This bill establishes a regulatory framework for monitoring proprietary institutions that transition to nonprofit corporations in New Jersey. Specifically, it mandates that these institutions submit their Internal Revenue Service Form 990 to the Secretary of Higher Education annually for five years following their conversion. This submission is intended to facilitate oversight and ensure compliance with regulations regarding private inurement, which refers to transactions that could improperly benefit individuals associated with the institution.

Additionally, the bill empowers the Secretary of Higher Education to review 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 oversight mechanism aims to protect the integrity of nonprofit educational institutions and ensure they operate in accordance with their charitable purposes.