ARIZONA STATE BOARD FOR



ARIZONA STATE BOARD FOR

PRIVATE POSTSECONDARY EDUCATION

DIRECTORY FOR THE

SUMMARY OF RULES

AND

SUBSTANTIVE POLICY STATEMENT

JUNE 30, 2009

SUMMARY PAGE FOR ARTICLE 1

1. Title 4: Professional and Occupations

2. Chapter 39: Board for Private Postsecondary Education

3. Article 1: Definitions, Licensure, Reporting

4. Effective Date: June 27, 1985

Section 101: Amended 8/6/2005

Section 102: Amended 8/6/2005

Section 103: Amended 10/10/97; 8/6/2005

Section 104: Amended 10/10/97; 8/6/2005

Section 105: Amended 10/10/97; 8/6/2005

Section 106: Amended 10/10/97; 8/6/2005

Section 107: Amended 2/23/93; 10/10/97; 8/6/2005

Section 108: Amended 11/6/98, Repealed & New

Section 8/6/2005

Section 109: Repealed, renumber and

Amended 11/6/98

Section 110: Amended 2/23/93; Renumbered and

Amended 11/6/98, Amended 8/2/2005

Section 111: Renumbered, New Section and

Amended 11/6/98

Section 112: Repealed 11/6/98

5. Summary of the Contents:

This article establishes the minimum licensing requirements for a new, non-accredited vocational and degree-granting institution; new, accredited vocational and degree-granting institutions and annual renewal of licenses. Minimum licensing requirements are also established for supplemental license applications for new programs, locations, change of name and change of ownership.

6. The name, address and telephone number of the person to whom questions and comments about these rules may be directed:

Teri Stanfill, Executive Director

Arizona State Board for Private Postsecondary Education

1400 W. Washington Street, Room 260

Phoenix, AZ 85007

Phone: 602-542-5709

Fax: 602-542-1253

7. Information about where a person may obtain a copy of these rules:

Copies are available in the Executive Director’s office of the Arizona State Board for Private Postsecondary Education as listed above and on the Board’s website: ppse.

Copies of the Arizona Administrative Code in which these rules are published are also available online () and in hard copy, from the Arizona Secretary of State’s Office, Publications Department, 1700 W. Washington Street, 1st Floor, Phoenix, AZ 85007.

SUMMARY PAGE FOR ARTICLE 2

1. Title 4: Professional and Occupations

2. Chapter 39: Board for Private Postsecondary Education

3. Article 2: Fees

4. Effective Date: June 27, 1985

Section 201 Amended 5/19/88, 10/12/93, 11/6/98

5. Summary of the Contents:

This article establishes the fees for new applications, annual license renewals, supplemental license applications, on-site visits and investigations.

6. The name, address and telephone number of the person to whom questions and comments about these rules may be directed:

Teri Stanfill, Executive Director

Arizona State Board for Private Postsecondary Education

1400 W. Washington Street, Room 260

Phoenix, AZ 85007

Phone: 602-542-5709

Fax: 602-542-1253

7. Information about where a person may obtain a copy of these rules:

Copies are available in the Executive Director’s office of the Arizona State Board for Private Postsecondary Education as listed above and on the Board’s website: ppse.

Copies of the Arizona Administrative Code in which these rules are published are also available online () and in hard copy, from the Arizona Secretary of State’s Office, Publications Department, 1700 W. Washington Street, 1st Floor, Phoenix, AZ 85007.

SUMMARY PAGE FOR ARTICLE 3

1. Title 4: Professional and Occupations

2. Chapter 39: Board for Private Postsecondary Education

3. Article 3: Operation of Private, Non-Accredited Institutions

4. Effective Date: May 21, 1985

Section 301: Amended 8/6/2005

Section 302: Amended 11/3/99, 8/6/2005

Section 303: Amended 11/3/99, 8/6/2005

Section 304: Repealed, New Section and

Renumbered 11/3/99

Section 305: Amended 2/23/93, Repealed,

New Section and Amended

11/3/99, Amended 8/6/2005

Section 306: Renumber and Amended 11/3/99

Section 307: Amended 2/23/93, Renumber, New

Section and Amended 11/3/99

Section 308: Amended 2/23/93, Renumbered, New

Section and Amended 11/3/99,

Amended 8/6/2005

Section 309: Renumber 11/3/99

Section 310: Repealed 11/3/99

5. Summary of the Contents:

This article establishes specific requirements for operating a non-accredited institution. This article explains the requirements for the institution’s catalog, facilities and equipment, staff, advertising, recruitment practices, admission requirements, tuition and fees and refund policy.

6. The name, address and telephone number of the person to whom questions and comments about these rules may be directed:

Teri Stanfill, Executive Director

Arizona State Board for Private Postsecondary Education

1400 W. Washington Street, Room 260

Phoenix, AZ 85007

Phone: 602-542-5709

Fax: 602-542-1253

7. Information about where a person may obtain a copy of these rules:

Copies are available in the Executive Director’s office of the Arizona State Board for Private Postsecondary Education as listed above and on the Board’s website: ppse.

Copies of the Arizona Administrative Code in which these rules are published are also available online () and in hard copy, from the Arizona Secretary of State’s Office, Publications Department, 1700 W. Washington Street, 1st Floor, Phoenix, AZ 85007.

SUMMARY PAGE FOR ARTICLE 4

1. Title 4: Professional and Occupations

2. Chapter 39: Board for Private Postsecondary Education

3. Article 4: Operation of All Licensed Institutions

4. Effective Date: May 21, 1985

Section 401: Amended 3/7/2000

Section 402: Amended 2/23/93, 8/6/2005

Section 403: Amended 3/7/2000

Section 404: New Section 8/6/2005

Section 405: New Section 8/6/2005

Section 406: New Section 8/6/2005

5. Summary of the Contents:

This article establishes the specific requirements for student records, the preservation of the student records and the Board as custodian of the student records from a closed school. This article establishes the student complaint procedures, specific requirements for the institution’s refund policy and students loans and financial aid policies. This article also established the requirements in the closing of an institution and its responsibility to the student and the Board.

6. The name, address and telephone number of the person to whom questions and comments about these rules may be directed:

Teri Stanfill, Executive Director

Arizona State Board for Private Postsecondary Education

1400 W. Washington Street, Room 260

Phoenix, AZ 85007

Phone: 602-542-5709

Fax: 602-542-1253

7. Information about where a person may obtain a copy of these rules:

Copies are available in the Executive Director’s office of the Arizona State Board for Private Postsecondary Education as listed above and on the Board’s website: ppse.

Copies of the Arizona Administrative Code in which these rules are published are also available online () and in hard copy, from the Arizona Secretary of State’s Office, Publications Department, 1700 W. Washington Street, 1st Floor, Phoenix, AZ 85007.

SUMMARY PAGE FOR ARTICLE 5

1. Title 4: Professional and Occupations

2. Chapter 39: Board for Private Postsecondary Education

3. Article 5: Investigations and Hearing Procedures

4. Effective Date: May 21, 1985

Section 501: Amended 2/23/93, Repealed and New

Section 4/2/2002

Section 502: Amended 2/23/93, Repealed and New

Section 4/2/202

Section 503: New Section 4/2/200

Section 406: New Section 8/6/2005

5. Summary of the Contents:

This article establishes the procedures for hearing and investigations.

6. The name, address and telephone number of the person to whom questions and comments about these rules may be directed:

Teri Stanfill, Executive Director

Arizona State Board for Private Postsecondary Education

1400 W. Washington Street, Room 260

Phoenix, AZ 85007

Phone: 602-542-5709

Fax: 602-542-1253

7. Information about where a person may obtain a copy of these rules:

Copies are available in the Executive Director’s office of the Arizona State Board for Private Postsecondary Education as listed above and on the Board’s website: ppse.

Copies of the Arizona Administrative Code in which these rules are published are also available online () and in hard copy, from the Arizona Secretary of State’s Office, Publications Department, 1700 W. Washington Street, 1st Floor, Phoenix, AZ 85007.

SUMMARY PAGE FOR ARTICLE 6

1. Title 4: Professional and Occupations

2. Chapter 39: Board for Private Postsecondary Education

3. Article 6: Student Tuition Recovery Fund

4. Effective Date: August 14, 1990

Section 601: Amended 9/12/2001

Section 602: Amended 9/12/2001 Section 603: New Section 9/12/2001

5. Summary of the Contents:

This article establishes the procedures the administration of the Student Tuition Recovery Fund, to included assessments, investigations of claims and process student records request.

6. The name, address and telephone number of the person to whom questions and comments about these rules may be directed:

Teri Stanfill, Executive Director

Arizona State Board for Private Postsecondary Education

1400 W. Washington Street, Room 260

Phoenix, AZ 85007

Phone: 602-542-5709

Fax: 602-542-1253

7. Information about where a person may obtain a copy of these rules:

Copies are available in the Executive Director’s office of the Arizona State Board for Private Postsecondary Education as listed above and on the Board’s website: ppse.

Copies of the Arizona Administrative Code in which these rules are published are also available online () and in hard copy, from the Arizona Secretary of State’s Office, Publications Department, 1700 W. Washington Street, 1st Floor, Phoenix, AZ 85007.

SUBSTANTIVE POLICY STATEMENT

A.A.C. R4-39-108(A)(B):

Surety Bond, Cash Deposit or Equivalent Security Requirements

A.A.C. R4-39-108(A)(B) requires an institution to post a Surety Bond, Cash Deposit or Equivalent Security in the amount of $15,000 on a form approved by the Board.

Pursuant to A.R.S. § 32-3023(C):

1. The minimum amount is $15,000.

2. The amount may be greater than $15,000 based upon the institution’s gross tuition revenues, the length of time the institution has operated and the financial position of the institution.

3. Must remain in effect unless the Board determines the Surety Bond, Cash Deposit or Equivalent Security is no longer required.

4. The Surety Company must have a BEST rating of A or higher.

Accordingly, the Board MAY use the following criteria in determining the amount of the Surety Bond, Cash Deposit or Equivalent Security:

1. If an institution is accredited:

• GTR is less than $400,000 – 15% of GTR;

• GTR is greater than $400,000 – 10% of GTR:

• The percentage of Title IV funding may also be taken into consideration.

2. If an institution is not accredited:

• GTR is less than $400,000 – 20% of GTR;

• GTR is greater than $400,000 – 15% of GTR

3. For an existing institution, actual GTR will be used. For a new institution, anticipated GTR based upon the first year projections.

4. If all of the programs offered are short-term programs (less than 600 hours/one academic year), the amount required MAY be reduced by 50%.

THE SURETY COMPANY MUST HAVE A BEST RATING OF A OR HIGHER.

As required by A.R.S. § 41-1091(B):

This substantive policy statement is advisory only. A substantive policy statement does not include internal procedural documents that only affect the internal procedures of the agency and does not impose additional requirements or penalties on regulated parties or include confidential information or rules made in accordance with the Arizona administrative procedure act. If you believe that this substantive policy statement does impose additional requirements or penalties on regulated parties you may petition the agency under A.R.S. § 41-1033 for a review of the statement.

Historical Note:

Effective: April 1, 2000

Issued: June 23, 2000

Revised: April 2002

Effective: July 1, 2002

Revised August 2005

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