Bill > HR2271

This bill aims to improve the process for changes of ownership and conversions in higher education institutions by modifying the existing Higher Education Act. The legislation introduces a comprehensive framework for reviewing and approving ownership changes, particularly focusing on proprietary (for-profit) institutions converting to nonprofit or public status. Key provisions include establishing a formal pretransaction review process where institutions can seek advance approval, implementing administrative fees for application processing (ranging from 0.15% to 0.30% of institutional revenue), and creating a mandatory 90-day review timeline for applications. The bill requires the Department of Education to provide detailed explanations for approvals or denials, and mandates a five-year post-conversion monitoring period for institutions that change ownership. To prevent potential self-dealing, the legislation includes provisions ensuring fair market value transactions and requiring approval by disinterested directors. Additionally, the bill requires annual reporting to Congress about the application review process and directs the Government Accountability Office to evaluate the implementation of these changes within five years. The overarching goal is to streamline ownership changes, increase transparency, prevent potential financial improprieties, and ensure that institutions transitioning between ownership structures meet rigorous standards of financial and educational integrity.

Education

https://www.congress.gov/bill/119th-congress/house-bill/2271/all-info