established the MLDS Center within State government to serve as a central
repository for the data, to ensure compliance with federal privacy laws, to perform research
on the data sets, and to fulfill education reporting requirements and approved public
information requests. The MLDS Center is administratively housed within the Maryland
State Department of Education.
The purpose of the data system is to facilitate and enable the exchange of student data
among agencies and institutions within the State as well as generate timely and accurate
information about student achievement that can be used to improve the State’s education
system and guide decision makers at all levels. The data system allows users to effectively
organize, manage, disaggregate, and analyze individual student data and to examine
student progress and outcomes over time, including preparation for postsecondary
education and the workforce.
The MLDS Center may only use de-identified data in the analysis, research, and reporting
conducted by the center. The center may only use aggregate data in the release of data in
reports and in response to data requests.
Student data collected by MLDS includes State and national assessments; course-taking
and completion; grade point average; remediation; retention; degree, diploma, or credential
attainment; enrollment; demographic data; juvenile delinquency records; and elementary
and secondary school disciplinary records. Criminal records, children in need of assistance
HB 320/ Page 2
records, and medical and health records are specifically excluded from the types of data
that MLDS may collect.
Local school systems, community colleges, public four-year institutions of higher
education, and State agencies are required to transfer student-level and transcript-level data
as well as workforce data to MLDS.
Career Preparation and Expansion Act – Collection of Identifying Information
“Identifying information” is defined as demographic information and, if applicable,
information about students that includes (1) program sequences taken; (2) start and end
dates of enrollment; (3) program completion status; and (4) credentials earned.
MHEC must collect the following identifying information:
      from the Maryland Department of Labor (MDL) and the Maryland Department of
       Health (MDH), identifying information on each holder of a business license granted
       under specified articles of State law;
      from postsecondary educational institutions, identifying information on each
       student who has earned a vocational certificate, as specified; and
      from any nationally recognized third-party entity that uses predetermined standards
       for knowledge and skills to teach individuals, identifying information on each
       individual who holds an industry certificate awarded by the entity.
MHEC must provide MLDS with the identifying information it collects so that MLDS can
link student data and workforce data. By December 1 of each year, MLDS and the
Governor’s Workforce Development Board must report specified workforce information
to the Governor and General Assembly.
Data Security and Safeguarding Plan
The governing board of the MLDS Center must develop a data security and safeguarding
plan that includes:
      authorizing access and authentication for authorized access;
      privacy and compliance standards;
      privacy and security audits;
      breach notification and procedures; and
      data retention and disposition policies.
HB 320/ Page 3
State Expenditures: Overall, the data can likely be transferred to MLDS using existing
resources. MLDS advises that the data transferred to it under the bill can be collected and
integrated into the system using existing resources. However, minimal additional staff time
may be required to manage data collection if each of the 22 health occupations boards
reports its license information separately, as opposed to a single combined report created
by MDH. It is assumed that MDH can create a single combined report using existing
resources, as the health occupations boards report only an operational impact. MDL reports
that an automated process, whereby data is transferred on an as-needed or continuous basis,
can be implemented using existing resources.
MHEC expenditures do not decrease as its staff are fully subscribed with other duties.
Further, MHEC did not receive the additional staff or information technology resources
needed to implement Chapters 694 and 695 of 2018. MHEC advises it still needs at least
three additional staff members and significant information technology resources to
implement the requirements of Chapters 694 and 695 that are not altered by the bill.
Specifically, MHEC does not have the staff to collect student-level identifying information
for noncredit programs on a permanent basis; it has only been done on a pilot basis.
Additional Comments: The MLDS Center advises that a number of legal and procedural
issues have been identified with Chapters 694 and 695 of 2018. Under current law,
sensitive data must be transferred two times, from the State licensing authority to MHEC
and then from MHEC to the MLDS Center, which is inefficient and exposes the data to
increased risk. Second, the assistant Attorney General for MDH noted that there is no
explicit requirement to provide personally identifiable information (PII) for MLDS under
current law. Without a direct legal requirement, MDH has stated PII cannot be provided to
the center. Third, MDH also noted that current law requires the Secretary of Health to
transfer the data, even though the Secretary does not have authority over the data collected
by the 22 independent health occupations boards.
                                Additional Information
Prior Introductions: HB 850 of 2020 passed the House and was referred to the Senate
Education, Health, and Environmental Affairs Committee, but no further action was taken.
Designated Cross File: None.
Information Source(s): Maryland State Department of Education; Maryland Higher
Education Commission; Maryland Department of Health; Maryland Department of Labor;
Maryland Longitudinal Data System Center; Department of Legislative Services
HB 320/ Page 4
Fiscal Note History:   First Reader - January 19, 2021
rh/rhh                 Third Reader - February 19, 2021
Analysis by: Caroline L. Boice                    Direct Inquiries to:
                                                  (410) 946-5510
                                                  (301) 970-5510
HB 320/ Page 5
Statutes affected: 
Text - First - Maryland Longitudinal Data System - Transfer of Student Data - Modifications: 24-701 Education, 24-704 Education, 24-707 Education
Text - Third - Maryland Longitudinal Data System - Transfer of Student Data - Modifications: 24-701 Education, 24-704 Education, 24-707 Education