nl 2 B 4 15 16 0” 18 19 20 au 2 23 4 25 26 BEFORE THE ARIZONA STATE BOARD TOR PRIVATE POSTSECONDARY EDUCATION In the Matter of: 2019 Regular Vocational Program License Renewal for Woz ) ) WOZU EDUCATION HOLDINGS) Holder of License No. NAV-OVI650, ) CONSENT AGREEMENT AND For the Regulation of Private Postsecondary ) ORDER Educational Institutions Operating ) In the Stat of Arizona ) eee ee eee ee ee ee eee eee CONSENT AGREEMENT RECITALS In the intrest of a prompt and judicious setlement of the above-captioned matter before ine Arizona State Board for Private Postsecondary Education ("Boari"), and inthe interest of protecting the people of the State of Arizona, consistent with the sutuory requirements and responsibilities of the Board pursuant to ARS. § 32-3001, ef seq. and ARS. § 41-1092.07 (XS), Woz) Eduestional Holdings (“Applicant), applicant for renewal of license number ]NAV-0V1650 to operate a private postsecondary educational institution inthe State of Arizona, and the Board ener into the following Consent Agreement for Findings of Fact, Conclusions of| Lav, and Order (“Consent Agreement”) 1. Applicant has the right to consult with an atomey peor to entering into this [consent Agreement. Applicant has read and understands this Consent Agreement as set forth herein, and has had the opportunity to discuss this Consent Agreement with an attomey or has waived the opportunity. Applicant voluntarily enters into this Coasent Agreement forthe purpose of avoiding the expense and uncertainty of an administrative hearing. 2. Applicant understands that it has a right to « public administrative hearing concerning each and every allegation set forth in the above-ceptioned matter, at which time Applicant could present evidence and cross-examine witnesses. By entering into this Consent Agreement, Applicant feely and voluntarily relingishes all rights to such an administrative hearing, as well as all rights of rehearing, review, reconsideration appeal, judicial review, orany other administrative, and/or judicial action conceming the matters set forth herein, Applicant affirmatively agrees that this Consent Agreement shall be irevocable and any modifications to this original document are ineffective and void unless mutually approved by the parties in writing. 3. Applicant agrees that the Board may adopt this Consent Agreement under JARS. §§ 32-3051 and 32-3052. Applicant understands that the Board may consider this [Consent Agreement or any part of it in any future disciplinary ation against it 4. Applicant understands that this Consent Agreement does not constitute a dismissal or resolution of other matters curently pending before the Board, if any, and does not ‘constitute any waiver, express or implied, of the Board’s statutory authority or jurisdiction regarding any other pending or future investigation, action, or proceeding. 5. The Consent Agreement shall be subject to adoption by the Board and shall be effective only when signed by the Chair ofthe Board or the Executive Director ofthe Board, on behalf of the Chair. In the event thatthe Board does not adopt this Consent Agreement, it is withdrawn and shall be of no evidentiary value and shall not be relied upon nor introduced in any action by any party. The parties agree that if the Board rejects this Consent Agreement and ed by this case proceeds to hearing, Applicant shall assert no claim that the Board was preju its review and discussion ofthis document or any other records relating thereto. 6, Applicant understands that this Consent Agreement is a public record that may be publicly disseminated as a formal ation ofthe Board 7. Applicant understands that any violation of this Consent Agreement could be| grounds for disciplinary action by the Board pursuant to ARS. § 32-3051(18).EINDINGS OF FACT 1. The Board isthe duly constituted ageney forthe licensing and regulation of private possecondary educational institutions operating vocational and degree-granting programs inthe State of Arizona and has jurisdiction over Applicant and the subject matter pursuant to A.RS. § 32-3001, eg. 2 Wont! is an applicant for renewal of license number NAV-OV1650, which authorized it to operate a private postsecondary vocational education institution inthe State of Acizona. 3. As part of the Boar's license renewal process, the Board reviews each institution's application for financial responsibility and management capabilities, pursuant to ARS. §§323021(B),323051, and A.A.C, R4-39-103 to R4-39-107, 4, On Apri 25, 2019, the Board reviewed Applicant's submission for renewal and voted to deny the regular vocational program and supplemental license application for a change of cwnershp ater determining Applicant was not eligible for renewal of licensure pursuant to JARS. § 32-3021(B) and A.A.C. R4-39-105, and not eligible for change of ownership pursuant to AAC. R438-110 5. Im order to adress the Board's imm ‘concerns regarding Applicants nancial responsibility and management capability, Applicant has maintained a $250,000.00 surety bond and has removed Mr, Brent Richardson from the Board of Lirecors as of May 30, }2019. Subject to the Board’s approval of this Consent Agreement, Applicant has also agreed to) withdraw its request fora formal administrative hearing inthe mater ofthe denial of License, but has requested the Board consider approving a six-month probationary renewal period (through| Apel 30, 2020) ofits regular vocational program iense in order to allow its remaining twenty- one students vo complete the program, CONCLUSIONS OF LAW 1. The Board possesses justiction ove the subjet mare herein and over Woot as a Licensee and Applicant ofthe Board pursuant to ARS. § 32-3001, e seg 3u 3B 4 15 16 ” 18 19 20 a 2 2B m4 2s 26 2. The Board has the statutory authority to enter into this Consent Agreement pursuant to ARS. §§ 32-3052(F) and 41-1092.070F\S). 3. The conduct described in the Findings of Fact above, if proven true, may [constitute grounds for disciplinary action pursuant to A.R.S. § 32-3051(1), and violate the provisions of ARS. § 32-3021(B)G), which states, “An applicant for a private vocational | program license shall be financially responsible and have management capability.” 4. The conduct described in the Findings of Fact above, if proven true, may| constitute grounds for disciplinary action pursuant to ARS. § 32-30S1(1), and violate the provisions of A.RS. § 32-3021(B)(10), which states, “An applicant for a private vocetional program license shall comply with all federal and state laws and regulations relating to the operation ofa private postsecondary educational institution.” 5. The conduct described in the Findings of Fact above, if proven true, may ‘constitute grounds for disciplinary action pursuant to A.R.S. § 32-3051(1), and violate the provisions of A.A.C. R4-39-105(A)(3) and R4-39-110(H)(3), which state, “The Board shall not grant or renew a regular license to an applicant if the applicant provides false or misleading by this Section.” ORDER IIS HEREBY ORDERED THAT the 2019 License Renewal for WozU shall be! information on or with an application re racted with the following stipulations: 1. Maintain a surety bond in a form acceptable to the Board, a letter of credit, or a cash deposit meeting the requirements listed in A.RS. § 32-3023 in an amount of no Tess then} ‘TWO HUNDRED FIFTY THOUSAND AND 00/100 ($250,000.00); 2. Admit no new Arizona-based students to WozU during this licensure period and| ‘cease all advertising of the vocational program licensed by the Board and associated with the| State of Arizona. 3. Submit complete application and applicable fees to the Board for renewal ofits 2020 Regular Vocational License by November 1, 2019. 4B 8 9 2 21 2 2B 2% 25 26 4. Voluntarily surrender its Arizona license to operate as a vocational postsecondary| education institution to the Board on or before May 1, 2020. Provide the Board with an electronic copy ofall edvcational records of students] 20 more than 15 ealendar days after ceasing operations pursuant ty R4-39-401, including ata minimum foreach student: an enrollment agreement, transcrip, and a ledger eard recording all nancial obligations incurred and all funds paid by oF on behalf of th student to the licensee. This Order does not preclude WoU from operating or averising oaline program ‘management services COPM") that do not require a vocational progam license from the Boar. This Order doesnot preclude Woz from submitting a future aplication tothe Board for new cense to operate as a vocational postsecondary education institution in Arizona 0 long sit has complied with all procedures for ceasing operations outlined in Arizona Administrative Code| Tile 4, Chapter 39, Antic 4 ARIZONA STATE BOARD FOR PRIVATE POSTSECONDARY EDUCATION ‘Teri Stanfill 7 j Executive Director Dated wie DY day of October, 2019 Original Consent Agreement and Order railed geffied, return receipt requested this, ay of October, 2019 to: ‘Woal) Education Holdings 8444 North 90" Street Suites 105, 110, 115 Scottsdale, Arizona 85258, Davi J Osbor Maledon, P.A. }2929 North Central Avenue, 21* Floor Phoenix, Arizona 85012 |dzamer@tomlaw.com1 |/copy ofthe foregoing sent by agency and electronic mail day of October, 2019 to: Frankie Shina-Eekberg, AAG Office of Arizona Attorney General