Section R4-39-104. Requirements for a Conditional License to Oper- ate a New Private Non-accredited Vocational Institution in Ari- zona

A.      A person shall not operate a new private non-accredited voca- tional institution without a conditional license granted by the Board.

B.       The Board shall not grant a conditional license to an applicant if:

1.        Within 10 years before the date of filing an application packet required in subsection (D), an individual with 20 percent or more ownership in the applicant institution has been convicted in this state or any other state or jurisdic- tion of a felony or any crime related to the operation of an educational institution, unless the conviction has been absolutely discharged, expunged, or vacated;

2.        Within 10 years before the date of filing an application packet required in subsection (D), a person with 20 per- cent or more ownership in the applicant institution has had a license to operate a vocational program, vocational institution, 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 conditional 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.         Compliance with A.R.S. § 32-3021(B)(1) through (9); and

b.        The ability to provide educational services as repre- sented to the public.

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

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

2.        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, mail- ing 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 20 percent or more ownership in the institution, and

iii.      All individuals responsible for managing the institution in this state;

e.         Responses to questions regarding whether a person identified in subsection (D)(2)(d) has ever applied for or been issued a license to operate a vocational program, vocational institution, degree program, or degree-granting institution in this state or in any other state or jurisdiction;

f.         Responses to questions regarding the finances, fed- eral or state tax liabilities, management capabilities, and criminal history of the persons identified under subsection (D)(2)(d)(ii);

g.        Responses to questions regarding programs, student recruitment, student enrollment, student retention, student placement, and student financing;

h.        Staffing information including:

i.         Faculty member qualifications for each pro- gram to be operated;

ii.        Total number of current administrative person- nel and faculty members;

iii.      If applicable, projected number of administra- tive personnel and faculty members at the end of the first licensure period;

iv.       The names of all current administrative person- nel and faculty members;

i.         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.         Attestation by the individual signing the application that all information required as part of the applica- tion packet has been submitted and is true and accu- rate; and

k.        The signature of an owner or an owner’s legal repre- sentative and date of signature;

3.        If applicable, a copy of the applicant’s articles of incorpo- ration, partnership or joint venture documents, or limited liability documents;

4.        For each program to be operated, a form provided by the Board describing:

a.         Program content, length, and delivery system infor- mation;

b.        Program prerequisites and completion requirements;

c.         Tuition and student fees;

d.        Any required textbooks or program learning materi- als;

e.         Any equipment or technology requirements or com- petencies;

f.         As applicable:

i.         Library resources;

ii.        Clinical training, practica, externships, intern- ships, or special features;

iii.      Graduate employment opportunities; and

iv.       Requirements for a graduate to practice  the skill or occupation for which the program pre- pares the graduate;

5.        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.        A copy of the applicant’s catalog meeting the require- ments in R4-39-301;

8.        A copy of each brochure, promotional document, or advertisement intended for students or potential students;

9.        A copy of the applicant’s published student grievance procedure that:

a.         Requires that a student grievance be submitted in writing;

b.        Provides the steps and time lines involved in the grievance procedure;

c.         References the student’s right under A.R.S. § 32- 3052 to file a complaint with the Board; and

d.        Lists the Board’s address and telephone number.

10.     An institutional organizational chart including staff names and position titles;

11.     For each individual identified under subsection (D)(2)(d), a form provided by the Board describing the individual’s professional and educational background;

12.     For each faculty member named under subsection (D)(2)(h)(iv), a form provided by the Board describing the individual’s professional and educational background;

13.     For each location within the state from which the appli- cant will operate:

a.         A form provided by the Board describing the facil- ity;

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 com- pliance with all applicable fire codes, local building codes, and zoning ordinances;

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 determined by the Board or the appli- cant to be relevant to the determination of the applicant’s compliance with licensing requirements under this Arti- cle.

E.       Before granting a conditional license, the Board shall conduct an inspection, pursuant to A.R.S. § 41-1009, of an applicant’s place of business to determine compliance with subsection (C).

F.       While conditionally licensed, a 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 “condition- ally licensed” or “conditional license.”

G.      After granting a conditional license, the Board may conduct an inspection, pursuant to A.R.S. § 41-1009, of a licensee’s place of business to determine continuing compliance with the requirements of this Article.

H.      In addition to the grounds for disciplinary action in A.R.S. §§ 32-3051, the Board may discipline a licensee that intentionally or negligently misrepresents any material information in docu- ments or testimony 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).