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

S3776

SENATE, No. 3776

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 5, 2026

Sponsored by:

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

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

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning online program
managers
in
higher education and supplementing Title 18A of the New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Online program
manager
� means an entity that enters into a
contract or agreement
related exclusively

to online degree and
certificate program delivery, including online programs with required in-person
clinical and other instruction,

with
an institution of higher education or a proprietary degree-granting institution
to provide one or more of the following services on behalf of the institution
in exchange for financial compensation: advertising and marketing services;
recruiting, admissions, and financial services; instruction services; student
support services; technology resources and support services; and curriculum
development services.

���� 2.��� a.� Each institution of
higher education and proprietary degree-granting institution that enters into a
contract or agreement with an online program
manager

shall submit an annual expenditure report to the Secretary of Higher Education
concerning the spending activities of the online program
manager
.� At a minimum, the annual
expenditure report shall include:

���� (1)�� the information provided
by the online program
manager
pursuant
to subsection b. of this section;

���� (2)�� the total payments made
by the institution to the online program
manager

during each semester of the prior academic year;

���� (3)�� the number of students
who received State financial assistance during the prior academic year and were
enrolled in each academic program for which the online program
manager
provided services; and

���� (4)�� the amount of State
operating aid received by the institution, on a per-student basis, during the
prior academic year, and the per-student amount provided to the online program
manager
.

���� b.��� An online program
manager
that enters into a contract or
agreement with an institution of higher education or a proprietary
degree-granting institution shall submit an annual report to the chief
financial officer of the institution detailing all expenditures made on behalf
of the institution during the prior academic year.� In addition to any other
information required by the Secretary of Higher Education, the annual report
shall specify the amounts expended by the online program
manager

on each of the following categories of expenditure:

���� (1)�� advertising and
marketing services;

���� (2)�� recruiting, admissions,
and financial services;

���� (3)�� instruction services;

���� (4)�� student support
services;

���� (5)�� technology resources and
support services; and

���� (6)�� curriculum development
materials.

���� c.���� The Secretary of Higher
Education shall publish each annual expenditure report received pursuant to
this section on the Internet website of the Office of the Secretary of Higher
Education.

���� 3.���
Each
institution of higher education and proprietary
degree-granting institution that enters into a contract with an online program
manager

shall submit a copy of the contract to the Secretary of Higher
Education for review within 60 days following:

���� a.���� the execution of a new
contract;

���� b.��� a substantive change in
the terms of a contract;

���� c.���� the renewal of a
contract; and

���� d.��� the effective date of
this act, in the case of a contract in effect on the effective date of this
act.

����� 4.� a.� Any information filed with the secretary
pursuant to this act may be disclosed in accordance with P.L.1963, c.73
(C.47:1A-1 et seq.), except that confidential information shall
not be disclosed by the secretary to any person other than employees and
representatives of the Office of the Secretary of Higher Education.

����� b.�� An institution of higher education or
proprietary degree-granting institution shall separately identify any
confidential information filed with the office pursuant to this act.� Any
information that is not identified as confidential information shall be considered
public information and subject to disclosure.

����� c.�� As used in this section, �confidential
information� means information contained in a report or contract filed with the
office pursuant to this act that has been certified by the General Counsel or
Chief Financial Officer preparing the filing as confidential or proprietary
information.

���� 5.��� The Secretary of Higher
Education shall adopt rules and regulations pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
necessary to effectuate the provisions of this act.

���� 6.��� This act shall take
effect immediately.

STATEMENT

���� This bill requires each
institution of higher education and degree-granting proprietary institution
that contracts with an online program manager (OPM) to submit an annual
expenditure report to the Secretary of Higher Education concerning the spending
activities of the company.

���� To assist in the preparation
of this report, the bill requires the OPM to submit an annual report to the
institution detailing all expenditures made on behalf of the institution during
the prior academic year.� In addition to any other information required by the
Secretary of Higher Education, this report would be required to specify the
amounts expended by the OPM on each of the following categories of expenditure:
(1) advertising and marketing services; (2) recruiting, admissions, and
financial services; (3) instruction services; (4) student support services; (5)
technology resources and support services; and (6) curriculum development
materials.

���� Under the bill, the annual
expenditure report submitted by the institution to the secretary would be
required to include, at a minimum, the following information: (1) the
information provided in the OPM�s annual report; (2) the total payments made by
the institution to the OPM during each semester of the prior academic year; (3)
the number of students who received State financial assistance during the prior
academic year and were enrolled in each academic program for which the OPM
provided services; and (4) the amount of State operating aid received by the
institution on a per-student basis during the prior academic year, and the
per-student amount provided to the OPM.

���� The bill also requires the
Secretary of Higher Education to publish each annual expenditure report on the
Internet website of the Office of the Secretary of Higher Education.

����� Under this bill, an
institution of higher education and proprietary degree-granting institution are
required to submit a copy of any contract between the institution and an online
program manager to the Secretary of Higher Education for review within 60 days
following: (1) the execution of a new contract; (2) any substantive change in
contractual terms; (3) the renewal of a contract; and (4) for any contract
currently in effect, the effective date of this bill.

����� The bill further provides that any information filed
with the secretary pursuant to the bill�s provisions may be disclosed in
accordance with P.L.1963, c.73 (C.47:1A-1 et seq.), commonly referred to as the
open public records act.� An institution of higher education or proprietary
degree-granting institution will be required to separately identify any
confidential information filed with the office pursuant to the bill, and any
information that is not identified as confidential information will be considered
public information and subject to disclosure.

����� As used in the bill, �confidential information� is
defined to include information contained in a report or contract filed with the
office pursuant to the bill that has been certified by the General Counsel or
Chief Financial Officer preparing the filing as confidential or proprietary
information.
�