If enacted, HB1852 would ensure that nonprofit institutions labeled under the specified section of the Internal Revenue Code receive clear recognition as nonprofit educational entities under federal education laws. This could have substantial implications for funding eligibility, governmental support, and regulatory compliance for these institutions, enabling better access to federal financial aid and educational resources. The bill may facilitate a broader understanding of nonprofit institutions in the education sector, aligning state and federal definitions.
Summary
House Bill 1852, known as the 'IHE Nonprofit Clarity Act', aims to amend the Higher Education Act of 1965. The bill specifically lays out that any institution of higher education classified as a nonprofit organization under section 501(c)(3) of the Internal Revenue Code will be recognized as a nonprofit institution for the purposes of this Act. This amendment seeks to clarify the definition of what constitutes a nonprofit institution within the context of higher education, potentially impacting numerous educational entities across the nation that fall under this tax designation.
Contention
Discussion surrounding the bill could center on the implications of further defining nonprofit institutions in the education sector. Proponents may argue that this clarity is necessary for avoiding confusion in compliance, while opponents could raise concerns regarding the potential for abuse of the designation, questioning whether all such institutions operate genuinely in the nonprofit interest. Legislative conversations may also explore the effects of this change on competition between nonprofit and for-profit educational institutions, potentially influencing the overall educational landscape.
To amend the Small Business Act to reauthorize and modify the Small Business Innovation Research and Small Business Technology Transfer Research programs, and for other purposes.
To amend the Toxic Substances Control Act to authorize grants for toxic substances remediation in schools, to reauthorize healthy high-performance schools, and for other purposes.