United States 117th Congress Status: Died 3 R cosponsors

HR 7031 — Change of Ownership and Conversion Improvement Act

Last action — Referred to the House Committee on Education and Labor.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. Died in session

This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Change of Ownership and Conversion Improvement Act This bill revises the application and review process for institutions of higher education (IHEs) to change ownership or for a proprietary (i.e., for-profit) IHE to convert to public or other nonprofit status, including by establishing a pretransaction review application and requiring an IHE to pay an administrative fee for such transactions or pretransaction reviews. The Government Accountability Office must report on the implementation of this bill's provisions.

Bill Text

Sections of law this bill changes

1 section in 1 law

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).

Higher education resources and student assistance · 20 U.S.C. ch. 28 1 section
  • § 1099c Eligibility and certification procedures Amends

    20 U.S.C. § 1099c — at 1099c(i)

    The law today

    (a) General requirement For purposes of qualifying institutions of higher education for participation in programs under this subchapter, the Secretary shall determine the legal authority to operate within a State, the accreditation status, and the administrative capability and financial responsibility of an institution of higher education in accordance with the requirements of this section. (b) Single application form The Secretary shall prepare and prescribe a single application form which— (1) requires sufficient information and documentation to determine that the requirements of eligibility, accreditation, financial responsibility, and administrative capability of the institution of higher education are met; (2) requires a specific description of the relationship between a main campus of an institution of higher education and all of its branches, including a description of the student aid processing that is performed by the main campus and that which is performed at its branches; (3) requires— (A) a description of the third party servicers of an institution of higher education; and (B) the institution to maintain a copy of any contract with a financial aid service provider or loan servicer, and provide a copy of any such contract to the Secretary upon request; (4) requires such other information as the Secretary determines will ensure compliance with the requirements of this subchapter with respect to eligibility, accreditation, administrative capability and financial responsibility; and (5) provides, at the option of the institution, for participation in one or more of the programs under part B or D. (c) Financial responsibility standards (1) The Secretary shall determine whether an institution has the financial responsibility required by this subchapter on the basis of whether the institution is able— (A) to provide the services described in its official publications and statements; (B) to provide the administrative resources necessary to comply with the requirements of this subchapter; and (C) to meet all of its financial obligations, including (but not limited to) refunds of institutional charges and repayments to the Secretary for liabilities and debts incurred in programs administered by the Secretary. (2) Notwithstanding paragraph (1), if an institution fails to meet criteria prescribed by the Secretary regarding ratios that demonstrate financial responsibility, then the institution shall provide the Secretary with satisfactory evidence of its financial responsibility in accordance with paragraph (3). Such criteria shall take into account any differences in generally accepted accounting principles, and the financial statements required thereunder, that are applicable to for-profit, public, and nonprofit institutions. The Secretary shall take into account an institution’s total financial circumstances in making a determination of its ability to meet the standards herein required. (3) The Secretary shall determine an institution to be financially responsible, notwithstanding the institution’s failure to meet the criteria under paragraphs (1) and (2), if— (A) such institution submits to the Secretary third-party financial guarantees that the Secretary determines are reasonable, such as performance bonds or letters of credit payable to the Secretary, which third-party financial guarantees shall equal not less than one-half of the annual potential liabilities of such institution to the Secretary for funds under this subchapter, including loan obligations discharged pursuant to section 1087 of this title, and to students for refunds of institutional charges, including funds under this subchapter; (B) such institution has its liabilities backed by the full faith and credit of a State, or its equivalent; (C) such institution establishes to the satisfaction of the Secretary, with the support of a financial statement audited by an independent certified public accountant in accordance with generally accepted auditing standar...

    19 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Also cites: 5 U.S.C. § 552

How this bill changes current law

10 changes Share ↗

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill modifies the application and review process for changes of control at institutions of higher education by adding pretransaction determinations, imposing fees for applications, and establishing deadlines for reviews.

  • 20 U.S.C. 1099c(i)

    An eligible institution → An eligible institution

    The subsection now specifies that an eligible institution may seek a pretransaction determination regarding ownership changes.

  • 20 U.S.C. 1099c(i)(1)

    the requirements of section 102 (other than the requirements in subsections (b)(5) and (c)(3)) → the applicable requirements of section 102 or 103(13)

    Clarifies that the institution must meet specific applicable requirements under the Higher Education Act.

  • 20 U.S.C. 1099c(i)

    Prior to a change in ownership resulting in a change of control, an institution may seek a pretransaction determination about whether the institution will meet...

    Introduces the ability for institutions to seek a determination before ownership changes occur.

  • 20 U.S.C. 1099c(i)(1)(B)

    The Secretary shall only provide a comprehensive review of each such application, and may not provide an abbreviated or partial review.

    Ensures that the Secretary conducts thorough reviews of pretransaction applications.

  • 20 U.S.C. 1099c(i)(3)(G)

    in the case of a proprietary institution of higher education, a conversion to a public or other nonprofit institution of higher education.

    Adds conversion of proprietary institutions to nonprofit status as a consideration in the review process.

  • 20 U.S.C. 1099c(i)(5)(A)

    the institution shall be required to pay to the Secretary an administrative fee that shall be in an amount equal to 0.15 percent of the total institutional revenue derived from this title by such institution...

    Institutions are now required to pay an administrative fee for ownership change applications.

  • 20 U.S.C. 1099c(i)(5)(B)(i)

    the institution shall be required to pay to the Secretary an administrative fee that shall be in an amount equal to 0.30 percent of the total institutional revenue derived from this title by such institution...

    Increases the fee percentage for proprietary institutions converting to nonprofit status.

  • 20 U.S.C. 1099c(i)(6)(A)

    The Secretary shall approve or deny a materially complete application as soon as practicable and not later than the 90-day period...

    Sets a deadline for the Secretary to approve or deny applications, aiming to expedite the process.

  • 20 U.S.C. 1099c(i)(6)(B)

    If the Secretary fails to approve or deny a materially complete application during the period described in subparagraph (A) and does not find good cause for extension, the materially complete application shall be deemed approved.

    Provides for automatic approval of applications if not acted upon within the specified time frame.

  • 20 U.S.C. 1099c(i)(6)(C)

    In no case may the Secretary grant a good cause extension under this section to an institution for more than one month at a time, or for a total of more than more than 12 months.

    Limits the duration of extensions for application reviews to ensure timely processing.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Education and Labor.

Sponsors

Sponsorship breakdown

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1 sponsors · 2 co-sponsors · 544 not signed on

Sponsors (1)

Co-sponsors (2)

Not signed on (544)

544 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

housing education
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Frequently asked questions

What does HR 7031 do?
Change of Ownership and Conversion Improvement Act This bill revises the application and review process for institutions of higher education (IHEs) to change ownership or for a proprietary (i.e., for-profit) IHE to convert to public or other nonprofit status, including by establishing a pretransaction review application and requiring an IHE to pay an administrative fee for such transactions or pretransaction reviews. The Government Accountability Office must report on the implementation of this bill's provisions.
Who sponsors HR 7031?
HR 7031 is sponsored by Miller-Meeks, Mariannette (Republican), Owens, Burgess (Republican), and Keller, Fred (Republican).
What is the current status of HR 7031?
This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 7031?
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