Chapter 0242 - 551R - S Ver of SB1308

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 32-3058, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3058. Records; preservation; seizure; confidentiality; release

A. If a person who holds a private vocational program license or license to grant degrees discontinues operation, the chief administrative officer of the educational institution shall file with the board the original or legible true electronic copies, or both, of all educational records of the institution as specified by the board.

B. Educational records include at least all educational information required by colleges or vocational institutions in considering students for transfer or advanced study, educational records including academic transcripts of each student and former student and financial aid accounting records of each student and former student.

C. If it appears to the board that any educational records of an educational institution are in danger of being destroyed, secreted, mislaid or otherwise made unavailable to the board, the board may seize and take possession of the educational records on its own motion and without the order of any court.

D. The board shall retain the educational records it receives pursuant to sections 41-151.15 and 41-151.19. These records are confidential and are not subject to review by the general public. The board shall establish procedures for access to and release of such records to students and their authorized representatives. END_STATUTE

Sec. 2. Section 32-3071, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3071. Definitions

In this article, unless the context otherwise requires:

1. "Assessment" means the amount a private postsecondary education institution is required to pay to the student tuition recovery fund.

2. "Ceasing operations" means that a private postsecondary education institution that has stopped offering educational courses or programs to the public for any reason.

3. "Distance learning instruction" means a written correspondence or electronic medium online education program for students who are enrolled in an institution licensed under this chapter.

4. "Fund" means the student tuition recovery fund.

5. "Newly enrolled student" means a student who is enrolling with a private postsecondary education institution for the first time or reenrolling after an absence from the institution for one or more years.

6. "Person injured" means a student of a private postsecondary education institution which is not exempt from this article pursuant to section 32-3072, subsection D and which that charges prepaid tuition to a student who is damaged monetarily by the institution ceasing operations before fulfilling its contractual obligations or fully providing the services which that were paid for in advance. Person injured does not include a nonresident student who is eligible to claim for recovery under a student tuition recovery fund or similar fund in the student's state of residence.

7. "Prepaid tuition" means monies that are advanced to an educational institution before the educational institution provides its service.

8. "Private postsecondary education institution" or "institution" means an educational institution that is subject to licensure under this chapter.

9. "Regional accrediting agency" means an agency which is recognized by the United States department of education and which accredits degree granting institutions operating in a designated geographic region.

10. "Specialized accrediting agency" means an agency which is recognized by the United States department of education and which accredits individual programs offered by institutions and not the institutions themselves.

11. 9. "Total course cost" means the tuition and other fees that are charged by the private postsecondary education institution for each course offered. END_STATUTE

Sec. 3. Section 32-3072, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3072. Student tuition recovery fund

A. The student tuition recovery fund is established and shall be administered by the board. A person who is injured by a private postsecondary education institution ceasing operations may recover from the fund an amount that does not to exceed the actual damages sustained.

B. Except as provided in subsection D of this section, Each private postsecondary education institution which that collects prepaid tuition shall annually pay an assessment to the board for each newly enrolled student in an amount equal to the sum of two-tenths of one per cent percent of the total course cost for each newly enrolled student, not to exceed $10 per student. A private postsecondary education institution is not required to pay more than $25,000 per annual assessment period. A private postsecondary education institution shall is not be required to pay assessments for newly enrolled students who are not residents of this state and for whom the institution has paid a student tuition recovery fund assessment or an assessment to a similar fund in the student's state of residence. A private postsecondary education institution shall is not be required to pay assessments for students who are not residents of this state and who are enrolled in distance learning instruction.

C. The total assessment for each newly enrolled student shall not be more than ten dollars. If on June 30 of any year the balance in the fund exceeds five hundred thousand dollars $500,000, and on notice by the board to institutions, only institutions and schools that are newly or provisionally licensed during or after that fiscal year then ended shall pay the assessment.

D. Institutions accredited by a regional or specialized accrediting agency recognized by the United States department of education are exempt from this section.END_STATUTE

Sec. 4. Section 32-3073, Arizona Revised Statutes, is amended to read:

START_STATUTE32-3073. Powers and duties of board over fund

A. The board shall:

1. Administer the student tuition recovery fund.

2. Receive claims against the fund from persons injured and provide students' educational records from closed institutions.

3. Determine the amount of monies in any fiscal year to be drawn to administer the fund.

4. Deduct reasonable costs from the fund in addition to those permitted allowed in paragraph 2 of this subsection for any of the following purposes:

(a) Seizing student records from a closed school.

(b) Processing student record requests.

5. Not later than ten business days after a board meeting, notify institutions in any fiscal year, pursuant to section 32-3072, subsection C, that only institutions which that are newly or provisionally licensed during or after that fiscal year shall pay the assessment.

6. Review the balance of the fund at the first board meeting that is held after june 30 of each year.

6. 7. Adopt rules necessary to administer this article.

B. If an institution that is subject to assessments under section 32-3072 ceases operations with assessments unpaid to the board, the board and the attorney general shall recover the assessments from the institution. END_STATUTE

Sec. 5. Retroactivity

This act applies retroactively to from and after December 31, 2019.

Sec. 6. Requirements for enactment; two-thirds vote

Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.