Committee advances bill requiring out‑of‑state online colleges serving Arizonans to register with state board

The Committee on Education advanced Senate Bill 12‑10 by an 11–1 vote after witnesses, including Susan Cardulo of the Arizona Private School Association, argued the bill closes a gap that leaves some Arizona students without recourse when an out‑of‑state, online private institution is insolvent or non‑compliant.

Legislative staff summarized SB 12‑10 as requiring out‑of‑state private postsecondary institutions that enroll Arizona residents in fully online programs (and that are not participating in the National Council for State Authorization Reciprocity Agreement, SARA) to submit an application for out‑of‑state registration to the Arizona State Board for Private Postsecondary Education. The bill also subjects registered out‑of‑state institutions that collect prepaid tuition to Arizona’s student tuition recovery fund requirements.

Susan Cardulo, executive director of the Arizona Private School Association, told the committee the change would "correct a legal regulatory loophole" and protect Arizona students by ensuring state oversight, access to a tuition recovery fund and information about solvency and program quality. "Without the oversight, Arizona students have no recourse or financial safety net," Cardulo said, urging a yes vote.

Committee members asked procedural questions, and there was limited public testimony. The committee recorded a due pass recommendation with 11 ayes and 1 no; with the committee’s vote the bill advances for further consideration.