Section R4-39-406. Closure of an Institution or Cessation of a Pro- gram

A.      At least 60 calendar days before a licensed institution closes, ceases to operate a program in which a student is enrolled, or makes an alternative program available to a student enrolled in a program that the institution will cease to operate, the licensed institution shall provide written notice of the closure, cessation of the program, or alternative program to:

1.        Each enrolled student in the program that the institution will cease to operate, and

2.        The Board.

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

C.      The refund requirement in subsection (B) does not apply if a student enrolled in a licensed institution that closes or in a pro-

gram that the licensed institution ceases to operate chooses in writing to waive the refund because the student has received training or academic credit that is transferable to another insti- tution.

D.      The refund requirement in subsection (B) does not apply if a licensed institution that ceases to operate a program in which a student is enrolled provides the student an alternative program that is equivalent to the program no longer operated, as deter- mined 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.       This Section applies to a licensed institution regardless of whether the closure or the cessation of a program is the fault of the licensed institution.

Historical Note

New Section made by final rulemaking at 11 A.A.R.

2262, effective August 6, 2005 (Supp. 05-2).