They must be joking. I have been in a situation where a student was injured while running around on the playground. The parents were immediately informed. What was their response? "Call him an ambulance or something, I am busy!" In a school of just over 300 students, the only time we could get more than 20-30 parents to show up for anything is to offer food AND alcohol. (Catholic school... gotta love it.)
Also, considering that a school would already 'notify a parent when school staff notices changes to a childs mental, emotional or physical health or well-being', not to mention doubting any school that would just 'officially' change a child's name without legal authority (i.e.: a parent has to do it). Now, if a teacher chooses to use a nickname that the student offers up, that is another matter and I am not sure the demand that they not use it (if it is not lewd, suggestive, or insulting) is exactly enforceable. But, I stopped working in schools because of this very level of insanity, so what do I know about these days?
Bottom line, this is a load of rethug crap which tries to create 'backdoor' avenues for legal and civil action against things and people they don't like. That's all.