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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: ED DP 7-0-0 | Third Read 26-1-3-0-0 |
SB 1210: private postsecondary education; nondomiciled institutions
Sponsor: Senator Bolick, LD 2
Committee on Education
Creates an out-of-state registration process for a private postsecondary education institution (institution) that is not domiciled in Arizona nor an active participant in the National Council for State Authorization Reciprocity Agreement (NC-SARA) and that enrolls an Arizona resident in a fully online program.
History
The Arizona State Board for Private Postsecondary Education (Board) must: 1) establish minimum standards for private vocational program licensure requirements; 2) consider applications for private vocational program licenses and licenses to grant degrees; and 3) maintain a list of licensed institutions. Statute prohibits a person from operating: 1) a private vocational program unless they hold a Board-issued private vocational program license; and 2) an institution that offers to grant a degree to any person unless they hold a Board-issued license to grant degrees (A.R.S. §§ 32-3003, 32-3021, 32-3022).
Currently, operate means establishing, keeping, maintaining or utilizing a physical facility, location or mailing address in Arizona where: 1) students are procured for private vocational or private degree programs; 2) private vocational or private degree programs are offered; or 3) private vocational credentials or private degrees are offered or granted. Operate includes contracting for any of the aforementioned options (A.R.S. § 32-3001).
The State Authorization Reciprocity Agreement (SARA) is an agreement between institutions, states and higher education regional compacts for the interstate delivery of distance education. The National Council for SARA (NC-SARA) is a nonprofit organization that, in partnership with four regional compacts (including the Western Interstate Commission for Higher Education), sets national standards for the interstate offering of postsecondary distance education courses and programs (NC-SARA).
Provisions
Operating
1. Modifies the definition of operate to mean either:
a. establishing and maintaining a physical presence in Arizona, including a facility, location or mailing address, and an in-state director; or
b. providing postsecondary education through online distance education to a person who resides in Arizona if the institution is not a participant in NC-SARA. (Sec. 1)
2. Prohibits a person who does not hold a Board-issued out-of-state registration from providing postsecondary education through online distance education to a person who resides in Arizona if the institution is not an NC-SARA participant. (Sec. 2)
Out-of-State Registration
3. Defines out-of-state registration to mean an authorization issued by the Board to an institution domiciled outside of Arizona that enrolls an Arizona resident in an online program when the institution is not a participant in NC-SARA. (Sec. 1)
4. Applies out-of-state registration requirements to any institution, regardless of accreditation status or whether the institution offers vocational or degree programs, that:
a. is not domiciled in Arizona;
b. enrolls an Arizona resident in a fully online program; and
c. is not an active participant in NC-SARA. (Sec. 4)
5. Requires an institution that is not domiciled in Arizona to submit an application for out-of-state registration to the Board that includes:
a. evidence that the institution is legally authorized to operate in the state in which it is domiciled by the home state's postsecondary education regulatory agency;
b. evidence that the institution is accredited or, if the institution is not accredited, the additional prescribed information required for an unaccredited institution;
c. evidence the institution is providing financial protection for Arizona students;
d. the most recent year-to-date parent company financial statements and the most recently completed fiscal year financial statements in accordance with generally accepted accounting principles; and
e. an example of the institution's official student transcript. (Sec. 4)
6. Specifies the type of evidence an institution must provide to prove it is providing financial protection for Arizona students. (Sec. 4)
7. Details what must be included in the parent company financial statements. (Sec. 4)
8. Instructs an institution that is not accredited to submit to the Board for approval:
a. program information that is approved by the institution's home state's postsecondary education regulatory agency and that is offered by the institution to Arizona residents;
b. a list of all faculty teaching residents of Arizona and evidence of the faculty's qualifications to teach in their assigned subject areas;
c. evidence that all vocational or degree programs offered meet the minimum credit hour and program length standards established by the institution's home state; and
d. a signed attestation from a responsible officer of the institution. (Sec. 4)
9. Specifies the signed attestation from a responsible officer of the institution must affirm that the institution will:
a. comply with the Board's pro rata refund policy rule for all Arizona students; and
b. provide the following notifications to students who are Arizona residents:
i. that the institution is registered by the Board to operate;
ii. an outline of the procedures students may follow to file a complaint against the institution;
iii. that the transferability of credits earned at the institution is at the sole discretion of the receiving institution; and
iv. a statement of whether program completion is sufficient to meet Arizona's licensure requirements if the institution offers programs or courses leading to or advertised as leading to professional licensure. (Sec. 4)
10. Requires the institution, in its notification to students of the complaint procedures, to:
a. include a statement that if a complaint is not resolved to the student's satisfaction, the student may contact the Board;
b. provide the Board's contact information; and
c. ensure that students will not be retaliated against for filing a complaint. (Sec. 4)
11. Asserts that if the institution cannot determine whether a program will meet Arizona's professional licensure requirements, the notification must state that the program does not satisfy Arizona's licensure requirements. (Sec. 4)
12. Mandates an institution with out-of-state registration report in writing to the Board within 30 days after the occurrence of any:
a. change in accreditation status;
b. suspension or revocation of the institution's authorization by any state;
c. material change in the institution's financial status or a filing for bankruptcy;
d. new education, consumer protection or fraud-related enforcement action or lawsuit filed against the institution by a state or federal agency; or
e. change in institution ownership following approval by the institution's home state. (Sec. 4)
13. Requires each institution with out-of-state registration to maintain, in digital form, a student's:
a. official transcript in perpetuity; and
b. enrollment and financing agreements for at least ten years after the student is no longer enrolled. (Sec. 4)
14. Requires an institution, within 30 days after its closure, to submit all transcripts for Arizona residents to the Board. (Sec. 4)
15. Sets the validity of an out-of-state registration at one year and requires the registration to be renewed annually through a Board-approved application. (Sec. 4)
16. Requires an institution to pay a Board-set fee for initial out-of-state registration and renewal of registration. (Sec. 4)
Miscellaneous
17. Subjects each institution that collects prepaid tuition and that holds an out-of-state registration to Student Tuition Recovery Fund requirements. (Sec. 6)
18. Specifies private postsecondary education institution or institution means an educational institution that is subject to out-of-state registration. (Sec. 5)
19. Deletes the definition of distance learning instruction. (Sec. 5)
20. Makes technical and conforming changes. (Sec. 1, 2, 3, 5, 6, 7)
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24. Initials CH/JD SB 1210
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