Ariz. Admin. Code § R4-39-103 - Requirements for a Regular License to Operate a Private Accredited Vocational Degree-granting Institution in Arizona

A. A person shall not operate a private accredited vocational or degree-granting institution without a regular license granted by the Board.
B. Except as specified in subsection (B)(6), the Board shall not grant or renew a regular license if:
1. Within 10 years before filing the application packet required in subsection (D) or since the start date of the current licensure period, an individual with at least 20 percent ownership in the applicant or an officer or employee who controls, manages, or represents the applicant in this state has been convicted in this state or any jurisdiction of any crime, regardless of whether the crime is a misdemeanor or felony, that a reasonable person would consider relevant to the legal and ethical operation of an educational institution;
2. Within 10 years before filing the application packet required in subsection (D) or since the start date of the current licensure period, a person with at least 20 percent ownership in the applicant or an officer or employee who controls, manages, or represents the applicant in this state has had a license to operate a vocational or degree-granting institution revoked in this state or any jurisdiction;
3. The applicant provides false or misleading information on or with the application packet required by this Section;
4. The applicant was previously licensed by the Board and ceased operation without complying with R4-39-402 and R4-39-406; or
5. The applicant ceased to operate or offer a program and as a result:
a. The Board was obligated to make a payment from the Student Tuition Recovery Fund established under A.R.S. § 32-3072, or
b. The DE or a private entity forgave loans, in whole or in part, to affected students; and
6. If the conviction described in subsection (B)(1) was discharged, expunged, set aside, or vacated, the Board shall consider this fact when exercising its discretionary power under this Section.
C. The Board shall grant or renew a regular license only if:
1. The applicant provides the information required in subsection (D); and
2. The information provided under subsection (D) demonstrates:
a. For a regular license to operate a private accredited vocational institution, compliance with A.R.S. § 32-3021(B);
b. For a regular license to operate a private accredited degree-granting institution, compliance with A.R.S. § 32-3022(B);
c. The ability to provide educational services as represented to the public;
d. Institutional accreditation or accreditation of each program to be offered; and
e. Compliance with all accreditation standards established by each accrediting agency that accredits the applicant's programs or the institution through which the programs are operated.
D. An applicant for an initial regular license shall submit to the Board an application packet that includes:
1. The filing fee required under R4-39-201;
2. The information and documentation required in R4-39-104(D)(2), if required, and (D)(3) through (D)(17);
3. The name of each accrediting agency that accredits the applicant or the applicant's programs;
4. For each accrediting agency named in subsection (D)(3), documentation from the accrediting agency that confirms the current accreditation status of the applicant or the applicant's programs;
5. Attestation by the individual signing the application that the applicant complies and will continue to comply with all accreditation standards established by each accrediting agency named in subsection (D)(3);
6. A copy of the applicant's most recent DE program participation agreement and financial aid audit, if applicable;
7. For each federal student financial aid program named in the agreement in subsection (D)(6), documentation from the DE demonstrating participation in the federal student financial aid program and showing the applicant's default rate for the last three years, if applicable;
8. Attestation by the individual signing the application that the applicant complies and will continue to comply with all DE requirements governing federal student financial aid programs named in the agreement in subsection (D)(6);
9. A copy of the applicant's current catalog and enrollment agreement that meets the accreditation standards established by each accrediting agency named in subsection (D)(3); and
10. A surety bond, cash deposit, or equivalent security if required under A.R.S. § 32-3023 and R4-39-108.
E. No later than 60 days before a licensee's regular license expires, the licensee shall submit to the Board a license renewal application packet that includes:
1. The filing fee required under R4-39-201; and
2. The information and documentation required in:
a. R4-39-104(D)(2) if required under A.R.S. § 32-3023 and R4-39-108;
b. R4-39-104(D)(3), (D)(4), (D)(5), (D)(8)(a) and (c), (D)(12), and (D)(17); and
b. c. Subsections (D)(3) through (D)(10);
3. A list of all individuals or persons referenced in R4-39-104(D)(14) and (D)(15);
4. A report on the annual enrollment and retention and placement rates for each program offered by the licensee, if the report is required by DE or the accrediting agency that accredits the program or licensee;
5. For each program offered, an indication whether the program is offered by residential or online delivery or both; and
6. A list of all programs that are in teach-out and:
a. The names of all students in each program,
b. The anticipated completion date of each student, and
c. Contact information for each student.
F. A licensee shall:
1. Notify the Board in writing within 24 hours if the licensee:
a. Receives a grant of accreditation issued by an accrediting agency other than an accrediting agency named under subsection (D)(3);
b. Becomes eligible to participate in a federal student financial aid program other than a federal student financial aid program named in the agreement under subsection (D)(6);
2. c. Ceases to be accredited or has a program that ceases to be accredited by an accrediting agency named under subsection (D)(3);
3. d. Ceases to be eligible to participate in a federal student financial aid program named in the agreement under subsection (D)(6);
e. Decides to cease operations; or
f. Knows or should know that the license is under investigation by any state or federal agency or an accrediting agency; and
4. 2. Notify the Board in writing within five business days of:
a. A change in any grant of accreditation issued by an accrediting agency named under subsection (D)(3) or (F)(1)(a) including but not limited to the following adverse actions:
i. Suspending accreditation,
ii. Withdrawing or cancelling accreditation,
iii. Placing accredited institution on probation,
iv. Requiring accredited institution to show cause, or
v. Requiring a specific corrective action, or
b. A change in eligibility to participate in a federal student financial aid program named in the agreement under subsection (D)(6) or (F)(1)(b).
G. The Board may conduct an inspection, under A.R.S. § 41-1009, of an applicant's or licensee's place of business to determine compliance with the requirements of A.R.S. Title 32, Chapter 30 and this Article.
H. As provided in A.R.S. § 32-3051, the Board may discipline a licensee that:
1. Violates a requirement in subsection (F); or
2. Intentionally or negligently misrepresents any material information in documents or information presented to the Board.

Notes

Ariz. Admin. Code § R4-39-103
Adopted effective May 21, 1985 (Supp. 85-3). Amended effective October 10, 1997 (Supp. 97-4). Amended by final rulemaking at 11 A.A.R. 2262, effective August 6, 2005 (Supp. 05-2). Amended by final rulemaking at 22 A.A.R. 921, effective 6/4/2016.

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