Section 20.17.060. General operating standards.

	(a)  In addition to the minimum standards prescribed in AS 14.48.060, an institution operating, or seeking authorization to operate, in Alaska shall adhere to the following general academic standards:  
		(1) an institution that offers postsecondary education at a noncredit, continuing-education level for which continuing-education units (CEUs) are awarded shall use the standard measure for a continuing-education unit, which is one unit for every 10 contact hours of participation in an organized continuing-education experience under responsible sponsorship, capable direction, and qualified instruction;  
		(2) an institution that offers postsecondary education for which credit is awarded shall meet the criteria for clock hour to credit hour conversion specified in 34 C.F.R. 600.2 and 668.8(k);  
		(3) repealed 10/11/95;  
		(4) an institution that offers collegiate-level degrees of masters and beyond will be treated on a case-by-case basis and will be thoroughly studied and reviewed by the commission before an authorization decision is made;  
		(5) a postsecondary education institution that is not degree granting shall describe its programs in clock hours except as provided in this section; and  
		(6) an accredited postsecondary educational institution that does not grant a degree may describe its programs in either clock hours or in credit hours as long as the credit hours are measured according to the standards set by the accrediting agency.  
	(b)  An authorization to operate an institution is restricted to the fields or courses specifically indicated in the application for authorization. The holder of an authorization shall present a program amendment application for approval of additional fields or courses in which it seeks to offer instruction. An institution may offer courses of study only at locations for which it has been approved.  
	(c)  An institution must have a clear and explicit statement of institutional purpose that describes measurable goals or outcomes.  
	(d)  An institution shall provide a program consistent with the statement of institutional purpose.  
	(e)  An institution shall establish and maintain minimum admission standards to determine that a prospective student is qualified to study in a course or program with a reasonable likelihood of success. If the field for which the student is to train requires the individual to meet specific requirements for occupational licensing under AS 08  or for employment, an institution shall assess the prospective student's ability to obtain qualifications in those areas. An institution must demonstrate to the commission that its admission requirements establish a standard of competency, knowledge, and aptitude allowing a prospective student to complete the program of study and obtain employment in the field for which the training is preparatory. An institution providing instruction in an occupation for which licensure under AS 08  is required must document that the instruction offered by the institution meets the requirements of AS 08  applicable to that occupation, or must clearly indicate that the instruction is only avocational.  
	(f)  A student may not be required to be employed as a course requirement, unless the commission determines that it is reasonably necessary to gain practical experience.  
	(g)  An institution authorized to operate under this chapter shall operate in accordance with generally accepted good business practices and standards and in accordance with all applicable laws. If general liability insurance is not provided by a third party, a school shall maintain general liability insurance. A school maintaining a program in which the students, in the course of their instruction, work or study with, near, or in close proximity to equipment or training devices that could cause bodily harm or damage to the student shall also maintain accident insurance.  
	(h)  Before a school is authorized to operate under this chapter, it must provide evidence of compliance with applicable state, municipal, and federal licensing, zoning, health, and safety requirements.  
	(i)  An institution shall provide evidence to the commission that the institution is financially sound and can reasonably fulfill commitments to and obligations it has incurred to students and creditors. An institution applying for an initial authorization to operate, renewal of an authorization to operate, or an authorization to operate under a change of ownership, shall submit financial statements audited by an independent, licensed certified public accountant and supporting documentation as requested by the commission unless the institution qualifies to submit unaudited financial statements under (j) of this section. The commission will require evidence of financial soundness at other times, or require additional documentation, if the commission determines it is in the best interest of students to require the information.  
	(j)  The commission will accept unaudited financial statements from the institution to assess the institution's financial soundness under (i) of this section when  
		(1) an institution has annual tuition revenues of less than $200,000 and provides to the commission a compilation report with full disclosure, including an accountant's cover letter stating that the institution's financial statements for the most recently completed fiscal year were prepared in conformity with GAAP; the report required by this paragraph must be prepared by an independent accounting service that is licensed as a business;  
		(2) repealed 12/29/2010;  
		(3) an institution has annual tuition revenues of less than $300,000 and provides to the commission an independent licensed certified public accountant's review report stating that the institution's financial statements for the most recently completed fiscal year were prepared in conformity with GAAP;  
		(4) an institution is a sole proprietorship or partnership and has annual tuition revenues of less than $100,000 and provides to the commission a compilation report, with full disclosure, for the most recently completed fiscal year, including an accountant's cover letter stating the method of presentation and the scope of the accounting services provided; the report required by this paragraph must be prepared by an independent accounting service that is licensed as a business; or  
		(5) an institution has annual tuition revenue of less than $300,000 and provides statements in compliance with (1) or (4) of this subsection, if the institution also provides surety in an amount equal to 100 percent of tuition and fee revenues projected for the upcoming institutional fiscal year.  
	(k)  For the purposes of (j) of this section,  
		(1) "annual tuition revenues" include all tuition and fee revenues received from all funding sources;  
		(2) "GAAP" means generally accepted accounting principles.  
	(l)  For the purposes of (i) and (j) of this section, financial statements must include at a minimum:  
		(1) an accountant's opinion letter;  
		(2) a balance sheet;  
		(3) an income statement;  
		(4) a statement of cash flows; and  
		(5) notes to the financial statements.   

Authorities

14.48.050;14.48.060;14.48.070

Notes

Reference

20 AAC 17.020
20 AAC 17.045

Authority

AS 14.48.050 AS 14.48.060 AS 14.48.070

History

Eff. 12/30/77, Register 64; am 5/10/78, Register 66; am 3/15/85, Register 93; am 8/20/86, Register 99; am 1/30/87, Register 101; am 3/25/90, Register 113; am 5/4/90, Register 114; am 10/11/95, Register 136; am 6/13/97, Register 142; am 4/24/98, Register 146; am 4/20/2000, Register 154; am 4/27/2001, Register 158; am 12/29/2010, Register 196; am 6/24/2012, Register 202; am 2/21/2014, Register 209