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SB1210 - 572R - S Ver
Senate Engrossed
private postsecondary
education; nondomiciled institutions
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SENATE BILL 1210
AN
ACT
Amending sections 32-3001, 32-3021 and 32-3022,
Arizona Revised Statutes; Amending title 32, chapter 30, ARTICLE 2, Arizona
Revised Statutes, by adding section 32-3024; amending sections 32-3071, 32-3072
and 32-3075, Arizona Revised Statutes; relating to private postsecondary
education INSTITUTIONS.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it
enacted by the Legislature of the State of Arizona:
Section 1. Section 32-3001, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-3001.
Definitions
In this chapter, unless the context otherwise requires:
1. "Accredited" means accredited by an
accrediting agency
that is
recognized by the United
States department of education.
2. "Board" means the state board for
private postsecondary education.
3. "Degree" means an academic degree or
honorary degree or the title of any designation, mark, appellation, series of
letters or words
,
including associate, bachelor, master,
doctor or fellow
,
which
that
signifies, purports to signify or is generally taken to
signify satisfactory completion of the requirements of an educational program
of study beyond the secondary school level or
which
that
is an honorary title conferred for recognition of some
meritorious achievement.
4. "Grant" means
to
award, bestow, confer, convey or sell.
5. "Operate" means to
establish, keep, maintain or utilize a physical facility, location or mailing
address in this state where, from which or through which students are procured
for private vocational or private degree programs, private vocational or
private degree programs are offered or private vocational credentials or
private degrees are offered or granted and includes contracting for the
performance of any of these acts.
5. "Operate" means to
either:
(
a
) Establish
and maintain a physical presence in this state, including a facility, location
or mailing address, and an in-state director.
(
b
) Provide
postsecondary education through online distance education to a person who
resides in this state if the institution is not a participant in the national
council for state authorization reciprocity agreements.
6. "Private vocational program" means an
instructional program
which
that
includes a course or group of courses as defined in section 15-101 for
which a student does not earn a degree
,
and
which
that
is designed to provide or is advertised
as providing a student with sufficient skills for entry into a paid occupation,
and
which
that
is not conducted
solely by a public school, public community college or public university.
7. "Out-of-state
registration" means an authorization issued by the board to a private
postsecondary education institution domiciled outside of this state that
enrolls a resident of this state in an online program when the private
postsecondary education institution is not a participant in the national
council for state authorization reciprocity agreement.
END_STATUTE
Sec. 2. Section 32-3021, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-3021.
Private vocational program license; qualifications; provision of
information; exemptions
A. A person shall not operate
,
as defined in section 32-3001, paragraph 5, subdivision (
a
),
a private vocational program
unless
the person holds a private vocational program license issued pursuant to this
chapter. Each program offered by a private vocational program
licensee shall be authorized on a private vocational program
license. The board shall prescribe the manner in which the
private vocational
programs are identified on the license.
B. A person shall not operate, as
defined in section 32-3001, paragraph 5, subdivision (
b
),
a private vocational program unless the person holds an out-of-state
registration issued pursuant to section 32-3024.
B.
C.
An
applicant for a
license to operate, as defined in section 32-3001,
paragraph 5, subdivision (
a
), a
private vocational
program
license
shall meet all of the following
requirements:
1. Furnish a letter of credit, surety bond or cash
deposit as provided in section 32-3023.
2. Make specific information concerning educational
programs, including statements of purpose, objectives, course of study,
policies, fees and other pertinent information, available to prospective
students and the general public.
3. Be financially responsible and have management
capability.
4. Maintain a qualified faculty.
5. Maintain facilities, equipment and materials that
are appropriate for the stated program. All facilities shall meet
applicable state and local health and safety laws.
6. Maintain appropriate records as the board
prescribes that are properly safeguarded and preserved.
7. Use only advertisements that are consistent with
the information made available as provided in paragraph 2 of this subsection.
8. Provide courses of instruction that meet stated
objectives.
9. Provide a grievance procedure for students.
10. Comply with all federal and state laws relating
to the operation of a private postsecondary educational institution.
11. Other requirements the board deems necessary.
C.
D.
An
applicant for a private vocational program license shall submit evidence of
meeting the requirements prescribed in subsection
B
C
of this section to the board. The board shall
verify the evidence submitted. Verification shall include on-site
verification.
D.
E.
The
filing of an application grants the board the authority to obtain information
from any of the following:
1. A licensing board or agency in any state,
district, territory or county of the United States or any foreign country.
2. The Arizona criminal justice information system
as defined in section 41-1750.
3. The federal bureau of investigation.
E.
F.
The
board, on application, may issue a private vocational program license to a new
educational institution as provided in this section, except that the board
shall establish separate minimum standards for licensure requirements of new
educational institutions. These minimum standards may include the
modification of licensure requirements as provided in subsection
B
C
, paragraphs 3, 5, 6, 7 and 8 of this section to meet the
circumstances of new educational institutions.� The board, on application, may
issue a private vocational program license to an educational institution that
is otherwise exempt under subsection
F
G
of this section. The board shall monitor the new
educational institution to ensure compliance with the licensure
requirements. The board shall issue a private vocational program
license as provided in this subsection one time only to new educational
institutions.
F.
G.
This
section does not apply to any of the following:
1. A school licensed pursuant to chapter 5 of this
title.
2. An instructional program or course sponsored by a
bona fide trade association solely for its members.
3. Privately owned academic schools engaged in the
process of general education that is designed to produce a level of development
equivalent to that necessary to meet the requirements for entrance into a
public community college or public university in this state and that may
incidentally offer technical and vocational courses as part of the curriculum.
4. Schools or private instruction conducted by any
person engaged in training, tutoring or teaching individuals or groups, if the
instruction is related to hobbies, avocations, academic improvement or
recreation and may only incidentally lead to gainful employment.
5. Schools conducted by any person solely for
training the person's own employees.
6. An instructional program or course offered solely
for employees and for the purpose of improving the employees in their
employment if both of the following apply:
(a) The employee is not charged a fee.
(b) The employer provides or funds the program or
course pursuant to a valid written contract between the employer and a program
or course provider.
7. Training conducted pursuant to 14 Code of Federal
Regulations part 141.
8. A school that
solely provides an instructional program for certified nursing assistants and
licensed nursing assistants and that is licensed by the nursing board pursuant
to section 32-1606, subsection B, paragraph 11.
9. A professional driving training school licensed
by the department of transportation pursuant to chapter 23, articles 1, 2 and 3
of this title.
10. A training program approved by the board of
examiners of nursing care institution administrators and assisted living
facility managers that solely provides training for managers and caregivers of
assisted living facilities.
11. A yoga teacher training course or program or a
yoga instructional course or program.
12. A private instructional program or course that
is less than forty contact hours in length and that charges a fee of less than
$1,000. For the purposes of this paragraph, "contact hour"
means a fifty-minute session of scheduled in-class or online instruction.
END_STATUTE
Sec. 3. Section 32-3022, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-3022.
License to grant degrees
A. A person doing business for profit or not for
profit in this state, except a public community college or public university,
shall not grant or offer to grant a degree to any person or operate an
institution
which
that
grants or
offers to grant a degree to any person unless the person doing business holds a
license to grant degrees issued pursuant to this chapter. Each
degree program offered by a holder of a license to grant degrees shall be
authorized on the license. The board shall prescribe the manner in
which the degrees, including level and subject area, shall be identified on the
license.
B. An applicant for a license to grant degrees shall
have each degree program it offers accredited or have institutional
accreditation with an accrediting agency recognized by the United States
department of education. The board shall prescribe appropriate
evidence of accreditation
which
that
each applicant shall submit and the manner in which degree programs shall be
identified for institutional accreditation.
C. Notwithstanding subsection B of this section, an
applicant for a license to grant degrees
who
that
offers a degree program
which
that
is not accredited shall meet all of the following
requirements:
1. Application or commitment to apply for
accreditation with an accrediting agency recognized by the United States
department of education.� The board shall prescribe the manner in which the
applicant shall demonstrate application or commitment to apply for
accreditation and the time periods in which the various stages of accreditation
shall be met.
2. Demonstration in the manner prescribed by the
board, including on-site verification, that the applicant meets the
requirements prescribed in section 32-3021, subsections
B
and
C
and D
if the applicant has not met the
requirements in its application for accreditation.
3. Demonstration in the manner prescribed by the
board that the applicant
who
that
offers the degree provides actual instruction relating to each degree.
D. The board may, on application, issue a license to
grant degrees to a new educational institution as provided in this section,
except that the board shall establish separate minimum standards for licensure
requirements of new educational institutions. The minimum standards
may include the modification of licensure requirements as provided in section
32-3021, subsection
B
C
,
paragraphs 3, 5, 6, 7 and 8 to meet the circumstances of new educational
institutions. The board shall monitor the new educational
institution to ensure compliance with the licensure
requirements. The board shall issue a license to grant degrees as
provided in this subsection one time only to new educational institutions.
E. This section does not apply to religious degrees
which
that
are used solely for religious
purposes within a religious organization
which
that
has tax exempt status from the internal revenue service.
END_STATUTE
Sec. 4. Title 32, chapter 30, article 2,
Arizona Revised Statutes, is amended by adding section 32-3024, to read:
START_STATUTE
32-3024.
Out-of-state registration; qualifications; records requirements;
renewal; fee
A. This section applies to any
private postsecondary education institution, regardless of accreditation
status, whether or not the private postsecondary education institution offers
vocational or degree programs, that is not domiciled in this state, that
enrolls a resident of this state in a fully online program and that is not an
active participant in the national council for state authorization reciprocity
agreement.
B. A private postsecondary education
institution that is not domiciled in this state shall submit an application for
out-of-state registration to the board that includes:
1. Evidence that the private
postsecondary education institution is legally authorized to operate in the
state in which it is domiciled by the home state's postsecondary education
regulatory agency.
2. Evidence that the private
postsecondary education institution is accredited. If the private
postsecondary education institution is not accredited, the private
postsecondary education institution shall submit the additional information
required in subsection C of this section.
3. Evidence that the private
postsecondary education institution is providing financial protection for
students in this state by providing one of the following:
(
a
) If the private postsecondary education institution is
accredited, proof of financial viability pursuant to rules adopted by the board
that includes the private postsecondary education institution's federal
financial composite score, which must be greater than 1.5 for the current year.
(
b
) If the
private postsecondary education institution is not accredited or does not meet
the requirements of subdivision (
a
) of this paragraph, a
surety bond, cash deposit or irrevocable letter of credit pursuant to section
32-3023, as determined by the board. The amount of the surety bond,
cash deposit or irrevocable letter of credit shall be based on the institution's
prior year gross tuition revenue from residents of this state.
4. 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. The financial statements required by this paragraph
shall include a balance sheet, a statement of cash flows and profit and loss
statements.
5. An example of the PRIVATE
postsecondary education institution's official student transcript.
C. A private postsecondary education
institution that is not accredited shall submit the following for review and
approval by the board:
1. Program information that is
approved by the private postsecondary education institution's home state's
postsecondary education regulatory agency and that is offered by the private
postsecondary education institution to residents of this state, including the
catalog, curricula, course descriptions and program objectives.
2. A list of all faculty teaching
residents of this state and evidence of the faculty's qualifications to teach
in the faculty's assigned subject areas.
3. Evidence that all vocational or
degree programs offered meet the minimum credit hour and program length
standards established by the private postsecondary education institution's home
state.
4. A signed attestation from a
responsible officer of the private postsecondary education institution
affirming that the private postsecondary education institution will:
(
a
) Comply with
the board's pro rata refund policy as established by board rule for all
students of this state.
(
b
) Provide the
following notifications to students who are residents of this state:
(
i
) that the
private postsecondary education institution is registered to operate by the
board.
(
ii
) an outline
of the procedures students may follow to file a complaint against the private
postsecondary education institution, including a statement that if a complaint
is not resolved to the STUDENT'S satisfaction, the student may contact the
board. The private postsecondary education institution shall provide
contact information for the board and shall ensure that students will not be
retaliated against for filing a complaint.
(
iii
) that the
transferability of credits earned at the private postsecondary education
institution is at the sole discretion of the receiving institution.
(
iv
) For
private postsecondary education institutions offering programs or courses
leading to or advertised as leading to professional licensure, a statement of
whether completion of the program is sufficient to meet licensure requirements
in this state. If the private postsecondary education institution is
unable to determine whether a program will meet the professional licensure
requirements of this state, the notification shall state that the program does
not satisfy the licensure requirements of this state.
D. A private postsecondary education
institution that is registered pursuant to this section shall report in writing
to the board within thirty days after the occurrence of any of the following:
1. Any change in accreditation
status, including any adverse action, probation or show-cause order by the
private postsecondary education institution's accrediting agency.
2. Any suspension or revocation of
the private postsecondary education institution's authorization by the private
postsecondary education institution's home state or any other state.
3. Any material change in the private
postsecondary education institution's financial status or a filing for
bankruptcy.
4. Any new education, consumer
protection or fraud-related enforcement action or lawsuit filed against the
private postsecondary education institution by a state or federal agency.
5. Any change in ownership of the
private postsecondary education institution following approval by the private
postsecondary institution's home state.
E. Each private postsecondary
education institution with out-of-state registration shall maintain
a student's official transcript in perpetuity.� The private postsecondary
education institution shall maintain a student's enrollment and financing
agreements for a period of at least ten years after the student is no longer
enrolled. All records required to be retained by this subsection
shall be maintained in digital form. Within thirty days after
closure of the private postsecondary education institution, all student
transcripts for residents of this state shall be submitted to the board.
F. An
out-of-state registration for a private postsecondary education institution is
valid for one year. An out-of-state registration shall be renewed
annually through an application approved by the board. a private
postsecondary education institution shall pay a fee in an amount set by the
board for both initial out-of-state registration and renewal of registration.
END_STATUTE
Sec. 5. Section 32-3071, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-3071.
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 has stopped offering educational
courses or programs to the public for any reason.
3. "Distance learning
instruction" means a written correspondence or online education program
for students who are enrolled in an institution licensed under this chapter.
4.
3.
"Fund"
means the student tuition recovery fund.
5.
4.
"Newly
enrolled student" means a student who is enrolling with a private postsecondary
education institution for the first time.
6.
5.
"Person
injured" means a student of a private postsecondary education institution
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 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.
6.
"Prepaid
tuition" means monies that are advanced to an educational institution
before the educational institution provides its service.
8.
7.
"Private
postsecondary education institution" or "institution" means an
educational institution that is subject to licensure
or
out-of-state registration
under this chapter.
9.
8.
"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. 6. Section 32-3072, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-3072.
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 exceed the actual damages sustained.
B. Each private postsecondary education institution
that collects prepaid tuition
and that holds a license or an
out-of-state registration
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 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 is not 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 is not
required to pay assessments for students who are not residents of this state
and who are enrolled in distance learning instruction
.
C. If on June 30 of any year the balance in the fund
exceeds $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.
END_STATUTE
Sec. 7. Section 32-3075, Arizona Revised
Statutes, is amended to read:
START_STATUTE
32-3075.
Statute of limitations; recovery from fund; eligibility
A. A claim against the fund shall not be commenced
later than one year after the private postsecondary education institution has
ceased operations. The person injured shall submit a complaint to
the board outlining the circumstances surrounding the claim. The
board shall promptly investigate the complaint. If the complaint and
claim are valid
,
the board shall pay the claim in the
amount it considers reasonable.
B. Any person
who is
injured
by a private postsecondary education institution ceasing operation is eligible
to submit a claim against the fund unless the person is not a resident of this
state
and is enrolled in distance learning instruction
.
END_STATUTE