2010 Tennessee Code
Title 62 - Professions, Businesses and Trades
Chapter 43 - Tennessee Employee Leasing Act
62-43-115 - Grounds for disciplinary action.

62-43-115. Grounds for disciplinary action.

(a)  The following constitute grounds for which disciplinary action against a licensee may be taken by the commissioner:

     (1)  Being convicted of or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, bribery, fraud or willful misrepresentation in obtaining, attempting to obtain or renewing a license;

     (2)  Being convicted or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, a crime in any jurisdiction that relates to the operation of a staff leasing company or the ability to engage in business as a staff leasing company;

     (3)  Being convicted of or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, fraud, deceit or misconduct in the classification of employees and reporting of employee wages pursuant to the Tennessee Workers' Compensation Law, compiled in title 50, chapter 6;

     (4)  Being convicted of or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, fraud, deceit or misconduct in the establishment or maintenance of workers' compensation or health coverage, regardless of whether self-insured or otherwise;

     (5)  Being convicted of or found guilty of, or entering a plea of nolo contendere to, regardless of adjudication, fraud, deceit or misconduct in the operation of a staff leasing company;

     (6)  Conducting business without a valid and active license;

     (7)  Failing to maintain evidence of the workers' compensation insurance required pursuant to this chapter;

     (8)  Transferring or attempting to transfer a license issued pursuant to this chapter;

     (9)  Violating this chapter or any lawful order or rule issued under this chapter;

     (10)  Failing to notify the commissioner in writing of any change of the primary business address or the addresses of any of the licensee's offices in the state;

     (11)  Having been confined in any county jail, post-adjudication, or being confined in any state or federal prison or mental institution, or when through mental disease or deterioration, the licensee can no longer safely be entrusted to deal with the public or in a confidential capacity;

     (12)  Having been found guilty for a second time of any misconduct that warrants suspension or being found guilty of a course of conduct or practices that show that the licensee is so incompetent, negligent, dishonest or untruthful that the money, property, transactions and rights of investors or those with whom the licensee may sustain a confidential relation may not safely be entrusted to the licensee;

     (13)  Failing to inform the commissioner in writing within thirty (30) days after being convicted of or found guilty of or entering a plea of nolo contendere to any felony, regardless of adjudication;

     (14)  Determination of liability for civil fraud by any court of competent jurisdiction in any state;

     (15)  Adverse material final action by any state or federal regulatory agency for violations within the scope of control of the licensee;

     (16)  Failure to inform the commissioner in writing within thirty (30) days of an adverse material final action by a state or federal regulatory agency;

     (17)  Failure to meet or maintain the requirements for licensure as a staff leasing company; or

     (18)  Attempting to obtain, obtaining or renewing a license as a staff leasing company or staff leasing group by bribery, misrepresentation or fraud.

(b)  Upon finding that a licensee has violated one (1) or more provisions of subsection (a), the commissioner may take one (1) or more of the following actions:

     (1)  Deny an application for licensure;

     (2)  Revoke, suspend, restrict or decline to renew a license;

     (3)  Impose a civil penalty of up to one thousand dollars ($1,000) for each set of facts constituting a separate violation;

     (4)  Issue a reprimand;

     (5)  Place the licensee on probation for a period of time and subject to conditions that the commissioner may specify; or

     (6)  Impose upon the licensee the cost of investigation and prosecution, including reasonable attorney fees.

(c)  Upon revocation or suspension of a license, the licensee shall immediately return to the commissioner the license that was revoked or suspended.

[Acts 1994, ch. 950, § 16; 1996, ch. 887, § 22.]