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NJ A2138

Bill

Status

Introduced

1/13/2026

Primary Sponsor

Linda Carter

Click for details

Origin

General Assembly

2026-2027 Regular Session

AI Summary

  • Prohibits New Jersey higher education institutions from providing incentive compensation, including tuition sharing, to online program management (OPM) companies, 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 institutional governing boards
  • Bans contract provisions that allow OPMs to set admission standards, determine enrollment targets, hire instructors, share in institutional governance, or use institutional email addresses and branding without clear third-party disclosure
  • Mandates annual reporting by OPMs and institutions detailing expenditures, student demographics, State financial aid recipients, and federal loan/Pell Grant data, with reports published on the Secretary's website
  • Imposes 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

Legislative Description

Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.

Higher Education

Last Action

Introduced, Referred to Assembly Higher Education Committee

1/13/2026

Committee Referrals

Higher Education1/13/2026

Full Bill Text

No bill text available