(a) No persons shall operate, conduct, maintain, or offer to operate in this state a school as defined in this subchapter, or solicit the enrollment of students residing in the state, unless a license is first secured from the Division of Higher Education issued in accordance with the provisions of this subchapter and the rules promulgated by the division in consultation with the State Board of Private Career Education.
(b)
(1) Application for a license shall be filed in the manner and upon the forms prescribed and furnished by the division for that purpose.
(2) The application shall be signed by the applicant and properly verified and shall contain such information as may apply to the type and kind of school, satellite school, or extension course site for which a license is sought.
(c)
(1) A license issued shall be restricted to the programs of study specifically indicated in the application for a license.
(2) The holder of a license shall present a supplementary application for approval of additional programs of study.
(d) The license shall remain the property of the State of Arkansas and shall be returned to the division upon cause.
(e)
(1) If the division, after evaluating the school as to kind and type, is unable to make a determination regarding initial approval of a licensure application within sixty (60) days of receipt of the application and required documentation, it shall issue a temporary license valid for a period of not more than six (6) months, pending an investigation.
(2) If the investigation of the school under subdivision (e)(1) of this section does not reveal anything that justifies revoking or denying reissue of the temporary license, a license will be issued that will continue in force until the time of such expiration as a regular license.
(f) After a license is issued to any school by the division on the basis of its application, it shall be the responsibility of the school to notify immediately the division of any changes in the ownership, administration, location, faculty, or programs of study on the forms and in the manner prescribed by the division.
(g) In the event of the sale of such school, the license granted to the original owner or operators shall not be transferable to the new ownership or operators, but application for a new license must be made and approved before the new ownership's taking over operation of the school.
(h) The division shall have the power to deny issuing a new or renewal license, to revoke an existing license, or to place a licensee on probation, if in its discretion it determines that:
(1) The licensee has violated any of the provisions of this subchapter or any of the rules of the division;
(2) The applicant or licensee has knowingly presented to the division incomplete or misleading information relating to licensure;
(3) The applicant or licensee has pleaded guilty, entered a plea of nolo contendere, or has been found guilty in a criminal proceeding, regardless of whether or not the adjudication of guilt or sentence is withheld, deferred, or suspended by a court of this state, another state, or the United States Government, of:
(A) Any felony; or
(B) Any act involving moral turpitude, gross immorality, or which is related to the qualifications, functions, and duties of a licensee;
(4) The applicant or licensee has intentionally failed or refused to permit the division or its representatives to inspect the school or classes or has intentionally failed or refused to make available to the division, at any time when requested to do so, full information pertaining to any or all items of information contained in an application for license or pertaining to the operation of the school;
(5) The applicant has failed or refused to submit to the division an application for license or renewal in the manner and on the forms prescribed;
(6) A licensed admissions representative has failed or refused to display or produce his or her license when requested to do so by prospective students or designated officials of the division;
(7) The applicant or licensee has failed to provide or maintain premises, equipment, materials, supplies, or conditions in accordance with minimum standards as established by rules;
(8) The licensee has been found by the division or a court of law to have perpetrated fraud or deceit in advertising of the school or programs of study or in presenting to prospective students information relating to the school, programs of study, employment opportunities, or opportunities for enrollment in institutions of higher education;
(9) The licensee has in its employ admissions representatives who have not been licensed but are actively engaged in the practice of attempting to enroll students;
(10) The licensee has failed to provide and maintain standards of instruction or qualified administrative, supervisory, or instructional staff as established by rules;
(11) The applicant or licensee is unable to provide and maintain financial resources in sufficient amount to equip and maintain the school or classes;
(12) The licensee has moved the school into new premises or facilities without first notifying the division;
(13) The licensee has offered training or instruction in programs of study which have not been approved and authorized in accordance with rules;
(14) A licensed admissions representative has solicited prospective students to enroll in a school which has not been licensed by the division or which is not listed on his or her license;
(15) There was a change in the ownership of the school without proper notification to and approval from the division;
(16) The licensee has failed to notify the division or to provide written documentation as to the cause that the license of a school has been suspended or revoked or the school has been placed on probation or a show cause issued in another state or by another regulatory agency;
(17) The licensee has failed to notify the division of legal actions initiated by or against the school; or
(18) The licensee fails to make tuition refunds to the students or their lenders in compliance with current rules.
(i) The division shall have the power to revoke a license if in its discretion it determines that:
(1) The licensee has failed to cure a deficiency leading to a license probation within the time as may be reasonably prescribed by the division;
(2) The licensee while on probation has been found by the division to have incurred an additional infraction of this subchapter; or
(3) The licensee has closed a school without first having completed the training of all students currently enrolled or having made tuition refunds to students or their lenders.
(j) The division may impose sanctions under § 25-15-217.
(k)
(1) Unless directed to do so by court order, the division shall not, for a period of five (5) years following revocation, reinstate the license of a school or allow an owner of any such school to seek licensure of another school.
(2) Upon expiration of licensure status, the school must apply for an original license in accordance with the provisions of this subchapter.
(l)
(1) Upon closure of a school located in Arkansas and licensed under any provision of this subchapter, whether for license revocation or any other cause, all student financial aid records for the previous three (3) years and all student transcripts regardless of age must be delivered to the division.
(2) Delivered records shall be arranged in alphabetical order and stored in boxes or in data format at the discretion of the division.
(3) The division shall be responsible for the proper security, storage, and maintenance of all such records.