Current through Bulletin 2024-06, March 15, 2024
As used in this rule:
(1) "Change of ownership" means a change to
any owner of a postsecondary school, including:
(a) sale or merger of a postsecondary school;
or
(b) any other occurrence that
changes whether a person is an owner in accordance with Subsection
R152-34-3(7).
(2) "Composite score" means the score
calculated by the United States Department of Education using a postsecondary
school's financial information in accordance with
34 CFR
668.171 et seq.
(3) "Field trip" means a congregation in Utah
of students and instructors from a postsecondary school that is not located in
Utah:
(a) for instruction in the subject of
enrollment;
(b) that lasts no more
than ten calendar days; and
(c)
occurs no more than three times per year in the same program.
(4) "Gross tuition revenue" means
the total amount of tuition and fees collected, reduced by the amount of
refunds paid, by a postsecondary school during the most recently completed
12-month fiscal year.
(5) "Material
information" means information that could reasonably influence whether the
division may deny, suspend, or revoke a registration statement, registration
certificate, or state authorization certificate, including a change of
ownership.
(6) "Other proof of
financial viability" means financial information that demonstrates the
postsecondary school:
(a) based on its audited
financial statements, has a composite score of 1.5 or greater for the current
year;
(b)
(i) based on its audited financial
statements, has a composite score of 1.0 through 1.4 for the current
year;
(ii) in one of the
immediately preceding two years, had a composite score of 1.5 or greater;
and
(iii) provides information
sufficient to allow the division, at its discretion, to determine the risk to
student funds posed by a postsecondary school's financial condition, including:
(A) a detailed explanation of the events that
caused the reduced composite score;
(B) the postsecondary school's plan to
improve the composite score; and
(C) a teach out plan;
(c) based on its reviewed
financial statements for the preceding two fiscal years:
(i) had two consecutive years of a current
ratio at or above 1.0; and
(ii) had
two consecutive years of a debt to equity ratio no greater than 3.0;
(d) based on its unaudited
financial statements for the preceding two fiscal years:
(i) had two consecutive years of a current
ratio at or above 1.0;
(ii) had two
consecutive years of a debt to equity ratio no greater than 3.0; and
(iii) has an average credit score exceeding
580 for the postsecondary school's owners; or
(e) provides sufficient other information to
the division such that the division director may, at the director's discretion,
determine that the postsecondary school has demonstrated financial
viability.
(7) "Owner"
means a person who directly or indirectly:
(a)
exercises substantial control over a postsecondary school; or
(b) owns or controls at least 20 % of the
ownership interests in a postsecondary school.
(8) "Physical presence," as defined by
Subsection
13-34-101(12),
does not include a field trip or supervised field experience.
(9) "Supervised field experience" means a
student learning experience that:
(a) occurs
at a location in Utah that is not owned, operated, leased, maintained, or
controlled by the postsecondary school in which the student is
enrolled;
(b) primarily involves
practical application of previous education;
(c) is supervised by a supervisor, mentor,
faculty member, or other qualified professional who reports to the
postsecondary school in which the student is enrolled; and
(d) is part of a program offered by a
postsecondary school located outside of Utah in which the student is
enrolled.
(10)
"Unaccredited postsecondary school" means a postsecondary school that is not
accredited by an accrediting agency.
