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 to the Secretary of Higher Education annually for five years following their conversion. This submission is intended to provide transparency and oversight regarding the financial activities of the newly formed nonprofit entities.

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 bill aims to ensure that nonprofit institutions maintain compliance with regulations and uphold their educational and charitable missions.