Ariz. Admin. Code § R4-39-110 - Change of Ownership or Control
A. In this Section, "change of ownership or
control" means is indicated by the following:
1. For a privately held corporation whose
control is vested in those who control the voting stock of the corporation:
a. At least 50 percent or more of the voting
stock changes from one owner to another within a five-year period; or
b. At least 50 percent of the assets of the
corporation are sold regardless of whether the sale is called an asset or
securities purchase, a stock or share exchange, or something
else;
2. For a publicly
traded corporation whose control is vested in the voting members of the board
of directors:
a. At least 50 percent of the
voting members of the board of directors change within a 12-month period,
or
b. At least 50 percent of the
assets of the publicly traded corporation are sold regardless of whether the
sale is called an asset or securities purchase, a stock or share exchange, or
something else;
3. For a
non-profit corporation whose control is vested in the voting members of the
board of trustees:
a. At least 50 percent of
the voting members of the board of trustees change within a 12-month period,
or
b. The chief executive officer
of the non-profit corporation changes;
4. For a limited partnership whose control is
vested in a corporate general partner, the corporate general partner:
a. Has a change of ownership or control as
determined under subsections (A)(1) through (A)(3); or
b. At least 50 percent of the assets of the
corporate general partner are sold regardless of whether the sale is called an
asset or securities purchase, a stock or share exchange, or something
else;
5. For a limited
liability company whose control is vested in members who control a majority of
the interest in the company:
a. At least 50
percent interest changes within a 12- month period; or
b. At least 50 percent of the assets of the
limited liability company are sold regardless of whether the sale is called an
asset or securities purchase, a stock or share exchange, or something
else;
6. For a sole
proprietor or a limited partnership that is not described in subsection (A)(4),
if at least 50 percent interest changes within a five-year period;
and
7. For any business entity
described in subsections (A)(1) through (A)(6), when the entity changes from
one business form to another including when a non-profit entity becomes a
for-profit entity or when a privately held corporation becomes a publicly
traded corporation.
B.
If assets are sold under subsection (A)(1), (A)(2), (A)(4), or (A)(5),
regardless of whether the sale is called an asset or securities purchase, a
stock or share exchange, or something else, the sale must transfer liabilities
for students enrolled at the time of closing.
C. For the purposes of this Section, assets
and liabilities are determined according to generally accepted accounting
principles.
1. A change of ownership or
control as described under subsection (A); or
2. A change of interest or of the voting
members of the board of directors of more than 20 percent but less than 50
percent.
1. The filing fee
required under
R4-39-201(E);
2. Either:
a. Information and documentation specified in
R4-39-103(D)(3)
through (D)(10), as applicable,
R4-39-104(D)(2),
if required, and (D)(3) through (D)(6), (D)(8)(a) and (c) through (D)(12),
(D)(14), and (D)(17); or
b. If
required by an accrediting agency that accredits the licensee's programs or the
institution through which the programs are offered, a copy of change of
ownership documents submitted by the licensee to the accrediting
agency;
3. Attestation
that the applicant will assume financial responsibility, as required under
R4-39-404(C),
for all student tuition refunds for which the institution has an obligation;
and
4. Other information determined
by the Board to be relevant to determining the applicant's compliance with
licensing requirements under A.R.S. Title 32, Chapter 30 and this Article.
1. The
filing fee required under R4-39-201(E);
2. For a private non-accredited vocational
institution, information and documentation specified in
R4-39-104(D)(3)
through (D)(6), (D)(8)(a) and (c), (D)(12) through (D)(14) and
(D)(17);
3. For a private non-accredited
degree-granting institution, information and documentation specified in
R4-39-103(D)(3) through (D)(10), as applicable,
R4-39-104(D)(2)
through (D)(6), (D)(8)(a) and (c), (D)(12) through (D)(14) and
(D)(17);
4. Attestation that the applicant will assume
financial responsibility, as required under
R4-39-404(C),
for all student tuition refunds for which the institution has a financial
obligation; and
5. Other
information determined by the Board to be relevant to determining the
applicant's compliance with licensing requirements under this Article.
1. Within 10 years before filing the
application packet required in subsection (G) or (H) 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 (G) or (H) 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
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 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 (H)(1) was discharged, expunged, set aside, or vacated, the Board
shall consider this fact when exercising its discretionary power under this
Section.
1. Demonstrates compliance with A.R.S.
§§
32-3021
through
32-3027, as
applicable; and
2. Meets the
application requirements in subsection (F) or (G).
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.