Bill · H.R. 2271· House(119-HR-2271)
Change of Ownership and Conversion Improvement Act
- Introduced
- 3/21/2025
- Last activity
- 3/21/2025 — Referred to the House Committee on Education and Workforce.
- Sponsored by
- Burgess Owens
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The Change of Ownership and Conversion Improvement Act aims to update how the Department of Education handles changes in ownership for higher education institutions. It introduces a "pretransaction review" process to help institutions prepare for changes in control or conversion to nonprofit status. The bill establishes administrative fees paid by institutions to fund more thorough reviews and post-transaction monitoring. It also sets a 90-day deadline for the Secretary of Education to approve or deny applications to prevent long delays. Additionally, the act mandates stricter monitoring for institutions that convert from proprietary to nonprofit status.
Yes· 3 of 6
Does this protect the right to fair treatment by the courts?+5
Establishes clear timelines and requirements for institutional applications.
Does this make what the government does easier for the public to see?+4
Requires publishing reasoning for approval or denial in the Federal Register.
Would students be better off under this?+4
Provides better oversight of institutional changes to ensure long-term stability and financial capacity.
The opposite
Would business owners be better off under this?-3
Imposes new administrative fees and monitoring requirements on higher education institutions.
Who it would affect, and how
Potential Positive Impacts for People
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Faster Processing Times: The bill requires the Secretary to approve or deny a materially complete application within 90 days, preventing institutions from waiting up to 5 years for a determination (Section 2, Paragraph 9; Section 3, Paragraph 6).
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Increased Efficiency for Institutions: Institutions can use a pretransaction review to determine if they will meet requirements before finalizing a change, which can then lead to an easier subsequent application (Section 3, Paragraph 1).
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Improved Monitoring of Conversions: To protect against improper financial arrangements, the bill requires a 5-year monitoring period for institutions that convert from proprietary to nonprofit status (Section 2, Paragraph 15; Section 3, Paragraph 8).
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Better Oversight of Funds: The Department of Education will conduct more thorough reviews to ensure acquiring entities have the financial and administrative capacity to manage institutions (Section 2, Paragraph 5 & 6).
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Clearer Requirements: The Secretary must publish descriptions of required documents and materials in the Federal Register, providing institutions with clear guidance on what constitutes a complete application (Section 3, Paragraph 10).
Potential Negative Impacts for People
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New Financial Burdens for Institutions: Institutions must pay administrative fees for applications, which are calculated as a percentage of their total institutional revenue (Section 3, Paragraph 5).
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Additional Costs for Conversion: Proprietary institutions seeking to convert to nonprofit status face a higher administrative fee, with a portion of that fee being sent to the Internal Revenue Service (Section 3, Paragraph 5).
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Ongoing Costs for Monitoring: Institutions that undergo a conversion must pay an annual fee for a 5-year monitoring period (Section 3, Paragraph 8).
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Restrictions on Marketing: Institutions seeking conversion are prohibited from marketing themselves as public or nonprofit institutions until they have received final approval from the Secretary, an accrediting agency, the State, and the Commissioner of Internal Revenue (Section 3, Paragraph 9).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Improves Due Process+5Improves Government Transparency+4Increases Federal Power+3
- Education And Technology
- Improves College Affordability+3
- Economy And Finance
- Improves Consumer Protection+2
- Demographic And Interest Groups
- Good For Students+4Good For Business Owners-3
- 3/21/2025
- Referred to the House Committee on Education and Workforce.
- Introduced in House