It is a long and complicated/drawn out story, and don't have time right now to sit you down so here are the basics.
LPNs in NYS aren't professional nurses (RNs) so obviously the statue does not apply. Practical nurses have their own educational and licensing requirements totally separate from registered nurses.
As to the "why" this all came about, again it is a *VERY* long story. Much of it is covered here: https://www.nurse.com/blog/2017/12/20/new-york-governor-signs-bsn-in-10-into-law-for-nurses/
Long story short for >60 years (or is it 70?) since a famous (or infamous) white paper was published proposing mandating making the BSN the minimum requirement for entry into the profession there have been raging debates ever since. Hundreds if not thousands of students were told all during nursing school (ADN or diploma programs) that the BSN was soon going to be mandated so they had better make plans. It never happened; with many not only becoming fully licensed RNs but worked entire careers and now are retired (or close to it).
Only one state (North Dakota) made the BSN mandatory, and it soon backtracked. However the "nurses in white coats) as some like to call them never gave up on their goal. If they couldn't get the BSN made mandatory from the top down (via state government laws), there was another way; from the bottom up. That is convince facilities (mainly hospitals) that somehow a BSN prepared nurse brought more to the table than ADN graduates.
In 2013 Linda Aiken, RN. co-authored a study (published in 2014) showing that in many patient care areas hospitals with a higher proportion of BSN prepared nurses had better outcomes. https://www.americansentinel.edu/blog/2014/06/04/how-does-your-nursing-degree-affect-patient-mortality-rates/
That study along with some others was behind the push to get hospitals behind increasing their BSN staff. In years that followed across the country places began going with "BSN only" or "BSN preferred" for new grad hires. North Shore-LIJ system (now Northwell) was one in New York, but pretty much all downstate hospitals won't touch a ADN grad (newly licensed or experienced) under most circumstances.
As it relates to New York state the rest just came down to politics. Healthcare is one of the largest employers here (Northwell is the largest private employer in NYS), and the various unions representing nurses and healthcare workers hold considerable political clout. The rest as they say was history. Since hospitals already largely had moved to hiring BSN grads only, and the unions (such as 1199) won protections to see that their members are protected (those graduating from ADN programs given ample time to get their BSN), the state had cover it needed to enact the BSN in Ten. It gave Andrew Cuomo more to brag about that NYS is "at the forefront of progressive legislation" and leading the way in matters of healthcare and so forth.
Finally should point out the one main reason North Dakota's BSN mandate failed was the huge nationwide nursing shortages of the 1980's through a good part of 1990's.
As anyone can tell you while conditions on ground vary locally, there is *NO* shortage of professional nurses (RNs) in NYS or many other parts of the country. In fact if anything for some areas there is a surplus and places are beating back applicants with sticks. This has made it very easy for hospitals to pick and choose. While in the past due to a shortage they had to take any nurse with a license; now thanks to a glut places are free to put in place certain restrictions.
In North Dakota the state found that once their BSN mandate was put into place it made a bad situation worse. That is instead of more BSN nurses (either graduates or bridge programs), ADN or diploma nurses could easily find work in neighboring/other states; and they did.