Senate Education Committee advances bill to require out‑of‑state online colleges to register in Arizona

The Arizona Senate Education Committee voted unanimously to give Senate Bill 12 10 a due‑pass recommendation, advancing a measure that would require private postsecondary institutions domiciled outside Arizona that enroll Arizona residents in fully online programs to register annually with the Arizona State Board for Private Postsecondary Education (AZPPSE).

Kati, an unidentified committee presenter, described the bill as establishing a separate out‑of‑state registration process, requiring applicants to submit evidence they are legally authorized to operate, financial‑protection documentation and, for non‑accredited institutions, program approvals and faculty qualifications. The bill also requires specified student notifications, including how to file complaints, and makes an out‑of‑state registration valid for one year with annual renewal.

Susan Cardillo, executive director of the Arizona Private School Association, testified in support, saying the measure would close a regulatory gap for out‑of‑state providers. "SB 12 10 closes this regulatory loophole by requiring out‑of‑state institutions providing private postsecondary instruction to Arizona students to register with AZPPSE and provide protections for those students," Cardillo said. She told the committee Arizona institutions already pay licensing fees and support a student tuition recovery fund that helps protect students if a school closes; out‑of‑state online providers typically do not.

Cardillo also noted federal changes tied to HR 1 that shift some decisions about workforce Pell programs back to states, saying state‑level oversight will help Arizona assess which programs are solvent and producing outcomes for the workforce.

Under the bill as presented, non‑accredited institutions would have additional application requirements, including approved program information and evidence of faculty qualifications, and must provide Arizona students with a complaints process and specified notifications. The bill applies student tuition recovery fund protections to students who attend an institution that holds an out‑of‑state registration and establishes administrative and reporting duties for registered institutions.

There were no amendments during committee consideration. Vice Chair moved the bill with a due‑pass recommendation; the secretary called part of the roll during voting (recording names including Fernando, Mertensmeyer, Miranda and Warner) and the chair announced a final tally of 7 ayes, 0 nos, and 0 not voting, giving SB 12 10 a due‑pass recommendation.

Next steps: SB 12 10 will be scheduled for further consideration in the Senate following the committee’s due‑pass recommendation.