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

This bill prohibits New Jersey colleges and for-profit institutions from paying online program management companies (OPMs) incentive-based compensation (like tuition-sharing or bonuses tied to student enrollment), except for recruiting students abroad. It requires institutions to submit all OPM contracts to the state education secretary within 20 days, with governing boards reviewing them for prohibited terms (e.g., OPM control over curriculum or admissions). Institutions must also publish annual reports detailing OPM spending categories (marketing, instruction, student support), program costs, student demographics, and financial aid data on their websites. Violations trigger $10,000 penalties per breach or the maximum incentive amount owed, whichever is higher.