private postsecondary education; nondomiciled institutions

The definition of 'operate' was split into two distinct categories: (a) having a physical presence in Arizona and (b) providing online education to Arizona residents without a physical presence if not part of a national reciprocity agreement.

A new section (32-3024) was added requiring out-of-state institutions to obtain 'out-of-state registration' to enroll Arizona residents in online programs, mandating proof of home-state authorization, accreditation, and financial viability.

Record-keeping requirements were strengthened for out-of-state institutions, mandating the retention of student transcripts in perpetuity and enrollment agreements for at least ten years in digital form.

Licensure requirements for private vocational programs were updated to reference the new 'operate' definitions, and new exemptions were created for new educational institutions to allow for a streamlined, one-time licensure process.

The student tuition recovery fund rules were updated to require assessments from institutions that hold an 'out-of-state registration,' ensuring online-only providers contribute to the fund that protects students if a school closes.