NJ A5990

Prohibits New Jersey higher education institutions from providing incentive compensation or tuition sharing to online program management companies (OPMs), except for recruiting international students

Requires all OPM contracts to be submitted to the Secretary of Higher Education within 20 days of execution and approved by the institution's governing board

Bans contract provisions that allow OPMs to control curriculum development, hire instructors, set admission standards, determine enrollment targets, or use institutional branding without clear third-party disclosure

Mandates annual reporting by OPMs detailing expenditures on marketing, admissions, instruction, and student support, with institutions required to submit demographic data, financial aid information, and contract details to the Secretary

Establishes civil penalties of $10,000 per violation or the maximum incentive compensation amount under the contract, whichever is greater, with existing contracts required to comply by fall 2027 or contract expiration