Ariz. Admin. Code § R4-39-104 - Requirements for a Conditional License to Operate a New Private Non-accredited Vocational Institution in Arizona

A. A person shall not operate a private non-accredited vocational institution without a conditional license granted by the Board.
B. Except as specified in subsection (B)(6), the Board shall not grant a conditional license if:
1. Within 10 years before filing the application packet required in subsection (D), 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), 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 required by this Section;
4. The applicant was previously licensed by the Board and ceased operations 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 a conditional license to an applicant if:
1. The applicant provides the information and documentation required in subsection (D); and
2. The information provided under subsection (D) demonstrates:
a. Compliance with A.R.S. § 32-3021(B)(1) through (11); and
b. The ability to provide educational services as represented to the public.
D. An applicant for a conditional license shall submit to the Board an application packet that includes:
1. The filing fee required under R4-39-201;
2. A letter of credit, surety bond, cash deposit, or equivalent security, as required under A.R.S. § 32-3023, of $15,000 or another amount determined by the Board under R4-39-108;
2. 3. An application form provided by the Board containing:
a. The applicant's name, street address, mailing address, telephone number, fax number, e-mail address, and web site address, if applicable;
b. If the applicant has a headquarters in another state or jurisdiction, the headquarters' street address, mailing address, telephone number, fax number, and e-mail address;
c. Responses to questions regarding the distribution of ownership, business type, and legal structure;
d. As applicable, identification of:
i. All members of the board of directors or board of trustees,
ii. All persons with at least 20 percent ownership in the applicant, and
iii. All individuals responsible for controlling, managing, or representing the applicant in this state;
e. Responses to questions regarding whether a person identified in subsection (D)(3)(d) has ever applied for or been issued a license to operate a vocational or degree-granting institution in this state or any jurisdiction;
f. Responses to questions regarding the finances, federal or state tax liabilities, management capabilities, and criminal history of the persons identified under subsection (D)(3)(d)(ii);
g. Responses to questions regarding programs and student recruitment, enrollment, retention, placement, and financing;
h. Name of the director required under R4-39-303(B) and evidence that the director is qualified;
h. i. Staffing information including:
iRequired minimum qualifications of faculty for each program to be offered;

ii. Total number of current administrative personnel and faculty members;

iii. ii The number of administrative personnel and faculty members projected at the end of the first licensure period; and
iv. iii The names of all current administrative personnel and faculty members;
i. j. Attestation by the individual signing the application that the applicant will comply with all applicable requirements in A.R.S. Title 32, Chapter 30, and this Chapter;
j. k. Attestation by the individual signing the application that all information required as part of the application packet has been submitted and is true and accurate; and
k. l. The notarized signature of an owner of the applicant or an owner's legal representative and date of signature;
4. Financial statements or financial documentation required under R4-39-108;
5. Evidence of the insurance required under R4-39-108;
3. 6. If applicable, a copy of the applicant's articles of incorporation, partnership or joint venture documents, or limited liability documents;
7. A business plan that includes:
a. Executive summary with highlights, objectives, and mission;
b. Applicant summary;
c. Programs offered and services provided;
d. Marketing plan and implementation; and
e. Financial plan that includes three-year projections and financial resources available to demonstrate financial stability;
4. 8. For each program to be offered, a form provided by the Board describing:
a. Program content, length, and delivery system information;
b. Program prerequisites and completion requirements;
c. Student fees as defined at R4-39-101;
d. Any required textbooks or program learning materials;
e. Any equipment or technology or competency requirements;
f. As applicable:
i. Library resources;
ii. Clinical training, practica, externships, internships, or special features;
iii. Graduate employment opportunities; and
iv. Licensing requirements for a graduate of the program to practice; and
g. Attach to the form, a copy of the certificate or diploma to be awarded when the program is completed.
5. 9. A copy of the applicant's student enrollment agreement meeting the requirements in R4-39-401;

6. A copy of each type of certificate or diploma to be awarded;

7. 10. A copy of the applicant's catalog meeting the requirements in R4-39-301;
8. 11. A copy of each brochure, promotional document, uniform resource locator, or advertisement intended for students or potential students;
9. 12. A copy of the applicant's student grievance procedure that:
a. Is published in the applicant's catalog required under subsection (D)(10);
b. Provides the steps and time frames involved in the grievance procedure;
c. References the student's right under A.R.S. § 32-3052 to file a complaint with the Board;
d. Lists the Board's address, telephone number, and web site; and
e. If the applicant requires arbitration as part of the student grievance procedure, includes the following statement: Arbitration of a student grievance is required. Arbitration will take place at a location reasonably convenient for both parties giving due consideration to the student's ability to travel and other pertinent circumstances. Both parties will attempt to have proceedings take place within a reasonable time and without undue delay. The arbitration proceedings will follow the spirit if not the letter of the consumer due process protocol of the American Arbitration Association. The protocol includes but is not limited to a fundamentally fair process; an independent and impartial, competent, and qualified arbitrator; independent administration of the arbitration; reasonable cost; right to representation; and possibility of mediation. Arbitration does not preclude other avenues of recourse, including but not limited to possible relief in small claims court, unless and until the arbitration result is made binding. Arbitration of a student grievance does not preclude the student from seeking a remedy from the Arizona Board of Private Postsecondary Education.
10. 13. An institutional organizational chart including staff names and position titles;
11. 14. For each individual identified under subsection (D)(3)(d), a form provided by the Board describing the individual's professional and educational background;
12. 15. For each faculty member named under subsection (D)(3)(h)(iv), a form provided by the Board describing the individual's professional and educational background;
13. 16. For each location within the state from which the applicant will operate:
a. A form provided by the Board describing the facility;
b. Line drawings, floor plans, or photographs showing each story of the facility, the room layout, room usage, and each door, window, and exit; and
c. Documentation from the local jurisdiction of compliance with all applicable fire codes, building codes, and zoning ordinances; and

14. Documentation of insurance required under R4-39-108;

15. Financial statements or financial documentation required under R4-39-108;

16. A surety bond, cash deposit, or equivalent security as required under A.R.S. § 32-3023 and R4-39-108; and

17. Other information the Board or applicant believes is relevant and will assist the Board to determine whether the applicant is in compliance with all licensing requirements under A.R.S. Title 32, Chapter 30 and this Article.
E. Before granting a conditional license, the Board shall conduct an inspection, under A.R.S. § 41-1009, of an applicant's place of business to determine compliance with subsection (C).
F. If the Board grants a conditional license to an applicant, the conditional licensee:
1. Shall not describe or refer to itself using the terms "licensed," "approved," or "accredited;" and
2. May describe or refer to itself using the terms "conditionally licensed" or "conditional license."
G. After granting a conditional license, the Board may conduct an inspection, under A.R.S. § 41-1009, of a licensee's place of business to determine continuing compliance with the requirements of A.R.S. Title 32, Chapter 30 and this Article.
H. Under the authority provided at A.R.S. § 32-3051, the Board may discipline a licensee that intentionally or negligently misrepresents any material information in documents or testimony presented to the Board.

Notes

Ariz. Admin. Code § R4-39-104
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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