SEC. 
3. 
MODIFYING 
THE 
APPROVAL 
PROCESS 
FOR 
CHANGES OF CONTROL. 
(a) AMENDMENTS.—Section 498(i) of the Higher 
Education Act of 1965 (20 U.S.C. 1099c(i)) is amended— 
(1) in the subsection heading, by inserting 
‘‘AND PROPOSED CHANGES OF OWNERSHIP’’ after 
‘‘OWNERSHIP’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘(1) An eligible institu-
tion’’, and inserting the following: ‘‘(1)(A) An 
eligible institution’’; 
(B) by striking ‘‘the requirements of sec-
tion 102 (other than the requirements in sub-
sections (b)(5) and (c)(3))’’ and inserting ‘‘the 
applicable requirements of section 102 or 
103(13)’’ 
(C) by adding at the end the following: 
‘‘(B)(i) Prior to a change in ownership re-
sulting in a change of control, an institution 
may seek a pretransaction determination about 
whether the institution will meet the applicable 
requirements of section 102 or 103(13) and 
this section after such proposed change in own-
ership by submitting to the Secretary a materi-
ally complete pretransaction review application. 
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‘‘(ii) In reviewing applications submitted 
under clause (i), the Secretary shall only pro-
vide a comprehensive review of each such appli-
cation, and may not provide an abbreviated or 
partial review. 
‘‘(iii) If an institution submits a materially 
complete pretransaction review application at 
least 90 days prior to the transaction and the 
Secretary approves the application, the subse-
quent change in ownership application shall also 
be approved and the institution shall be cer-
tified as meeting the requirements for such 
transaction, provided that the institution— 
‘‘(I) complies with the applicable 
terms of this section; and 
‘‘(II) the transaction resulting in a 
change of control does not differ materially 
in its terms from the transaction proposed 
in the pretransaction review application.’’; 
(3) in paragraph (2)— 
(A) in subparagraph (E), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (F), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding the following at the end: 
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‘‘(G) in the case of a proprietary institution of 
higher education, a conversion to a public or other 
nonprofit institution of higher education.’’; 
(4) by adding at the end the following: 
‘‘(5)(A) Subject to subparagraph (B), when any insti-
tution submits an application for a change in ownership 
resulting in a change in control under this section or sub-
mits a pretransaction review application under paragraph 
(1)(B) (other than in the case of a conversion trans-
action), the institution shall be required to pay to the Sec-
retary an administrative fee that shall— 
‘‘(i) be in an amount equal to 0.15 percent of 
the total institutional revenue derived from this title 
by such institution for the most fiscal year for which 
data is available; and 
‘‘(ii) be used exclusively for expenses related to 
the processing of such application, and be available 
to the Secretary without further appropriation, ex-
clusively for expenses related to the processing of 
such approval or application. 
‘‘(B) In the case of a proprietary institution submit-
ting an application for conversion, or a pretransaction re-
view application for conversion, the institution shall be re-
quired to pay to the Secretary an administrative fee that 
shall— 
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