New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A5990

Introduced
11/17/25  

Caption

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

Impact

The legislation requires that all agreements or amendments made with OPMs be submitted to the Secretary of Higher Education, fostering transparency. Institutions must also ensure that contracts do not include provisions that allow OPMs to undertake responsibilities such as setting admission standards or determining course curricula, which could jeopardize academic independence. This move is seen as a safeguard against potential conflicts of interest and protect the integrity of educational governance.

Summary

Assembly Bill A5990 addresses the regulation of contracts between institutions of higher education and online program management companies (OPMs). The bill prohibits institutions from providing incentive compensation to OPMs, including tuition sharing, except for recruiting students from foreign countries. It establishes stringent guidelines for contracts involving online program services, ensuring that these agreements are subjected to scrutiny and oversight from the governing boards of the institutions concerned.

Contention

Debate surrounding A5990 often centers on concerns about the complexities some OPMs introduce into higher education, especially their role in student recruitment and financial aid. Proponents argue that the bill will significantly enhance transparency, while opponents fear that overly restrictive measures could limit the partnerships necessary to grow and adapt online education. The bill compromises between ensuring accountability and allowing flexibility in educational collaborations.

Companion Bills

NJ S4818

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

Previously Filed As

NJ A2138

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

NJ S3912

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

NJ S3776

Requires certain institutions of higher education and degree-granting proprietary institutions to submit certain documentation on online program managers to Secretary of Higher Education.

NJ S3750

Requires institutions of higher education and proprietary degree-granting institutions that have agreements with online program managers to disclose online program information.

NJ A2098

Establishes limits on transcript release restrictions at institutions of higher education and certain proprietary institutions.

NJ A2133

Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

NJ A1327

Requires institutions of higher education and certain proprietary institutions to notify Higher Education Student Assistance Authority of approved federal borrower defense loan discharge.

NJ S1653

Establishes limits on transcript release restrictions at institutions of higher education and certain proprietary institutions.

NJ S1487

Requires institutions of higher education and certain proprietary institutions to notify Higher Education Student Assistance Authority of approved federal borrower defense loan discharge.

NJ A4888

Establishes provisions for use of applicant and student criminal history at institution of higher education and degree-granting proprietary institution.

Similar Bills

NJ A2138

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

NJ S3912

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

US SB1296

DETERRENT Act Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act

US HB1048

DETERRENT Act Defending Education Transparency and Ending Rogue Regimes Engaging in Nefarious Transactions Act

TN HB0998

AN ACT to amend Tennessee Code Annotated, Title 49, Chapter 14; Title 49, Chapter 7; Title 49, Chapter 8 and Title 49, Chapter 9, relative to higher education.

TN SB1021

AN ACT to amend Tennessee Code Annotated, Title 49, Chapter 14; Title 49, Chapter 7; Title 49, Chapter 8 and Title 49, Chapter 9, relative to higher education.

US HB938

No Contracts with Foreign Adversaries Act

IL SB1917

DETERRENT ACT