Sec. 303. Definition of nonprofit institution of higher education
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/bill/116/hr/3512/ih/section-303·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 103 ( 20 U.S.C. 1003 ) is amended by striking paragraph
(13)and inserting the following: The term nonprofit — as applied to a school, agency, organization, or institution, means a school, agency, organization, or institution controlled, owned, and operated by one or more nonprofit corporations or associations, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual; and as applied to an institution of higher education, means an institution— that meets the requirements of subparagraph (A); that is an organization described in section 170(b)(1)(A)(ii) or
(vi)of the Internal Revenue Code of 1986; and with respect to which— no member of the governing board of the institution (other than any ex officio member serving at the pleasure of the remainder of the governing board and receiving a fixed salary) receives any substantial direct or indirect economic benefit (including a lease, promissory note, or other contract) from the institution; and no person with the power to appoint or remove members of the governing board receives any such substantial direct or indirect economic benefit (including a lease, promissory note, or other contract) from the institution. An institution of higher education shall not be considered a nonprofit institution of higher education, as defined in this paragraph, if— one or more core functions are under the control of, or subject to significant direction from an entity that is not a public institution of higher education or is not formed as a nonprofit corporation; or a substantial share of the assets of the institution are committed to a joint venture with a person or entity that is not a public institution of higher education and is not a nonprofit corporation, and the core functions of the venture are conducted by, under the control of, or subject to significant direction from that person or entity. There shall be a conclusive presumption that an entity exercises significant direction if one or more of the entity’s employees or owners serves as an officer, member of the board, or person holding similar authority for the institution of higher education. .
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Sec. 303
Definition of nonprofit institution of higher education
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