(a) Every applicant forlicensure shall file with the Commissioner, on a form prescribed by theCommissioner, the following information:
(1) The name,organizational structure, and date of organization of the applicant, theaddresses of the principal office and of all offices in this State, the name ofthe contact person, the type of operations within this State, and the taxpayeror employer identification number.
(2) A list byjurisdiction of each name under which the applicant has operated in thepreceding five years, including any alternative names, names of predecessors,and, if known, names of successor business entities. The list required by thissubdivision shall include the parent company name and any trade name, trademark,or service mark of the applicant.
(3) A list of allofficers and controlling persons of the applicant, their biographicalinformation, including their management background, and an affidavit from eachattesting to his or her good moral character and management competence.
(4) The location of thebusiness records of the applicant.
(5) An attestation,executed by the chief financial officer and chief executive officer of theapplicant, that the applicant is current as of the date the application is submittedwith respect to all of its obligations for payroll, payroll‑relatedtaxes, workers' compensation insurance, and employee benefits. If any suchobligations are in dispute with a client as of the date the application issubmitted and the disputed amount is material when considered in the context ofthe applicant's most recent audited financial statement, then the applicantshall disclose the nature of the dispute causing the obligations to be unpaidand the amount of money in controversy.
(6) Any otherinformation the Commissioner deems necessary and requires by rule to establishthat the applicant and the officers and controlling persons are of good moralcharacter, have business integrity, and have financial responsibility.
(b) Every applicantshall file with the Commissioner evidence of financial responsibility. Evidenceof financial responsibility includes an audited GAAP financial statement,prepared as of a date not more than 90 days before the date of application thatdemonstrates that the applicant or licensee is not in a hazardous financialcondition and attached to which is a separate document signed by the chiefexecutive and the chief financial officer certifying that (i) each has reviewedthe financial statement; (ii) based on each signatory's knowledge, thefinancial statement does not contain any untrue or misleading statement ofmaterial fact or omit a fact with respect to the period covered by thefinancial statement; and (iii) based on each signatory's knowledge, thefinancial statement fairly presents in all material respects the financialcondition of the licensee as of, and for, the period presented in the financialstatement.
Notwithstanding therequirements of this subsection, the Commissioner may, in the Commissioner'sdiscretion, accept an audited GAAP financial statement that has been preparedmore than 90 days before submission to the Commissioner if the Commissionerdeems such acceptance appropriate. The Commissioner may, in the Commissioner'sdiscretion, impose conditions upon such acceptance of financial statementsprepared more than 90 days prior to submission.
(c) Every applicantshall submit to the Commissioner the application fee pursuant to G.S. 58‑89A‑65.
(d) Every applicantshall furnish the Commissioner a complete set of fingerprints and a recentphotograph in a form prescribed by the Commissioner of each officer, director,and controlling person. Each set of fingerprints shall be certified by anauthorized law enforcement officer.
Upon request by theDepartment, the Department of Justice shall provide to the Department from theState and National Repositories of Criminal Histories the criminal history ofany applicant and the officer, director, and controlling person of anyapplicant. Along with the request, the Department shall provide to theDepartment of Justice the fingerprints of the person that is the subject of therequest, a form signed by the person that is the subject of the requestconsenting to the criminal record check and use of fingerprints and other identifyinginformation required by the State and National Repositories, and any additionalinformation required by the Department of Justice. The person's fingerprintsshall be forwarded to the State Bureau of Investigation for a search of theState's criminal history record file, and the State Bureau of Investigation mayforward a set of fingerprints to the Federal Bureau of Investigation for anational criminal history record check. The Department shall keep allinformation obtained pursuant to this subsection confidential. The Departmentof Justice may charge a fee to offset the cost incurred by it to conduct acriminal record check under this section. The fee shall not exceed the actualcost of locating, editing, researching, and retrieving the information.
In the event that an applicanthas secured a professional employer organization license in another state inwhich the professional employer organization's controlling persons havecompleted a criminal background investigation within 12 months of this application,a certified copy of the report from the appropriate authority of that state maysatisfy the requirement of this subsection. This subsection also applies to achange in a controlling party of a professional employer organization. Forpurposes of investigation under this subsection, the Commissioner shall haveall the power conferred by G.S. 58‑2‑50 and other applicableprovisions of this Chapter.
(e) An application forlicensure of a professional employer organization group shall contain theinformation and submissions required by this section for each member of thegroup.
(f) No application iscomplete until the Commissioner has received all information and submissionsrequired under subsections (a) through (e) of this section. Subsections (a)through (e) of this section do not apply to persons who are licensed pursuantto the alternative licensing procedures set forth in G.S. 58‑89A‑76.
(g) The Commissionermay deny the license of an applicant under this Article if, after notice to theapplicant and an opportunity for a hearing, the Commissioner finds that acontrolling person has:
(1) Made any untruematerial statement regarding the background or experience of any controllingperson;
(2) Violated, or failedto comply with, any professional employer services law or any rule or order ofthe Commissioner or of any other State official responsible for the regulationof professional employer services;
(3) Obtained orattempted to obtain the license through misrepresentation or fraud;
(4) Been convicted of afelony;
(5) Been found in afinal judgment or administrative proceeding to have committed fraud or anunfair trade practice; or
(6) Been a controllingperson in another professional employer organization that has had its licenseor registration suspended, terminated, or revoked by any state.
(h) If the Commissionerfinds that the applicant has not fully met the requirements for licensure, theCommissioner shall refuse to issue the license and shall notify the applicantin writing of the denial, stating the grounds for the denial. The applicationmay also be denied for any reason for which a license may be suspended orterminated under G.S. 58‑89A‑155. To obtain a review to determinethe reasonableness of the Commissioner's denial, the applicant shall make writtendemand upon the Commissioner within 30 days after notice is given under G.S.150B‑38(c). The review shall be completed without undue delay, and theapplicant shall be notified promptly in writing as to the outcome of thereview. If the applicant disagrees with the outcome of the review and seeks ahearing, under Article 3A of Chapter 150B of the General Statutes, on theoutcome of the review, the applicant shall make a written demand upon theCommissioner for the hearing within 30 days after notice of the outcome of thereview is given under G.S. 150B‑38(c).
(i) Removal, demotion,or discharge of a controlling person in response to an order of theCommissioner of the alleged unsuitability of that person is an affirmativedefense to any claim by that individual based on the removal, demotion, ordischarge.
(j) The Commissionermay, in the Commissioner's discretion, waive the required evaluation of anofficer, director or controlling person if that officer, director orcontrolling person has been evaluated previously under this Article.
(k) After denial,suspension, or termination of a license, and before issuing a new license orreinstating a license, the Commissioner shall review and consider:
(1) The extent to whichthe applicant or licensee has adequately corrected any problems; and
(2) Whether theapplicant or licensee has demonstrated that the applicant or licensee hadexercised due diligence to avoid the reason or reasons for the denial ortermination.
The applicant or licenseebears the burden of proof with respect to subdivisions (1) and (2) of thissubsection. (2002‑168,s.8; 2004‑162, s. 1.)
(a) Every applicant forlicensure shall file with the Commissioner, on a form prescribed by theCommissioner, the following information:
(1) The name,organizational structure, and date of organization of the applicant, theaddresses of the principal office and of all offices in this State, the name ofthe contact person, the type of operations within this State, and the taxpayeror employer identification number.
(2) A list byjurisdiction of each name under which the applicant has operated in thepreceding five years, including any alternative names, names of predecessors,and, if known, names of successor business entities. The list required by thissubdivision shall include the parent company name and any trade name, trademark,or service mark of the applicant.
(3) A list of allofficers and controlling persons of the applicant, their biographicalinformation, including their management background, and an affidavit from eachattesting to his or her good moral character and management competence.
(4) The location of thebusiness records of the applicant.
(5) An attestation,executed by the chief financial officer and chief executive officer of theapplicant, that the applicant is current as of the date the application is submittedwith respect to all of its obligations for payroll, payroll‑relatedtaxes, workers' compensation insurance, and employee benefits. If any suchobligations are in dispute with a client as of the date the application issubmitted and the disputed amount is material when considered in the context ofthe applicant's most recent audited financial statement, then the applicantshall disclose the nature of the dispute causing the obligations to be unpaidand the amount of money in controversy.
(6) Any otherinformation the Commissioner deems necessary and requires by rule to establishthat the applicant and the officers and controlling persons are of good moralcharacter, have business integrity, and have financial responsibility.
(b) Every applicantshall file with the Commissioner evidence of financial responsibility. Evidenceof financial responsibility includes an audited GAAP financial statement,prepared as of a date not more than 90 days before the date of application thatdemonstrates that the applicant or licensee is not in a hazardous financialcondition and attached to which is a separate document signed by the chiefexecutive and the chief financial officer certifying that (i) each has reviewedthe financial statement; (ii) based on each signatory's knowledge, thefinancial statement does not contain any untrue or misleading statement ofmaterial fact or omit a fact with respect to the period covered by thefinancial statement; and (iii) based on each signatory's knowledge, thefinancial statement fairly presents in all material respects the financialcondition of the licensee as of, and for, the period presented in the financialstatement.
Notwithstanding therequirements of this subsection, the Commissioner may, in the Commissioner'sdiscretion, accept an audited GAAP financial statement that has been preparedmore than 90 days before submission to the Commissioner if the Commissionerdeems such acceptance appropriate. The Commissioner may, in the Commissioner'sdiscretion, impose conditions upon such acceptance of financial statementsprepared more than 90 days prior to submission.
(c) Every applicantshall submit to the Commissioner the application fee pursuant to G.S. 58‑89A‑65.
(d) Every applicantshall furnish the Commissioner a complete set of fingerprints and a recentphotograph in a form prescribed by the Commissioner of each officer, director,and controlling person. Each set of fingerprints shall be certified by anauthorized law enforcement officer.
Upon request by theDepartment, the Department of Justice shall provide to the Department from theState and National Repositories of Criminal Histories the criminal history ofany applicant and the officer, director, and controlling person of anyapplicant. Along with the request, the Department shall provide to theDepartment of Justice the fingerprints of the person that is the subject of therequest, a form signed by the person that is the subject of the requestconsenting to the criminal record check and use of fingerprints and other identifyinginformation required by the State and National Repositories, and any additionalinformation required by the Department of Justice. The person's fingerprintsshall be forwarded to the State Bureau of Investigation for a search of theState's criminal history record file, and the State Bureau of Investigation mayforward a set of fingerprints to the Federal Bureau of Investigation for anational criminal history record check. The Department shall keep allinformation obtained pursuant to this subsection confidential. The Departmentof Justice may charge a fee to offset the cost incurred by it to conduct acriminal record check under this section. The fee shall not exceed the actualcost of locating, editing, researching, and retrieving the information.
In the event that an applicanthas secured a professional employer organization license in another state inwhich the professional employer organization's controlling persons havecompleted a criminal background investigation within 12 months of this application,a certified copy of the report from the appropriate authority of that state maysatisfy the requirement of this subsection. This subsection also applies to achange in a controlling party of a professional employer organization. Forpurposes of investigation under this subsection, the Commissioner shall haveall the power conferred by G.S. 58‑2‑50 and other applicableprovisions of this Chapter.
(e) An application forlicensure of a professional employer organization group shall contain theinformation and submissions required by this section for each member of thegroup.
(f) No application iscomplete until the Commissioner has received all information and submissionsrequired under subsections (a) through (e) of this section. Subsections (a)through (e) of this section do not apply to persons who are licensed pursuantto the alternative licensing procedures set forth in G.S. 58‑89A‑76.
(g) The Commissionermay deny the license of an applicant under this Article if, after notice to theapplicant and an opportunity for a hearing, the Commissioner finds that acontrolling person has:
(1) Made any untruematerial statement regarding the background or experience of any controllingperson;
(2) Violated, or failedto comply with, any professional employer services law or any rule or order ofthe Commissioner or of any other State official responsible for the regulationof professional employer services;
(3) Obtained orattempted to obtain the license through misrepresentation or fraud;
(4) Been convicted of afelony;
(5) Been found in afinal judgment or administrative proceeding to have committed fraud or anunfair trade practice; or
(6) Been a controllingperson in another professional employer organization that has had its licenseor registration suspended, terminated, or revoked by any state.
(h) If the Commissionerfinds that the applicant has not fully met the requirements for licensure, theCommissioner shall refuse to issue the license and shall notify the applicantin writing of the denial, stating the grounds for the denial. The applicationmay also be denied for any reason for which a license may be suspended orterminated under G.S. 58‑89A‑155. To obtain a review to determinethe reasonableness of the Commissioner's denial, the applicant shall make writtendemand upon the Commissioner within 30 days after notice is given under G.S.150B‑38(c). The review shall be completed without undue delay, and theapplicant shall be notified promptly in writing as to the outcome of thereview. If the applicant disagrees with the outcome of the review and seeks ahearing, under Article 3A of Chapter 150B of the General Statutes, on theoutcome of the review, the applicant shall make a written demand upon theCommissioner for the hearing within 30 days after notice of the outcome of thereview is given under G.S. 150B‑38(c).
(i) Removal, demotion,or discharge of a controlling person in response to an order of theCommissioner of the alleged unsuitability of that person is an affirmativedefense to any claim by that individual based on the removal, demotion, ordischarge.
(j) The Commissionermay, in the Commissioner's discretion, waive the required evaluation of anofficer, director or controlling person if that officer, director orcontrolling person has been evaluated previously under this Article.
(k) After denial,suspension, or termination of a license, and before issuing a new license orreinstating a license, the Commissioner shall review and consider:
(1) The extent to whichthe applicant or licensee has adequately corrected any problems; and
(2) Whether theapplicant or licensee has demonstrated that the applicant or licensee hadexercised due diligence to avoid the reason or reasons for the denial ortermination.
The applicant or licenseebears the burden of proof with respect to subdivisions (1) and (2) of thissubsection. (2002‑168,s.8; 2004‑162, s. 1.)
(a) Every applicant forlicensure shall file with the Commissioner, on a form prescribed by theCommissioner, the following information:
(1) The name,organizational structure, and date of organization of the applicant, theaddresses of the principal office and of all offices in this State, the name ofthe contact person, the type of operations within this State, and the taxpayeror employer identification number.
(2) A list byjurisdiction of each name under which the applicant has operated in thepreceding five years, including any alternative names, names of predecessors,and, if known, names of successor business entities. The list required by thissubdivision shall include the parent company name and any trade name, trademark,or service mark of the applicant.
(3) A list of allofficers and controlling persons of the applicant, their biographicalinformation, including their management background, and an affidavit from eachattesting to his or her good moral character and management competence.
(4) The location of thebusiness records of the applicant.
(5) An attestation,executed by the chief financial officer and chief executive officer of theapplicant, that the applicant is current as of the date the application is submittedwith respect to all of its obligations for payroll, payroll‑relatedtaxes, workers' compensation insurance, and employee benefits. If any suchobligations are in dispute with a client as of the date the application issubmitted and the disputed amount is material when considered in the context ofthe applicant's most recent audited financial statement, then the applicantshall disclose the nature of the dispute causing the obligations to be unpaidand the amount of money in controversy.
(6) Any otherinformation the Commissioner deems necessary and requires by rule to establishthat the applicant and the officers and controlling persons are of good moralcharacter, have business integrity, and have financial responsibility.
(b) Every applicantshall file with the Commissioner evidence of financial responsibility. Evidenceof financial responsibility includes an audited GAAP financial statement,prepared as of a date not more than 90 days before the date of application thatdemonstrates that the applicant or licensee is not in a hazardous financialcondition and attached to which is a separate document signed by the chiefexecutive and the chief financial officer certifying that (i) each has reviewedthe financial statement; (ii) based on each signatory's knowledge, thefinancial statement does not contain any untrue or misleading statement ofmaterial fact or omit a fact with respect to the period covered by thefinancial statement; and (iii) based on each signatory's knowledge, thefinancial statement fairly presents in all material respects the financialcondition of the licensee as of, and for, the period presented in the financialstatement.
Notwithstanding therequirements of this subsection, the Commissioner may, in the Commissioner'sdiscretion, accept an audited GAAP financial statement that has been preparedmore than 90 days before submission to the Commissioner if the Commissionerdeems such acceptance appropriate. The Commissioner may, in the Commissioner'sdiscretion, impose conditions upon such acceptance of financial statementsprepared more than 90 days prior to submission.
(c) Every applicantshall submit to the Commissioner the application fee pursuant to G.S. 58‑89A‑65.
(d) Every applicantshall furnish the Commissioner a complete set of fingerprints and a recentphotograph in a form prescribed by the Commissioner of each officer, director,and controlling person. Each set of fingerprints shall be certified by anauthorized law enforcement officer.
Upon request by theDepartment, the Department of Justice shall provide to the Department from theState and National Repositories of Criminal Histories the criminal history ofany applicant and the officer, director, and controlling person of anyapplicant. Along with the request, the Department shall provide to theDepartment of Justice the fingerprints of the person that is the subject of therequest, a form signed by the person that is the subject of the requestconsenting to the criminal record check and use of fingerprints and other identifyinginformation required by the State and National Repositories, and any additionalinformation required by the Department of Justice. The person's fingerprintsshall be forwarded to the State Bureau of Investigation for a search of theState's criminal history record file, and the State Bureau of Investigation mayforward a set of fingerprints to the Federal Bureau of Investigation for anational criminal history record check. The Department shall keep allinformation obtained pursuant to this subsection confidential. The Departmentof Justice may charge a fee to offset the cost incurred by it to conduct acriminal record check under this section. The fee shall not exceed the actualcost of locating, editing, researching, and retrieving the information.
In the event that an applicanthas secured a professional employer organization license in another state inwhich the professional employer organization's controlling persons havecompleted a criminal background investigation within 12 months of this application,a certified copy of the report from the appropriate authority of that state maysatisfy the requirement of this subsection. This subsection also applies to achange in a controlling party of a professional employer organization. Forpurposes of investigation under this subsection, the Commissioner shall haveall the power conferred by G.S. 58‑2‑50 and other applicableprovisions of this Chapter.
(e) An application forlicensure of a professional employer organization group shall contain theinformation and submissions required by this section for each member of thegroup.
(f) No application iscomplete until the Commissioner has received all information and submissionsrequired under subsections (a) through (e) of this section. Subsections (a)through (e) of this section do not apply to persons who are licensed pursuantto the alternative licensing procedures set forth in G.S. 58‑89A‑76.
(g) The Commissionermay deny the license of an applicant under this Article if, after notice to theapplicant and an opportunity for a hearing, the Commissioner finds that acontrolling person has:
(1) Made any untruematerial statement regarding the background or experience of any controllingperson;
(2) Violated, or failedto comply with, any professional employer services law or any rule or order ofthe Commissioner or of any other State official responsible for the regulationof professional employer services;
(3) Obtained orattempted to obtain the license through misrepresentation or fraud;
(4) Been convicted of afelony;
(5) Been found in afinal judgment or administrative proceeding to have committed fraud or anunfair trade practice; or
(6) Been a controllingperson in another professional employer organization that has had its licenseor registration suspended, terminated, or revoked by any state.
(h) If the Commissionerfinds that the applicant has not fully met the requirements for licensure, theCommissioner shall refuse to issue the license and shall notify the applicantin writing of the denial, stating the grounds for the denial. The applicationmay also be denied for any reason for which a license may be suspended orterminated under G.S. 58‑89A‑155. To obtain a review to determinethe reasonableness of the Commissioner's denial, the applicant shall make writtendemand upon the Commissioner within 30 days after notice is given under G.S.150B‑38(c). The review shall be completed without undue delay, and theapplicant shall be notified promptly in writing as to the outcome of thereview. If the applicant disagrees with the outcome of the review and seeks ahearing, under Article 3A of Chapter 150B of the General Statutes, on theoutcome of the review, the applicant shall make a written demand upon theCommissioner for the hearing within 30 days after notice of the outcome of thereview is given under G.S. 150B‑38(c).
(i) Removal, demotion,or discharge of a controlling person in response to an order of theCommissioner of the alleged unsuitability of that person is an affirmativedefense to any claim by that individual based on the removal, demotion, ordischarge.
(j) The Commissionermay, in the Commissioner's discretion, waive the required evaluation of anofficer, director or controlling person if that officer, director orcontrolling person has been evaluated previously under this Article.
(k) After denial,suspension, or termination of a license, and before issuing a new license orreinstating a license, the Commissioner shall review and consider:
(1) The extent to whichthe applicant or licensee has adequately corrected any problems; and
(2) Whether theapplicant or licensee has demonstrated that the applicant or licensee hadexercised due diligence to avoid the reason or reasons for the denial ortermination.
The applicant or licenseebears the burden of proof with respect to subdivisions (1) and (2) of thissubsection. (2002‑168,s.8; 2004‑162, s. 1.)
