,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #bbga  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #ba1 #bjbe,mr4   
,ow5s introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,education &  
,work=ce  ,a ,,bill  ,to am5d ! ,high]  
,education ,act ( #aife to modify !     
application & review process = *anges ( 
control1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,*ange (
 ,own]%ip & ,conv]sion ,improvem5t ,act4
  #b4 ,f9d+s ,congress f9ds ! foll[+3   
7#a7 ,in/itutions ( high] education 9 ! 
,unit$ ,/ates frequ5tly m]ge )1         
consolidate1 & acquire o!r in/itutions t
 result 9 a *ange 9 own]%ip4  7#b7 ,^!  
transactions are g5]ally good = /ud5ts1 
z !y promote innovation1 drive          
competition1 & prev5t /agnation4  7#c7  
,*ang+ demographics & evolv+ high]      
education enrollm5t patt]ns may lead to 
m m]g]s & acquisitions 9 ! future4  7#d7
 ,propriet>y in/itutions t volunt>ily   
conv]t to nonpr(it /atus or are acquir$ 
by nonpr(it & public entities c h a     

positive impact on /ud5ts & society4    
7#e7 ,! ,dep>tm5t ( ,education has an   
int]e/ 9 safegu>d+ ,f$]al /ud5t aid     
funds & !re=e %\ld conduct ?or\gh &     
compreh5sive reviews ( all *anges 9     
own]%ip involv+ in/itutions ( high]     
education4  7#f7 ,^! reviews are        
necess>y to ensure t ! acquir+ entity   
has ! f9ancial & adm9i/rative capacity  
to manage ! t>get in/itutions4  7#g7 ,! 
,dep>tm5t ( ,education %\ld conduct ^!  
reviews 9 a ?or\gh & compreh5sive mann] 
b %\ld d s z quickly z possible to      
promote ! execution ( ^! transactions4  
7#h7 ,z ( ,may #bjba1 ! ,dep>tm5t (     
,education _h v few /aff assign$ to     
evaluate pretransaction1 *ange (        
control1 & conv]sion applications on a  
full-"t basis4  7#i7 ,consequ5tly1 ^!   
transactions are process$ by ! ,dep>tm5t
 ( ,education at an extraord9>y sl[ rate
 ( spe$1 ) "s in/itutions wait+ up to #e
 ye>s be=e receiv+ a f9al det]m9ation4  
7#aj7 ,"o ( ! prim>y *all5ges 9 process+
 ^! applications quickly is ! lack (    

fund+ to hire en\gh qualifi$ /aff4      
7#aa7 ,curr5tly1 g5]al taxpay]s are be>+
 ! co/ ( review+ ^! transactions4  7#ab7
 ,x is 9 ! int]e/ ( in/itutions & !     
,unit$ ,/ates to *>ge a fee =           
applications involv+ *anges 9 own]%ip at
 in/itutions ( high] education t are    
submitt$ to ! ,dep>tm5t ( ,education4   
7#ac7 ,9 consid]ation = ! fee1 !        
,dep>tm5t ( ,education w be requir$ to  
gu>antee an exp$it$ review process = all
 applicants1 abs5t compell+ circum/ances
 :]e good cause exi/s = delay4  7#ad7 ,!
 ,gov]nm5t ,acc\ntability ,(fice has    
id5tifi$ weaknesses 9 ! ,dep>tm5t (     
,education's po/-transaction monitor+   
process1 :i* w likewise require         
additional /aff to be hir$ to conduct   
monitor+4  7#ae7 ,in/itutions t h       
conv]t$ f propriet>y /atus to nonpr(it  
/atus & h an ongo+ f9ancial relation%ip 
) ! =m] own]s ( ! in/itution are at     
highe/ risk ( ent]+ into f9ancial       
arrangem5ts t result 9 improp] private  
inurem5t4  7#af7 ,^! in/itutions %\ld be

 closely monitor$ = a p]iod aft] ^!     
transactions occur & %\ld be requir$ to 
pay a fee to support ! hir+ ( /aff to   
conduct ?is monitor+4  7#ag7 ,!         
,gov]nm5t ,acc\ntability ,(fice has     
likewise f\nd weaknesses 9 ! ,int]nal   
,rev5ue ,s]vice review process =        
conv]sion reque/s & ! po/-transaction   
monitor+ process4  7#ah7 ,9 ord] to     
support a m ?or\gh review ( ^!          
applications & to conduct monitor+1 !   
,dep>tm5t ( ,education w remit "p ( !   
fee paid by in/itutions to ! ,int]nal   
,rev5ue ,s]vice = ^! purposes4  #c4     
,modify+ ! approval process = *anges (  
control  7a7 ,am5dm5ts ,section #dih7;i7
 ( ! ,high] ,education ,act ( #aife 7#bj
 ,u4,s4,c4 #ajii;c7i77 is am5d$-- 7#a7 9
 ! subsection head+1 by ins]t+ &        
,propos$ ,*anges ( ,own]%ip aft]        
,own]%ip2  7#b7 9 p>agraph 7#a7-- 7,a7  
by /rik+ 7#a7 ,an eligible in/itution1 &
 ins]t+ ! foll[+3 7#a77;,a7 ,an eligible
 in/itution2  7,b7 by /rik+ !           
requirem5ts ( section #ajb 7o!r ?an !   

requirem5ts 9 subsections 7b77#e7 &     
7c77#c77 & ins]t+ ! applicable          
requirem5ts ( section #ajb or #ajc7ac72 
&  7,c7 by add+ at ! end ! foll[+3  7,b7
 7i7 ,prior to a *ange 9 own]%ip result+
 9 a *ange ( control1 an in/itution may 
seek a pretransaction det]m9ation ab\t  
:e!r ! in/itution w meet ! applicable   
requirem5ts ( section #ajb or #ajc7ac7 &
 ?is section aft] su* propos$ *ange 9   
own]%ip by submitt+ to ! ,secret>y a    
mat]ially complete pretransaction review
 application4  7ii7 ,9 review+          
applications submitt$ "u clause 7i71 !  
,secret>y %all only provide a           
compreh5sive review ( ea* su*           
application1 & may n provide an         
abbreviat$ or p>tial review4  7iii7 ,if 
an in/itution submits a mat]ially       
complete pretransaction review          
application at lea/ #ij days prior to ! 
transaction & ! ,secret>y approves !    
application1 ! subsequ5t *ange 9 own]%ip
 application %all also be approv$ & !   
in/itution %all be c]tifi$ z meet+ !    

requirem5ts = su* transaction1 provid$ t
 ! in/itution-- 7,i7 complies ) !       
applicable t]ms ( ?is section2 &  7,,ii7
 ! transaction result+ 9 a *ange (      
control does n diff] mat]ially 9 its    
t]ms f ! transaction propos$ 9 !        
pretransaction review application4  2   
7#c7 9 p>agraph 7#b7-- 7,a7 9           
subp>agraph 7,e71 by /rik+ or at ! end2 
7,b7 9 subp>agraph 7,f71 by /rik+ !     
p]iod at ! end & ins]t+ 2 or2 &  7,c7 by
 add+ ! foll[+ at ! end3  7,g7 9 ! case 
( a propriet>y in/itution ( high]       
education1 a conv]sion to a public or   
o!r nonpr(it in/itution ( high]         
education4  2 &  7#d7 by add+ at ! end !
 foll[+3  7#e7 7,a7 ,subject to         
subp>agraph 7,b71 :5 any in/itution     
submits an application = a *ange 9      
own]%ip result+ 9 a *ange 9 control "u  
?is section or submits a pretransaction 
review application "u p>agraph 7#a77;,b7
 7o!r ?an 9 ! case ( a conv]sion        
transaction71 ! in/itution %all be      
requir$ to pay to ! ,secret>y an        

adm9i/rative fee t %all-- 7i7 be 9 an   
am\nt equal to #j4ae p]c5t ( ! total    
in/itutional rev5ue d]iv$ f ?is title by
 su* in/itution = ! mo/ fiscal ye> = :i*
 data is available2 &  7ii7 be us$      
exclusively = exp5ses relat$ to !       
process+ ( su* application1 & be        
available to ! ,secret>y )\t fur!r      
appropriation1 exclusively = exp5ses    
relat$ to ! process+ ( su* approval or  
application4  7,b7 ,9 ! case ( a        
propriet>y in/itution submitt+ an       
application = conv]sion1 or a           
pretransaction review application =     
conv]sion1 ! in/itution %all be requir$ 
to pay to ! ,secret>y an adm9i/rative   
fee t %all-- 7i7 be 9 an am\nt equal to 
#j4cj p]c5t ( ! total in/itutional      
rev5ue d]iv$ f ?is title by su*         
in/itution = ! mo/ fiscal ye> = :i* data
 is available2 &  7ii7 be us$           
exclusively = exp5ses relat$ to !       
process+ ( su* application1 & ( :i*--   
7,i7 #ej p]c5t %all be available to !   
,secret>y )\t fur!r appropriation1      

exclusively = exp5ses relat$ to !       
process+ ( su* application2 &  7,,ii7   
#ej p]c5t %all be remitt$ by ! ,secret>y
 to ! ,commission] ( ! ,int]nal ,rev5ue1
 & %all be available1 )\t fur!r         
appropriation1 to ! ,commission] (      
,int]nal ,rev5ue exclusively = purposes 
( det]m9+ :e!r ! in/itution seek+ su*   
conv]sion or pretransaction review is an
 in/itution exempt f tax & is o!rwise 9 
compliance ) applicable requirem5ts ( ! 
,int]nal ,rev5ue ,code ( #aihf4  7,c7   
,an in/itution t pays a fee "u          
subp>agraph 7,a7 or 7,b7 = a            
pretransaction application ) respect to 
a propos$ transaction %all n be requir$ 
to pay ano!r fee "u su* subp>agraph = a 
*ange 9 own]%ip application ) respect to
 su* transaction4  7,d7 ,9 no case may  
any fee remitt$ "u subp>agraph 7,a7 or  
7,b7 exce$ #abj1jjj = any transaction   
7or pretransaction7 application1 nor may
 ! ,secret>y require an in/itution t has
 paid a fee "u subp>agraph 7,b7 to pay  
an additional fee "u subp>agraph 7,a74  

7#f7 7,a7 ,! ,secret>y %all approve or  
d5y a mat]ially complete application    
7includ+ pretransaction reviews &       
conv]sion applications7 submitt$ "u ?is 
section z soon z practicable & n lat]   
?an ! #ij-;day p]iod beg9n+ on ! date ( 
receipt ( su* an application1 except t 9
 a case 9 :i* ! ,secret>y det]m9es1 on a
 nondelegable basis1 t good cause exi/s 
to n make ! det]m9ation dur+ su*        
#ij-;day p]iod1 ! ,secret>y %all notify 
! in/itution 9 writ+ detail+ ! reasons =
 a good cause ext5sion4  7,b7 ,if !     
,secret>y fails to approve or d5y a     
mat]ially complete application dur+ !   
p]iod describ$ 9 subp>agraph 7,a7 & does
 n f9d good cause = ext5sion1 !         
mat]ially complete application %all be  
deem$ approv$4  7,c7 ,9 no case may !   
,secret>y grant a good cause ext5sion "u
 ?is section to an in/itution = m ?an "o
 mon? at a "t1 or = a total ( m ?an m   
?an #ab mon?s4  7,d7 ,to ensure timely  
submission ( all relevant docum5tation1 
! ,secret>y may d5y an application if an

 in/itution does n make a good fai? ef=t
 to submit to ! ,secret>y1 9 a timely   
mann]-- 7i7 all relevant docum5tation2  
or  7ii7 a mat]ially complete           
application4  7,e7 7i7 ,^u approv+ or   
d5y+ an application "u ?is p>agraph1 !  
,secret>y %all publi% 9 ! ,f$]al ,regi/]
 ! reason+ = su* approval or d5ial1     
includ+-- 7,i7 a copy ( ! approval or   
d5ial lett] s5t to ! in/itution2 &      
7,,ii7 any analysis reg>d+ h[ !         
,secret>y det]m9$ "u p>agraph           
#g7;,a77iii7 t a director ( ! in/itution
 0 an int]e/$ or dis9t]e/$ p>ty to !    
transaction4  7ii7 ,! ,secret>y %all n  
publi% "u clause 7i7 any in=mation t is 
o!rwise exempt f disclosure "u section  
#eeb ( title #e1 ,unit$ ,/ates ,code    
7relat+ to ! ,fre$om ( ,in=mation ,act71
 includ+ trade secrets & comm]cial or   
f9ancial in=mation t is privileg$ or    
confid5tial4  7#g7 7,a7 ,9 ! case ( a   
propriet>y in/itution t subsequ5t to !  
transaction w\ld be own$ & op]at$ by an 
entity 79 ?is p>agraph ref]r$ to z !    

buy]7 seek+ to be recogniz$ z a public  
or o!r nonpr(it in/itution1 ! buy] %all 
meet ! def9ition ( a nonpr(it in/itution
 "u section #ajc7ac7 if-- 7i7 ! buy]    
pays no m ?an fair m>ket value = any    
assets ( ! propriet>y in/itution2  7ii7 
! buy] pays no m ?an fair m>ket value = 
any s]vice or lease contracts1 includ+  
su* s]vice & lease contracts provid$ by 
! entity sell+ ! propriet>y in/itution2 
&  7iii7 to prev5t self-deal+ 9 ! case  
:]e "o or m individuals ) a sub/antial  
own]%ip or controll+ int]e/s 9 !        
propriet>y in/itution w also h          
sub/antial or controll+ int]e/s 9 !     
in/itution seek+ to be recogniz$ z a    
public or o!r nonpr(it in/itution 7mean+
 t "o or m individuals are on bo? sides 
( ! transaction71 ! *ange ( control     
transaction1 & any sub/antial asset     
acquisition1 s]vice1 or lease agreem5ts 
) ! propriet>y in/itution %all be       
approv$ by a dis9t]e/$ committee (      
directors ( ! entity t seeks to be      
recogniz$ z a public or o!r nonpr(it    

in/itution4  7,b7 ,= ! purposes ( ?is   
p>agraph1 p>ties to ! transaction are   
entitl$ to a rebuttable presumption t ! 
assets1 lease contracts1 & s]vice       
contracts t are "p ( ! transaction are  
pur*as$ at fair m>ket value if-- 7i7 !  
acquir+ entity pays no m ?an fair m>ket 
value = su* assets1 lease contracts1 or 
s]vice contracts2 &  7ii7 ! value ( !   
assets1 lease contracts1 or s]vice      
contracts are evaluat$ by at lea/ "o    
indep5d5t ?ird-p>ty entity hir$ by      
p>ties on bo? sides ( ! transaction4    
7#h7 7,a7 ,an in/itution t has be5      
approv$ = conv]sion by ! ,secret>y %all 
be subject to a monitor+ p]iod = a      
#e-ye> p]iod beg9n+ on ! day aft] ! date
 ( su* approval4 ,9 conduct+ ! monitor+ 
( ! in/itution "u ?is p>agraph1 !       
,secret>y-- 7i7 %all only conduct       
monitor+ to ensure t ! in/itution is 9  
compliance ) ! requirem5ts ( section    
#ajc7ac7 & p>agraph 7#g7 ( ?is          
subsection2 &  7ii7 may require !       
in/itution to submit regul> reports or  

conduct audits ( su* in/itution relat+  
to su* compliance4  7,b7 ,ea* in/itution
 t is subject to ! monitor+ p]iod "u ?is
 p>agraph %all remit an annual fee to ! 
,secret>y-- 7i7 9 an am\nt equal to     
#j4ae p]c5t ( ! total rev5ue d]iv$ f ?is
 title by su* in/itution = ! mo/ rec5t  
fiscal ye> = :i* data is available2 &   
7ii7 t %all be exclusively = exp5ses    
relat$ to monitor+ ( ! in/itution = !   
p]iod describ$ 9 subp>agraph 7,a7-- 7,i7
 ( :i* #ej p]c5t %all be us$ by !       
,secret>y1 )\t fur!r appropriation1     
exclusively = exp5ses relat$ to monitor+
 ( ! in/itution dur+ su* p]iod2 &       
7,,ii7 ( :i* #ej p]c5t %all be remitt$  
by ! ,secret>y to ! ,commission] (      
,int]nal ,rev5ue1 to be available to su*
 ,commission]1 )\t fur!r appropriation1 
exclusively = monitor+ compliance ) !   
,int]nal ,rev5ue ,code ( su* in/itution 
dur+ su* p]iod4  7,c7 ,an in/itution may
 n be subject to an annual fee "u       
subp>agraph 7,b7 = monitor+ relat$ to a 
conv]sion t exce$s #fj1jjj4  7,d7 ,if ! 

,secret>y det]m9es t an in/itution %\ld 
be subject to ! monitor+ "u ?is p>agraph
 beyond ! #e-ye> p]iod describ$ 9       
subp>agraph 7,a71 ! ,secret>y %all      
provide ! reasons ju/ify+ an ext5sion 9 
writ+ to ! in/itution 7& 9 ! ,f$]al     
,regi/]7 at lea/ #cj days be=e !        
expiration ( su* p]iod4  7,e7 ,any      
in/itution t is subject to monitor+ "u  
?is p>agraph may seek a waiv] to be     
exempt f su* monitor+ 7includ+ ! annual 
fee "u subp>agraph 7,b77 on an annual   
basis = any ye> dur+ ! monitor+ p]iod & 
! ,secret>y %all grant su* waiv] if !re 
is no ongo+ contractual or f9ancial     
relation%ip betwe5 ! in/itution & ! =m] 
entity or individuals t previ\sly own$ !
 in/itution4 ,! ,secret>y may grant a   
waiv] = m ?an #a ye> 9 ! case :]e !     
entity t =m]ly own$ ! propriet>y        
in/itution has clos$ or no long] exi/s &
 ! ,secret>y det]m9es ! in/itution is n 
at risk ( violat+ ! requirem5ts (       
section #ajc7ac7 or p>agraph 7#g7 ( ?is 
subsection4  7#i7 ,any in/itution t     

submits an application = conv]sion %all 
n promote or m>ket itself1 9 any mann]1 
z a public or o!r nonpr(it in/itution ( 
high] education unless-- 7,a7 !         
,secret>y has provid$ f9al approval ( ! 
conv]sion ( ! in/itution to a public or 
o!r 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$ su* public or nonpr(it /atus
 ( ! in/itution2  7,c7 ! ,/ate has giv5 
f9al approval to ! in/itution z a public
 or nonpr(it in/itution ( high]         
education1 z applicable2 &  7,d7 9 !    
case ( an in/itution seek+ nonpr(it     
/atus1 ! ,commission] ( ,int]nal ,rev5ue
 has approv$ ! in/itution z tax exempt  
pursuant to ! ,int]nal ,rev5ue ,code (  
#aihf4  7#aj7 ,n lat] ?an #bgj days aft]
 ! date ( enactm5t ( ! ,*ange ( ,own]%ip
 & ,conv]sion ,improvem5t ,act1 &       
p]iodically !reaft]1 ! ,secret>y %all   
publi% 7& update z necess>y7 9 ! ,f$]al 
,regi/]-- 7,a7 descriptions ( ! docum5ts

 & mat]ials ! ,secret>y expects or      
requires in/itutions ( high] education  
to submit 7includ+ any /&>diz$ =ms7 z "p
 ( any pretransaction application or    
*ange 9 own]%ip application "u ?is      
section1 includ+ a description ( :at !  
,secret>y consid]s to be a mat]ially    
complete application2 &  7,b7 aft] at   
lea/ a #cj-;day notice & comm5t p]iod1  
responses to any public comm5ts receiv$ 
) respect to su* descriptions or updates
 to su* descriptions4  7#aa7 ,9 a case 9
 :i* ! ,secret>y reque/s a docum5t "u   
?is section z "p ( a pretransaction or  
*ange 9 own]%ip application t is n      
describ$ 9 ! ,f$]al ,regi/] "u p>agraph 
7#aj71 ! ,secret>y %all-- 7,a7          
sub/antiate1 9 writ+ to ! in/itution1 ! 
reasons :y ! ,secret>y is reque/+ su*   
docum5ts2 &  7,b7 publi% su* reasons 9 !
 ,f$]al ,regi/]1 includ+ :e!r !         
,secret>y may reque/ o!r in/itutions t  
submit applications "u ?is section to   
produce simil> docum5tation4  7#ab7 7,a7
 ,n lat] ?an #ah mon?s aft] ! date (    

enactm5t ( ! ,*ange ( ,own]%ip &        
,conv]sion ,improvem5t ,act1 & annually 
!reaft]1 ! ,secret>y %all submit a      
report to au?oriz+ committees1 & po/ su*
 report on a publicly available website 
reg>d+ implem5tation ( ! am5dm5ts made  
to ?is section by su* ,act1 includ+ !   
foll[+ in=mation3 7i7 ,! mean & m$ian   
l5g? ( "t tak5 by ! ,secret>y to review 
applications "u ?is section dur+ !      
prec$+ #ab-mon? p]iod4  7ii7 ,! numb] ( 
applications approv$ or d5i$ dur+ !     
prec$+ #ab-mon? p]iod4  7iii7 ,= any    
application n process$ dur+ ! #ij-;day  
p]iod beg9n+ on ! date ( receipt ( !    
application = :i* ! ,secret>y f\nd good 
cause "u p>agraph 7#f77;,a7 to ext5d !  
deadl9e 9 :i* ! application %all be     
process$1 a copy ( ! lett] s5t to !     
in/itution expla9+ :y ! ,secret>y       
believ$ good cause exi/$ = su* ext5sion4
  7iv7 ,= any application n process$    
dur+ su* #ij-;day p]iod1 :i* 0 deem$ to 
be automatically approv$ by !           
requirem5ts ( ?is section "u p>agraph   

7#f77;,b71 ! "n ( ea* in/itution involv$
 & an explanation = :y ! application 0 n
 process$ 9 a timely mann]4  7v7 ,any   
legislative sugge/ions ! ,secret>y may h
 to improve ! application or monitor+   
process "u ?is section4  7,b7 ,if !     
,secret>y fails to submit a report "u   
?is p>agraph by n lat] ?an #ij days aft]
 ! deadl9e = su* submission "u          
subp>agraph 7,a71 ! ,secret>y may n1 = !
 #ab-mon? p]iod foll[+ su* failure1 sp5d
 ! fees remitt$ by in/itutions "u ?is   
section or remit su* fees to !          
,commission] unless ,congress provides =
 su* use by fur!r appropriation4  7#ac7 
,= ! purposes ( ?is subsection1 ! t]m   
conv]sion means any transaction "u :i*--
 7,a7 a propriet>y in/itution is        
reorganiz$ & seeks recognition z a      
public or o!r nonpr(it in/itution2 or   
7,b7 ! control ( a propriet>y in/itution
 is transf]r$ z a result ( a sale1      
donation1 or o!r me?od to an entity t   
seeks c]tification "u ?is section z a   
public or o!r nonpr(it in/itution4  4   

7b7 ,application ,! am5dm5ts made by ?is
 section %all be apply ) respect to     
applications submitt$ = *ange ( control 
or conv]sion submitt$ on or aft] ,janu>y
 #a1 #bjbf4  #d4 ,gov]nm5t              
,acc\ntability ,(fice ,n lat] ?an #e    
ye>s aft] ! date ( enactm5t ( ?is ,act1 
! ,comptroll] ,g5]al %all submit to !   
,committee on ,education & ,work=ce ( ! 
,h\se ( ,repres5tatives & ! ,committee  
on ,heal?1 ,education1 ,labor1 &        
,p5sions ( ! ,s5ate1 a report on !      
implem5tation ( ! am5dm5ts made by ?is  
,act1 includ+ recomm5dations to         
improve-- 7#a7 ! application process "u 
section #dih7;i7 ( ! ,high] ,education  
,act ( #aife 7#bj ,u4,s4,c4 #ajii;c7i771
 z am5d$ by section #c1 = in/itutions ( 
high] education seek+ a *ange 9 own]%ip 
result+ 9 a *ange 9 control2 or  7#b7 ! 
monitor+ process "u su* section =       
in/itutions ( high] education t h       
rec5tly conv]t$ f be+ recogniz$ z a     
propriet>y in/itution to a public or o!r
 nonpr(it in/itution4