44-1709. Violations of the act; review; penalties. (a) It shall be a violation of the provisions of K.S.A. 2018 Supp. 44-1701 through 44-1711, and amendments thereto:
(1) For a person to knowingly offer or provide professional employer services or use the names PEO, professional employer organization, staff leasing, employee leasing, administrative employer or other title representing professional employer services without registering in accordance with K.S.A. 2018 Supp. 44-1704, and amendments thereto;
(2) for a person to knowingly provide false or fraudulent information to the commissioner in conjunction with any registration application, renewal or in any report required under the provisions of K.S.A. 2018 Supp. 44-1704 or 44-1706, and amendments thereto;
(3) for a person to knowingly make a material misrepresentation to the commissioner, or other governmental agency to which such person is required to submit a report or information;
(4) for a professional employer organization or a controlling person of a professional employer organization to be convicted of a crime:
(A) That relates to the operation of a professional employer organization;
(B) that relates to the ability of the professional employer organization or a controlling person of a professional employer organization to operate a professional employer organization; or
(C) pursuant to 18 U.S.C. § 1033; or
(5) for a person to willfully violate any provision of K.S.A. 2018 Supp. 44-1701 through 44-1711, and amendments thereto, or any rule or regulation adopted by the commissioner pursuant thereto.
(b) Upon a finding, and after notice and an opportunity for a hearing, that a professional employer organization, or a controlling person of a professional employer organization, or a person offering professional employer services has committed a violation under this section, the commissioner may:
(1) Deny the application for registration;
(2) revoke, restrict or refuse to renew a registration;
(3) impose a civil fine in an amount not to exceed $10,000 for each material violation of the provisions of K.S.A. 2018 Supp. 44-1701 through 44-1711, and amendments thereto;
(4) place the registrant on probation for such period of time and subject to such conditions as the commissioner shall specify; or
(5) issue an order to cease and desist those professional employer organization activities and services specified in such order.
(c) The provisions of this section shall be subject to the Kansas judicial review act.
History: L. 2012, ch. 142, § 9; Jan. 1, 2014.
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