,i #aag? ,,congress #a/ ,session ,h4 ,r4 #bgjj ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #bj1 #bjba,mrs4 ,mc,bath 7= h]self1 ,ms4 ,jacobs ( ,cali=nia1 & ,ms4 ,mann+7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,education & ,labor ,a ,,bill ,to am5d ! ,high] ,education ,act ( #aife to describe ! process ( conv]t+ a propriet>y in/itution ( high] education to a nonpr(it in/itution ( high] education4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,=-,pr(it ,college ,conv]sion ,acc\ntability ,act4 #b4 ,integrity ( nonpr(it in/itutions ( high] education ,"p ,b ( title ,i ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajaa et seq47 is am5d$ by add+ at ! end ! foll[+3 #abd4 ,integrity ( nonpr(it in/itutions ( high] education 7a7 ,det]m9ation ,! ,secret>y may approve ! conv]sion ( an in/itution ( high] education to a nonpr(it in/itution ( high] education only if ! ,secret>y det]m9es t su* in/itution ( high] education meets ! requirem5ts "u subsection 7b74 7b7 ,application ,to be eligible to conv]t & p>ticipate z a nonpr(it in/itution ( high] education "u ?is ,act1 an in/itution ( high] education %all submit an application to ! ,secret>y t demon/rates ea* ( ! foll[+3 7#a7 ,t ! in/itution ( high] education t submits su* application is controll$1 own$1 & op]at$ by "o or m nonpr(it corporations or associations1 no "p ( ! net e>n+s ( :i* inures1 or may lawfully inure1 to ! b5efit ( any private %>ehold] or individual4 7#b7 ,t any assets or s]vices acquir$ by ! in/itution ( high] education t submits su* application f =m] own]s ( su* in/itution ( high] education 7 n acquir$ = m ?an ! value ( su* assets or s]vices4 7#c7 ,t no memb] ( ! gov]n+ bo>d ( ! in/itution ( high] education t submits su* application 7o!r ?an ex (ficio memb]s s]v+ at ! pleasure ( ! rema9d] ( ! gov]n+ bo>d & receiv+ a fix$ sal>y71 or any p]son ) ! p[] to appo9t or remove memb]s ( su* gov]n+ bo>d or any imm$iate family memb] ( su* a memb] ( ! bo>d or su* a p]son ) p[] ( appo9tm5t1 receives any sub/antial direct or indirect economic b5efit 7includ+ a lease1 promissory note1 or o!r contract7 f su* in/itution ( high] education4 7#d7 ,t ! in/itution ( high] education t submits su* application is an organization describ$ 9 section #eja7;c77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf & is exempt f taxation "u section #eja7;a7 ( su* ,code4 7#e7 ,subject to subsection 7c71 t none ( ! core functions ( ! in/itution ( high] education t submits su* application are "u ! control (1 or subject to significant direction f1 an entity t is n a public in/itution ( high] education or o!r nonpr(it entity4 7c7 ,presumption ( significant direction ,= purposes ( p>agraph 7#e7 ( subsection 7b71 9 ! case ( an in/itution ( high] education t submits an application "u su* subsection1 !re %all be a conclusive presumption t an entity 7o!r ?an su* in/itution ( high] education7 ex]cises significant direction ov] su* in/itution if "o or m ( ! employees or own]s ( ! entity s]ves z an (fic]1 memb] ( ! bo>d1 or p]son hold+ simil> au?ority = su* in/itution4 7d7 ,transition p]iod 7#a7 ,9 g5]al ,9 ! case ( a propriet>y in/itution ( high] education approv$ = conv]sion "u subsection 7a71 = a p]iod ( at lea/ #e ye>s t beg9s on ! date su* in/itution is approv$ = su* conv]sion1 ! in/itution %all be-- 7,a7 subject to any provision ( ?is ,act & any regulation t apply to propriet>y in/itutions ( high] education2 & 7,b7 consid]$ a propriet>y in/itution ( high] education = purposes ( ?is ,act4 7#b7 ,def9ition ,! t]m propriet>y in/itution ( high] education has ! mean+ giv5 ! t]m 9 section #ajb7;b74 7e7 ,value ,! t]m value1 ) respect to an acquisition "u subsection 7b77#b7-- 7#a7 includes ! value ( any ongo+ relation%ip 7includ+ any contract1 agreem5t1 lease or o!r arrangem5t72 7#b7 subject to p>agraph 7#c71 may be demon/rat$ ?r\gh-- 7,a7 a ?ird-p>ty appraisal bas$ on comp>able assets acquir$ by1 or goods or s]vices procur$ by1 nonpr(it corporations 9 simil> m>ket conditions2 7,b7 an indep5d5t f9anc+ ( ! acquisition bas$ ^u ! assets acquir$2 or 7,c7 a full & op5 competition 9 ! acquisition ( s]vices or assets1 z su* t]m is def9$ 9 section #b4aja7;b7 ( title #dh1 ,code ( ,f$]al ,regulations1 z 9 effect on ! date ( enactm5t ( ! ,=-,pr(it ,college ,conv]sion ,acc\ntability ,act2 & 7#c7 %all be subject to su* o!r demon/ration process det]m9$ appropriate by ! ,secret>y 9 a case 9 :i* ! ,secret>y does n accept a demon/ration process describ$ 9 p>agraph 7#b74 7f7 ,publication 7#a7 ,application ,be=e ! ,secret>y may approve ! conv]sion ( an in/itution ( high] education "u subsection 7a71 ! application ( su* in/itution submitt$ to ! ,secret>y "u subsection 7b7 %all be publi%$ 9 ! ,f$]al ,regi/] ) an appropriate notice & comm5t p]iod4 7#b7 ,det]m9ation ,! ,secret>y %all publi% ea* det]m9ation "u ?is section1 & ! reasons = su* det]m9ation1 "u ! ,f$]al ,regi/]4 7g7 ,public repres5tation & m>ket+ ( nonpr(it /atus ,an in/itution ( high] education %all n promote or m>ket itself1 9 any mann]1 z a nonpr(it in/itution ( high] education unless-- 7#a7 9 ! case ( an in/itution ( high] education t seeks to conv]t to a nonpr(it in/itution ( high] education "u ?is section-- 7,a7 ! ,secret>y has giv5 f9al approval ( ! conv]sion ( ! in/itution to a nonpr(it in/itution ( high] education "u ?is section2 7,b7 an accr$it+ ag5cy or association recogniz$ by ! ,secret>y pursuant to section #dif has approv$ ! nonpr(it /atus ( ! in/itution2 & 7,c7 ! ,/ate has giv5 f9al approval to ! in/itution z a nonpr(it in/itution ( high] education1 z applicable2 & 7#b7 ! ,commission] ( ,int]nal ,rev5ue has approv$ ! in/itution z tax exempt = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf4 7h7 ,(fice to monitor nonpr(it integrity ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ! ,=-,pr(it ,college ,conv]sion ,acc\ntability ,act1 ! ,secret>y %all e/abli% an (fice )9 ! ,dep>tm5t ) ! exp]tise necess>y to c>ry out ?is section4 #abe4 ,review ( gov]nance ,! ,secret>y %all review ! gov]nance ( an in/itution ( high] education :5 su* in/itution has engag$ 9 transactions or arrangem5ts det]m9$ by ! ,secret>y z pot5tial indicators ( private inurem5t1 9 ord] to promote ! highe/ /&>ds ( nonpr(it integrity4 4