Section R20-5-317. Amendment of Employment Agent License

A.      A licensee shall apply to the Department for an amendment to its employment agent license 30 days before:

1.        Changing the name under which the employment agent license is issued; or

2.        Changing the location of the employment agency.

B.       The Department shall review a request for amendment and shall issue an amended license 15 days after receipt of a licensee’s current license and the following, if applicable:

1.        If the licensee changes the name of the employment agency, the licensee shall submit an amendment or rider of the surety bond showing the new name; or

2.        If the licensee changes the licensee’s trade name, the licensee shall submit a copy of the registration of the new trade name with the Arizona Secretary of State and sub- mit an amendment or rider of the surety bond showing the new name.

C.      Transfer or sale of license prohibited.

1.        A licensee shall not transfer to another the licensee’s employment agent license.

2.        A licensee shall not sell the licensee’s employment agent license. A purchaser of a licensee’s business shall not operate the applicant-paid fee business until the purchaser is licensed by the Commission under A.R.S. § 23- 521 et seq. and this Article.

D.      Before a licensee changes its legal status or form of doing business, the licensee shall file an initial application for an employment agent license for the new business.

E.       Relinquishment of license.

F.       Cancellation of the bond by the surety.

1.        The Department shall provide written notice to a licensee within five days of a notice of cancellation of the bond by the surety. A licensee shall submit a new bond or cash deposit to the Department at least 10 days before the existing bond is canceled.

2.        If a licensee fails to provide to the Department a new bond or cash deposit within 10 days before the cancella- tion of the existing bond, the Department shall advise the licensee in writing that the licensee may not act as an employment agent from the date of the cancellation until the date a new bond or cash deposit is received by the Department.

3.        The repeated failure to maintain a surety bond or cash deposit at all times constitutes gross negligence and cause for disciplinary action under A.R.S. § 23-529.

G.      Disassociation of managing agent.

1.        A licensee shall notify the Department within 10 days if any managing agent is disassociated from a licensee.

2.        At the time of disassociation, a licensee shall appoint another managing agent unless an existing managing agent will be managing the employment agency without replacement of the disassociating managing agent.

3.        A newly appointed managing agent shall complete and file a supplemental application within 30 days of appoint- ment.

4.        A newly appointed managing agent shall take and pass the written examination required by A.R.S. § 23-526 and R20-5-306.

5.        The Department shall advise a licensee whether an appli- cation filed by a newly appointed managing agent is deemed complete within 10 days from the date the appli- cation is filed. The Department shall issue findings and an order approving or disapproving the appointment of the newly appointed managing agent within 45 days of the date that the licensee is notified the application is complete. The Department shall disapprove the appoint- ment of the new managing agent if the Department finds one or more of the following conditions:

a.        Material  misrepresentation  or  fraud  in  the  newly appointed managing agent’s supplemental applica-

1.	A licensee shall give the Department 30 days written		tion;
	notice before terminating or discontinuing business as an	b.	The newly appointed managing agent has a history
	employment agent.		or record of dishonesty;
2.	After receipt of a notice of intent to terminate or discon-	c.	The newly appointed managing agent has a history
	tinue, the Department shall conduct an investigation of		or  record  of   financial  instability  or   irregularity
	the licensee’s operation to determine whether the opera-		including a record of misappropriation, conversion,
	tions are in order and in compliance with A.R.S. § 23-521		or  irregular   withholding  or  accounting  of   money
	et seq. and this Article.		belonging to another;
3.	If the Department determines that the licensee’s opera-	d.	The newly appointed managing agent has a history
	tions are in order it shall notify the licensee and the com-		or record of incompetence;
	pany  issuing   the  surety  bond  that  the  Department	e.	The newly appointed managing agent has a history
	approves the discontinuance of the licensee’s business		or record of gross negligence;
	and cancellation of the bond. If the licensee has made a	f.	The newly appointed managing agent has a history
	cash deposit, the Department shall instruct the State Trea-		or record of bribery;
	surer to return the cash deposit. After the Department	g.	The newly appointed managing agent has a history
	notifies the licensee of its approval to discontinue busi-		or record of willful disregard of the requirements of
	ness, the licensee shall return its license to the Depart-		A.R.S. Title 23, Chapter 3, Article 2;
	ment for cancellation.	h.	The newly appointed managing agent has a history
4.	If, after an investigation of the licensee’s operation, the		or record of injury or loss to the public; or
	Department determines that the licensee’s operation is not	i.	The newly appointed managing agent lacks the edu-
	in order (for example, pending claims, refund claims), the		cation, experience, training, or skill to enable the
	Department  shall   not  approve   the  cancellation  of  the		newly  appointed  managing  agent  to  competently
	surety bond or return of the licensee’s cash deposit until		discharge the duties and responsibilities of a manag-
	the licensee resolves all pending matters to the satisfac-		ing agent.
	tion of the Department.

6.        The Department shall deem its findings and order issued under subsection (G) final unless the licensee requests a hearing before the Commission within 30 days of the date that the findings and order is issued. The request for hear- ing shall be in writing, signed by the licensee or the licensee’s legal representative and filed with the Commis- sion. The Commission shall consider the factors in sub- section (G) when approving or disapproving the appointment of a new managing agent. R20-5-312, R20- 5-313, and R20-5-314 shall govern hearing rights and procedure for a request for hearing filed under this sub- section.

Historical Note

Adopted effective March 9, 1981 (Supp. 81-2). R20-5- 317 recodified from R4-13-317 (Supp. 95-1). Section R20-5-317 repealed; new Section R20-5-317 adopted effective September 9, 1998 (Supp. 98-3).