Concerns incentive compensation and contracts between online program management companies and institutions of higher education and certain proprietary institutions.

This New Jersey bill prohibits colleges and universities from paying commissions, bonuses, or tuition-sharing fees to online program management companies for recruiting students, with the sole exception of recruiting students from foreign countries. It requires institutions to submit all contracts with these third-party companies to the Secretary of Higher Education within 20 days of signing and mandates that governing boards review and approve such agreements before they take effect. The law also restricts what these contracts can include, banning provisions that allow companies to influence curriculum design, set admission standards, hire faculty, or use the institution's name and logos in ways that mislead students into thinking the company is part of the school.