Change of Ownership and Conversion Improvement Act

HR 2271, the Change of Ownership and Conversion Improvement Act, establishes a fee system for institutions of higher education seeking to change ownership or convert from proprietary to nonprofit status. Institutions would pay fees equal to 0.15% of their revenue (0.30% for conversions) to fund expedited reviews by the Department of Education, which must process applications within 90 days. The bill creates a 5-year monitoring period for converted institutions, requiring annual fees to ensure compliance with nonprofit requirements and tax regulations. These fees would partially fund both Department of Education processing and Internal Revenue Service monitoring of financial relationships. The act aims to address current delays in processing (up to 5 years) while ensuring proper oversight of federal student aid funds during ownership transitions.