Oversight of private schools is provided by the Board for Private Postsecondary Education, the state's regulatory body. All private schools must be licensed annually. Arizona law demands that private schools demonstrate financial stability, educational quality and ethical business practices before being licensed. Full licensing criteria may be found at the state's website (see References and Resources).
Accreditation is a process of educational quality control, in which schools are vetted by a certifying body. Arizona requires private vocational schools to be accredited, with only a few exceptions. Exceptions include hobbyist programs, courses offered by a union for its members only and courses offered in-house by employers. Non-accredited schools are granted a conditional license to operate, must demonstrate than they have applied for accreditation, and are meeting their time line for compliance.
Schools applying for a license to operate in Arizona must meet many other requirements, beyond accreditation. No person convicted of a felony within the prior 10 years can own a 20-percent share of a private school. A new school must provide full details of its proposed curriculum, textbooks, personal history and credentials of its staff, personal history of its principals, proposed fee structure and corporate governance. Existing schools renewing a license must provide full financial data to the board.
Much of the legislation deals with the protection of students' interests. Schools are required to maintain complete student records; in the event of a school failing the state becomes the records' custodian. Provision is also made for the return of tuition fees in the event of a school's closure. As of 2011, new schools are required to post a minimum $15,000 bond. The legislation contains a formula for calculating an appropriate level of security for schools, based on variables such as total enrollment, tuition costs and the length of time a school has been in business.