Section R4-39-103. Requirements for a Regular License to Operate a Private Accredited Vocational Institution or a Private Accred- ited Degree-granting Institution in Arizona

A.      A person shall not operate a private accredited vocational institution or a private accredited degree-granting institution without a regular license granted by the Board.

B.       The Board shall not grant a regular license or renewal of a reg- ular license to an applicant if:

1.        Within 10 years before the date of filing an application packet required in subsection (D) or since the start date of the current licensure period, an individual with 20 percent or more ownership in the applicant institution has been convicted in this state or any other state or jurisdiction of a felony or any crime related to the operation of an educa- tional institution, unless the conviction has been abso- lutely discharged, expunged, or vacated;

2.        Within 10 years before the date of filing an application packet required in subsection (D) or since the start date of the current licensure period, a person with 20 percent or more ownership in the applicant institution has had a license to operate a vocational program, vocational insti- tution, degree program, or degree-granting institution revoked in this state or in any other state or jurisdiction; or

3.        The applicant provides false or misleading information on or with an application required by this Section.

C.      The Board shall grant a regular license or renewal of a regular license to an applicant if:

1.        The applicant provides the information required in sub- section (D); and

2.        The information provided under subsection (D) demon- strates:

a.         For a regular license to operate a private accredited vocational institution, compliance with A.R.S. § 32- 3021(B)(1) through (9);

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 repre- sented to the public;

d.        Institutional accreditation or accreditation of each program to be operated; and

e.         Compliance with all accreditation standards estab- lished by each accrediting agency that accredits the

applicant’s  programs  or   the  institution  through which the programs are operated.

D.      An applicant for a regular license shall submit to the Board an application packet including:

1.        The filing fee required under R4-39-201;

2.        The information and documentation required in R4-39- 104(D)(2) through (D)(6), (D)(8) through (D)(15), and (D)(17);

3.        The name of each accrediting agency that accredits the applicant’s programs or the institution through which the programs are operated;

4.        For each accrediting agency named in subsection (D)(3), documentation from the accrediting agency that confirms the current accreditation status of the programs or the institution;

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.        The name of each federal student financial aid program in which the applicant is eligible to participate;

7.        For each federal student financial aid program named in subsection (D)(6), documentation from the United States Department of Education demonstrating participation in the federal student financial aid program and showing the applicant’s student default rate;

8.        Attestation by the individual signing the application that the applicant complies and will continue to comply with all United States Department of Education requirements governing federal student financial aid programs named in subsection (D)(6);

9.        A copy of the applicant’s current catalog 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 calendar days before the expiration date of a licensee’s current regular license, an applicant for annual renewal of a regular license shall submit to the Board an appli- cation packet including:

1.        The filing fee required under R4-39-201; and

2.        The information and documentation required in:

a. R4-39-104(D)(2), (D)(4), (D)(5), (D)(9), (D)(10), (D)(14), (D)(15), and (D)(17); and

b.     Subsections (D)(3) through (D)(10).

F.       A licensee shall:

1.        Notify the Board in writing within 24 hours if the lic- ensee:

a.         Receives a new grant of accreditation issued by an accrediting agency other than an accrediting agency named under subsection (D)(3); or

b.        Becomes eligible to participate in a federal student financial aid program other than a federal student financial aid program named under subsection (D)(6).

2.        Notify the Board in writing within 24 hours if the licensee ceases to be accredited by an accrediting agency named under subsection (D)(3);

3.        Notify the Board in writing within 24 hours if the licensee ceases to be eligible to participate in a federal student financial aid program named under subsection (D)(6); and

4.        Notify the Board in writing within 14 calendar days of:

a.         A change in any grant of accreditation issued by an accrediting agency named under subsection (D)(3) or (F)(1)(a), or

b.        A change in eligibility to participate in a federal stu- dent financial aid program named under subsection (D)(6) or (F)(1)(b).

G.      The Board may conduct an inspection, pursuant to A.R.S. § 41-1009, of an applicant’s or a licensee’s place of business to determine compliance with the requirements of this Article.

H.      In addition to the grounds for disciplinary action in A.R.S. §§ 32-3051, the Board shall discipline a licensee that:

1.        Violates the requirements in subsection (F);

2.        Intentionally or negligently misrepresents any material information in documents or information presented to the Board.

Historical Note

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).