This bill establishes a monitoring process for proprietary institutions that convert to nonprofit corporations, specifically focusing on transactions that may constitute private inurement. Under the new provisions, these institutions are required to submit their Internal Revenue Service Form 990 annually to the Secretary of Higher Education for five years following their conversion. This oversight aims to ensure transparency and compliance with nonprofit regulations.

Additionally, the Secretary of Higher Education is tasked with reviewing the submitted Form 990 each year to identify any reportable incidents of private inurement. If such incidents are found, the Secretary has the authority to recommend the revocation of the institution's certificate of incorporation to the Secretary of State. This legislative measure is designed to enhance accountability and protect the integrity of nonprofit educational institutions in New Jersey.