I. Licensing & Regulation Program Overview for FY 2024 (July 1, 2023 - June 30, 2024):

The Board is tasked with reviewing and processing license applications, ensuring adherence to regulations, investigating complaints and violations, and implementing disciplinary actions when necessary. The Board oversees the review of both new and renewal license applications to ensure compliance with the requirements specified in A.R.S. Title 32, Chapter 30, and A.A.C. Title 4, Chapter 39.

Each new license application undergoes a comprehensive review and approval process conducted by both the Staff and the State Board. This process involves the submission of at least 20 essential documents, including financial statements, insurance certificates, surety bonds, course descriptions, faculty lists, accreditation details, and other required legal documents. For non-accredited institutions, the full review process, including both administrative and substantive evaluations, typically takes around 180 days. For accredited degree programs, this process extends to approximately 240 days.

Once a school is granted a license, it must renew this license annually. The renewal process requires the submission of 15 specific documents, which are reviewed and approved by the staff. On average, this renewal process takes about 60 days to complete for each school. The renewal cycle is divided into four quarterly periods, with fees based on gross tuition revenues, ranging from a minimum of $750 to a maximum of $6,000 per year.

FY 2024 Key Achievements:

• Licensed Schools: The Board licensed a total of 236 schools, including both vocational and degree programs, across accredited and non-accredited institutions.

• Total Student Enrollment:

  • Vocational Students (Arizona Only): 75,853
  • Degree Students (Arizona Only): 17,512
  • Total Arizona Students: 93,365
  • Total Students (Arizona and Online): 332,340

• Supplemental Licenses: The Board approved 263 supplemental licenses in the following categories:

  • Change of Ownership: 9
  • Change of Location: 18
  • New Programs: 136
  • Program Modifications: 95
  • Change of Institutional Name: 10

• License Renewals: The Board renewed 231 licenses during the fiscal year.

• New School Licenses: 16 new school licenses were approved by the Board.

• Complaint Investigations:

  • Investigated 30 student complaints and 8 non-student consumer complaints, with 6 still pending.
  • The State Board adjudicated 5 complaints.

• Correspondence and Inquiries:

  • Responded to 151 Letters of Intent, 83 State Authorizations, and 43 Inquiries.

• Inspections: The Board conducted 30 inspections.

• School Closures: Assisted in the closure of 10 schools.

• Student Record Requests: Processed 1,735 student record requests.

• Student Tuition Recovery Fund Claims: No claims were disbursed, with a total of $0 distributed.

• Revenue Generation: Educational institutions under the Board's oversight generated a total revenue of $2.45 billion.

• Adverse Actions: The Board issued 37 adverse actions, which included probationary measures, requirements for higher bonds, quarterly reporting, Letters of Concern, Cease & Desist Orders, and ongoing monitoring.

Complaints Breakdown:

• Student Complaints:

  • Number of annual student complaints: 14
  • Resolved/Dismissed: 6
  • Resulting in Disciplinary Action: 1
  • Pending: 7

• Non-Student Complaints:

  • Investigated: 8
  • Resolved: 3
  • Resulting in Disciplinary Action: 2
  • Pending: 4

• Inquiries: 35 received

• STRF Claims:

  • Filed: 5
  • Rejected: 5
  • Paid/Settled/Closed: 0 (All claims closed)
  • Pending: 0
  • Average response time: 2 days
  • Total amount paid: $0

• Site Visits: 28 conducted, including visits outside the application process.

Public Information Requests:

The agency provides public information on the following:

• Licensed schools and programs in Arizona
• Accreditation status of licensed schools
• Student Tuition Recovery Fund claims
• Grievance procedures and how to file complaints
• Locating and ordering student records in Arizona and other states
• Process for becoming a licensed institution

The agency’s website offers online resources and downloadable forms to facilitate public information requests.

Agency Partnerships:

The Arizona State Board for Private Postsecondary Education is a key part of the “triad” responsible for overseeing Federal Student Aid programs, alongside the U.S. Department of Education and accrediting agencies. The Board plays a crucial role in consumer protection and ensuring fair practices for schools within the state.

Additionally, the Board has established partnerships with various city, state, and federal agencies to enhance the dissemination of information.

 They include:

Office of the Ombudsman

The ombudsman-citizens aide helps citizens to resolve ongoing issues with state agencies. Please go to http://www.azoca.gov for more information.