(a) To receive a professional employer organization original license, a person shall file with the department a written application accompanied by the application fee.
(b) The department shall require an applicant for a license to provide information necessary to determine that the applicant meets the licensing requirements of this chapter. The department shall also require the applicant to provide information necessary to determine whether individuals affiliated with the applicant are qualified to serve as controlling persons.

(c) Before denying a license application, the department shall provide written notice to an applicant specifying the reasons for the denial. The department shall provide the applicant at least 30 days after the date of the notice to address the reasons for the denial. For good cause and on a showing of a good faith effort to remedy the reasons for the denial, the executive director may grant an additional 30 days to remedy the reasons for denial.
(d) Removal, demotion, or discharge of a controlling person in response to notice from the department of the alleged unsuitability of that controlling person is an affirmative defense to any claim by that individual based on the removal, demotion, or discharge.
(e) A controlling person who has been evaluated by the department under this chapter is not required to be reevaluated if that person changes the person’s affiliation or employment from one applicant or license holder to another applicant or license holder.
(f) Following denial or revocation of a license, and prior to issuing a new license or reinstating a license, the department shall consider:
(1) the extent to which the applicant or license holder has adequately corrected any problems; and
(2) whether the applicant or license holder has demonstrated that the applicant or license holder had exercised due diligence to avoid the reason or reasons for the denial or revocation.
The applicant or license holder shall bear the burden of proof with respect to Subdivisions (1) and (2).