Bills · HR 2271
IN COMMITTEE· 119TH CONGRESS
House BillHR 2271Education
Change of Ownership and Conversion Improvement Act
INTRO MAR 21· LAST ACTION MAR 21
READING
16MIN
COSPONSORS
0
READER REACTIONS0 TOTAL
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses a long-standing issue of extremely slow government approval for major changes in college ownership, which can leave institutions in limbo for years. By introducing a fee-based system, it aims to self-fund the review process, allowing the Department of Education to hire more staff and conduct reviews more efficiently. This means colleges could complete these important transactions faster, potentially reducing operational uncertainty and promoting innovation.
If this bill becomes law, colleges undergoing ownership changes will face new administrative fees but can expect a quicker, more predictable review process. If it doesn't pass, the current slow and understaffed review system will likely continue, potentially hindering institutional adaptability and creating prolonged uncertainty for colleges and their students.
KEY PROVISIONS
5AI-extractedPROVISION 01
Establishes a fee for institutions submitting applications for changes in ownership or pre-transaction reviews.
This shifts the financial burden of reviewing these transactions from general taxpayers to the institutions directly involved.
PROVISION 02
Requires the Department of Education to provide an expedited and comprehensive review process in exchange for the fee, with guaranteed approval for final applications if a pre-transaction review was approved and unchanged.
This aims to significantly speed up the approval timeline for college ownership changes, reducing years of delay.
PROVISION 03
Sets different fee amounts based on the type of transaction: 0.15% of federal student aid revenue for general changes and 0.30% for conversions of proprietary institutions to nonprofit status.
The fee structure acknowledges the different complexities and oversight needs of various ownership changes.
PROVISION 04
Mandates that 50% of the fee collected from conversion applications be remitted to the Internal Revenue Service (IRS).
This provides additional resources to the IRS for their role in reviewing and monitoring these specific types of conversions, particularly concerning potential improper financial ties.
PROVISION 05
Allows institutions to seek a pre-transaction determination on whether a proposed change in ownership will meet federal requirements.
This offers institutions a clearer path forward and more certainty before fully committing to a transaction.
SPONSORSHIP
1 + 0
R· Utah
YRS IN OFFICE
5
BILLS LED
28
ACTION TIMELINE
2 EVENTSMAR 21
Introduced in House
MAR 21
Referred to the House Committee on Education and Workforce.
BILL INFO
TypeHouse Bill
NumberHR 2271
Congress119th
StatusIn Committee
IntroducedMar 21, 2025
Last actionMar 21, 2025
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IN COMMITTEE· 119TH CONGRESS · EDUCATION AND WORKFORCE COMMITTEE · INTRODUCED MAR 21, 2025
House BillHR 2271Education
Change of Ownership and Conversion Improvement Act
INTRODUCED MAR 21, 2025· LAST ACTION MAR 21, 2025
PASSAGE CHANCES
—%
READING
16 min
COSPONSORS
0
COMPLEXITY
Moderate
