R2-12-809. Restriction, Revocation or Probation of Registration

A. If a PEO fails to comply with any of the requirements of registration the Secretary of State may restrict, revoke or place the PEO on probation until such time as the PEO comes into compliance with the registration requirements. B. If the PEO fails to cure any deficiency within 150 days of the registration renewal date, the Secretary of State may revoke the registration of an applicant. C. If a PEO fails to comply with any of the duties and responsibilities identified in R2-12-811 the Secretary of State may take action pursuant to A.R.S. § 23-575(E) and (F) until such time as the PEO comes into compliance. D. Upon restriction of a registration, the holder of the restricted registration shall: 1. Immediately cease soliciting clients for PEO services. 2. Notify each client of the PEO of the PEO’s restriction within five days after the effective date of the restriction. E. Upon revocation of a registration, the holder of the revoked registration shall: 1. Cease all PEO operations immediately. 2. Notify each client of the PEO of the PEO’s revocation within two days after the effective date of revocation. F. Upon the completion of a period of registration restriction or the reinstatement of a registration that was revoked the PEO shall be placed on probation for one year.