Ariz. Admin. Code § R4-39-406 - Ceasing to Operate or to Offer a Program; Teach-out Plan

A. At least 60 days before a licensee ceases to operate or to offer a program in which a student is enrolled, the licensee shall determine whether there is another institution able and willing to offer a teach-out program to students enrolled with the licensee. If another institution is able and willing to offer a teach-out program, the licensee and teach-out institution shall enter a contract with the following terms:

1. The teach-out institution shall offer each student affected by the licensee ceasing to operate or to offer a program, an opportunity to resume and complete the program in which the student is enrolled, or a substantially similar program, within a reasonable time and same geographic area as the licensee;

2. The teach-out institution shall provide each affected student with timely notice of the availability of the teach-out program including information about differences between the teach-out program and the program in which the student is enrolled with the licensee;

3. The teach-out institution shall advertise the availability of the teach-out program;

4. The teach-out institution shall provide equitable treatment to the students in the teach-out program;

5. The teach-out institution shall not alter the mission or operations of the teach-out institution for currently enrolled students; and

6. The teach-out institution shall affirm the institution has the capacity to provide teach-out students with all instruction and services the teach-out students contracted for but did not receive from the licensee.

B. At least 60 days before a licensee ceases to operate or to offer a program in which a student is enrolled, the licensee shall submit for review by the Board a teach-out plan that includes the following:

1. A list of all students who will be affected by the licensee ceasing to operate or to offer a program,

2. For each student identified under subsection (B)(1):

a. Name of program in which the student is participating, and

b. Estimated graduation date; and

3. Whether the teach out will occur at the licensee, a teach-out institution with which the licensee has a contract under subsection (A), or a combination of the licensee and teach-out institution. If the teach out will occur, in whole or in part, at a teach-out institution:

a. Whether the teach-out institution will use faculty of the licensee to complete the teach out;

b. Whether the degree, diploma, or certificate awarded on completion of the teach-out program will be awarded by the licensee or the teach-out institution;

c. Whether students who are enrolled but not attending the licensee or those on a leave of absence from the licensee are entitled to participate in the teach-out program; and

d. A copy of the contracts, if any, entered under subsection (A).

A. C.At least 30 days before a licensee ceases to operate or to offer a program in which a student is enrolled, or makes a teach-out program available to a student enrolled in a program that the licensee will cease to offer, the licensee shall provide written notice of ceasing to operate or to offer the program, or availability of the teach-out program to:

1. Each enrolled student affected by the licensee's decision to cease to operate or to offer a program, and

2. The Board.

B. D. Except as provided in subsections (E) and (F), no later than 30 days after a licensee ceases to operate or to offer a program in which a student is enrolled, the licensee shall provide a refund of 100 percent of student fees and tuition paid by the student or other funding source on behalf of the student.

C. E. The refund requirement in subsection (D) does not apply if a student enrolled in a licensee that ceases to operate or in a program that the licensee ceases to offer transfers to another institution and receives training or academic credit comparable to the training or academic credit that the student would have received if the licensee had not ceased to operate or to offer the program.

D. F. The refund requirement in subsection (D) does not apply if a licensee that ceases to offer a program in which a student is enrolled provides the student an alternative program that is equivalent to the program no longer offered, as determined by the Board, in:

1. Program content;

2. Program length and schedule;

3. Tuition, student fees, payment schedules, and financing options;

4. Accreditation status, if applicable;

5. Award of credentials;

6. Instruction and equipment;

7. Placement assistance and student services, if applicable; and

8. Facilities.

E. G. This Section applies to a licensee regardless of whether the licensee is at fault in the closure of the licensee or cessation of a program.

Notes

Ariz. Admin. Code § R4-39-406

New Section made 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.