Establishes process to monitor proprietary institution that converts to nonprofit corporation for transactions that constitute private inurement.

This bill requires for-profit colleges that convert to nonprofit status to submit their annual IRS Form 990 (a standard nonprofit tax form) to New Jersey's Secretary of Higher Education for five years after conversion. The Secretary must review these forms each year to check for misuse of nonprofit funds for private benefit, such as excessive executive pay or personal asset use. If violations are found, the Secretary can recommend revoking the institution's nonprofit status to the Secretary of State. The law applies specifically to institutions converting under New Jersey's nonprofit corporation laws.