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NJ S1801

Bill

Status

Introduced

1/13/2026

Primary Sponsor

Troy Singleton

Click for details

Origin

Senate

2026-2027 Regular Session

AI Summary

  • Requires proprietary (for-profit) institutions that convert to nonprofit corporations to submit their IRS Form 990 annually to the Secretary of Higher Education for five years following the conversion

  • Secretary of Higher Education must review the Form 990 submissions annually to identify any reportable incidents constituting private inurement (improper financial benefit to insiders)

  • Upon finding a reportable incident of private inurement, the Secretary of Higher Education may recommend to the Secretary of State that the institution's certificate of incorporation be revoked

  • Applies to institutions converting under New Jersey's Nonprofit Corporation Act as educational and charitable corporations

Legislative Description

Establishes process to monitor proprietary institution that converts to nonprofit corporation for transactions that constitute private inurement.

Higher Education

Last Action

Introduced in the Senate, Referred to Senate Higher Education Committee

1/13/2026

Committee Referrals

Higher Eduction1/13/2026

Full Bill Text

No bill text available