This bill mandates that degree-granting proprietary institutions allocate at least 70 percent of their annual tuition and fee revenues specifically towards educational instruction and student support services. Institutions are required to submit an annual report to the Secretary of Higher Education detailing the total tuition and fee revenue collected, along with the dollar and percentage amounts spent on educational instruction, student support services, and advertising, marketing, and recruiting. Additionally, any executive or administrator with an investment interest in the institution must disclose that interest to the Secretary.

If an institution fails to meet the 70 percent expenditure requirement, the Secretary will notify the institution and may take action to suspend or revoke its license to award academic degrees if compliance is not achieved. Following notification, the institution must inform current and prospective students about the potential suspension or revocation of its license. If the institution does not meet the required expenditure level by the start of the next academic year after the notice, the Secretary is mandated to suspend or revoke the institution's license.