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NJ S1801
Bill
Status
1/13/2026
Primary Sponsor
Troy Singleton
Click for details
AI Summary
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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
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Secretary of Higher Education must review the Form 990 submissions annually to identify any reportable incidents constituting private inurement (improper financial benefit to insiders)
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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
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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