North Dakota § 43-55-08 - Disciplinary actions - Complaints - Adjudicative proceedings - Penalties Appeals

§ 43-55-08. Disciplinary actions - Complaints - Adjudicative proceedings - Penalties Appeals

1. The secretary of state may: a. Deny an application for a professional employer organization license; b. Suspend a professional employer organization license for a period of not more than sixty months; c. Request the attorney general to bring an action in district court to recover restitution or penalties imposed under this chapter; or d. Not renew or issue a new professional employer organization license until a professional employer organization has paid any civil penalty or restitution imposed under this chapter. 2. Any person acting in the capacity of a professional employer organization without a license is guilty of a class A misdemeanor. In addition to the license fee due if the person subsequently applies for a license, the person may be assessed a civil penalty by the secretary of state, following written notice to the person of an intent to assess the penalty, in an amount not to exceed three times the amount of the license fee. 3. An individual may file a duly verified complaint with the secretary of state charging that the professional employer organization is guilty of any of the following: a. The conviction of the professional employer organization or a controlling person of the professional employer organization of a crime that relates to the operation of the professional employer organization or which relates to fraud or deceit or the ability of the professional employer organization or the controlling person of the professional employer organization to operate the professional employer organization; b. An individual knowingly making a material misrepresentation or providing false or fraudulent information to the secretary of state or other governmental agency; or c. A willful violation of this chapter. 4. A complaint must be on a form approved by the secretary of state and must set forth sufficient facts upon which a reasonable individual could conclude that any of the acts or omissions in subsection 3 has been committed. 5. The secretary of state shall review a complaint filed under this section. If the secretary of state determines a complaint provides sufficient facts upon which a reasonable individual could conclude that one or more of the acts or omissions set forth in subsection 3 has been committed, the secretary of state may initiate an adjudicative proceeding under chapter 28-32. If, after an adjudicative proceeding or as part of an informal disposition under chapter 28-32, the secretary of state determines that the professional employer organization is guilty of an act or omission charged or if the licensee admits guilt to an act or omission charged, the secretary of state may: a. Suspend or revoke the professional employer organization license; b. Order an administrative penalty of not more than one thousand dollars for each material violation; c. Order restitution in an amount not exceeding five thousand dollars; d. Issue a cease and desist order; or e. Impose a lesser sanction or remedy. 6. Any act or omission under subsection 3 may also constitute grounds for the attorney general to bring an action under chapter 51-15 and may subject the professional employer organization to all provisions, procedures, remedies, and penalties provided for in chapter 51-15. 7. A professional employer organization aggrieved by a decision of the secretary of state in denying, revoking, or suspending the professional employer organization license or ordering restitution or penalties may appeal the decision to the district court of Burleigh County. 8. A professional employer organization may not obtain a license under any name after the denial of an application for a license or during the period of a revocation or suspension. For the purposes of this subsection, a professional employer organization that has had an application for a license denied or which has had a license revoked or 9. suspended includes any officer, director, agent, member, or employee of the professional employer organization. Upon request of the secretary of state or attorney general, a professional employer organization promptly shall provide an audited financial statement verified by a certified public accountant licensed to practice in the jurisdiction in which the accountant is located.